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## What does non-recourse mean?

<br>

**Non-recourse** refers to a type of loan agreement where the lender can only look to the collateral pledged as security for the loan in case of default, and not to the borrower personally, for recovery of the debt. This means that in the event of default, the lender cannot seek payment or recovery from the borrower's personal assets or income.

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## Non-recourse loan interest rates

<br>

Non-recourse loans are typically priced at a higher interest rate than recourse loans in order to compensate the lender for accepting less security of principal. Lenders may also require a higher [DSCR](https://www.offermarket.us/dscr-loan) in order to qualify for a given loan-to-value or LTV.

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## Are DSCR loans non-recourse?

<br>

Not all DSCR loans are non-recourse. In fact, most private lenders require or strongly prefer full recourse. Loan programs that are non-recourse commonly include a [pledge of shares agreement](https://www.offermarket.us/real-estate-glossary/pledge-of-shares) and [bad boy carve outs](https://www.offermarket.us/real-estate-glossary/bad-boy-carve-outs).

<br>

### 1 - 4 Unit DSCR Loans

<br>

Most [DSCR loan programs](https://www.offermarket.us/blog/dscr-loan-no-down-payment) for 1-4 units require full recourse. This means that at least one member of the borrowing entity, typically an LLC, serves as a personal guarantor for the life of the loan.

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### Portfolio DSCR Loans

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Portfolio DSCR loans of 2 or more 1-4 unit properties can be either full recourse or non-recourse. 

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### Multifamily DSCR Loans

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Likewise, multifamily DSCR loans for 5+ unit properties can be either full recourse or non-recourse.

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Ultimately, whether a loan is recourse or non-recourse depends on the type of loan and the risk tolerance of the lender and borrower.

<br>

The terms of the loan agreement will determine whether a DSCR loan is recourse or non-recourse, and the decision will depend on various factors, including the creditworthiness of the borrower, the type of collateral pledged as security, and the lender's risk tolerance.

<br>

## What's the difference between recourse and non-recourse loans?

<br>

A recourse loan is a type of loan or financing agreement where the borrower is personally liable for repayment of the debt, and the lender has the right to seek repayment from the borrower's personal assets or income in the event of default. This means that [the lender](https://www.offermarket.us/blog/best-dscr-lenders) has a claim not only on the collateral pledged as security for the loan, but also on the borrower personally.

<br>

A non-recourse loan, on the other hand, is a type of loan where the borrower is not personally liable for repayment of the debt in the event of default. The lender's only remedy in the event of default is to foreclose on, or seize, the collateral pledged as security for the loan, and not to seek repayment from the borrower personally.

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In general, non-recourse loans are considered to be less risky for the borrower, but they also typically come with stricter terms and higher interest rates to compensate the lender for the increased risk.

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## Are fix and flip loans non-recourse?

<br>

While it depends on the lender, most fix and flip loans are recourse and therefore require a personal guarantor.

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## Why do lenders require personal guarantee?

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Lenders require a [personal guarantee](https://www.offermarket.us/blog/hard-money-lender#:~:text=Personal%20Guarantees.%20Private,hard%20money%20loan.) from borrowers as a way to secure their investment in case of default on a loan. A personal guarantee is a commitment from the borrower to repay the debt using their personal assets or income if the borrower's business is unable to repay the loan.

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Lenders ask for personal guarantees because it provides them with added protection and security in the event that the borrower's business is unable to repay the loan. This helps the lender to recover their investment even if the borrower's business fails or goes bankrupt. Personal guarantees also give lenders a way to enforce repayment if the collateral pledged as security for the loan is not sufficient to cover the debt.

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In general, lenders require personal guarantees when the borrower has a limited credit history or when the loan amount is large and the collateral is inadequate to secure the debt.

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Non-recourse lending means there is no personal guarantee required, protecting your assets.

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Non-Recourse | OfferMarket Real Estate Glossary

Non-Recourse

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**Last updated:** April 15, 2024

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![DSCR Loan South Carolina - Cover Photo](https://cms.offermarket.us/uploads/DSCR_Loan_South_Carolina_Cover_Photo_bd4401845c.jpg)

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Looking for a DSCR loan for your South Carolina investment property? Welcome and thank you for stopping by! We encourage you to stick around, **[get an instant quote](https://www.offermarket.us/loans)**, and take advantage of our market-leading insights and tools designed to help you build wealth through real estate:

<br>

- [DSCR Loan Interest Rates Index](https://www.offermarket.us/blog/dscr-loan-interest-rates)
- [DSCR Calculator](https://www.offermarket.us/tools/dscr-calculator)

<br>

We fund a lot of DSCR loans in South Carolina and we've built relationships with wonderful clients in the state. We're particularly active in Beaufort, Charleston, North Charleston and Summerville, and we can fund your next purchase or refi anywhere as long as it's not rural. 

<br>

We love working with rental property investors in the Palmetto State, and we sure hope to have the opportunity to work with you.

