DSCR Loans in Tennessee: Finance Investment Property Without Income Docs

Written By Ali
Latino male investor reviewing DSCR loan options outside a rental property in Nashville, Tennessee.

Real estate investors across Tennessee are using DSCR loans to finance investment properties—without tax returns or W-2s. If you're eyeing deals in Nashville, Memphis, or Knoxville, this could be your best financing option.

What Are DSCR Loans?

DSCR stands for Debt Service Coverage Ratio. These loans are designed for investors who want to qualify based on a property's rental income—not their personal job or salary.

If the property's income covers the mortgage payment, you’re likely to qualify.

Why DSCR Loans Work in Tennessee

Tennessee has strong demand for both short- and long-term rentals. That makes it easier to find cash-flowing properties that qualify for DSCR loans.

Plus, there’s no state income tax—making it even more investor-friendly.

DSCR Loan Guidelines in Tennessee

  • Minimum DSCR: 1.0

  • Down Payment: 20–25%

  • Credit Score: 620+

  • Loan Amounts: $100K to $2M+

  • No income or employment verification

  • Property types: 1–4 unit residential, Airbnb-friendly in many cities

Best Tennessee Markets for DSCR Loans

  • Nashville: Music City has a booming short-term rental market

  • Memphis: Affordable homes with strong rent-to-price ratios

  • Knoxville: College town with steady rental demand

How to Qualify Easily

  • Have your rent roll or market rent estimate ready

  • A DSCR of 1.0+ is the magic number

  • LLC ownership is usually allowed

  • Great for repeat investors and first-time landlords

Ali https://www.quickerhomeloans.com/
Previous

Texas DSCR Loans for Real Estate Investors: No Tax Returns Needed
Next

How to Use DSCR Loans for Ohio Investment Property Financing