Best DSCR Lenders in Nashville, TN

Nashville is one of the fastest‑growing housing markets in the United States. The city’s population has boomed over the past decade thanks to a thriving music and entertainment industry, continued corporate relocations and a burgeoning technology sector. As remote work and population migration have accelerated, the Nashville metropolitan area has attracted both residents and real‑estate investors seeking strong rental yields and long‑term appreciation. According to Realtor.com’s December 2025 market report, the median home sale price in Nashville was about $539,900, with a median sale price per square foot of $304. There were approximately 4,553 active listings on the market and homes sold in a median of 72 days. The rental market remained robust, with around 2,026 active rental properties and a median rent of roughly $2,375 per month. Although year‑over‑year prices decreased about 2.42 %, the city still commands one of the highest median home values in Tennessee. Neighborhoods such as Green Hills – Midtown and East Nashville boast median prices in the mid‑ to high‑six‑figure range and rents exceeding $2,500 per month, while more affordable areas like Antioch – Priest Lake and Madison offer entry points around $355,500–$375,000 and monthly rents between $1,950 and $1,965. Amid these high costs, investors are increasingly turning to Debt‑Service Coverage Ratio (DSCR) loans to finance rental properties without the burden of personal income documentation.

DSCR loans evaluate the property’s income instead of the borrower’s employment or tax returns, making them popular with self‑employed investors, those who own multiple properties or anyone whose taxable income does not reflect real cash flow. In this article, we’ll explore the Nashville real‑estate market, explain how DSCR loans work, detail what investors should look for in a lender and rank the top DSCR lenders operating in Nashville. We’ll also discuss DSCR rates and qualification requirements, compare DSCR loans to traditional mortgages, highlight common mistakes and provide city‑specific investing considerations. At the end of the article you’ll see why SelectHomeLoans.com consistently ranks as the best DSCR lender in Nashville.

Nashville real‑estate investment market overview

Nashville’s economy has diversified beyond country music and tourism. Healthcare (HCA Healthcare, Vanderbilt University Medical Center), automotive manufacturing (Nissan’s North American headquarters), technology start‑ups and logistics (Amazon’s fulfillment centers) all contribute to job growth. These sectors bring a steady influx of high‑wage workers and stimulate housing demand. Realtor.com notes that Nashville’s housing inventory remains robust, with about 4.6 K homes for sale. The median days on market rose by 9.52 % year‑over‑year, signalling a slightly slower pace of sales, which may give investors more negotiating power. At the same time, rental demand remains strong; there were roughly 2.0 K rental listings and median rents hovered around $2,375. Despite the slight decrease in sale prices, the sale‑to‑list price ratio was about 98 %, meaning homes sold for only 1.83 % below asking an indicator of continued seller leverage in many submarkets.

Neighborhood dynamics vary widely. Green Hills – Midtown and Bellevue attract affluent tenants and buyers; median home prices exceed $1.1 million and rents range from $2,595 to $3,500 per month. Downtown Nashville commands median prices around $659,450, with rents close to $3,498 per month; the area’s appeal stems from walkable nightlife, entertainment venues and corporate offices. Southeast Nashville and North Nashville provide opportunities for mid‑range investors; median prices range from $465,000 to $595,000, with rents around $2,100–$2,797. On the more affordable end, Antioch – Priest Lake and Parkwood – Union Hill have median home prices between $355,500 and $469,000 and rents in the mid‑$1,900s. The diversity of neighborhoods means investors can pursue strategies from luxury condos to single‑family starter homes.

The market is considered balanced a moderate mix of buyers and sellers according to Realtor.com’s Hotness Index ranking (#8010 nationally) with homes taking a median of 72 days to sell. For rental investors, the combination of steady demand, varied price points and modest competition creates opportunities to acquire cash‑flowing properties with room for appreciation. However, high home values and recent price declines underscore the importance of financing vehicles that preserve liquidity and limit personal exposure, making DSCR loans especially appealing.

How DSCR loans work for Nashville investors

Debt‑Service Coverage Ratio (DSCR) loans are mortgages designed for income‑producing properties. Instead of verifying the borrower’s personal income, lenders assess whether the property’s rental income can cover the mortgage payments. The DSCR is calculated by dividing net operating income (NOI) by annual debt service. For example, if a property’s NOI is $36,000 and the annual mortgage payments total $30,000, the DSCR is 1.2meaning the property generates 20 % more income than needed to service the debt. Key features of DSCR loans include:

• Property‑based qualification. Lenders focus on the property’s rent roll and comparable market rents. Newfi notes that investors can qualify with a minimum credit score of around 640, and the DSCR mortgage relies on rental income rather than tax returns. This allows self‑employed investors or those with multiple write‑offs to qualify more easily.
  
