Most Knoxville rentals sit well under $1.5M. The properties that need a jumbo DSCR loan are usually executive homes in Sequoyah Hills or West Knoxville, lake homes on Fort Loudoun or Tellico, or large cabins in the Smoky Mountain foothills that rent by the night.
In short: LendingStreet makes jumbo DSCR loans of about $1.5M to $5M+ on high-value 1-8 unit rentals in the Knoxville area, for purchase, rate-and-term and cash-out, qualified on rent with no tax returns. Larger balances get more review and max LTV can be lower, varying by program. In this market, jumbo balances usually mean a luxury home, a large short-term rental, a 5-8 unit building or several properties.
Being clear about the market helps you pick the right structure.
Most jumbo requests in the region come from experienced investors who already own several properties, or from out-of-area buyers attracted to the Smoky Mountains rental market.
| Property | Where | Income |
|---|---|---|
| Executive home | Sequoyah Hills, West Knoxville, Farragut | Long-term lease |
| Lake home | Fort Loudoun and Tellico lakes | Long-term or seasonal; local rules vary |
| Large cabin | Sevier County foothills, Townsend | Short-term rental revenue |
| Newer 5-8 unit building | Near UT, downtown and growth corridors | Long-term leases |
This example is illustrative and not a quote. Scenario one is a $1,600,000 Sequoyah Hills home leased for $7,400 a month. City and county taxes are about $1,217 a month and insurance is $480. At 65% LTV the loan is $1,040,000, estimated principal and interest is about $7,265, and the payment is about $8,961. DSCR is about 0.83x, below the 1.0x standard minimum.
Scenario two is a $1,700,000 eight-bedroom cabin in the Sevier County foothills with a third-party projection of $15,800 a month in short-term revenue. Taxes are about $600, insurance $750 and HOA dues $120. At 70% LTV the loan is $1,190,000 and the payment is about $9,783. On full projected revenue DSCR is about 1.62x; if a program counts only 75% of it, DSCR is about 1.21x.
The comparison shows why underwriting large short-term rentals depends so heavily on how revenue is counted. The cabin clears 1.0x under either method in this example, but a weaker projection or a stricter discount could change that.
| Item | Sequoyah Hills, 65% LTV | Cabin, 70% LTV, full revenue | Cabin, 70% LTV, 75% of revenue |
|---|---|---|---|
| Loan amount | $1,040,000 | $1,190,000 | $1,190,000 |
| Estimated principal and interest | $7,265 | $8,313 | $8,313 |
| Taxes, insurance, HOA | $1,697 | $1,470 | $1,470 |
| Total monthly payment | $8,961 | $9,783 | $9,783 |
| Qualifying income | $7,400 | $15,800 | $11,850 |
| DSCR | 0.83x | 1.62x | 1.21x |
Luxury long-term rentals in Knoxville rent well but not in proportion to price, so they usually need lower leverage or a sub-1.0 program. Large cabins can show strong projected revenue, but that income is seasonal, costs more to operate, and depends on local rules.
How a program counts short-term revenue varies. Some use the full projection, others discount it or require operating history. Ask before you rely on a number.
Operating costs on a large cabin are also higher than on a long-term rental: cleaning, management, furnishings, utilities, hot tubs and repairs. Those costs do not always appear in the DSCR calculation but determine your actual cash flow.
For the executive home, the usual paths are a larger down payment or pairing it with higher-yield properties in a portfolio.
Inside the City of Knoxville, non-owner-occupied short-term rentals are limited to certain zones, so most luxury in-city homes are long-term rentals. Sevier County and its cities, along with parts of Blount County, have long allowed cabin rentals, but rules, permits and taxes vary by jurisdiction and can change. Check before you buy.
Tennessee and local governments collect occupancy taxes on short-term stays, which matter for your operating budget.
Ask the county or city about permit requirements, occupancy limits and any caps on new short-term rentals before you sign a contract. Rules in tourist areas can change with little notice.
Lake homes south and west of Knoxville can command high prices. TVA regulates docks and shoreline structures on its reservoirs, and some subdivisions restrict rentals. Confirm dock permits and covenants before you buy.
Flood and wind insurance on waterfront property can be significant. Get quotes early.
Some lake communities also have HOA rules on minimum lease terms or rentals in general. Read the covenants before you count on any rental income, long-term or seasonal.
Tennessee's 25% assessment ratio keeps property taxes moderate even on expensive homes, which helps jumbo DSCR math compared with high-tax states. City properties pay city and county rates; Sevier County properties pay county and any city rate.
Knox County reappraises periodically, so use the latest assessment.
On a short-term rental, budget occupancy and sales taxes as part of operating costs, since they affect how much revenue you actually keep.
Larger balances get closer underwriting: detailed appraisals, possibly a second valuation, higher reserves and more questions about your experience.
Expect the appraisal to take longer than usual. Comparable sales for homes above $1.5M are limited around Knoxville, and short-term rental properties may need a specialized appraisal.
If you own five or more rentals, a blanket portfolio loan may fit better than a single jumbo loan. For 5-8 unit buildings, see our Knoxville 5-8 unit page.
See our Tennessee jumbo page and national jumbo guide for more.
A blanket loan qualifies on combined portfolio cash flow and includes release provisions, so you can sell one property later without refinancing the rest.
Send the address, rent or revenue projection, price or balance, and your plan. Call (877) 298-1001 or use the form below.
For an existing short-term rental, include past booking reports.
Yes, on 1-8 unit rentals, including luxury homes, large short-term rentals and 5-8 unit buildings.
On some programs, yes, using a third-party projection. Programs differ in how much of the projection they count. Operating history from past bookings can also help on an existing cabin.
Non-owner-occupied short-term rentals are limited to certain zones in the City of Knoxville. Check zoning before you buy.
It varies by program and is often lower on larger balances. Expect larger balances to come with lower maximum leverage and higher reserve requirements.
Rent at the top of the market is low relative to price. More down payment improves the ratio. A sub-1.0 DSCR program may also help on some files.
No. Jumbo DSCR loans qualify on rent or projected revenue, credit and reserves. We check credit, with a 620 minimum, and reserves.
Yes, up to program limits, if the income supports the payment. Larger cash-out loans get extra review on reserves and income.
Yes. We lend across East Tennessee on non-owner-occupied 1-8 unit properties. That includes Sevier County cabins and Blount County homes near Townsend and Maryville.
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