Tennessee DSCR Loans: No Tax Returns, 1.2 DSCR Min, Rates from 6.25%
Rental property financing for Tennessee investors qualified on property cash flow — not personal income, W-2s, or tax returns. Serving Nashville, Memphis, Knoxville, Chattanooga and the rest of Tennessee. If the property cash-flows at 1.2× the mortgage, you may qualify.
- 1.2 DSCR minimum
- |
- 680+ FICO
- |
- Refi from 6.25%
- |
- 21–30 day close
Can I get a DSCR rental loan in Tennessee?
Yes. DSCR loans in Tennessee qualify investors based on property cash flow with a 1.2 DSCR minimum, 680+ FICO, and 20–25% down. No tax returns, W-2s, or DTI calculation required. 1–4 unit residential and 5+ unit multifamily eligible. Refi rates start at 6.25%.
Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated May 2026.
Tennessee Rental Market Snapshot
State-level data DSCR underwriters use to size Tennessee rental deals.
Tennessee is one of the strongest DSCR markets in the South thanks to no state income tax, no rent control, and three distinctly different city economies. Nashville is a tightening LTR market with strict STR registration. Memphis is the highest-cap-rate large metro in the country. Gatlinburg and Pigeon Forge cabin STRs routinely clear 2.0+ DSCR. Knoxville sits in the middle on UTK demand and growing in-migration.
Major Tennessee Markets We Fund
Active DSCR deal flow across Tennessee's core rental markets. Same requirements — 1.2 DSCR, 680+ FICO, 20–25% down — apply statewide.
| Metro | Median Price | Gross Yield | DSCR Investor Notes |
|---|---|---|---|
| Nashville | $445K | 5.0–6.5% | Tightest TN market — STR Type 1/2 permits restricted, premium LTR demand |
| Memphis | $175K | 9.0–12.0% | Highest cap rates of any large US metro, deep institutional and BRRRR competition |
| Knoxville | $305K | 6.5–8.0% | UTK student housing, growing in-migration, Smoky Mountains STR proximity |
| Chattanooga | $285K | 7.0–8.5% | VW manufacturing employment, downtown revitalization, growing STR market |
Tennessee Eviction Timeline & Landlord Posture
How Tennessee courts handle non-payment evictions — material to DSCR loss-severity assumptions.
Tennessee allows a 14-day notice for non-payment under URLTA-counties or 30 days in non-URLTA jurisdictions. Detainer warrants typically resolved in 4–6 weeks. No state rent control — preempted by state statute.
Tennessee Rate Adjustment vs National Baseline
No state income tax and landlord-friendly process keep loss severity low; Nashville jumbo pricing tracks national curves.
Final pricing depends on FICO, LTV, DSCR, property type, and program. Baseline national DSCR refi rates start at 6.25% as of May 2026.
DSCR Lenders Active in Tennessee
The non-bank DSCR programs we see most frequently funding Tennessee rental deals. PeerSense matches your scenario across this lender set rather than locking you into one.
- Kiavi
- Visio Lending
- Lima One
- Velocity Mortgage Capital
- RCN Capital
PeerSense is independent — not a lender. Lenders listed are programs we have funded Tennessee deals through; specific terms vary by file.
Tennessee DSCR Loan Requirements
| Requirement | Minimum | Notes |
|---|---|---|
| DSCR | 1.20 | 1.00+ allowed with 740 FICO or 30% down |
| Credit Score | 680 FICO | 640–679 by exception, lower LTV |
| Down Payment | 20–25% | 25% if <1.2 DSCR or <700 FICO |
| Property Type | 1–4 units or multifamily | Condos, townhomes, STRs OK where legal |
| Income Docs | None | No tax returns, W-2s, DTI check |
| Reserves | 6 months PITIA | Checking, savings, stocks qualify |
| Close Time | 21–30 days | Cash-out refi: 14–21 days |
Not a commitment to lend. Rates and terms subject to underwriting. See our full DSCR loan guide for the complete program.
Get Tennessee DSCR Loan Terms
DSCR Rental — Response within 4 business hours. No obligation.
Related DSCR Resources
- DSCR Loans Hub — Programs & Rates
- DSCR Rental Loans — Full Program Guide
- DSCR for Airbnb / Short-Term Rentals
- DSCR Cash-Out Refinance
- DSCR Jumbo Loans ($1M+)
- DSCR for LLCs / Entity Title
- Best DSCR Lenders 2026
- DSCR Loans — Complete Guide
- DSCR Calculator — Test Your Property
- Fix & Flip Loans — Bridge to DSCR Exit
- Bridge Loans — Short-Term Rental Acquisition
- DSCR vs Conventional Mortgage