Large Nashville rental loans usually involve one of three things: a newer infill home in the urban core, an executive house in Williamson County, or a property bought with short-term rental income in mind. Each one gets underwritten a little differently.
In short: LendingStreet finances $500K to $1M+ rentals across the Nashville metro with DSCR loans that qualify on the property's rent, not your income, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, rates start at 6.125% for well-qualified borrowers, and purchases go up to 80% LTV, often less on large balances. In Nashville the two things that decide most large files are whether the property can legally operate as a short-term rental and how much equity a single-family home needs to reach a 1.0x ratio at Brentwood or Belle Meade prices.
Nashville's higher-priced rental stock is not one market. A tall, skinny new build in Sylvan Park, a detached pair on one lot in East Nashville and a five-bedroom house in Franklin all qualify on rent, but the rent type and the approval issues differ.
This table shows how the common paths usually compare. Terms vary by program, and leverage on large balances is often lower than the program maximums.
| Item | Urban infill home or HPR pair | Williamson County executive home | Permitted short-term rental |
|---|---|---|---|
| Example areas | Sylvan Park, The Nations, 12 South, East Nashville, Germantown | Brentwood, Franklin, Nolensville, Thompson's Station | Eligible commercial or mixed-use zones, such as parts of downtown and The Gulch |
| Rent used | Long-term leases | Long-term leases | Projected STR revenue, if permitted |
| Main approval issue | Ratio at infill prices; HPR documents | Equity needed on one rent | Permit eligibility and building rules |
| Rates from | 6.125% | 6.125% | 6.49% (STR DSCR) |
| Leverage on a large balance | Often lower; varies by program | Often lower; varies by program | Often lower; varies by program |
Much of Nashville's infill building has been two homes on one former single-family lot. Many are set up under a horizontal property regime, or HPR, which works like a small condo: each home is its own unit with its own deed, and the two owners share the lot under a master deed and bylaws.
For a DSCR loan, that means the HPR documents go in the file, and the appraiser treats each home as a separate unit. Buying one side gives you one rent. Buying both sides gives you two rents, but they are still two units, so ask the financing team whether your program finances them on one loan or two.
Check how the HPR handles insurance, shared driveways and exterior repairs. Some small regimes have no reserves at all, and a few have restrictions on leasing. Get the documents early, before your inspection period runs out.
Metro Nashville requires a permit for short-term rental property. In most residential zoning districts, new permits for non-owner-occupied STRs have been heavily restricted for years, while certain commercial and mixed-use districts allow them. Owner-occupied permits follow different rules and do not apply to investment property.
That matters for a large loan because STR income can be much higher than a 12-month lease on the same home. Our STR DSCR program qualifies on projected revenue, with rates from 6.49% for qualified borrowers, but only if the property can legally operate as a nightly rental.
Permits generally do not transfer automatically with a sale, condo and HPR rules can ban STRs even where zoning allows them, and Metro's rules have changed more than once. Confirm eligibility with Metro Codes and the association before you count on nightly income. If the property cannot be permitted, plan on long-term rent.
South of the city, Brentwood and Franklin draw relocating professionals and families, many of them working in health care, music and entertainment, or corporate offices in Cool Springs and Maryland Farms. Nolensville and Thompson's Station add newer subdivisions at somewhat lower prices.
These homes often lease well, and well-regarded public schools are a major draw for tenants. The challenge on a $1M+ house is the ratio: one rent has to cover a large payment, so these files often need more equity than an infill home or duplex at a similar price.
Most of these neighborhoods have HOAs. Some limit leasing, set minimum lease terms or cap the number of rented homes. Read the covenants before you write an offer.
This example is illustrative and not a quote. An investor buys a five-bedroom home in Franklin for $1,400,000 that leases for $8,000 a month on a 12-month lease. Taxes are budgeted at $550 a month, insurance at $275 and HOA dues at $125.
At 75% LTV the loan is $1,050,000. At a sample rate of 7.25% on a 30-year fixed, principal and interest is about $7,163. The total payment is about $8,113, and DSCR is $8,000 divided by $8,113, or about 0.99x, just under the 1.0x standard minimum.
