Home / Investment property loans
Investment property loans on Hilton Head Island
Financing for non-owner-occupied real estate: vacation rentals, long-term rentals, new builds and flips. Investment property is the only kind of lending we do.
Non-owner-occupied loan terms
| Rental purchase | up to 85% LTV |
| Rental cash-out | up to 80% LTV |
| Ground-up construction | up to 90% of cost |
| Fix and flip | 90% purchase, 100% rehab |
| Credit scores from | 600 |
| Loan amounts | $75K to $10M+ |
Top leverage depends on credit, track record and property type. We do not finance a home you will live in.
What a non-owner-occupied loan is
A non-owner-occupied property is one the borrower does not live in: a villa rented by the week, a house leased by the year, a home bought to renovate and sell, or a lot where a house will be built. Lenders treat these as business-purpose loans, and the rules differ from the mortgage on a primary residence.
Hilton Head Hard Money Loans lends only on non-owner-occupied property. We are the Lowcountry division of Optimus Capital Corp, a nationwide lender that works only with real estate investors, and the local team is Andrew Shanti and Collin Cook, with more than 20 years of combined lending and real estate experience.
How to choose a lender for a Hilton Head investment property
The right lender depends on what you plan to do with the property. Three kinds of lender finance investment real estate, and each one approves the loan on something different.
| Lender type | Approves the loan on | Fits best |
|---|---|---|
| Bank or conventional mortgage | Your tax returns, employment and debt-to-income ratio | Borrowers with strong documented income and only a few financed properties |
| DSCR lender | Whether the rent covers the payment | Vacation and long-term rentals, self-employed investors, LLC borrowers and investors with many loans |
| Hard money or bridge lender | The deal: price, budget and finished value | Flips, ground-up construction and purchases that have to close quickly |
Questions to ask before you pick a lender
Island property has features that some lenders will not touch. These questions sort out quickly who can close your deal.
- Do you count short-term rental income? We underwrite vacation rentals on 12 months of rental history or on AirDNA projections, not on long-term market rent.
- Do you finance villas, non-warrantable condos and condotels? We finance all three, usually at slightly lower leverage than a standard rental.
- Will you check my personal income? We do not. There are no tax returns and no employment or debt-to-income review.
- Can I close in an LLC? Yes. We lend to LLCs, and to foreign nationals on rental loans.
- Is there a limit on how many properties you will finance for me? No. We finance as many as your deals support.
- How do flood and wind insurance affect the loan? Both premiums count in the monthly payment used for the DSCR, so get quotes before you make an offer.
- How fast can you close? Rental loans take about 30 days, appraisal included. Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready.
- What is the prepayment penalty? None on fix and flip loans. Rental loans come with a 3-year or 5-year penalty, or none at a higher rate.
What we finance on the island
- DSCR rental loans for vacation rentals and long-term rentals: up to 85% loan-to-value to buy and 80% on a cash-out refinance, fixed for 5 to 30 years.
- Ground-up construction loans: up to 90% of cost for experienced builders, with the lot included.
- Fix and flip loans: up to 90% of the purchase price and 100% of the rehab at a 720+ credit score.
- Mid-rehab, portfolio and commercial loans for projects that need capital to finish, groups of rentals, and multifamily or hospitality property.
For the local market, permit rules and neighborhoods investors ask about, see hard money loans in Hilton Head Island.
Investment property loans: common questions
It depends on the deal. For a rental you will hold, look for a DSCR lender that counts short-term rental income and finances villas and condotels. For a flip or a new build, look for a hard money lender that funds the renovation or construction and can close quickly. Hilton Head Hard Money Loans does both, lends only on non-owner-occupied property, and is run by a local team with more than 20 years of combined experience.
It is a loan on a property the borrower will not live in, such as a rental, a flip or a new build for sale. It is a business-purpose loan, approved on the property and the deal, and it is not reported on personal credit like a conventional mortgage.
Yes. A DSCR rental loan is approved on whether the rent covers the payment, and a fix and flip or construction loan on the deal. We do not verify income or employment.
On a rental purchase, as little as 15% with strong credit, since we lend up to 85% loan-to-value. At a 600 credit score the limit is 70%, so plan on 30%. On a fix and flip at a 720+ score, we finance up to 90% of the price and all of the rehab.
No. We lend on investment property only, and the property cannot be a home you will live in. For a primary residence, talk to a conventional mortgage broker.
Yes, on a permitted short-term rental. We use 12 months of rental history, or AirDNA projections counted at about 70 to 80%.
Loan programs at a glance
| Program | Use it for | Top leverage |
|---|---|---|
| DSCR rental loans | Purchase or refinance of vacation rentals and long-term rentals | 85% loan-to-value to buy, 80% on a cash-out refinance |
| Ground-up construction loans | Ground-up building, with the lot included | 90% of cost for experienced builders, up to 70 to 75% of the finished value |
| Fix and flip loans | Purchase plus renovation of a property you intend to sell | 90% of the purchase price and 100% of the rehab, up to 70 to 75% of after-repair value |
| Portfolio and commercial loans | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal |
Buying an investment property on Hilton Head?
Send the address, the price and what you plan to do with it. We will reply with the leverage and pricing that fit your deal.