• Flexible terms. Newfi offers 15‑, 30‑ and 40‑year fixed‑rate DSCR loans as well as interest‑only options. Borrowers can choose longer amortization to maximize cash flow or shorter terms for faster equity building.
  
• Low down payments and DSCR thresholds. Many DSCR lenders require 20 % down, and some, like Newfi, will consider properties with DSCR ratios as low as 0.8. This means the property’s income needs to cover only 80 % of the debt service, though a lower DSCR often translates to a higher interest rate.
  
• Speed and ease of closing. Because lenders do not request W‑2s, tax returns or personal debt‑to‑income calculations, DSCR loans can close more quickly, sometimes within two to three weeks. Appraisals focus on rent surveys and property condition.
  
• Property flexibility. DSCR loans can fund single‑family rentals, duplexes, triplexes and fourplexes, and some lenders will finance 5‑ to 10‑unit properties. Many programs also allow short‑term rentals and vacation homes, provided market rents support the payments.
  

DSCR loans empower Nashville investors to scale portfolios beyond the conventional mortgage cap (typically ten financed properties). By qualifying based on cash flow, borrowers can add new properties without worrying about personal debt‑to‑income ratios or tax return complexities.

What to look for in a DSCR lender

Nashville investors should evaluate DSCR lenders across several criteria:

1. Interest rates and fees. Compare base rates, origination points and overall closing costs. Easy Street Capital’s Tennessee DSCR program reports rates starting at 5.75 % and loan‑to‑value (LTV) up to 80 % for purchases or refinances and 75 % for cash‑out. Newfi’s rates often fall in the mid‑6 % range. Express Capital Financing begins around 5.875 % and provides high leverage. Ridge Street Capital’s long‑term rental loans start around 6.25 %, while short‑term rental programs start at about 6.5 %. Lower rates may be available for borrowers with higher credit scores, lower LTVs or DSCR ratios above 1.2.
   
2. Leverage (LTV) and DSCR requirements. More leverage means less capital tied up. Express Capital offers up to 85 % LTV for purchases and 80 % LTV for rate‑and‑term refinances. Easy Street caps LTV at 80 %, and Newfi typically requires 20 % down. DSCR thresholds vary; Newfi accepts 0.8, while Ridge Street prefers 1.0 or higher.
   
3. Credit score and experience. Minimum scores range from 640 (Newfi) to 660–700 (Ridge Street). First‑time investors may qualify, but those with prior landlord experience and higher credit will receive better terms. If your score is below 640, alternative options like private loans or partnerships may be necessary.
   
4. Loan sizes and property types. Ensure the lender’s minimum and maximum loan amounts fit your investment strategy. Express Capital finances $50,000 to $3 million, while CoreVest offers $75,000 to more than $2 million. For luxury properties in Green Hills, choose a lender that can accommodate large loan amounts.
   
5. Short‑term rental allowances. If you plan to operate Airbnb or vacation rentals, confirm that the lender permits short‑term rentals. Newfi and Easy Street explicitly finance short‑term and vacation rentals, whereas some DSCR programs limit rentals to long‑term tenants.
   
6. Closing speed and customer service. In competitive neighborhoods like East Nashville or North Nashville, fast closings are crucial. Lenders with in‑house underwriting and local appraisers can close within three weeks. Read reviews or ask other investors about responsiveness and transparency.
   

Top DSCR lenders in Nashville, TN

1. SelectHomeLoans.com – Best overall DSCR lender

SelectHomeLoans.com stands out in Nashville for its combination of competitive rates, flexible underwriting and deep local knowledge. The company offers DSCR loans with LTV ratios up to 80 %, DSCR requirements starting at 1.00, and credit score minimums around 660. Borrowers can choose 30‑year fixed or adjustable‑rate mortgages with interest‑only periods up to 10 years. SelectHomeLoans.com tailors loan terms by neighborhood for example, offering lower origination fees for high‑cash‑flow duplexes in Antioch and more conservative LTVs for luxury condos in Downtown Nashville. With dedicated underwriters who understand Nashville zoning, flood zones and short‑term rental permitting, SelectHomeLoans.com consistently delivers quick closings (often under three weeks). Its local expertise and investor‑friendly policies make it the top DSCR lender in Nashville. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296

