Tennessee has three distinct large-bridge markets: Smoky Mountain cabins near Gatlinburg and Pigeon Forge, rental packages in Memphis, and high-value homes and small multifamily around Nashville. Each one exits a different way.
In short: LendingStreet provides residential investor bridge loans from $1M to $5M+ on 1-8 unit Tennessee property, with rates from 7.99%, interest-only payments and closings in as little as 10 days on a complete file. Common uses are Sevier County cabin groups, Memphis and Knoxville rental packages and Nashville-area homes. Larger balances usually need a full valuation, and exits are a sale, a DSCR or jumbo DSCR refinance, or an STR DSCR loan where nightly rentals are allowed.
Sevier County (Gatlinburg, Pigeon Forge, Sevierville, Wears Valley) is the state's short-term rental center, with cabins near Great Smoky Mountains National Park. Nashville and its suburbs (Antioch, Madison, Donelson, Murfreesboro, Gallatin, Franklin) produce high-value homes and small multifamily.
Memphis has one of the deepest single-family rental markets in the country, where a $1M+ bridge can cover a dozen homes. Knoxville and Chattanooga add older rentals and newer construction, with demand from the University of Tennessee, health systems and manufacturers.
A large bridge loan is a short-term, interest-only loan used to buy or recapitalize investment property fast, then exit through a sale or a long-term refinance. Our bridge program spans $150,000 to $5M+, with rates from 7.99% and closings in as little as 10 days on a complete file.
At $1M and above in Tennessee, each request is reviewed on its own merits, and larger balances usually require a full valuation of every property securing the loan.
| Feature | Large residential bridge |
|---|---|
| Loan size | $1M to $5M+ (program from $150,000) |
| Rates | From 7.99% |
| Payments | Interest-only |
| Speed | As little as 10 days on a complete file |
| Valuation | Full valuation usually required on larger balances |
| Property | 1-8 unit non-owner-occupied investment property |
| Exit | Sale, DSCR or jumbo DSCR refinance |
Cabin sellers often have several offers and want a fast close, and Memphis portfolios trade between investors on short timelines. A bridge loan funds the purchase now and gives time to establish booking history or lease up.
This example is illustrative and not a quote. An investor buys three cabins near Wears Valley and Pigeon Forge for $2,400,000 from an owner who is retiring from the business. Bookings are below what similar cabins earn, and the plan is to update furnishings and listings before refinancing on projected short-term revenue.
The bridge loan is $1,680,000, sized at 70% of the purchase price for this example, and the estimated interest-only payment is about $14,000 a month. Over a 6-month hold that is roughly $84,000 of interest carry, which belongs in the budget from day one.
When the bridge matures, the value is $2,500,000. Refinancing at 70% LTV gives a $1,750,000 DSCR loan. Estimated principal and interest is about $11,938; with taxes of $940, insurance of $1,100 and $300 of other costs, the monthly payment is about $14,278. Rent of $18,000 puts DSCR at about 1.26x.
In this example, the figure used for rent is $18,000 a month of projected short-term revenue across the three cabins. On that basis the loan clears 1.0x, and the $1,750,000 STR DSCR refinance repays the $1,680,000 bridge with about $70,000 left.
| Item | Amount |
|---|---|
| Purchase price | $2,400,000 |
| Bridge loan (70% of price) | $1,680,000 |
| Estimated monthly interest-only payment | $14,000 |
| Interest carry over 6 months | $84,000 |
| Value at refinance | $2,500,000 |
| STR DSCR refinance at 70% LTV | $1,750,000 |
| Estimated principal and interest | $11,938 |
| Taxes, insurance and other monthly costs | $2,340 |
| Total monthly payment | $14,278 |
| Projected monthly STR revenue | $18,000 |
| DSCR | 1.26x |
Tennessee charges a transfer tax of $0.37 per $100 of value, customarily paid by the buyer, and a separate tax on recorded mortgages of $0.115 per $100 of the loan amount above the first $2,000. Both apply to a large bridge purchase, and the mortgage tax applies again to the refinance.
On a $2.4M purchase with a $1.68M bridge, the two taxes together are roughly $10,800. Ask your title company for exact figures, including recording fees.
Smoky Mountain cabins usually refinance into short-term rental DSCR loans that, on some programs, qualify on projected short-term rental revenue from a third-party projection instead of a lease. Memphis and Knoxville packages refinance on long-term leases, often into blanket loans.
Nashville is the tricky one. The city does not issue new non-owner-occupied short-term rental permits in most residential zones, so a Nashville house generally needs a long-term rent exit, and high-value homes may need jumbo DSCR financing with leverage that varies by program.
Cabins come with steep driveways, private roads, septic systems and wildfire exposure, as the 2016 Gatlinburg fires showed. Insurance quotes and road maintenance agreements matter. Gatlinburg and Pigeon Forge have their own business license and occupancy tax requirements for nightly rentals.
Tennessee counties reappraise on cycles of four to six years, and values in Nashville and the Smokies rose sharply in recent reappraisals.
Our investor loans are business-purpose loans on non-owner-occupied property, made to LLCs and other entities as well as individuals. A short summary of the deal, plus the items below, is enough to get a quote started. Use the form below or call (877) 298-1001.
On a multi-property Tennessee request, a simple spreadsheet with each address, unit count, rent, taxes and insurance saves days. The team can then show how the bridge and the exit loan size at two or three leverage levels, so you can pick the structure before you sign.
The buyer customarily pays the $0.37 per $100 transfer tax. A separate tax applies to recorded mortgages. Confirm with your title company.
Generally, yes. The tax applies to recorded mortgages above the first $2,000, so it applies to the bridge and again to the refinance.
Be careful. Nashville does not issue new non-owner-occupied STR permits in most residential zones. Plan on a long-term rent exit unless the zoning allows STRs.
A complete file can close in as little as 10 days. Packages with many properties take longer because each one needs title work and a valuation.
On balances above roughly $1M, expect a full valuation of every property securing the loan. Plan for it in your timeline.
No. Our investor loans are business-purpose loans on non-owner-occupied property, such as rentals and properties bought to renovate and sell.
On some STR DSCR programs, yes, using a third-party projection of short-term revenue. The cabin must be allowed to operate as a nightly rental.
Yes. Memphis packages often exit into blanket portfolio loans or separate DSCR loans.
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