Hot chicken, country music, and the smoky mountain air, Tennessee blends cultural charm with strong real estate opportunities. From the bustling streets of Nashville to the scenic beauty of Knoxville and the historic appeal of Memphis, the state offers a mix of thriving rental markets and steady appreciation potential.
Based on what we see across Tennessee is that Investors are drawn to for its no-state income tax policy, growing population, and steady influx of tourists and job seekers. Whether it’s short-term rentals in Nashville’s entertainment districts or long-term properties near expanding business hubs, Tennessee’s market caters to diverse investment strategies.
With HomeAbroad’s DSCR loans, international real estate investors can finance Tennessee properties based solely on rental income, without relying on US credit history, income, or residency. It’s a flexible way to enter a market shaped by both economic activity and consistent renter demand.
DSCR Loan Tennessee Snapshot
No US Credit History
US Income and Credit History Not Required
Minimum Down Payment
25%
Maximum Loan Amount
$10M
Fast Track Closing
27 Days
DSCR Loan Tennessee Program Terms
Feature
HomeAbroad DSCR Loan
DSCR Ratio
Best terms typically apply at DSCR ≥ 1.0. If DSCR is below 1.0, the loan may still be eligible with a higher down payment. Our No-Ratio DSCR option (DSCR 0 to 1) can support foreign national investors buying properties with clear income upside, even when the property’s rent does not fully cover the monthly payment.
US Credit Score
Not required for foreign nationals
Loan Amount
$100K – $10M
Down Payment
25%
LTV
Up to 75% (Purchase) Up to 75% (Rate and Term Refi) Up to 70% (Cash-Out Refi)
Cash Reserves
6 months
Table of Contents
How DSCR is Calculated?
DSCR underwriting starts with a simple formula:
What counts as “Gross Rental Income” for DSCR Underwriting
Market rent supported by the appraisal rent schedule (commonly used for 1 to 4-unit rentals)
Executed lease rent, when acceptable to the lender and consistent with market support
What is included in PITIA
Principal
Interest
Taxes (Tennessee property taxes and applicable assessments)
Insurance (including wildfire-related costs where relevant)
Association dues (HOA), if applicable)
Example
Calculating the DSCR Ratio for a Tennessee Property:
Director of Mortgage Sales, HomeAbroad | NMLS# 1231769
“In Tennessee, we generally see DSCR ratios landing above the minimum threshold. A DSCR above 1 gives investors room to absorb normal changes in taxes, insurance, or maintenance without stressing cash flow. It’s less about qualifying and more about staying comfortable over time.”
A DSCR of 1.21 indicates that a property generates more income than needed to cover its total monthly loan obligations, resulting in approximately $358 in positive monthly cash flow and making it well-suited for DSCR financing. If you hate doing the math, you can check our DSCR Ratio Calculator. Just enter your financial details, and you are good to go!
However, not all properties will meet this threshold, so we also offer our No-Ratio DSCR Program for properties with a DSCR between 0 and 1. This option allows investors to still qualify for financing, but it comes with a slightly larger down payment (a 5% hit to LTV) and higher interest rates. This program focuses less on rental income and more on other factors, giving investors with strong long-term plans the opportunity to secure financing.
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Valid Passport
Current passport from your home country
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Proof of Funds
Bank statements showing down payment + 6 months reserves
Benefits of DSCR Loans in Tennessee
DSCR loans offer several advantages for foreign nationals investing in Tennessee:
Qualification Based on Rental Income, Not Personal Income Documentation
At HomeAbroad, we do not rely on US W2s, US paystubs, or US tax returns to qualify a foreign national DSCR loan. We qualify you primarily on the property’s rental income profile and the strength of your overall file.
Faster Closing Times
DSCR loans can move quickly when the property, rent support, and documentation are straightforward. Appraisal and rent schedule timing still matters, especially in competitive Tennessee markets. At HomeAbroad, we can close your deal in as less as 27 days.
Scale Your Portfolio Faster
International real estate investors like DSCR lending because it creates a repeatable qualification approach across multiple properties. When you understand how rent, PITIA, and reserves will be evaluated, it becomes easier to screen deals before you write offers.
