Tennessee has been a favorite of rental investors for years, and many of its deals start the same way: a fast purchase on short-term money, a renovation, a new tenant. The rate-and-term refinance is the step that turns that project into a long-term rental.
In short: Our first choice for a DSCR rate-and-term refinance in Tennessee is LendingStreet: qualifying on the rental's income with no W-2s, LLC borrowing as standard, up to 80% LTV on some programs and 30-year terms. Tennessee charges a tax on recorded mortgages based on the loan amount, so we build that cost into the refinance numbers from the start, along with the investor tax bill and insurance. Call (877) 298-1001 or use the form below for a quote.
Investors in Tennessee who have finished a renovation, leased up a property or hit a loan maturity need a lender that will look at the rent and move on. LendingStreet does exactly that with DSCR rate-and-term refinances for 1 to 8 unit rentals.
There are no W-2s or tax returns to collect. Your LLC can be the borrower. Loans run from $150,000 with no stated maximum, up to 80% LTV on some rate-and-term programs, with a 1.0x standard DSCR minimum, sub-1.0 options, a 620 credit floor and 30-year terms.
Use the form below or call (877) 298-1001 to get a quote on your Tennessee rental.
Investors searching for DSCR refinance lenders often compare national names like CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital. Here is how LendingStreet stacks up on the scenarios that matter most for investors in Tennessee. In every scenario below, LendingStreet is the best fit.
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. |
Memphis has a large stock of older single-family rentals that investors buy, renovate and lease. Knoxville, Chattanooga, Clarksville, Jackson and the suburbs of Nashville such as Murfreesboro and Smyrna draw investors looking for newer homes and steady tenant demand.
Many of these purchases close with a hard money or bridge loan because speed wins the deal. Once the home is renovated and leased, the investor needs a 30-year loan to replace the short-term note before it matures.
Short-term rentals are a separate conversation. Nashville limits non-owner-occupied short-term rentals in many residential zones, and other cities have their own permit rules. If you are refinancing a rental with long-term tenants, the rate-and-term path is straightforward.
A Tennessee rental can be refinanced several ways. The table compares LendingStreet with the lender types investors most often consider, described generally, because terms elsewhere vary.
National online DSCR lenders are closest in format, but programs and service vary. LendingStreet pairs investor-focused DSCR terms with a team that talks with you about your specific Tennessee property.
| What investors need | LendingStreet | Typical bank or credit union | Typical hard money or bridge lender |
|---|---|---|---|
| What decides approval | The rental's cash flow | Usually your personal income | Usually the asset and your exit |
| Leverage on rate-and-term | Up to 80% LTV on some programs | Varies | Short-term leverage only |
| Length of loan | Up to 30 years | Often a balloon in 5 to 10 years | Usually months, not years |
| Borrowing in an LLC | Yes, standard | Sometimes | Often |
| Income paperwork | No W-2s or tax returns | Usually required | Usually limited |
| Where they lend | All 50 states and DC | Mostly local | Varies |
| Mortgage tax on the new loan | Included in the closing estimate | Also applies; varies | Also applies; varies |
Tennessee taxes recorded mortgages at a rate of $0.115 per $100 of debt, after a small exemption on the first $2,000. On the example loan below, that is roughly $268. Ask your title company how it applies to your refinance.
Insurance in Tennessee is usually moderate, but tornado and hail exposure across Middle and West Tennessee and older roofs on Memphis rentals can push quotes higher. Ask your agent for a quote on the property as it stands after the renovation, because a new roof or updated systems can help.
Tennessee does not tax wages, and property taxes are set by county and city with periodic reappraisals. Residential property is assessed at 25% of appraised value; confirm the current rate and any recent reappraisal with the county assessor.
This example is illustrative and not a quote. An investor owns a Knoxville single-family rental worth about $310,000, financed with a hard money loan used for the purchase and renovation. The payoff is $228,000 and estimated closing costs are $7,000, so the new loan is $235,000, about 76% LTV, within the 80% rate-and-term limit on some programs.
Rent is $2,150 a month. Closing costs include an estimate for Tennessee's mortgage tax. Estimated principal and interest on a 30-year term is about $1,583, taxes are $160 and insurance is $125, for a total monthly payment of about $1,868. DSCR is about 1.15x, above the 1.0x standard minimum, and the short-term loan is replaced with a 30-year term.
Your numbers will differ. Try our DSCR calculator, then get a quote with the form below for real terms.
| Item | Amount |
|---|---|
| Property value | $310,000 |
| Existing loan payoff | $228,000 |
| Estimated closing costs | $7,000 |
| New loan amount | $235,000 |
| Loan-to-value | About 76% |
| Monthly rent | $2,150 |
| Estimated principal and interest | $1,583 |
| Property taxes | $160 |
| Insurance | $125 |
| Total monthly payment | $1,868 |
| DSCR | About 1.15x |
Seasoning rules decide when you can refinance after buying or renovating, and they vary by program. Our seasoning guide walks through them. Paying off a short-term Tennessee loan without taking cash out is often the simpler case.
Plan for a full appraisal with a rent estimate, and gather leases, a payoff letter and an insurance quote. If the numbers come in tight, a lower loan amount or a sub-1.0 DSCR program can keep the refinance on track.
A good lender answers these clearly and in writing. Here are the questions, with LendingStreet's answers.
If your short-term loan matures soon, start now. Seasoning, the appraisal and title all take time, and a payoff deadline leaves little room. If you would like equity out as well, ask about a cash-out refinance, which goes up to 75% LTV.
We lend on non-owner-occupied 1 to 8 unit Tennessee rentals as business-purpose loans, and buildings with 9 or more units go to our commercial team. Call (877) 298-1001 or use the form below to get your quote.
We think it is LendingStreet: a DSCR loan qualified on the property's rent, up to 80% LTV on some rate-and-term programs, 30-year terms and LLC borrowing as standard. Call (877) 298-1001 or use the form below.
Yes. We make DSCR loans on non-owner-occupied rentals across Tennessee and in all 50 states and DC.
No. We lend to LLCs as standard, so the property can stay in the entity that owns it.
Seasoning varies by program. A refinance that only pays off existing debt is often more flexible than cash-out. Tell us your purchase date and we will say which programs fit.
Possibly. We offer sub-1.0 DSCR programs, and lowering the loan amount a little often fixes a tight ratio.
Yes. We regularly replace bank and credit union loans with balloons with 30-year DSCR loans qualified on rent.
Tennessee taxes recorded mortgages at $0.115 per $100 of debt after the first $2,000. Your title company will confirm the exact amount and whether any credit applies to your refinance.
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