Is Tennessee good for DSCR loans?

Yes. Tennessee has no state income tax, landlord-friendly law, and two strong but different markets: Nashville for growth and short-term rentals, and Memphis for cash flow. Nearly every national DSCR lender operates there.

What is different about a Nashville short-term rental DSCR loan?

Nashville is a major short-term rental market with local permit rules, and lenders underwrite short-term income differently from long-term rent. If you are buying an Airbnb, use a lender that accepts short-term income and confirm the property's permit status before you apply.

Lender guide

Best DSCR Lenders in Tennessee (2026)

Tennessee offers two very different DSCR plays: Nashville growth and short-term rentals, and Memphis cash flow with older stock. No state income tax and landlord-friendly law help both. Here is how to choose.

By Owen Brandt, Research Editor. Updated June 13, 2026.

Most "best DSCR lender in Tennessee" lists are written by a lender or an affiliate paid to rank one. We do the opposite: we show you how to judge a lender for a Tennessee deal so the answer holds up no matter who is paying whom. Where we link to a lender, we say so. See our disclosure.

Two markets, two strategies

Tennessee has no state income tax and landlord-friendly law, but the deal you are doing depends on the city:

Nashville. Growth and a large short-term rental market with local permit rules. If you are buying an Airbnb, you need a lender that underwrites short-term income and a property with the right permit. See DSCR loans for short-term rentals.
Memphis. A cash-flow market with low prices and older housing stock, so condition and the loan amount matter, similar to other affordable Midwestern and Southern markets.

The five things that separate lenders for a Tennessee deal

Short-term income. For Nashville Airbnb deals, will they underwrite short-term rent, and do they accept the permit?
Minimum loan amount. For cheaper Memphis rentals, confirm the loan clears the lender's floor.
Pricing for your tier. Compare a quote for your actual credit and ratio.
Condition tolerance. How they treat older Memphis stock.
Prepayment structure. Ask for the exact step-down.

Established lenders to research

These national investor lenders operate in Tennessee. We list them as starting points to research, not endorsements, and you should confirm current terms directly.

Compare current Tennessee options. Confirm terms on each lender's site. Some links may be affiliate links; see our disclosure.

Kiavi New Silver Visio Lending

Before you apply in Tennessee

Decide whether you are underwriting long-term or short-term rent, then check your standing with the pre-qualifier and read the local factors on the Tennessee investor loans page. Run the numbers on the DSCR calculator.