Tennessee rentals in Nashville, Memphis, Knoxville and Chattanooga have given many investors equity they can use. A DSCR cash-out refinance turns that equity into the down payment on the next property, with the loan qualified on rent rather than your personal income.
In short: Our top pick for a DSCR cash-out refinance in Tennessee is LendingStreet. We qualify on the property's rent with no W-2s or tax returns, allow cash-out up to 75% LTV, lend to LLCs and offer 30-year terms in every county. We also build Tennessee's mortgage indebtedness tax into the closing estimate so the cash you walk away with is a realistic number.
If you own rentals in Tennessee and want to turn equity into cash for the next deal, LendingStreet is our top pick. We are a business-purpose lender built for investors, and our DSCR cash-out refinance qualifies on the property's rent rather than your personal income. There are no W-2s or tax returns to collect, LLC borrowers are standard and 30-year terms are available.
Cash-out goes up to 75% LTV, loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x and the minimum credit score is 620. Sub-1.0 DSCR programs exist for rentals that run a little thin. It fits investors refinancing single-family rentals in Memphis, small multifamily in Knoxville and Chattanooga, and higher-value holds around Nashville.
The next step is simple: get a quote with the form below, or call (877) 298-1001 and walk through the property with our team.
If you are weighing CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital for a DSCR cash-out refinance loan for investors in Tennessee, this is the short version: LendingStreet wins the scenarios below, and you can get a quote with the form below.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
Most Tennessee investors weigh a cash-out against three other routes: a local bank or credit union, a hard money lender, or a private individual lender. Each has a place, but for a long-term hold the comparison usually comes down to documentation, term length and how many rentals you can finance.
| What investors need | LendingStreet | Typical bank or credit union | Typical hard money lender |
|---|---|---|---|
| How you qualify | On the property's rent; no W-2s or tax returns | Often requires tax returns and W-2s | Usually based on the property and exit plan |
| Borrowing in an LLC | Standard | Varies; some prefer personal names | Common |
| Cash-out leverage | Up to 75% LTV | Varies by bank policy | Often lower; varies |
| Loan term | 30-year terms available | Often shorter terms or balloons | Usually short-term only |
| Growing past a few rentals | Not tied to personal debt-to-income | Often limited by debt-to-income | Varies |
| Where they lend | All 50 states and DC | Usually a local footprint | Often regional |
Middle Tennessee, including Davidson, Rutherford, Williamson, Wilson and Sumner counties, has the highest values in the state, which means a cash-out on a Nashville-area rental can produce large proceeds even at moderate leverage.
Memphis and Shelby County are known for single-family rentals at lower prices and higher rent-to-value ratios, which often helps DSCR. Knoxville and Chattanooga mix university and healthcare demand with older homes close to downtown, and Clarksville rents to military families tied to Fort Campbell.
East of Knoxville, Sevier County cabins near Gatlinburg and Pigeon Forge form one of the state's biggest short-term rental markets.
Tennessee charges a mortgage, or indebtedness, tax when a deed of trust is recorded: about 11.5 cents per $100 of principal above the first $2,000. Unlike the recordation tax on deeds, which applies to sales, the indebtedness tax applies to a refinance, so include it in your closing cost estimate.
Residential property is assessed at 25% of appraised value whether or not the owner lives there, so rentals do not face a separate higher assessment ratio. Counties reappraise on a regular cycle, though, and a reappraisal can raise your bill. Check whether your county has a reappraisal coming before you set a cash-out target.
This example is illustrative and not a quote. An investor owns a Knoxville rental that appraises at $380,000 and leases for $2,400 a month. The existing balance is $180,000, taxes are about $210 a month and insurance is $155.
At 75% LTV the new loan is $285,000, which pays off the old loan and leaves about $105,000 before closing costs. Estimated principal and interest is about $1,944, the total payment is about $2,309 and DSCR is about 1.04x, above the 1.0x standard minimum.
The indebtedness tax on a $285,000 loan is about $325 ((285,000 - 2,000) x $0.115 / $100). At 70% LTV the loan would be $266,000, cash out about $86,000 and DSCR about 1.10x.
| Item | At 75% LTV | At 70% LTV |
|---|---|---|
| Appraised value | $380,000 | $380,000 |
| New loan amount | $285,000 | $266,000 |
| Existing loan paid off | $180,000 | $180,000 |
| Cash out before closing costs | $105,000 | $86,000 |
| Estimated principal and interest | $1,944 | $1,815 |
| Property taxes | $210 | $210 |
| Insurance | $155 | $155 |
| Total monthly payment | $2,309 | $2,180 |
| DSCR at $2,400 rent | About 1.04x | About 1.10x |
Some programs can qualify a cash-out on projected short-term rental revenue, but local rules decide whether a property qualifies. Metro Nashville restricts non-owner-occupied short-term rental permits in most residential zoning districts, so many Nashville investors refinance on long-term leases instead.
Sevier County and the towns around the Great Smoky Mountains have a long history of cabin rentals in areas where they are allowed, and Chattanooga and Knoxville have their own permit rules. Check with the city or county before relying on nightly income.
Cash-out seasoning, meaning how long you must own the property before refinancing out equity, varies by program. Some programs work from the purchase price for a period after closing, while others can use the new appraised value sooner, especially when you can document rehab work. Our seasoning guide covers the details, and we will tell you which rule applies to your file.
Many Tennessee investors buy, renovate and refinance. If that is your plan, keep receipts and before-and-after photos so the appraisal and seasoning rules can reflect the improvements.
Whoever you talk to, ask the same questions so the offers are comparable:
Here is how LendingStreet answers each one.
| Question | LendingStreet's answer |
|---|---|
| Maximum cash-out LTV | Up to 75%; can be lower on 5-8 units and larger balances (varies by program) |
| DSCR minimum | 1.0x standard; sub-1.0 programs exist |
| Seasoning | Varies by program; we confirm it up front |
| LLC borrowers | Standard |
| Closing timeline | Set by the appraisal, title and your documents; we give you a realistic date early |
| Large balances | From $150,000 with no stated maximum; larger loans get more review |
A complete file gets a faster, clearer answer. Have these items handy, then get a quote with the form below or call (877) 298-1001.
Our top pick is LendingStreet. We qualify on the rental's income with no W-2s or tax returns, allow cash-out up to 75% LTV, lend to LLCs and offer 30-year terms across Tennessee.
Yes. Tennessee's indebtedness tax applies when the new deed of trust is recorded, at about 11.5 cents per $100 above the first $2,000 of principal.
No. Residential property is assessed at 25% of appraised value either way. Reappraisals can still raise your bill, so check your county's schedule.
Often, yes. Some programs qualify on projected short-term revenue where nightly rentals are allowed. Confirm county and city rules first.
Yes. We lend in all 50 states and DC, including Tennessee, on non-owner-occupied 1-8 unit rentals.
If it holds a valid permit, possibly. Metro Nashville limits non-owner-occupied STR permits in most residential zones, so many Nashville rentals are refinanced on long-term rent.
Up to 75% of appraised value minus your payoff, as long as the rent supports the new payment. Memphis rent-to-value ratios often help the ratio.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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