The 6 Most Popular DSCR Loan Lenders in Tennessee


DSCR loans in Tennessee are a convenient way to begin or expand your real estate investment portfolio allowing you to buy multiple properties.

Key Terms

  • DSCR loans can be used as a fast-track into the Tennessee market.
  • Borrowers can use the $9.1 billion dollar tourism industry to repay their DSCR loan.
  • Our list of best lenders gives an investor freedom on how to repay their loan using fixed-rate, adjustable-rate, or interest-only options.

Tennessee, known by its moniker as the Volunteer State on account of its long history of military service, is the 16th most populous state home to 6.9 million people. Its’ name comes from a Cherokee town from before colonization, Tanasi. Best known for substantial contributions to Music and Culture, Tennessee is home to Dollywood, Graceland, The Grand Ole Opry House, and the Country Music Hall of Fame. 

Music and national park tourism contributed $9.1 billion to Tennessee’s GDP in the most recent year which was about a 26% decrease from the year earlier according to the Department of Tourism and Development for Tennessee. However, that decline was most certainly from the Pandemic and already Tennessee’s tourism industry is expected to reach pre-pandemic levels within a couple of years. 

The real estate market in Tennessee is quite healthy too. The median sold house price is currently $375,000. About 67.8% of Tennesseeans own their homes compared to 32.2% who rent according to Housing Vacancies and Homeownership from the US Census. Of those rentals 8.9% are empty at any given time. 

Tennessee’s low Tax rates and affordable investment properties make it an attractive market for would-be real estate investors. With established big cities like Mephis and Nashville or up-and-comers like Chattanooga or Knoxville; there are plenty of options for the would-be real estate mogul.

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How DSCR loans work

Debt Service Coverage Ratio loans, or DSCR loans, are based on the DSCR ratio of a property. You start by first taking the net operating income of the property and dividing it by the cost of renting the property. Ratios above 1.0 show that the property is making more money renting than it is costs to run. A good ratio above 1.0 is proof to lenders that the borrower can purchase the property and pay back the loan.

Lenders like these loans because they increase the number of available borrowers for investment properties. By using the DSCR ratio lenders do not need to provide proof of personal income or access a borrower’s tax returns, instead relying on the rental income of the investment property. Besides being useful for home business owners or borrowers whose income isn’t reflected well on W2 statements this method also allows foreign nationals or foreign aliens into the market as well.

Unique to DSCR loans, LLCs are also able to access these mortgages. As you can see, lenders love these loans since they can sell mortgages quickly while remaining confident that they will be repaid.

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Top 6 Tennessee DSCR loan lenders

Some lenders only offer DSCR loans to experienced investors, while other programs can lend to those that are pursuing their first real estate investment.

1. New Silver

New Silver started in 2019 by Kirill Bensenoff and Alex Shvayetsky. They offer a variety of private money lending products like fix and flip, rental, ground up and personal loans.

We contacted New Silver Lending to learn more about their private lending business and here are some of the highlights:

  • Origination fee from 1.875%
  • Loan to cost up to 90%
  • 100% construction financing available
  • Loan to ARV up to 80%
  • Terms are typically 24 months
  • Loan amounts are from $100,000 to $5 million
  • Minimum FICO score is 650
  • No hard credit pull required

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

2. Griffin Funding

Griffin Funding is a national mortgage company that specializes in the types of loans that are hard to find, such as VA Home home loans, bank statement loans for the self-employed or DSCR loans for real estate investors. They are licensed to work in 21 states and are rapidly expanding.

We contacted Griffin Funding to learn more about their DSCR loans in general and here is what we found:

  • No income or job history verification required
  • No limits on the number of properties
  • Loan amount up to $5 million
  • Minimum 20% down required
  • Interest-only option available
  • Both long-term and short-term rentals are eligible
  • No reserve required on cashout loans. Six months required on all other loans unless DSCR ratio is less than 1.

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

3. Angel Oak

Angel Oak is a full-service private money lender that focuses on mortgage products, traditional and non-traditional (non-QM) products. They have platforms to provide both retail lending and direct lending.