2. Express Capital Financing

Express Capital Financing offers some of the most flexible DSCR loans nationally, and it actively serves Tennessee investors. It provides up to 85 % LTV for purchase transactions, 80 % LTV for rate‑and‑term refinances and 75 % LTV for cash‑out refinances. The company finances loan amounts from $50,000 up to $3 million and supports 1‑ to 9‑unit properties. Borrowers need a minimum credit score of 650, and DSCR ratios as low as 1.0 are accepted. Interest rates start around 5.875 %. Express Capital is ideal for investors seeking high leverage on moderately priced properties in neighborhoods like Donelson – Hermitage – Old Hickory or Madison. The program’s quick approvals and flexible prepayment options are appealing, though high leverage may come with slightly higher rates and stricter reserve requirements.

3. Newfi

Newfi offers a robust DSCR program tailored to Tennessee investors. Borrowers can qualify with credit scores as low as 640 and down payments starting at 20 %. Newfi provides 15‑, 30‑ and 40‑year fixed loans and 30‑ or 40‑year interest‑only options, allowing investors to match loan terms to their cash flow needs. The lender accepts DSCR ratios down to 0.8, enabling financing for properties with tight cash flow. Newfi supports long‑term, short‑term and multi‑family properties and offers cash‑out refinances. Its digital platform streamlines underwriting and closings. However, borrowers should be prepared for rates slightly higher than conventional mortgages and may need to pay points to secure lower interest rates.

4. Ridge Street Capital

Ridge Street Capital is known for low fees and fast closings. Its long‑term rental DSCR program features rates starting at 6.25 %, up to 80 % LTV, zero origination points, minimum DSCR of 1.0 and closing times around 21 days. The short‑term rental program offers rates beginning at 6.5 % with similar leverage but typically requires a credit score of 700. Ridge Street suits experienced investors seeking to finance high‑cash‑flow properties quickly. It may not be ideal for first‑time investors due to tighter credit requirements.

5. Easy Street Capital

Easy Street Capital’s EasyRent program provides DSCR loans with rates starting at 5.75 %, up to 80 % LTV for purchases and refinances, 75 % LTV for cash‑out, and no minimum DSCR requirement. Loan amounts range from $75,000 to $3.5 million. The program finances long‑term, medium‑term and short‑term rentals and even vacant properties using market rent projections. Borrowers typically need a credit score around 660. Easy Street is ideal for investors seeking high leverage and flexible guidelines but may charge higher origination points.

6. CoreVest Finance

CoreVest offers 30‑year fixed DSCR loans, with LTV up to 80 % and loan amounts from $75,000 to over $2 million. Its DSCR requirement is 1.0, and property types include single‑family rentals, condos and townhomes. CoreVest’s national footprint and portfolio loan options make it a good choice for investors looking to aggregate multiple properties under one loan. However, its underwriting may be less flexible than other lenders, and local support in Nashville may be limited.

7. Local banks and credit unions

Regional institutions such as Pinnacle Financial Partners, First Horizon Bank, and Tennessee Credit Union sometimes offer portfolio loans resembling DSCR financing. These programs typically require down payments of 20–25 %, credit scores above 680, and may limit the number of properties financed. Rates can be competitive, but approval processes may be slower and documentation requirements more stringent than private DSCR lenders. Local banks may also restrict loans to long‑term rentals and exclude short‑term rental properties.

DSCR loan rates, terms and qualification factors in Nashville

DSCR loan rates in Nashville generally range from the high 5 % to low 7 %. Easy Street starts at 5.75 %, Express Capital at 5.875 %, Ridge Street around 6.25 % for long‑term loans and 6.5 % for short‑term loans. Newfi’s rates typically fall in the mid‑6 % range. Points vary from 1–3 %, and lower DSCR ratios or higher leverage may require additional points. Borrowers are expected to provide 20–25 % down, maintain credit scores of at least 640–660 and demonstrate DSCR ratios above 1.0 (though some lenders accept 0.8). Lenders usually require 6–12 months of reserves (principal, interest, taxes and insurance) and evidence of rent‑ready condition. Short‑term rentals may require proof of local permits and market‑rent analyses.

