Non-QM Loans in South Carolina

About Non-QM Loans in South Carolina

Non-Qualified Mortgage (Non-QM) loans are for borrowers who don't meet conventional lending criteria — self-employed, irregular income, recent credit events, or foreign nationals. They use alternative documentation like bank statements, asset depletion, or property cash flow to qualify. In South Carolina, 33 lenders currently offer Non-QM financing with loan amounts from $100K to $5M and rates typically ranging from 6.5% - 10%.

South Carolina Market Overview

South Carolina has attracted major manufacturing investments from BMW, Boeing, Volvo, and others, establishing a strong advanced manufacturing corridor. Charleston's port growth and tourism economy drive significant CRE demand along the coast.

South Carolina assesses commercial property at only 6% of fair market value, one of the lowest assessment ratios in the nation, resulting in favorable effective tax rates for CRE investors. The state's fee-in-lieu-of-taxes (FILOT) program allows negotiated property tax rates for qualifying manufacturing and commercial projects, often reducing effective rates by 50% or more. Charleston's rapid growth has created a competitive CRE market, but the city's aggressive flood mitigation requirements and the Dutch Dialogues-inspired stormwater management standards add costs that investors should factor into coastal commercial development budgets.

Who Should Consider Non-QM Loans?

• Self-employed borrowers
• Bank statement borrowers
• Foreign nationals
• Recent credit events (bankruptcy, foreclosure)

Key Requirements

• Alternative income documentation
• Down payment 10-25%
• Property appraisal
• Minimum credit score varies (580-680)

Pros and Cons