Foreign National Friendly
DSCR loan is one of the best mortgage options for foreign nationals, who often face friction with conventional underwriting. DSCR lending is commonly used to reduce that friction because the property performance drives the qualification logic.
How HomeAbroad Helped a Mexican Investor Get a DSCR Loan in Tennessee
Alejandro García, an entrepreneur from Monterrey, Mexico, wanted to expand his investment portfolio into the US real estate market. After exploring several states, he focused on Knoxville, Tennessee, for its strong university-driven rental demand, growing population, and affordable property prices.
Although Alejandro had ample capital and a clear investment plan, traditional lenders turned him down because he lacked a US credit history and domestic income documentation.
HomeAbroad helped Alejandro secure financing based entirely on the property’s rental income potential. The single-family home he purchased in Knoxville was projected to generate $2,630 in monthly rent, while his PITIA (principal, interest, taxes, insurance, and HOA) totaled $2,120, yielding a DSCR of 1.24.
Director of Mortgage Sales, HomeAbroad | NMLS# 1231769
“We’ve helped over 500 international investors overcome the challenges of qualifying for US financing without traditional income verification. Our DSCR loans are designed to unlock opportunities by focusing on the property’s cash flow instead of the borrower’s personal income”
With HomeAbroad’s DSCR loan structure, the financing was aligned entirely with the property’s rental performance rather than Alejandro’s personal income or credit history. This allowed him to complete the purchase with a clear cash-flow buffer, enter the US market efficiently, and move forward with an investment designed for long-term rental sustainability.
Tennessee Rental Market Overview
Tennessee continues to offer a balanced rental environment by US standards, where property prices and rental income tend to align more naturally than in higher-cost coastal states. This balance gives investors more flexibility to structure DSCR-backed deals around sustainable rent rather than tight margins.
As per our data, the key market statistics for 2025 are:
Median gross rent in Tennessee: approximately $1,672/month
Median value of housing units: around $323,808
Where We Lend DSCR Loans in Tennessee
Whether you’re eyeing short-term rentals in Gatlinburg or multifamily units in Nashville, HomeAbroad offers DSCR loans across Tennessee.
Here are a few cities in Tennessee where we offer DSCR Loans.
Nashville
Chattanooga
Knoxville
Murfreesboro
Memphis
Clarksville
Johnson City
Brentwood
Maryville
Germantown
Collierville
Gatlinburg
Hendersonville
Franklin
Sevierville
Top Places to Invest in Tennessee with a DSCR Loan
Tennessee offers a potent mix of affordability, steady population growth, and a diverse economy, making it appealing for real estate investors. Based on recent rental market data, the state offers an average rental yield of approximately 6.19%, supporting income-focused strategies.
Popular cities like Nashville, Memphis, and Knoxville have healthy rental markets supported by tourism, universities, and job opportunities, providing solid ground for both long- and short-term rental investments with a DSCR loan.
Here are some of the top-performing cities in Tennessee to consider for your DSCR loan investment:
The investment properties shown below are pulled from the HomeAbroad property-search platform and can change daily. Review each listing’s rent assumptions, cash flow, and DSCR inputs before you underwrite an offer.
City
Rental Type
Rental Yield
Nashville
Short-Term
16.2%
Memphis
Long-Term
10.3%
Gatlinburg
Long-Term
7.5%
Knoxville
Long-Term
5.7%
Chattanooga
Long-Term
5.8%
Nashville: Tourism and Economic Powerhouse
Nashville’s booming music, healthcare, and tourism industries keep rental demand high. Short-term rentals thrive here because it is a top travel destination.
Median Home Price: $428,541
Average Rent: $1,763
What this means for investors: High rental income potential offsets the higher entry price, enabling strong DSCR returns with the right property strategy.
Investment Properties Listed Today on Sale in Nashville
Memphis offers strong rental demand driven by its diverse economy, including healthcare, transportation, and education sectors. Its affordability makes it a hotspot for investors seeking solid cash flow.