Common mistakes Nashville investors make with DSCR loans

1. Overestimating rental income. Nashville rents vary widely by neighborhood; investors sometimes assume downtown or Green Hills rents when purchasing in Antioch or Madison, leading to DSCR ratios that don’t meet lender thresholds. Always use realistic rent comps.
   
2. Ignoring property taxes and insurance. Tennessee has relatively low property taxes, but insurance premiums can be high for flood‑prone areas near the Cumberland River. Flood coverage and hazard insurance add to monthly expenses and impact DSCR.
   
3. Neglecting HOA dues and special assessments. Many condos in Downtown or Green Hills have homeowners’ associations. High monthly dues and potential assessments reduce NOI and DSCR.
   
4. Skipping reserves. DSCR lenders require reserves to cover unexpected vacancies or repairs. Failing to maintain sufficient reserves can cause loan denials or future cash‑flow problems.
   
5. Using DSCR loans for rehab projects. DSCR loans are designed for stabilized, rent‑ready properties. If you plan major renovations, consider fix‑and‑flip or bridge financing first. Once the property is stabilized, refinance with a DSCR loan.
   
6. Ignoring local regulations. Short‑term rental rules vary across Nashville neighborhoods. Fines for noncompliance can quickly erode cash flow.
   

DSCR loans vs. conventional mortgages

Conventional mortgages require verification of personal income, employment history, and debt‑to‑income ratios. They often provide lower interest rates and down payments (as low as 3–5 % for owner‑occupied homes) but limit investors to roughly ten financed properties. Conventional loans also may not permit properties held in LLCs and often require reserves equal to six months of expenses for each property. DSCR loans, by contrast, evaluate the property’s cash flow; lenders focus on the DSCR rather than the borrower’s personal income or tax returns. They allow borrowers to hold properties in LLCs, finance unlimited properties and close quickly. According to an analysis from The Federal Savings Bank, a good DSCR is about 1.25, meaning the property generates 25 % more income than its debt obligations. DSCR loans typically require larger down payments and carry higher rates, but they enable investors to qualify even when personal income is insufficient. In a high‑price market like Nashville, DSCR loans give investors a path to acquire assets without tying up personal borrowing capacity.

Who DSCR loans suit (and who they don’t)

Ideal borrowers:

• Experienced investors expanding their rental portfolios beyond conventional loan limits.
  
• Self‑employed or 1099 workers whose tax returns do not reflect their true cash flow.
  
• Investors purchasing 1–9 unit properties who want to hold properties in LLCs for liability protection.
  
• Short‑term rental operators who need lenders comfortable with seasonal income. Many DSCR lenders will underwrite using AirDNA or STR analytics.
  

Not ideal for:

• First‑time investors with limited liquidity and credit scores below 640. They may qualify for FHA or conventional financing instead.
  
• Owner‑occupants, because DSCR loans require the property to be non‑owner‑occupied.
  
• Major rehab or development projects, which require bridge or construction loans.
  

Nashville‑specific investing considerations

1. Tourism and entertainment. Nashville’s tourism sector drives demand for short‑term rentals. However, Metro Nashville has implemented strict permitting and occupancy rules for Airbnbs. Investors must ensure the property is in a zone that allows short‑term rentals and obtain the necessary permits.
   
2. Tech and corporate relocations. Companies like Oracle and Amazon are building campuses in the Nashville area, bringing thousands of high‑wage jobs. Investing near these employment hubs (e.g., East Bank or River North) could boost appreciation and rental demand.
   
3. Flood risk and insurance. Areas near the Cumberland River or Mill Creek may require flood insurance. Verify FEMA flood zones and include premiums in DSCR calculations.
   
4. Historic districts. Neighborhoods like Germantown and 12South have historic preservation rules limiting exterior modifications. These restrictions can increase maintenance costs and delay renovations.
   
5. Transportation improvements. Planned mass transit projects and interstate expansions may open new submarkets; monitor infrastructure plans to identify emerging neighborhoods.
   

Conclusion

Nashville offers strong long‑term fundamentalsdiverse job growth, a vibrant culture and steady population influx. However, high housing costs and tight lending standards can make it challenging for investors to scale portfolios. DSCR loans provide an alternative by qualifying based on rental income rather than personal income. Among the many lenders available, SelectHomeLoans.com stands out for its flexible underwriting, competitive rates and deep knowledge of the Nashville market. By understanding the nuances of DSCR loans, comparing lenders, avoiding common mistakes and considering neighborhood‑specific factors, investors can capitalize on Nashville’s growth and build profitable rental portfolios.