Tennessee DSCR Loan Lenders for Long-Term Rental Homes
Are you seeking long-term private financing for a residential rental property in Tennessee? On this page you'll find a list of lenders that offer these “DSCR” loans for single family homes, condos, and 2-4 unit rental properties in Tennessee’s urban areas. Some lenders consider vacation rentals (aka short-term rental or STR). The maximum loan-to-value is 80%. For a purchase, investors need a minimum down payment of 20%, and it could be higher depending on the debt service coverage ratio (DSCR), borrower’s credit score and location. The minimum credit score is 680 for most lenders. The loans terms range from 5 to 30 years.Searching...
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Tennessee DSCR Loan Interest Rates
According to the loan documents software company, Lightning Docs, the average interest rate for Tennessee DSCR long-term rental loans in the 1st quarter of 2024 was 8.25%. The average loan amount was $214,359. These stats are the average of 71 loans funded for residential rental properties in Tennessee between January 1, 2024 and March 31, 2024 by multiple lenders that use Lightning Docs as their preferred software provider to prepare loan documents.
Funded DSCR Long-Term Rental Loans in Tennessee
DSCR Refinance Loan for Short-Term Rental in Sevierville, Tennessee
$1,422,850
Easy Street Capital, a direct private real estate lender, funded a $1,422,850 1st lien position rental refinance loan secured by a short-term rental home in a planned unit development (PUD) in Sevierville, TN. The property value was estimated at $2,189,000 so our loan-to-value was 65%. The subject property is a 2,350-square-foot single-family residence with an accessory dwelling unit in the grandeur backdrop of the Smoky Mountains. With a total makeover of the kitchen, bathrooms, bedrooms, basement, attic, and ADU, the style reflects the earthy and remote feel of the nature it lays within. Without a real commerce-based economy, the Smoky Mountains excel in tourism, with short-term rentals as a hot commodity. The interest rate was fixed at 7.13%. The debt service coverage ratio (DSCR) was 1.94. The loan term was set at 30 years. This DSCR equity cash-out loan was funded in March 2024.
Easy Street Capital, a direct private real estate lender, funded a $730,000 1st lien position rental purchase loan for the acquisition of a single-family home in Gatlinburg, TN. The purchase price was $912,500. The property will be utilized as a short-term rental. Nestled in scenic landscapes of the Great Smoky Mountains, one of America’s most visited national parks, Gatlinburg is a captivating tourist haven as it seamlessly blends natural beauty with a plethora of entertainment options. Gatlinburg caters to diverse interests, ensuring that families, adventure seekers, and history enthusiasts alike will find something to delight in with amusement parks, a myriad of hiking trails, and an array of dinner and comedy shows. Regardless of the season, Gatlinburg remains a vibrant destination, welcoming guests year-round. In the warmer months, guests can enjoy outdoor adventures like hiking complemented by the charm of local breweries. As winter blankets the mountains in snow, Gatlinburg transforms into a winter wonderland, inviting families to enjoy skiing and snow tubing. The interest rate was fixed at 8%. The DSCR was 1.47. This STR purchase loan was funded in December 2023.