DSCR Refinance for Airbnb Properties in Myrtle Beach, SC

Introduction

Myrtle Beach is one of the most active short-term rental markets on the East Coast, and investors who got in early are now sitting on significant equity. If you own an Airbnb or vacation rental in the area, a DSCR refinance could be your fastest path to unlocking that equity and reinvesting it into your next deal — without showing a single W-2 or tax return. Lendmire offers nationwide DSCR investor loan programs built specifically for real estate investors, and Myrtle Beach properties qualify.

 

Unlike conventional refinancing, which weighs your personal income, employment history, and debt-to-income ratio, a DSCR loan qualifies the property on its own rental income. If the cash flow supports the loan, you can refinance — LLC ownership, self-employment, or a complex tax return are not disqualifying factors.

 

This guide covers everything Myrtle Beach STR investors need to know about using a DSCR refinance: how it works, what you qualify for, how equity recycling plays out in this specific market, and how to move fast when the next deal shows up.

 

What Is a DSCR Loan?

A DSCR loan qualifies based on a property’s Debt Service Coverage Ratio — the relationship between gross rental income and the total monthly payment. The formula is: Monthly Gross Rents ÷ PITIA (principal, interest, taxes, insurance, and any association dues). For short-term rentals, the lender reduces gross rents by 20% before running the calculation, which reflects seasonal vacancy and platform fees. Learn more about how DSCR loans work and why they have become the go-to tool for rental investors who want to scale without income verification.

 

DSCR Quick Reference

Formula: Monthly Gross Rents ÷ PITIA

DSCR ≥ 1.00: Income covers the full payment

DSCR < 1.00: Sub-1.0 financing available with restrictions

STR Income: Gross rents reduced by 20% before calculation

No W-2s. No tax returns. No DTI requirement.

 

Why Myrtle Beach DSCR Refinance Matters for Investors

Myrtle Beach has been one of the most consistent short-term rental performers in the Southeast for the past several years. Tourism is the backbone of the local economy, with the area drawing over 14 million visitors annually. The Grand Strand stretches more than 60 miles of coastline, and investors with properties from Garden City Beach up through North Myrtle Beach have seen occupancy rates and rental rates climb significantly since 2020.

 

For investors who purchased between 2018 and 2022, property values in many Myrtle Beach submarkets have increased substantially. That appreciation is sitting in the equity — and a DSCR cash-out refinance is the most direct way to access it without selling or taking on a personal-income-based loan. Pulling equity out of a stabilized Myrtle Beach vacation rental and reinvesting it into a new property is a strategy investors are actively executing right now.

 

The DSCR model is also particularly well-suited to this market because STR income in Myrtle Beach tends to be seasonally front-loaded — peak season occupancy numbers are strong, and many properties average out to DSCR ratios that clear the 1.00 threshold comfortably when annualized correctly. Investors who work with a lender experienced in STR DSCR programs get fair calculations based on actual performance, not worst-case assumptions.

 

Key Benefits of a DSCR Refinance in Myrtle Beach

• No income verification — qualify based on rental income from the property, not your personal tax returns or W-2s
• LLC ownership accepted — refinance properties held in an LLC without triggering a due-on-sale clause or losing entity protection
• STR income counts — Airbnb and VRBO income is eligible; lender uses gross rental income reduced by 20% for the DSCR calculation
• Portfolio scaling — pull equity from a stabilized Myrtle Beach property and use it as down payment on your next investment
• Rate-and-term options available — lower your rate or restructure your term without income docs if you don’t need cash out
• Closes in as few as 15 days — move fast when an opportunity arises in a competitive coastal market

 

Thinking about a rental property in Myrtle Beach?

Lendmire’s specialists work with investors across the country — no W-2s, no tax returns, just the property’s numbers. Call us at 828-256-2183 or apply online to see what you qualify for.

 

DSCR Loan Requirements

These figures reflect current DSCR program parameters available through Lendmire’s lending network. All qualification is based on the property’s rental income — not personal income.