At 70% LTV the loan is $980,000 and principal and interest is about $6,685. The total payment is about $7,635 and DSCR rises to about 1.05x. The investor brings $70,000 more to closing, and on a balance this size, the program may cap leverage near that level anyway.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $1,050,000 | $980,000 |
| Down payment | $350,000 | $420,000 |
| Principal and interest at 7.25% | $7,163 | $6,685 |
| Taxes, insurance and HOA | $950 | $950 |
| Total monthly payment | $8,113 | $7,635 |
| DSCR at $8,000 rent | About 0.99x | About 1.05x |
Tennessee has no state income tax on wages, which has drawn many higher-income renters to the area. Property taxes are set by each county and, inside Davidson County, by Metro's tax districts. Davidson County reappraises properties periodically, and a reappraisal can change your bill, so use the assessor's current figures for the parcel rather than the seller's old bill.
Middle Tennessee has seen tornadoes, including the March 2020 storm that hit North Nashville, Germantown and East Nashville, and parts of the metro flooded badly in 2010. Insurers price wind and hail risk, and properties near the Cumberland River or local creeks may sit in mapped flood zones. Get a real insurance quote and check the flood map during your inspection period.
Many Nashville investors finance in the $500K to $1M range. Typical properties include infill homes and HPR units in The Nations, Inglewood, Wedgewood-Houston and Antioch, older duplexes in East Nashville, and suburban rentals in Smyrna, Murfreesboro, Mt. Juliet, Hendersonville and Spring Hill.
On these balances, leverage is often nearer the program maximums: up to 80% LTV on a purchase and up to 75% on a cash-out refinance. Reserves are often lighter than on a $1M+ file, but both vary by program, and the rent still has to clear the 1.0x standard minimum.
The Nashville checks stay the same at any size. HPR documents, STR permit status and the current tax figure all go into the file.
Above $1M, the basics hold: the loan qualifies on rent, there are no W-2s or tax returns, the minimum credit score is 620, and 30-year fixed options are available. What tightens is leverage and documentation.
Maximum LTV is often lower, reserve requirements are often higher and some programs require a second appraisal or a more detailed review. Luxury homes in Belle Meade, Forest Hills, Green Hills and Brentwood can have few close comparable sales, which can slow the appraisal. Pricing on large balances is set case by case.
If you own several Nashville rentals, a blanket portfolio loan for five or more properties can finance them on one closing with portfolio pricing, qualifying on the portfolio's cash flow.
A complete file gets a faster, clearer answer, and large balances get a closer look. Have these items ready when you reach out.
LendingStreet is an investment property financing company. We finance business-purpose DSCR loans on non-owner-occupied rentals in Davidson, Williamson, Rutherford, Wilson and Sumner counties, with cash-out up to 75% LTV, often lower on large balances.
Send the address, price, rent type and target leverage. The financing team will run the ratio at a few loan amounts, flag permit or HPR issues early and come back with 2-3 options, including sub-1.0 DSCR programs where they fit.
Yes, if the property holds or can obtain a valid non-owner-occupied STR permit. STR DSCR loans qualify on projected revenue, with rates from 6.49% for qualified borrowers. Confirm permit eligibility with Metro Codes first.
It is a home owned under a horizontal property regime, where two or more homes share one lot under a master deed. Each home has its own deed, so lenders treat it much like a small condo unit and review the HPR documents.
Often, but they are still separate units. Ask the financing team whether your program finances them on one loan or two, and how each home's rent is counted.
Our DSCR programs have no stated maximum. Loans start at $150,000, and larger balances are reviewed and priced case by case. On larger loans, maximum LTV is often lower and reserve requirements higher.
Because one lease has to cover a large payment. At higher prices, rent often does not rise as fast as the loan, so more equity is usually what brings the ratio to 1.0x.
Yes. Cash-out goes up to 75% LTV, often lower on large balances, and the rent must still clear the program minimum at the new, larger payment.
It can. Taxes are part of the payment, so a higher assessment lowers the ratio. Use current assessor figures when you run the numbers.
No. LendingStreet finances non-owner-occupied investment property only, not primary residences or second homes.
Yes. DSCR loans start at $150,000 with no stated maximum, and $500K to $1M loans are common for infill and HPR homes, East Nashville duplexes and suburban rentals in Rutherford, Wilson and Sumner counties.
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