The Quick Read: Usually 20% to 25% down on a purchase. That matches the 75% to 80% loan-to-value (LTV) most programs in Lendmire’s wholesale network use, and the requirement is the same in South Carolina as anywhere else. Select high-leverage programs reach 85% LTV, or 15% down, but they want a stronger credit score, and everything remains subject to lender guidelines.
- Most purchase files land at 75%–80% LTV, so 20%–25% down.
- Select high-leverage programs reach 85% LTV (15% down) with roughly a 700+ score.
- Cash-out refinances top out around 75% LTV, and there is no down payment on a refinance.
- Reserves, closing costs, and the appraisal come on top of the down payment.
- No state-specific LTV overlay applies. South Carolina follows the standard purchase tiers. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Here is the straight version. A DSCR loan is a loan built for non-owner-occupied rental property. DSCR stands for debt service coverage ratio, which compares the property’s rent to its monthly housing payment. Because the loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, the lender protects itself with equity instead of personal income paperwork. That equity is your down payment.
DSCR Calculator
Run the numbers in South Carolina
Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
Prefilled with starting assumptions — enter your own rent or nightly figures, taxes, insurance, and HOA for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Rent, nightly rate, occupancy, taxes, and insurance are editable estimates. Short-term rental figures are estimates only and vary significantly by season, property type, management approach, and local short-term-rental rules — confirm local regulations before relying on them. Qualifying income for short-term rentals varies by program — some use appraisal market rent, others use documented STR history or projections — and is confirmed in underwriting. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
Is There a South Carolina Down Payment Rule?
No. Across the programs Lendmire places files with, no South Carolina overlay changes the purchase leverage tiers. A Charleston condo and a Greenville duplex face the same LTV caps.
What does change by location is the math around the down payment. Rents, taxes, insurance, and HOA dues differ from one South Carolina market to the next. Those costs sit inside the payment, so they move your coverage ratio. A coastal property with heavy insurance costs can need more equity to reach the same coverage as an inland rental. That is a coverage question, not a different down payment rule.
How Does LTV Turn Into a Down Payment?
Down payment is the purchase price minus the loan. The maximum LTV sets your minimum cash in the deal. Here is the translation:
| Max LTV | Down payment | Typical fit |
|---|---|---|
| 80% | 20% | Stronger credit, solid coverage |
| 75% | 25% | Common across the network |
| 85% | 15% | Select programs, roughly 700+ score |
Pick a price and multiply. The calculator on this site can do the dollar conversion as an illustrative estimate. Treat these as typical ranges, not promises. Each file is underwritten individually.
Most programs in the network want around a 660 score. A 620 floor exists in parts of the network, usually with lower leverage. A 700 or better unlocks the strongest tiers.
What Moves Your Down Payment Up or Down?
Four things matter most: credit, coverage, property type, and loan size.
Credit. A higher score buys more leverage. A lower score usually means 25% down or more.
Coverage. 1.00 is where many select programs start. That means the rent roughly equals the full monthly payment, including principal, interest, taxes, insurance, and HOA dues. Stronger ratios open better pricing and leverage. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. In practice, that means a bigger down payment.
Property type. Single-family, condos, and 2-4 unit properties follow the standard tiers. Short-term rentals are tighter: purchase leverage tops out at 75% LTV, and refinances sit around 70%. Expect a 640+ score and about 12 months of hosting history. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Loan size. Standard programs run up to $3,000,000. Above $2,500,000, the network generally holds to 30-year fixed structures. Larger balances also bring heavier reserve requirements.
Is Zero Down Possible?
No. Practitioner experience across the network is consistent: institutional DSCR lenders want real equity. Market surveys tend to put typical purchase down payments in the 20%–30% range. Lendmire’s network figures are the ones above: 20%–25% on most purchases, 15% in select cases.
FHA and VA style low-down-payment programs do not apply either. Those are owner-occupant products. DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
Can You Borrow the Down Payment?
Generally no. Most programs want the down payment to come from your own sourced funds. A second-position loan that funds the down payment is typically disallowed, because lenders want you to have capital at risk.
Expect to document where the money came from. Recent bank statements usually do the job.
What About Cash-Out Refinances?
A refinance has no down payment. It has equity, meaning the part of the value left after the new loan. Cash-out refinances top out around 75% LTV across most of the network, and about six months of seasoning is the common expectation. Seasoning is the waiting period a lender wants between buying a property and refinancing it. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
On a standard rental, that 75% ceiling applies. On short-term-rental collateral, cash-out is 70%. If you plan to buy and then pull equity later, Lendmire’s DSCR cash-out refinance page covers how that works.
How Does a Bigger Down Payment Help the Ratio?