 

Key Qualification Figures at a Glance

Credit Score: 640 minimum (700+ for best LTV); 660 minimum for refinance

LTV: Up to 75% on cash-out refinance (700+ FICO, DSCR ≥ 1.00, loan ≤ $1.5M)

DSCR Ratio: 1.00 standard minimum; sub-1.0 available with restrictions

Loan Range: $100,000 – $3,500,000 (1–4 unit)

Reserves: 2 months PITIA standard; 6 months for loans >$1.5M

 

Credit score details:

• 640 FICO minimum for DSCR ≥ 1.00 on loans up to $3,000,000 (purchase only at 640–659)
• 660 FICO minimum for most refinance and cash-out transactions
• 700 FICO for first-time investors
• Sub-1.00 DSCR requires 660 minimum; options narrow below 680

 

LTV and down payment:

• Cash-out refinance: up to 75% LTV (700+ FICO, DSCR ≥ 1.00, loan ≤ $1,500,000)
• 2–4 units and condos: max 70% LTV on refinance
• Condotels: max 65% LTV on refinance
• Declining markets or properties in FL, NJ, NY, CT, IL: max 70% refi LTV

 

Loan terms:

• 30-year fixed, 40-year fixed
• 5/6 ARM, 7/6 ARM, 10/6 ARM (30-day SOFR index)
• Interest-only options available on most products (10-year I/O period)

 

DSCR vs. Conventional Investment Loans

For Myrtle Beach STR investors specifically, the difference between these two loan types is significant. A conventional lender will try to qualify you on personal income — and if your rental income shows up on a Schedule E with depreciation and write-offs, your taxable income may look much lower than your actual cash flow. DSCR loans skip that entirely. For a full breakdown, see the DSCR vs conventional investment loan comparison.

 

• Income verification: DSCR uses property cash flow only; conventional requires W-2s or personal tax returns
• DTI limits: DSCR has no DTI requirement; conventional caps DTI at 43–50%
• Ownership structure: DSCR loans are LLC-friendly; conventional loans typically require personal ownership
• STR income: DSCR lenders can use Airbnb/VRBO gross rents (with 20% reduction); conventional lenders often require 2-year history
• Closing speed: DSCR can close in as few as 15 days; conventional refinance timelines often run 30–60 days

 

Myrtle Beach Investment Submarkets: DSCR Refinance Strategy

North Myrtle Beach

North Myrtle Beach has emerged as a strong performer for short-term rental investors, particularly in neighborhoods like Crescent Beach and Cherry Grove. Properties in this corridor tend to command premium weekly rates during peak summer season, and year-round demand from golf tourists and snowbirds helps stabilize annual income averages.

Investors who purchased condos or small SFRs in North Myrtle Beach in the 2019–2021 window have seen meaningful appreciation. A DSCR cash-out refinance at 75% LTV in this submarket can unlock enough equity to fund a second coastal property down payment entirely — without selling the original asset.

 

Surfside Beach and Garden City

Surfside Beach sits just south of the main Myrtle Beach tourist strip and carries a quieter, more residential vacation feel. Garden City Beach, at the southern end of the Grand Strand, draws families looking for more affordable vacation options — and it has become increasingly popular with investors for exactly that reason.

Properties in these areas tend to have lower acquisition costs relative to comparable STR income, which can produce DSCR ratios that perform well even after a cash-out refinance increases the loan balance. Investors using DSCR financing in Surfside Beach and Garden City frequently target the 1.10–1.20 DSCR range to preserve refinance headroom.

 

The Myrtle Beach Boardwalk Corridor

The core Myrtle Beach market — Ocean Boulevard, the boardwalk, and the central tourist corridor — is the most active for short-term rental turnover and the highest gross income potential. Weekly rental rates for ocean-view properties in peak season are among the strongest in the Southeast coastal market.

The tradeoff is that acquisition prices are also highest in this corridor. Investors who already hold properties here and are sitting on 30–40% equity have an obvious opportunity: pull that equity via DSCR cash-out refi, redeploy it into a lower-cost STR market, and hold both assets for long-term appreciation.

 

Pawleys Island and Litchfield Beach

South of Murrells Inlet, Pawleys Island and Litchfield Beach attract a higher-income short-term rental clientele who book longer stays and return year after year. Turnover costs are lower, occupancy rates are solid, and average daily rates hold up well outside of peak summer months.

These submarkets work particularly well for investors interested in DSCR financing for higher-value properties. The STR income profile here tends to be more stable on an annualized basis, which supports stronger DSCR calculations and gives investors more flexibility on loan structure — including interest-only options that further improve monthly cash flow during a refinance.

 

Myrtle Beach Condotels and Oceanfront Condos

Myrtle Beach has a large inventory of condotel units — resort-managed oceanfront condos that are rented through a property management pool. These units are popular with investors because they are fully turnkey and generate STR income with minimal management involvement.

