You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.
Find a DSCR Loan lender
Debt Service Coverage Ratio Loans
Invest in your future
JD MORTGAGE® connects you with lenders who want to help you invest in your future. We find the lenders that offer terms specially tailored to your goals—for commercial real estate, multifamily properties, and cash-flowing assets.
Offered exclusively through Biglaw Investor, we make it incredibly simple to find the best loan for your DSCR financing needs.
I’m an associate at a firm in Houston and used JD Mortgage thanks to your advice! The experience was great—they were super fast and responsive.”
—Mary Kate RaffettoBeck Redden LLP
For a JD Mortgage, I had good luck with IBERIABank. [They] made this process very smooth.”
—Clint CowanLynn Pinker Hurst & Schwegmann
The 6 Most Popular DSCR Loan Lenders in Tennessee
Key Terms
Tennessee’s real estate market is booming, offering affordable investment opportunities and benefiting from a robust tourism industry.
DSCR loans provide flexibility by using rental income for qualification, making them ideal for investors and foreign nationals without income verification.
Investors can leverage DSCR loans across multiple properties and enjoy diverse payment structures, facilitating faster approvals.
You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.
Easy Street Capital’s EasyRent loan program provides DSCR loans for cash-flowing investment properties. Flexible underwriting and ultra-competitive terms.
Loan Products
DSCR Loans: With rates starting at just 5.99% interest rates, 20% minimum down payment, no DSCR minimum, vacant properties OK.
Short Term Rental Loans: Leading loans for short term rentals (Airbnb); qualify with AirDNA projections and no operating history required. Rural, Vacation, and Seasonal Markets OK.
BRRRR Loans: Cash-out refinance DSCR Loans up to 75% with low seasoning requirements, 100% of capital invested returned in as little as 3 months
Multifamily Loans: 5-10 Unit properties financed on 30-year fixed rate loans with interest-only and easy qualification options.
Mixed Use Loans: DSCR Loans for Mixed Use properties up to 8 units (including up to 3 commercial units)
Lender Facts
Minimum Loan
$100,000
What We Do
DSCR Loans Rates starting at 5.99%
30-Year Fixed Rate; 10-Year Interest-Only Available
You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.
Expand your rental portfolio with New Silver’s lightning-fast DSCR loans, closing in days, not weeks. Get approved online in under 5 minutes, including an instant online term sheet.
Ready to grow your portfolio with confidence? Apply now and see how fast and easy real estate investing can be with New Silver Lending at your side.
Loan Products
DSCR Loans: A 30-year fixed loan tailored for rental properties—ideal for growing your rental portfolio. Up to 80% LTV. No minimum DSCR required.
Fix & Flip Loans: Hard money loans designed for purchasing, renovating, and reselling investment properties—perfect for executing quick fix-and-flip projects.
Ground Up Loans: Up to 100% construction financing for residential builders—ideal for developers ready to break ground.
You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.
Ridge Street’s DSCR loans allow real estate investors to purchase and refinance rental properties in 35 states, with industry-leading pricing and fast closing times for both long- and short-term rentals.
Loan Products
DSCR Loans For Long Term Rentals: Rates from 6.0% on cash flowing rental properties. Up to 80% LTV with a DSCR of 1.0 required.
DSCR Loans For Short Term Rentals: Rates from 6.75% on Airbnb and VRBO properties. Monthly rent used in DSCR calculation is based on AirDNA projected cashflow instead of 12 month track record.
DSCR Loans For Cash Out and Refinance: Ideal for BRRRR investors, we offer refinancing and cash-out options up to 80% LTV.
DSCR Loans For Multifamily Properties: 30-year loans for multifamily properties up to 25 units, with up to 80% LTV and a maximum loan amount of $2M.
Lender Facts
Minimum Loan
$50,000
What We Do
DSCR Loan Rates starting at 6.0%
Minimum DSCR of 1.0 required
Up to 80% LTV on purchases and refinances
Up to 75% LTV on cash-outs
Short-term rentals allowed
660+ credit score required
0% origination fee available
Not Available
No 100% financing
No properties > 25 units
No owner-occupied properties
No credit score below 660
Famed for its rich military history, Tennessee, the Volunteer State, is home to 6.9 million people, making it the 16th most populous state. With iconic cultural landmarks like Dollywood, Graceland, the Grand Ole Opry House, and the Country Music Hall of Fame, Tennessee has left an indelible mark on music and culture.
Music and national park tourism contributed 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 lively too. The median sold house price is currently fluctuating. About 67.8% of Tennesseeans own their homes compared to 32.2% who lease according to Housing Vacancies and Homeownership from the US Census. Of those rentals 8.9% are unoccupied 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.
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.
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:
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.
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:
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
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
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:
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.
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.
Save more money than your friends
One email each week covers personal finance, financial independence, investing and other stuff for lawyers that makes you better.
Biglaw Investor is helping thousands of high-income professionals manage and eliminate student loans and make great investment decisions. We’re on a mission to help every high-income professional achieve financial independence.
Biglaw Investor® is located at 1401 Lavaca St Suite 325, Austin, TX 78701. For inquiries, email us at hello@biglawinvestor.com. By accessing this website, you agree to our Terms of Use.
Trademarks
Biglaw Investor® and its logo, as well as JD Mortgage®, are registered trademarks of Four Minute Warning LLC. Other product names, logos, brands, and other trademarks featured or referred to within Biglaw Investor® are the property of their respective trademark holders and used for identification purposes only.
Information obtained via Biglaw Investor® is for educational purposes only and does not constitute financial, legal or professional advice. Always consult a licensed financial professional before making any financial decisions. This site may receive compensation from third-party advertisers. Biglaw Investor® is not endorsed or affiliated with the U.S. Department of Education or any government agency. All opinions expressed are for general informational purposes and should not be considered a substitute for advice specific to your circumstances.