We contacted Angel Oak directly to learn more about their DSCR loan program and here are some things to consider:

  • Loans up to $1.5 million
  • No income or employment information required
  • Short-term rentals and VRBOs allowed
  • Properties can be in LLC’s name
  • No limit on number of properties
  • 40 year fixed interest-only available
  • Non-warrantable condos allowed
  • Purchase, cash-out or rate-term refinance

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

4. JMAC Lending

JMAC Lending was founded by Christina Pham in 2007. Since that time, JMAC Lending has originated more than 40,000 mortgage loans through its wholesale lending platform, making it one of the largest wholesale lenders in the industry, according to its website. They also include a DSCR loan in their lending portfolio.

We reached out to JMAC Lending to see what we could find out about their DSCR loan program. Here are the program highlights:

  • Loan amounts up to $3.5 million for DSCR ratios >= 1.0
  • Loan amounts up to $3 million for DSCR ratios < 1.0
  • No DSCR ratio restrictions
  • No income and no job required
  • Foreign Nationals OK
  • Gift funds allowed after 10% from borrowers own funds
  • Only 30-days of assets docs. for closing funds and reserves
  • First-time investors: Up to 75% LTV
  • Only one appraisal required up to $2M
  • 30-year fixed, SOFR ARMs 5/6 & 7/6 with Interest-Only options
  • Purchase up to 80% LTV and cash-out up to 75% LTV
  • SFR, condo, 2-4 units and short-term rentals

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

5. CoreVest

CoreVest started in 2014 and offers a full-range of products for residential real estate investors. According to its website, they have closed more than $20 billion in loans and lends in all 50 states.

We contacted CoreVest to get more details about its DSCR loan and here is what we could find:

  • 5+ rental properties eligible
  • Single-family, condo, townhome, multifamily properties are OK
  • Stabilized (90% leased) portfolio
  • Can lend up to 75% of value
  • 3, 5, 7 or 10 year fixed loan options
  • Purchase or refinance
  • Non-recourse options available
  • Foreign nationals eligible

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

6. Newfi

Founded by Steve Abreu and Michelle Constantine, Newfi specializes in the non-QM mortgage lending space, offering products like self-employed mortgages, VHA mortgages and FHA loans, and, of course, DSCR loans.

We reached out to Newfi to see what we could learn about its DSCR lending program and here is what we found:

  • Maximum loan amount up to $2.5 million
  • Minimum loan amount is $100,000
  • Minimum credit score of 620 needed
  • 20% down payment required
  • Need at least three years of mortgage experience
  • Residential properties only
  • Maximum property size is eight units

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

What are the main advantages of a Tennessee DSCR loan?

Would-be investors should think over their investment goals. Is a DSCR loan right for my portfolio? One potential snag is having a low credit score. Low credit scores mean getting a DSCR loan can be tough since they tend to mean lower borrowing limits and also higher interest rates. You should also keep in mind the nature of property investments themselves. Since most loans tend to require decades to pay off they can be a bad choice for investors needing liquidity with their assets. However,  if you are a real estate investor that has good credit and is prepared for the long haul, then DSCR programs might be an exciting way to get a jump-start on your real-estate journey. 

The #1 reason to use Tennessee to purchase property through a DSCR loan is getting access to the $9.1 billion dollar tourism industry of the state. Pilgrimages to Graceland will be funding your retirement, how’s that for some Burning Love? Property taxes in Tennessee are some of the lowest in the country, an attractive option for borrowers looking to keep costs of running their rental property down. 

Another strength for DSCR loans is that they are not limited to a single property. DSCR loans can be used for multiple properties at once and also multi-dwelling properties as well. This means a borrower could split their investment across multiple Tennessee cities, neighborhoods within a single city, or across property types to capture renters interested in different amenities.  

As I said earlier, DSCR loans do not need income verification, like W2’s or tax returns for getting approval. This means that interested borrowers can skip the long wait of a traditional mortgage. Typically DSCR loans will be approved in weeks as opposed to months. The lenders we found offer multiple ways to structure your monthly payments as well. The most popular loan payment options being; interest-only, adjustable-rate, and fixed-rate loans. Considering the options available there is sure to be a loan type that fits your portfolio’s needs.

If you’re looking to explore hard money in other states, check out our national overview of DSCR loans as a starting point in your search.

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Joshua Holt

Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.

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