DSCR Loans in Myrtle Beach, South Carolina
Myrtle Beach is one of the country's most active short-term-rental markets, with millions of annual visitors supporting high-yield STR economics in zoned beach corridors.
Why Investors Use DSCR Loans in Myrtle Beach
Myrtle Beach DSCR investors target one of the largest year-round STR markets in the East Coast — 20M+ annual visitors, well-defined STR zones, and a mature management ecosystem. Long-term demand is also strong from the year-round service economy and continued inbound migration.
A DSCR (Debt Service Coverage Ratio) loan qualifies on the property's rental income rather than the borrower's personal income or tax returns. That structure is well suited to Myrtle Beach investors who want to scale a rental portfolio, close in an LLC, or finance a property whose cash flow is stronger than their personal W-2 picture might suggest.
Rental Property Types in Myrtle Beach
- ✓STR-zoned beach condos in Cherry Grove, Crescent Beach, downtown Myrtle Beach
- ✓STR-zoned houses in North Myrtle Beach and Surfside
- ✓Long-term SFRs in Conway and Carolina Forest
- ✓Townhomes in Murrells Inlet
- ✓Condotels (specialized financing)
Local Rental Demand Drivers
Myrtle Beach's rental market is shaped by specific employers, institutions, and demand-side factors. DSCR underwriting indirectly benefits from this stability — strong, recurring tenant demand supports the rents the property must produce to qualify.
- →Tourism: 20M+ annual visitors
- →Continued retirement and remote-work in-migration
- →Coastal Carolina University
- →Tidelands Health and McLeod Health
- →Boeing aerospace supplier presence in the broader Grand Strand
- →Established STR management infrastructure
Common Investor Loan Scenarios
Typical Myrtle Beach DSCR loan and investor financing scenarios CapitalBridge Group helps real estate investors structure.
North Myrtle Beach STR
STR DSCR loan on a Cherry Grove or Ocean Drive house underwritten with AirDNA + 1007.
Condotel financing
Specialized DSCR program for a Myrtle Beach condotel (zoning-dependent).
Conway long-term SFR
DSCR loan on a long-term Conway or Carolina Forest SFR.
Cash-out from STR
Equity tap on an appreciated STR for next acquisition.
DSCR Loan Requirements Myrtle Beach Investors Should Understand
Property cash flow
Lenders calculate DSCR using the gross monthly rent divided by total PITIA. Most programs target 1.00–1.25 DSCR; some allow sub-1.0 with rate or LTV adjustments.
Credit profile
A 660+ FICO is typical for best pricing, with programs available down to 620 depending on LTV, reserves, and property type.
Down payment & LTV
Purchase LTVs commonly reach 75–80%. Cash-out refis usually cap at 70–75% LTV depending on DSCR and seasoning.
Appraisal & rent schedule
Lenders rely on the appraiser's 1007 rent schedule or, for STRs, the 1007 plus AirDNA / market data. Existing lease can be used for stabilized rentals.
Reserves
Most programs require 3–6 months of PITIA reserves per subject property, sometimes more for portfolios or short-term rentals.
Entity ownership
DSCR loans can close in an LLC, LP, or corporation. Personal guarantees are standard, but the loan does not report on consumer credit.
Local Considerations for Myrtle Beach Investors
Myrtle Beach and North Myrtle Beach have well-defined STR zoning maps. Coastal insurance and flood are dominant variables — VE zones and windstorm coverage are common. SC 6% rental tax basis applies. Condotels (commercial-style zoning) often require specialized DSCR programs.
Myrtle Beach DSCR Loan FAQs
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