A South Carolina DSCR loan is business-purpose financing on a 1-4 family rental, secured by a mortgage. A power of sale doesn't pass title unless the debt is first established by court judgment or the debtor consents in writing to the amount after it matures, under S.C. Code 29-3-630.
South Carolina keeps foreclosure in the courts and its prepayment protection on personal loans. For an investor, the deed recording fee at purchase and the deposit rules are the state items that show up in the deal numbers.
If a South Carolina rental sits near the coast, check when flood insurance is required on a DSCR loan.
How are rental property loans foreclosed in South Carolina?
South Carolina mortgages are foreclosed by court action and sale under a court decree, and S.C. Code 29-3-630 provides that a power of sale does not pass title unless the debt is first established by court judgment or the debtor consents in writing to the amount after maturity, with that consent recorded.
- S.C. Code 29-3-10 refers to foreclosure and sale according to law.
- S.C. Code 29-3-650 provides for the court to direct the sale of the mortgaged premises.
- The code chapter is titled Mortgages and Deeds of Trust Generally.
Exception: These sections were read from the South Carolina Code's 2022 archive edition. Check the current code for later amendments.
According to S.C. Code Title 29, Chapter 3, South Carolina Legislature, 2022 Code archive, as read October 2026.
Does South Carolina limit prepayment penalties on rental property loans?
S.C. Code 37-10-103 lets a borrower prepay without penalty only on a personal, family or household purpose loan secured by real estate where the amount advanced will not exceed $150,000, so it does not reach a business-purpose rental loan.
- If the loan is for personal, family or household purposes and $150,000 or less, then the borrower may prepay in full at any time without penalty.
- If the loan is business-purpose, then prepayment terms come from the loan contract.
Exception: Get the prepayment schedule in writing before you commit.
According to S.C. Code Title 37, Chapter 10, South Carolina Legislature, 2022 Code archive, as read October 2026.
What does South Carolina charge to record a deed?
South Carolina imposes a deed recording fee of $1.85 for each $500 of realty value on the privilege of recording a deed under S.C. Code 12-24-10, split into a $1.30 state fee and a $0.55 county fee under S.C. Code 12-24-90.
| Purchase price | Deed recording fee at $1.85 per $500 |
|---|---|
| $200,000 | $740 |
| $300,000 | $1,110 |
Exception: The fee attaches to the deed at purchase. The statute's text does not impose it on a mortgage, but no official statement says so in words.
According to S.C. Code Title 12, Chapter 24, South Carolina Legislature, 2022 Code archive, as read October 2026.
What South Carolina landlord rules affect a rental property's numbers?
South Carolina requires a landlord to return a security deposit with a written itemization of deductions within 30 days after termination of the tenancy and delivery of possession and demand by the tenant, whichever is later, and a tenant can recover three times any amount wrongfully withheld plus attorney's fees, under S.C. Code 27-40-410.
- The 30 days run from the later of termination, delivery of possession and the tenant's demand.
- No cap on the deposit amount appears in the section.
Exception: This section was read from the 2019 Code archive edition. Check the current code before relying on it.
According to S.C. Code Title 27, Chapter 40, South Carolina Legislature, 2019 Code archive, as read October 2026.
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This page is general education about business-purpose real estate financing and state law as published by official sources on the date shown. It is not legal, tax or lending advice, not an offer to lend and not a rate quote. Laws and lender guidelines change; confirm current rules with the lender, the title company and your own attorney or tax adviser.