Condotel DSCR financing carries slightly different parameters: maximum LTV on refinance is 65%, with loan amounts ranging from $150,000 to $1,500,000. Credit score and DSCR ratio thresholds are the same as standard property types. Investors in the Ocean Front Drive and Shore Drive corridors should confirm their property classification before applying, as some buildings qualify as standard condos while others fall into the condotel category.

 

Murrells Inlet: The Seafood Capital Play

Murrells Inlet has developed into one of the better-kept investment secrets on the Grand Strand. It draws a consistent vacation crowd with its famous restaurant row, waterway access, and proximity to both Myrtle Beach and Pawleys Island. STR properties in Murrells Inlet tend to have lower price points and strong occupancy relative to acquisition cost.

Investors using DSCR loans in Murrells Inlet often target modest 3–4 bedroom SFRs that cash flow at DSCR ratios of 1.15–1.30. For a DSCR refinance, these ratios give investors meaningful flexibility — enough to pull 70–75% LTV cash out and still maintain positive DSCR coverage on the new, higher loan balance.

 

Short-Term Rental and Airbnb Applications in Myrtle Beach

Myrtle Beach is purpose-built for the short-term rental market, and DSCR lenders that specialize in STR financing understand how to calculate income from platforms like Airbnb and VRBO correctly. For everything you need to know about STR-specific DSCR underwriting, see the DSCR loan guide for Airbnb and short-term rentals.

 

• Airbnb and VRBO income is eligible — lenders use gross rents reduced by 20% to account for vacancy and platform fees before calculating DSCR
• No 2-year STR history required — some lenders will accept a market rent appraisal or shorter income history for newer vacation rental properties
• LLC ownership is fully supported — many Myrtle Beach investors hold vacation rentals in an LLC for liability protection, and DSCR lenders accommodate this without requiring personal guarantees in some programs
• Interest-only options available — choosing an I/O loan term on a refinance reduces monthly PITIA, which can meaningfully improve DSCR ratios for highly seasonal properties

 

Example DSCR Scenario: Myrtle Beach Vacation Rental

Property: 3-bedroom oceanfront condo in North Myrtle Beach, SC

Purchase price: $410,000 (purchased in 2021)

Current estimated value: $540,000

Target cash-out refinance loan: $405,000 (75% LTV)

Estimated monthly gross STR rent: $5,200 (annualized from Airbnb booking history)

STR-adjusted rental income (80% of gross): $4,160

Estimated PITIA on new loan: $3,180

DSCR: $4,160 ÷ $3,180 = 1.31

 

At a 1.31 DSCR, this property comfortably qualifies for a cash-out refinance at 75% LTV. The investor pulls approximately $135,000 in equity tax-free, which can be deployed as a down payment on a second Myrtle Beach property or a DSCR purchase in another market. No income docs required — the STR cash flow is the qualification. LLC ownership is welcome.

 

This is exactly how many investors scale using DSCR loans in Myrtle Beach.

 

Ready to run the numbers on your next Myrtle Beach property?

Lendmire closes DSCR loans in as few as 15 days — no income docs, no W-2s, and LLC ownership is welcome. Reach out today at 828-256-2183 and let’s get started.

 

DSCR Refinance Options for Myrtle Beach Investors

Myrtle Beach investors have two primary refinance paths through a DSCR loan: cash-out refinance and rate-and-term refinance. Both qualify on property income only. For a full overview of available programs, see DSCR refinance loan options.

 

Cash-Out Refinance

The cash-out DSCR refinance is the most popular tool for Myrtle Beach STR investors who have built equity through appreciation or loan paydown. Maximum LTV on a cash-out refinance is 75% for standard SFRs and 1–4 unit properties (700+ FICO, DSCR ≥ 1.00, loan ≤ $1,500,000). Condotels are capped at 65% LTV on a refinance.

Cash-out proceeds from a DSCR refinance have no restrictions on use within investment contexts — investors commonly use the funds for down payments on new acquisitions, property improvements, or paying off other investment property debt including hard money loans.

 

Rate-and-Term Refinance

A rate-and-term DSCR refinance lets investors lower their interest rate or restructure their loan term without pulling cash out. This is a practical move for investors who locked in a higher rate during a purchase or who want to convert an ARM product into a fixed-rate loan for long-term stability.

