South Carolina Second Home Loans and Mortgage Solutions

Financing Your Dream Second Home

Looking to buy a second home in South Carolina? Whether it’s a coastal retreat in Hilton Head, a lake house near Greenville, or a Charleston condo, BNB Lending offers second home loans designed for part-time occupancy. We guide borrowers through South Carolina’s property tax classifications, short-term rental licensing, and lender compliance rules. Our second home financing comes with competitive rates, quick closings, and clarity around how local and state rules apply to your property. Let us help you finance your South Carolina home with confidence.

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How to qualify

To obtain a quote, we will need the following information:

Property Value and

 Purchase Price


Down Payment

Amount


Credit Score

 

Asset Types

  • Single Family Homes
  • Townhomes
  • Condos
  • 2 - 4 Units (Duplex, Triplex, Quadplex)
  • Multi-Family: 5 - 8 Units
  • Mixed-Use: 2 - 8 Units
  • Multi-Family: 9+ Unit



Loan Terms


  • Loan Sizes: $100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
  • Purchase LTV: Up to 85%
  • Rate & Term Refinance LTV: Up to 80% 
  • Cash Out Refinance LTV: Up to 80%
  • Amortization: 30 Year % 40 Year Amortization Options Available
  • Term Lengths: 5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
  • Floor Rate: 5.50% (subject to change daily due to market volatility)
  • Full Recourse with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
  • DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
  • Vesting: Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
  • Average Time to Close: 14 to 35 days

Wondering if you qualify for investment property financing in your area?


We offer lending services in all 50 states!

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Frequently Asked Questions

What are the requirements for a second home loan in South Carolina?

South Carolina second home loans follow standard federal lending rules. The property must be a single-unit residence, livable year-round, and personally used by the borrower for part of the year. It cannot be held by an LLC or used primarily for rental income. Most lenders require 10–20% down, stable income, and a strong credit profile. South Carolina does not impose additional lending restrictions, though local HOA or zoning rules may influence usage. At BNB Lending, we confirm eligibility and guide you through compliance at every step.

How do short-term rental rules affect loan classification?

If a property is rented frequently, it may be classified as an investment, changing loan terms. South Carolina has no statewide STR law, but many beach towns and resort areas require permits, registration, or hospitality tax collection. Popular cities like Charleston or Myrtle Beach may impose zoning limits and enforce occupancy regulations. BNB Lending reviews your intended rental use, property location, and local policies to determine if your mortgage can be structured as a second home loan or if an investment loan is more appropriate.

Do second homes qualify for property tax benefits in South Carolina?

South Carolina second homes are taxed at a 6% rate of their fair market value under the state’s “other real estate” classification. Only primary residences are eligible for the 4% rate and the $50,000 owner-occupant exemption tied to school construction taxes. There is no homestead exemption or rate discount for vacation homes. At BNB Lending, we help buyers estimate the full tax impact of second home ownership in South Carolina and structure financing that accounts for these ongoing expenses.

Can I deduct mortgage interest on a second home?

Mortgage interest on a second home may be deducted on your federal return if you itemize and the property qualifies for personal use. South Carolina also allows a mortgage interest deduction at the state level, following IRS guidelines. If the property is rented occasionally, interest deductions may be prorated based on days used personally. At BNB Lending, we help structure your loan with tax efficiency in mind and recommend working with a CPA who understands federal and South Carolina-specific deduction strategies.

Are there second home loan programs in South Carolina?

South Carolina State Housing programs are limited to primary residences and do not apply to vacation homes or part-time residences. These programs focus on first-time and low-income buyers who intend to live in the property full-time. BNB Lending offers private second home mortgage options throughout South Carolina—from beach towns to mountain escapes. We assist with property tax planning, STR license requirements, and zoning compliance to help you secure a second home loan that fits your lifestyle and usage goals.

What types of properties qualify for second home loans?

Eligible second homes include one-unit properties that are livable year-round and used primarily by the borrower for personal occupancy. Acceptable home types include single-family homes, condos, and townhouses. The property must meet appraisal and condition standards and cannot be a multi-unit rental, timeshare, or commercial use. In South Carolina, local zoning laws and STR permit rules may influence usage. BNB Lending ensures your property qualifies for second home financing under both lender guidelines and municipal regulations.

Who benefits from choosing a second home loan over an investment loan?

These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. If you plan to use your South Carolina home primarily for personal stays and only rent it occasionally, a second home loan may offer better rates and terms than an investment loan. These loans must be in your personal name—not held by an LLC. BNB Lending structures South Carolina second home loans to provide flexibility while keeping your financing compliant with lender and zoning guidelines.

Thinking beyond South Dakota? Explore Airbnb loans and second home opportunities in nearby states like North Dakota or Nebraska to expand your portfolio.