Looking to fund your next real estate investment in South Carolina with a hard money loan? Whether you’re eyeing a property flip in Greenville or purchasing a rental unit in Columbia, hard money loans offer a fast, flexible financing solution. Hard money lenders in South Carolina work with investors and homeowners who need quick funding, placing less emphasis on credit scores and income histories.

This guide will walk you through the basics of hard money lending in South Carolina, from understanding what these loans are to exploring their common uses and associated costs. We’ll also share alternatives to hard money loans and explain how HomeLight’s Buy Before You Sell program can help you leverage your home equity effectively.

What is a hard money lender?

Hard money lenders are private individuals or companies that provide short-term loans secured by real estate. Unlike traditional banks, hard money lenders focus on the property’s value rather than the borrower’s credit score. These lenders often work with house flippers and real estate investors purchasing rental properties, offering quick and flexible financing options.

To determine loan amounts, hard money lenders use after-repair value (ARV) — the estimated value of a property after it has been repaired or renovated. They typically lend a percentage of the ARV, ensuring the investment is secure and potentially profitable.

Interest rates for hard money loans are higher, ranging from 8% to 15%, with repayment terms between 6 to 24 months. Additional costs may include origination fees, closing costs, and points. Failure to repay the loan can result in the lender taking possession of the collateral property.