Rate-and-term refinances on DSCR loans follow similar LTV rules as cash-out, but without the cash-out premium on rate. For Myrtle Beach investors with strong equity positions and no immediate need for capital, a rate-and-term refinance can meaningfully improve monthly cash flow.

 

Delayed Financing

Investors who purchased a Myrtle Beach property with cash can access a DSCR cash-out refinance immediately — with no seasoning period required — through the delayed financing exception. The loan is sized based on the original documented purchase price, not the current appraised value. This strategy lets investors move fast on a cash purchase and then pull their capital back out within weeks.

 

Seasoning Requirements

For properties not purchased with cash, the standard DSCR cash-out refinance requires a 6-month ownership seasoning period. This is the shortest requirement available in the investment property financing market — conventional lenders typically require 12 months. Investors who purchased 6 or more months ago are generally eligible to refinance immediately.

 

Why Myrtle Beach Investors Choose Lendmire

• Specialized DSCR expertise — Lendmire works exclusively in investor financing, including DSCR programs built around STR and Airbnb properties
• Recognized nationally — Lendmire was named a Scotsman Guide Top Mortgage Workplace, reflecting its team’s expertise and track record with investor clients
• Closes in as few as 15 days — critical in a competitive coastal market where deals don’t wait
• LLC ownership supported — close in your entity name and maintain your liability protection
• No income docs — no W-2s, no tax returns, no employment verification of any kind
• Lendmire works with investors across 40 states — not limited to South Carolina
• Multiple loan structures — fixed, ARM, interest-only, and 40-year terms available to optimize cash flow

 

Lendmire is a great option for DSCR loans, offering flexible solutions for real estate investors across the country.

 

Frequently Asked Questions

What is the minimum credit score for a DSCR loan?

The minimum is 640 FICO for DSCR loans with a ratio at or above 1.00 on loans up to $3,000,000. For most refinance and cash-out transactions, the minimum is 660 FICO. First-time investors are required to have a 700+ FICO score.

 

Do DSCR loans require tax returns or W-2s?

No. DSCR loans have no income documentation requirement. Qualification is based entirely on the property’s rental income relative to the monthly loan payment. You will not be asked for personal tax returns, W-2s, pay stubs, or employment verification.

 

Can I use an LLC to get a DSCR loan?

Yes. DSCR loans are fully compatible with LLC ownership. This is one of the primary reasons real estate investors use DSCR financing — you can close the loan in your entity name without sacrificing your liability protection or triggering a due-on-sale clause.

 

Is Myrtle Beach a good market for DSCR loan investment?

Yes — Myrtle Beach consistently ranks among the strongest short-term rental markets in the Southeast. Annual visitor volume is substantial, peak-season rental rates are strong, and the market has a wide range of price points from entry-level condotels to high-value oceanfront homes. DSCR lenders who understand STR income are well-positioned to serve investors in this market.

 

Can I get a DSCR loan on a property in South Carolina?

Yes. South Carolina is not on the restricted-LTV state list, so standard DSCR program LTVs apply. Lendmire works with investors in South Carolina and across 40 states. One important note: some beachfront and high-flood-zone properties may carry higher insurance premiums that affect DSCR calculations, so running accurate PITIA estimates before applying is important.

 

How soon can I do a DSCR cash-out refinance after purchasing a Myrtle Beach property?

If you purchased with cash, you can refinance immediately through delayed financing — no seasoning period required. If you used financing, you must wait 6 months from your purchase date. That is the minimum seasoning period for DSCR cash-out refinancing, and it is shorter than the 12 months required by most conventional lenders.

 

Get Started with Your Myrtle Beach DSCR Refinance

If you own a short-term rental or vacation property in Myrtle Beach and want to put that equity to work, a DSCR refinance is the most efficient tool available. No personal income docs, no DTI calculation, and no waiting on a slow conventional process. Whether you want to pull cash out for your next acquisition or lower your rate on a stabilized property, the DSCR program is built for exactly this situation.

 

When you are ready to move, explore DSCR loan options with Lendmire and see what your Myrtle Beach property qualifies for.

 

Whether you’re buying your first rental or your fifteenth, our team can move fast and get it done right. Don’t wait on a deal — call Lendmire now at 828-256-2183.

 

The right DSCR lender makes the difference between closing on time and losing the deal. Make the call today.

 

Disclaimer

For informational purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. All property values, rental rates, and market data referenced are approximate and based on publicly available information as of the date of publication. Lendmire is a licensed Mortgage Broker, NMLS# 2371349, Equal Housing Opportunity.