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## South Carolina DSCR loan interest rates

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<div style="width:100%; overflow-x:scroll">
<iframe title="DSCR Loan Interest Rates Index (30 year fixed) chart"  width="600" height="371" style="" seamless frameborder="0" scrolling="no" src="https://docs.google.com/spreadsheets/d/e/2PACX-1vRJPw1fYWqj_5mdlNBrD5MLne_ApqpOXlNmkmNE_sZfPgsbn9pU0mWUenEO1x6WE9237S7jzaQE2Hig/pubchart?oid=262687025&amp;format=interactive"></iframe>
</div>

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*Source: [DSCR Loan Interest Rates Index](https://www.offermarket.us/blog/dscr-loan-interest-rates)*

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Here are frequently asked questions from our South Carolina clients:

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## What is a DSCR loan?

<br>

DSCR stands for *debt service coverage ratio*, and it is a simple metric to determine if an investment property generates more or less income than the monthly mortgage payment. A DSCR  loan is simply a mortgage specifically for a rental property where the maximum loan amount is determined by the DSCR of the property. As your loan amount increases, your monthly mortgage payment increases, and your DSCR decreases. 1.1 is currently the minimum DSCR to qualify for a given loan amount. Use our [DSCR Calculator](https://www.offermarket.us/tools/dscr-calculator) to help you run your numbers, understand DSCR, max loan amount, monthly cash flow, cash to close and cash out for your next deal.

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## Can I cash out refi with no seasoning?

<br>

Yes! OfferMarket is one of the only private lenders with a [cash out refi no seasoning](https://www.offermarket.us/blog/cash-out-refi-no-seasoning) program. Instead of waiting for 6 months to refinance your rental property, you can refi as soon as your renovation is completed and the property is leased. Why should you have to wait to pull cash out of a property and reinvest it into growing your business?

<br>

## Do I qualify for a DSCR loan?

<br>

**Borrowing Entity:** Because our loans are business purpose, we only fund loans to business entities. If title is currently held in your personal name, you would need to transfer it into an LLC or corporation before we can fund.

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**Credit Score:** the minimum credit score is 660. If you have more than one borrower in your borrowing entity, the ownership of each member will determine which credit score we use. If you do not want to use one of the member's credit score, they will need to own less than 50% of the borrowing entity. We use a [tri merge credit report](https://www.offermarket.us/blog/what-is-a-tri-merge-credit-report), which is a hard credit pull that collects your credit report from Experian, Equifax and Transunion, and we take the middle score. So, if your tri merge report is 721, 697, 738, then we will use 721 to determine your loan terms.

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**Background Check:** if you have a clean background report, then you're all set. If you have one or more bankruptcy, felony or misdemeanor on your background report, then we will need you to provide a letter of explanation to determine if you are eligible for funding.

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**Non-Rural:** if your property is [designated as rural](https://www.offermarket.us/blog/rural-designation-search-tools) or the appraiser indicates that your property is rural on their appraisal report, then we may not be able to fund your loan. DSCR loans are meant for properties in highly liquid markets where you can quickly sell the property for market price if need be.

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**Minimum As Is Value:** currently, we require your property to appraise for at least $100,000, and we require your loan amount to be at least $75,000.

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## What is the maximum DSCR loan amount?

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**Purchase:** we can fund up to 80% of the purchase price as long as the property does not appraise for below the purchase price, and the appraisal market rent supports that loan amount.

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**Rate and term refinance:** if you have an existing loan on the property, we can refinance up to 80% LTV as long as you do not receive more than 2% of the loan amount as a cash out at settlement.

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**Cash out refinance:** we can fund up to 75% LTV.

<br>

If you're looking for more higher leverage than the above terms (i.e. higher LTV, lower down payment), we urge you to use caution because legitimate DSCR lenders will rarely offer more leverage than what is offered by OfferMarket.

<br>

## How long does it take to get a DSCR loan?

<br>

Our target for every DSCR loan is to fund in **20 to 25 days**. Here are the most common reasons why funding can be delayed:

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**Appraisal delay:** 3rd party appraisers provide a report due date but may miss that deadline. The appraiser's report may need to be revised and the appraiser may be delayed in providing their revised report.

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**Title work delay:** title companies and closing attorneys may take more time to complete the title work, especially if they are waiting on a lien certificate from a the county or title is clouded.

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**Borrower delay:** in your OfferMarket Loan File, we provide you with a checklist of items that we need in order for your file to be ready for final review and loan approval. Our processing team will follow up to remind you when there are items that we need you to take care of, and if you do not take action on these items in a timely manner, then your loan will be delayed.

