Memphis is a classic cash-flow market, and many properties clear 1.0x on paper. The deals that stall usually do so on condition, insurance or the $150,000 loan minimum, so the best lender is the one whose program fits the actual property.
In short: No single DSCR lender is best for every Memphis investor; the right one is the program that fits your property's condition, value and rent. Compare rate, max LTV, minimum DSCR, credit floor, minimum loan size and how each lender treats older homes and small multifamily. LendingStreet finances investment property in Memphis and Shelby County with rates from 6.125%, up to 80% LTV on purchases and 75% on cash-out, and no W-2s or tax returns. Here the ratio is often the easy part, while the appraisal, insurance and loan size need the most attention.
Kiavi, Visio Lending, LendingOne, CoreVest, Angel Oak, Griffin Funding and Lima One also write DSCR loans in Tennessee. Each has its own rules on leverage, minimum loan size, property condition and credit, and all are legitimate places to get a quote.
Memphis deals vary widely, from Germantown single-family homes to older duplexes in the city. Quote the same property with each lender and compare full cost, leverage and how each one treats condition.
Shelby County covers the City of Memphis and its suburbs. Inside the city, neighborhoods range widely in price, age and rent, and Cordova on the east side is a large, popular rental area. Bartlett to the northeast offers mid-priced single-family homes with steady tenant demand.
Germantown and Collierville to the east are higher-priced suburbs known for their schools, where homes cost more and the ratio is tighter. Across the state line, DeSoto County, Mississippi, with Southaven, Olive Branch, Horn Lake and Hernando, is part of the metro. Mississippi rules and taxes apply there, so ask our team to confirm program availability for a DeSoto County address.
Property inside Memphis city limits generally pays both city and Shelby County property taxes, and suburbs like Germantown, Collierville and Bartlett levy their own municipal taxes. Two homes with similar rents can carry different tax bills, so check the specific address.
Insurance is where Memphis files often change. Older homes with aging roofs, original wiring or plumbing, or vacancy history can cost more to insure, and some carriers decline them. Get a quote on the actual property early, because a high premium can erase the cash-flow advantage.
A DSCR loan needs a rent-ready property. If the appraiser notes deferred maintenance, safety issues or missing systems, the loan may be delayed or reduced until repairs are done.
If the home needs work, a short-term rehab loan followed by a DSCR refinance is a common path. The loan minimum is $150,000, so lower-priced homes may need to be bundled into a blanket loan or bought with more cash.
Memphis rental stock leans toward single-family homes and small multifamily, including duplexes and fourplexes, with apartment buildings of five or more units in many parts of the city. Housing Choice Voucher tenants are common in parts of the metro.
Demand is anchored by FedEx, with its headquarters and World Hub at Memphis International Airport, along with St. Jude Children's Research Hospital, AutoZone, International Paper and major hospital systems. The University of Memphis and the University of Tennessee Health Science Center add student and staff renters.
Memphis and Shelby County regulate short-term rentals through permits or registration, and suburban cities set their own rules. HOAs in suburbs like Collierville and Germantown may restrict short stays.
Rules change, so confirm locally before you plan nightly rentals. Most Memphis investors underwrite on long-term rent, which is often the stronger fit in this market.
This example is illustrative and not a quote. An investor owns a renovated duplex that appraises at $240,000. Each side rents for $1,050, for $2,100 a month total. Taxes and insurance are $480 a month.
At 75% LTV on a cash-out refinance the loan is $180,000, above the $150,000 minimum. At a sample rate of 7.5% on 30-year amortization, principal and interest is about $1,259, the total payment is about $1,739 and DSCR is about 1.21x, comfortably above the 1.0x standard minimum. If the insurance quote came in higher on an older roof, the ratio would still have room to absorb it.
| Item | Amount |
|---|---|
| Appraised value | $240,000 |
| Loan amount (75% cash-out) | $180,000 |
| Principal and interest | $1,259 |
| Taxes and insurance | $480 |
| Total monthly payment | $1,739 |
| DSCR at $2,100 rent | About 1.21x |
LendingStreet DSCR loans qualify on the property's rent, with rates from 6.125% for well-qualified borrowers. Purchases go up to 80% LTV and cash-out refinances up to 75%, with a 620 minimum credit score, 30-year fixed options and LLC borrowing allowed.
Have the leases, recent photos or a scope of completed work, an insurance quote, LLC paperwork and bank statements for reserves. Our financing team reviews your scenario and comes back with 2-3 options.
Yes. LendingStreet finances investment property in Memphis and across Shelby County, including Bartlett, Cordova, Germantown and Collierville. Loans are business-purpose on non-owner-occupied property, starting at $150,000.
It depends on the property. Kiavi, Visio Lending, LendingOne, CoreVest, Angel Oak, Griffin Funding, Lima One and LendingStreet all write DSCR loans. Compare quotes on the same property to see which program fits.
The loan minimum is $150,000, so a single low-priced home may not qualify on its own. Investors often bundle several rentals into a blanket portfolio loan or buy with more cash.
Often yes. Many programs use the lease or housing assistance contract rent, subject to how it compares with market rent. Ask how a specific program treats voucher income.
Program availability depends on the property address and state. Send the details and our financing team will confirm whether a DeSoto County property qualifies.
Condition items are the most common reason. If the appraiser notes repairs or safety issues, they usually need to be completed before closing, or the property may fit a rehab loan first.
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