Investment property · Memphis, Tennessee

DSCR loans in Memphis.

Nick Grisanti
Nick Grisanti
Mortgage Loan Originator · NMLS #2719729FL #LO138662 · OH #MLO-OH.2719729 · TN #2719729 · TX SML licensedC2 Financial Corporation · NMLS #135622

Buy or refinance a Memphis rental on the property's rental income, with no personal income documents. Nick compares DSCR lenders through C2 Financial Corporation.

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How it works

DSCR in plain terms

A DSCR loan is a business-purpose loan for rental property. The property has to earn enough rent to carry its own payment. In Memphis, property tax runs about $5.28 per $100 of assessed value, so use the real tax figure, not the seller's.

The ratio Rent ÷ payment DSCR is the monthly rent divided by the full payment: principal, interest, taxes, insurance and any HOA. 1.0 means the rent covers it exactly.
Income No tax returns The property qualifies on its rent, from a lease or an appraiser's market rent estimate, not your W-2s or tax returns.
Borrower LLC or personal name Most DSCR lenders let you close in an LLC. Credit, reserves and down payment drive the rate.
Calculator Run the numbers Plug in a Memphis rent and payment to see the ratio before you offer. DSCR calculator →
Owning a rental in Memphis

Rules and costs to plan for

Taxes Budget for the combined rate Memphis property is taxed by both the city and Shelby County, about $5.28 per $100 of assessed value combined. On a DSCR loan, taxes are part of the payment the rent has to cover, so use the real figure.
Short-term rentals STR license required Memphis requires a short-term rental license to operate or advertise, applied for through the Develop 901 portal. Develop 901 STR →
Neighborhoods

Where Memphis investors look

Questions

DSCR loans in Memphis: FAQ

Can I get a DSCR loan on a Memphis rental if I live out of state?
Yes. DSCR loans don't require you to live in Tennessee. Local rental rules still apply, so check the registration and permit notes on this page.
What DSCR ratio do lenders want?
Many lenders look for 1.0 or higher, and a higher ratio usually gets better pricing. Some programs go below 1.0 with more down payment or reserves.
Can I close in an LLC?
Most DSCR lenders allow it. You'll usually sign a personal guarantee.
Can short-term rental income qualify?
Some lenders accept short-term rental income, but in Memphis you need the right permit and zoning first. Without it, we underwrite on long-term rent.
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