<br>

## Best cities to buy rental properties in South Carolina

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<div style="display: grid; grid-template-columns: repeat(1, minmax(0, 1fr)); overflow: auto; white-space: nowrap;">
<table>
  <thead>
    <tr>
      <th>Rank</th>
      <th>City</th>
      <th>Population</th>
      <th>Population Growth Rate</th>
      <th>Median Household Income</th>
      <th>Median Home Price</th>
      <th>Market Rent</th>
    </tr>
  </thead>
  <tbody>
    <tr>
      <td>1</td>
      <td>Charleston</td>
      <td>147,928</td>
      <td>1.3%</td>
      <td>$75,274</td>
      <td>$425,000</td>
      <td>$1,700</td>
    </tr>
    <tr>
      <td>2</td>
      <td>Columbia</td>
      <td>137,276</td>
      <td>0.6%</td>
      <td>$61,791</td>
      <td>$350,000</td>
      <td>$1,400</td>
    </tr>
    <tr>
      <td>3</td>
      <td>North Charleston</td>
      <td>114,542</td>
      <td>1.9%</td>
      <td>$60,422</td>
      <td>$325,000</td>
      <td>$1,300</td>
    </tr>
    <tr>
      <td>4</td>
      <td>Mount Pleasant</td>
      <td>98,900</td>
      <td>2.1%</td>
      <td>$73,167</td>
      <td>$400,000</td>
      <td>$1,600</td>
    </tr>
    <tr>
      <td>5</td>
      <td>Rock Hill</td>
      <td>71,548</td>
      <td>0.9%</td>
      <td>$57,350</td>
      <td>$275,000</td>
      <td>$1,200</td>
    </tr>
    <tr>
      <td>6</td>
      <td>Greenville</td>
      <td>67,086</td>
      <td>1.2%</td>
      <td>$74,975</td>
      <td>$375,000</td>
      <td>$1,500</td>
    </tr>
    <tr>
      <td>7</td>
      <td>Summerville</td>
      <td>48,331</td>
      <td>1.6%</td>
      <td>$67,900</td>
      <td>$300,000</td>
      <td>$1,250</td>
    </tr>
    <tr>
      <td>8</td>
      <td>Goose Creek</td>
      <td>44,464</td>
      <td>1.8%</td>
      <td>$65,500</td>
      <td>$250,000</td>
      <td>$1,100</td>
    </tr>
    <tr>
      <td>9</td>
      <td>Spartanburg</td>
      <td>39,619</td>
      <td>1.1%</td>
      <td>$55,150</td>
      <td>$225,000</td>
      <td>$1,000</td>
    </tr>
  </tbody>
</table>
</div>

<br>

## How do I get started with a DSCR Loan?

<br>

⚡ **[get your instant DSCR loan quote](https://www.offermarket.us/loans) and pre-approval** -- takes less than a minute, be sure to submit so we can confirm the best possible terms (our instant quote is conservative and we commonly can actually provide a lower rate and higher loan amount)

<br>

📄 **upload your purchase agreement or lease** into your OfferMarket Loan File

<br>

🧑‍💻 **schedule your relationship manager call** from your Loan File -- speak with your dedicated relationship manager who will address your questions and concerns and make sure we are a good fit to be your lender.

<br>

DSCR Loan South Carolina, everything rental property investors need to know to get the best possible terms for your next purchase or refi.

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DSCR Loans for Rental Property Investors in South Carolina

DSCR Loan South Carolina

<br>

There are a few ways to sell your house fast for a good price. Before we go into them, we should clarify that it's not about selling your house fast for the highest price, it's about selling your house fast for the highest *net proceeds*.

<br>

## Selling fast: understanding what takes up time in the real estate transaction

<br>

1. Pre-listing repairs. *Solution:* [sell AS-IS](https://www.offermarket.us/guides/selling-a-house-as-is) and list fast
2. Asking for too much. *Solution:* be honest with yourself, what is the condition of the property and what are the [comps](https://www.offermarket.us/real-estate-glossary/comps)? Set an attractive asking price.
3. Unqualified buyers. *Solution:* verify [proof of funds](https://www.offermarket.us/real-estate-glossary/proof-of-funds)

<br>

Here's how to your house fast for a good price (optimal net proceeds). There's more to learn at OffeMarket. 

How can I sell my house fast for a good price?

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How Can I Sell My House Fast? - OfferMarket FAQs

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket also provides DSCR rental loans, bridge loans, hard money, fix & flip, rehab, ground up construction loans.

Rental Loans

<br>

Real estate auctions work in a few different ways depending on jurisdiction and auction format. If you're thinking about selling your home or buying a property at auction, it's important to understand the specific details. 

<br>

Some [auctions](https://www.offermarket.us/real-estate-auctions) are conducted by private companies, while auctions can also be conducted by local governments. Some auctions have a reserve price, while other auctions do not have a reserve price. Most auction services charge a buyer's premium, which is a fee charged to the winning buyer on top of their winning bid. 

<br>


Real estate auctions can help sellers get buyers competing while offering good deals for buyers. Learn more about the auction process.

*Quote takes 1 minute, no credit pull

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*New listings daily

How do real estate auctions work?

* Takes 2 minutes, no credit pull

* Takes 2 minutes, no credit pull