More down means a smaller loan. A smaller loan means a smaller payment. A smaller payment raises your coverage ratio. That is the lever.
Picture a rental that sits just under 1.00 at 20% down. Moving to 25% or 30% down shrinks the payment enough that the same rent can clear the benchmark. This is also how a thin deal becomes workable on a select program. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
There is a ceiling on that logic. A larger down payment never erases leverage caps, credit floors, reserve rules, or property eligibility. The strongest files clear both tests: enough equity and enough rental coverage.
Clearing 1.00 is also not the same as positive cash flow. DSCR compares rent to the housing payment only. Repairs, vacancy, management, utilities, and capital expenses sit outside the calculation. Budget for them separately.
One more practical point on coverage. The appraisal sets both value and rent. Lenders order a rent schedule, Fannie Mae’s Form 1007, which estimates market rent on a single-family investment property. The form instructions explain what the appraiser must document. Lenders commonly credit the lower of the in-place lease and the appraiser’s market rent. DSCR lenders borrow only the form name; none of Fannie Mae’s loan rules apply to these files.
What Does Your Total Cash Look Like?
The down payment is not the whole check. Plan for four buckets:
- Down payment: 15%–25% of the price, depending on the program.
- Closing costs: lender, title, and appraisal fees.
- Reserves: liquid funds left after closing. Commonly around 6 months of PITIA. Conservative rate-term files at modest leverage under $1,500,000 can see reserves waived. Loans above that size typically step up to about 9 months.
- Cushion for surprises: an appraisal that comes in under the contract price means you fund the gap.
That last one catches buyers. If value comes in low, the loan is sized on the lower number, and your cash requirement rises.
Which Tier Are You In?
Use this self-check:
| Your profile | Likely down payment |
|---|---|
| 700+ score, solid coverage, 1-4 units | 15%–20% on select programs |
| Around 660, coverage near 1.00 | 20%–25% |
| 620 floor, thinner file | 25% or more |
| Short-term rental purchase | Up to 75% LTV, so 25% or more down |
| Coverage below 1.00 | Larger down payment, select lenders only |
Treat the table as a starting point. Pricing, reserves, and eligibility still depend on the lender and the file.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
How Can You Lower the Cash You Need?
Realistic levers are few:
1. Raise your credit score before applying. Moving into the 700+ tier can open higher leverage.
2. Negotiate the price or seller credits where the program allows them.
3. Choose a property that rents strongly for its price, so coverage clears with less equity.
4. Plan a later refinance. Recycling equity from one property funds the next down payment.
Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
Key Terms Defined
DSCR: the debt service coverage ratio, which is monthly rent divided by the monthly housing payment.
LTV: loan-to-value, meaning the loan amount as a percentage of the property’s value.
PITIA: principal, interest, taxes, insurance, and HOA dues, the full monthly payment.
Seasoning: the waiting period between buying a property and refinancing it.
Reserves: liquid funds you hold after closing to cover payments if rent stops.
Frequently Asked Questions
Is 15% down really available?
Yes, on select high-leverage programs that reach 85% LTV. Expect to need roughly a 700+ score and strong coverage. Most files in the network sit at 75% to 80% LTV instead.
Does South Carolina require more down than other states?
No. The network carries no state-specific LTV overlay, so the standard purchase tiers apply. Local insurance, taxes, and HOA dues affect your coverage ratio, not the leverage cap.
Can an LLC buy the property?
Often yes, subject to lender program eligibility. Lenders then ask for entity documents along with your own credit and sourced funds.
Do manufactured homes qualify?
No. Single- and double-wide manufactured homes, log homes, and barndominiums are not offered in the network’s DSCR programs.
Does a bigger down payment guarantee approval?
No. More equity can lift your coverage ratio, but credit floors, reserves, and property eligibility still apply. Lendmire’s complete DSCR loans guide walks through the full picture.
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals.
About Lendmire
Lendmire, NMLS# 2371349, is a non-QM mortgage broker serving real estate investors in 41 markets, including Washington, D.C., through DSCR investor loan programs. Qualification is generally reviewed around the subject property’s rental income, not the borrower’s W-2 history — a practical fit for LLC-titled portfolios and self-employed investors. All scenarios remain subject to lender review and program guidelines. Two consecutive Scotsman Guide Top Mortgage Workplace recognitions (2025, 2026).
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References
1. Fannie Mae – Form 1007, Single-Family Comparable Rent Schedule
2. Freddie Mac/Fannie Mae – Form 1000/1007 instructions
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Much Down Payment Does a DSCR Loan in Iowa Require? · How Much Down Payment Does a DSCR Loan in Virginia Require? · How Much Down Payment Does a DSCR Loan in California Require?
Guides: DSCR Loans in South Carolina
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.