📅 Thursday, October 29, 2026 · By Landon Luchtel, Co-Founder, Kayak Capital · 9 min read

What Do Hard Money Loans Cost in South Carolina? The 2026 Breakdown

Ask five Lowcountry lenders what a hard money loan costs and you will get five interest rates. That is the problem. The rate is the one number every lender advertises, and it is usually the smallest part of what you actually pay.

This guide answers the question South Carolina investors keep asking: what does a hard money loan really cost here in 2026? We will break down every line item, show you which costs belong to the lender and which you pay no matter who funds you, and run the full math on a real Summerville flip.

The Short Answer

In the Charleston market, most hard money quotes land between about 10 and 14 percent interest. On top of the rate, most lenders charge 1.5 to 3 points (each point is 1 percent of the loan, paid at closing) plus $1,500 to $3,000 in processing, underwriting, and document fees. On a typical Lowcountry flip loan, that combination usually adds $7,000 to $13,000 to your cost before you pay a single month of interest.

Separately, every South Carolina purchase carries third party closing costs: the closing attorney, the title search and lender's title policy, and county recording fees. Those exist whether you pay cash, use a bank, or use a hard money lender, so they should never be the reason you pick one lender over another.

Every Cost on a South Carolina Hard Money Loan

Here is what shows up on a typical hard money term sheet in the Lowcountry, and what a zero fee direct lender charges for the same line.

Notice the pattern. Most of the expensive lines are calculated as a percentage of the whole loan and collected at the start, at a draw, or at the end. Interest is the only cost that tracks how long you actually use the money.

The Math on a Summerville Flip

Let's make it real. You buy a three bedroom ranch in Summerville for $240,000 and budget $55,000 for the rehab. Your total project cost is $295,000. At 85 percent of total cost, you borrow $250,750 and plan a five month project.

Lender A quotes 11 percent with 2.5 points, a $900 processing fee, and $1,000 in underwriting and document fees. Kayak Capital charges 12 percent with zero points and zero fees.

The loan with the lower rate costs $7,123.96 more. That is not a rounding error. On a flip that clears $35,000, it is a fifth of your profit.

Now suppose the project runs two months long, which happens on plenty of Lowcountry flips once permitting, contractor schedules, and hurricane season get involved. Lender A charges a one point extension.

The gap grows to $9,213.54. Delays make fee heavy loans worse, because the extension fee lands right when your budget is tightest.

The South Carolina Closing Costs You Pay With Any Lender

South Carolina requires a licensed attorney to oversee real estate closings, so your closing statement will include attorney fees along with the title search, a lender's title policy, and recording fees that vary by county and municipality.

These costs matter for your budget, but they are not a lender comparison. Every lender requires title insurance and every SC purchase closes through an attorney. When you compare hard money quotes, set these lines aside and compare only what the lender itself charges. If you are new to SC closings, our guide to closing at the attorney's office walks through the whole process.

Why Fees Exist, and Why We Don't Charge Them

Points and junk fees are how most hard money lenders get paid when they do not own the money they lend. Brokers need a cut. Funds need to pay their investors and their sales teams. National platforms need to cover call centers and marketing. Every layer adds a fee, and the borrower pays for all of them.

Kayak Capital lends its own money. We have funded more than 1,700 loans over 13 years, first in Phoenix and now across the Charleston Lowcountry, and the model has always been the same: one rate, nothing else. That is why our SC terms read the way they do:

• 12 percent interest, and that is the entire cost
• Zero origination points, zero processing, underwriting, or document fees
• Zero draw fees, zero extension fees, zero minimum interest, and zero prepayment penalty
• Up to 85 percent of total cost, purchase plus rehab
• Approval in under an hour, with funds wired the same day you sign at the attorney's office

We are not always the lowest advertised rate in Charleston. We are routinely the lowest total cost, and we show the math so you can check it.

How to Price Any South Carolina Hard Money Quote

Use this checklist on every quote, including ours:

1. Ask for every lender charge in writing, in dollars, not percentages.
2. Multiply the rate by your loan amount and your realistic hold time in months, divided by 12.
3. Add points, processing, underwriting, document, draw, and payoff fees.
4. Add the extension fee for a two month delay, because you will need it more often than you think.
5. Compare the totals. Ignore the advertised rate until you have done steps one through four.

When we compared Charleston lenders across fix and flip, construction, BRRRR, and distressed deals, the same thing held every time: the lender with the lowest total in step five is rarely the one with the lowest rate. And before you pick anyone, read what Charleston investors should know about hard money.

Frequently Asked Questions

What do hard money loans cost in South Carolina?

Most Charleston area hard money loans carry rates between about 10 and 14 percent, plus 1.5 to 3 points and $1,500 to $3,000 in lender fees. On a $250,000 loan, those points and fees typically add $5,000 to $10,000 or more. Kayak Capital charges 12 percent with zero points and zero fees.

What are the cheapest hard money lenders for fix and flip deals in Charleston?

The cheapest lender is the one with the lowest total dollar cost for your hold period, not the lowest rate. On a five month, $250,750 Summerville flip, a 12 percent zero fee loan costs $12,537.50 while an 11 percent loan with 2.5 points and fees costs $19,661.46.

Are hard money closing costs different in South Carolina?

South Carolina requires an attorney to supervise closings, so you will pay attorney fees, a title search, a lender's title policy, and county recording fees. Those apply with any lender. The lender's own charges are what vary, and those are what you should compare.

Do I pay points on a hard money loan in Charleston?

With most lenders, yes, usually 1.5 to 3 points due at closing. Kayak Capital charges zero points in South Carolina.

What happens to my cost if my Charleston flip takes longer?

With fee based lenders you typically pay an extension fee of 1 point or more, on top of extra interest. With Kayak Capital you pay only the additional months of interest at 12 percent.