Tennessee pulls in rental investors from across the country, from Memphis cash-flow buyers to Nashville short-term rental operators. The best DSCR lender for you depends on which of those deals you are doing.
In short: No one DSCR lender is best in Tennessee for every investor; the right choice is the program that fits your property, rent and leverage target. Compare rate, LTV, minimum DSCR, credit floor, property type limits and how each lender treats short-term rental income. Several national lenders write DSCR loans here, and LendingStreet finances investment property in Tennessee with rates from 6.125%, 30-year fixed options and no W-2s or tax returns. In higher-priced Nashville neighborhoods, the ratio is usually the hurdle, so plan the down payment around it.
Kiavi, Visio Lending, LendingOne, CoreVest, Angel Oak, Griffin Funding and Lima One also write DSCR loans. Each has its own rules on leverage, property types and credit, and all are legitimate places to get a quote.
The useful question is which lender fits this deal. A Memphis duplex, a Knoxville single-family and a Nashville STR may each land best with a different program.
Get quotes on the same property, at the same loan amount, with the same rent assumption. Then compare the full cost, not just the rate.
Look at lender and closing costs, prepayment terms, max LTV for purchase and cash-out, the minimum ratio and whether the lender will use projected STR revenue or only a long-term lease. Reserve requirements and LLC rules also differ, and they can matter more than 0.125% in rate.
We offer DSCR rental loans that qualify on the property's rent. Rates start at 6.125% for well-qualified borrowers and short-term rental DSCR starts at 6.49%. Purchases go up to 80% LTV and cash-out refinances up to 75%, with a 620 minimum credit score.
LLC borrowers are allowed and no W-2s or tax returns are required. The standard minimum is 1.0x, with some programs below 1.0 and no-ratio options. Our financing team reviews your scenario and comes back with 2-3 options.
Nashville is the headline market, with strong demand and higher prices that compress ratios, plus a large short-term rental scene. Memphis is known for lower entry prices and investor-owned single-family and small multifamily rentals, where the ratio is often easier to hit but property condition and neighborhood matter a lot.
Knoxville offers a mix of university-area rentals and growing suburbs, with proximity to the Smoky Mountains vacation rental areas. Chattanooga has drawn steady investor interest for long-term rentals at moderate prices. Tennessee has no state income tax on wages, which is part of why the state attracts new residents and renters.
Rent-to-price is the main variable. Property taxes and insurance vary by county, and HOA dues on Nashville townhomes and condos come straight out of the ratio.
Short-term rentals add a permit question. Nashville regulates STRs through a permit system, and the rules for non-owner-occupied STRs depend on zoning and have changed over time. Confirm the property can be permitted before you count on STR income, and check local rules in other cities and counties as well.
This example is illustrative and not a quote. An investor buys a townhome for $425,000 with long-term rent of $2,650 a month. Taxes and insurance are $420 a month and the HOA is $200.
At 75% LTV the loan is $318,750. At a sample rate of 7.125% on 30-year amortization, principal and interest is about $2,147, so the total payment is about $2,767 and DSCR is about 0.96x. Drop to 70% LTV and the loan is $297,500, principal and interest is about $2,004, the payment is about $2,624 and DSCR is about 1.01x, just above the standard minimum.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $318,750 | $297,500 |
| Principal and interest | $2,147 | $2,004 |
| Taxes, insurance and HOA | $620 | $620 |
| Total monthly payment | $2,767 | $2,624 |
| DSCR at $2,650 rent | About 0.96x | About 1.01x |
Have the lease or a market rent estimate, an insurance quote, HOA documents if any, your LLC paperwork and recent bank statements for reserves. For a short-term rental, add the permit status and any booking history.
If the ratio looks tight, send the numbers before you write an offer. We can show what leverage the property supports and whether a sub-1.0 program fits.
Yes. LendingStreet finances investment property in Tennessee, including Nashville, Memphis, Knoxville and Chattanooga. Loans are business-purpose on non-owner-occupied property, starting at $150,000.
It depends on the deal. 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.
Yes, if the property can be legally operated as an STR. STR DSCR loans can qualify on projected revenue, with rates from 6.49% for qualified borrowers. Confirm permit eligibility with the city first.
Lower prices often help the ratio, but the $150,000 loan minimum, property condition and neighborhood still matter. Lower-priced homes may need to be bundled or bought with more cash.
No. DSCR loans qualify on the property's rent. You still need a 620 or higher credit score, reserves and entity documents if you borrow through an LLC.
Yes. Investors with five or more properties can look at a blanket portfolio loan, subject to each property meeting program rules.
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