Median Home Price: $141,666
Average Rent: $1,217
What this means for investors: Low property costs and steady rental demand create an attractive environment for generating positive cash flow and meeting DSCR requirements.
Investment Properties Listed Today on Sale in Memphis
Tourism dominates in Gatlinburg, drawing millions annually to the Great Smoky Mountains. This steady flow of visitors supports year-round rental demand.
Median Home Price: $395,933
Average Rent: $2,495
What this means for investors: Strong tourist-driven income potential makes Gatlinburg ideal for maximizing returns, especially in the short-term rental segment.
Investment Properties Listed Today on Sale in Gatlinburg
Knoxville’s mix of university-driven demand and a growing job market creates consistent rental opportunities. Its balance of affordability and tenant stability appeals to both new and seasoned investors.
Median Home Price: $359,252
Average Rent: $1,716
What this means for investors: The city’s stable rent-to-price ratio supports sustainable returns and long-term DSCR performance.
Investment Properties Listed Today on Sale in Knoxville
With a revitalized downtown, tech growth, and access to outdoor recreation, Chattanooga is attracting both residents and businesses. This growth translates into a competitive rental market.
Median Home Price: $313,143
Average Rent: $1,514
What this means for investors: Ongoing economic expansion and tenant demand offer room for both cash flow and appreciation.
Investment Properties Listed Today on Sale in Chattanooga
Tennessee Specific DSCR Underwriting Factors that Investors Overlook
Property Taxes and County Variations
Tennessee does not levy a state income tax on wages or salaries, which is one reason the state attracts residents, businesses, and relocating professionals. However, real estate investors are still responsible for taxes on rental income and capital gains, Understanding the tax implications is an important part of long-term investment strategy.
Director of Mortgage Sales, HomeAbroad | NMLS# 1231769
“One thing we pay close attention to in Tennessee is how county-level taxes change the math. Two properties with identical rents can underwrite very differently once the local assessment is applied. Investors who model taxes conservatively upfront tend to avoid DSCR compression later, which keeps the investment comfortable beyond the first year.”
Landlord-Friendly Laws with Local Nuance
Tennessee has no rent control and is generally landlord-friendly when it comes to lease enforcement and evictions. What we see often is investors assuming the rules are uniform statewide, but short-term rental regulations and permitting requirements can be stricter in high-tourism areas like Gatlinburg and parts of Nashville. Local compliance matters when rental income is central to DSCR qualification.
LLC Ownership for Foreign Nationals
Many foreign nationals choose to purchase Tennessee investment properties through a US-based LLC. In our experience, this structure helps with liability protection, estate planning, and operational clarity, and it is widely accepted across the state for DSCR financing when set up correctly.
Strategic & Future Considerations for Foreign Nationals Investing in Tennessee
Tennessee continues to draw international real estate investors because it combines business-friendly policies with durable rental demand across both major metros and secondary markets. Looking ahead, several trends are shaping how foreign nationals should think about positioning their investments in the state.
Here’s what global investors must consider when evaluating future-oriented opportunities across the state.
1. Business-Friendly Policies:
Tennessee has no state income tax on wages and maintains relatively low property taxes, creating a stable and attractive environment for both residents and investors. This helps drive steady demand in key metro areas like Nashville, Knoxville, and Memphis.
2. Transportation and Infrastructure Growth
Projects like Nashville’s mass transit expansion and Chattanooga’s riverfront redevelopment are enhancing connectivity and livability, which can increase property values in surrounding neighborhoods.
3. Tourism-Driven Short-Term Rental Demand
Tourist hubs such as Gatlinburg and Nashville see consistent demand for vacation rentals year-round. While this offers strong income potential, investors should stay up to date on evolving local STR regulations
4. University and Healthcare Markets
Cities with major universities and healthcare institutions, such as Knoxville (University of Tennessee) and Memphis (major hospital networks), provide steady demand for both short- and long-term rentals.
Tennessee DSCR Loan FAQs
Can foreign nationals apply for a DSCR loan in Tennessee?
Yes, foreign nationals can apply for DSCR loans in Tennessee through HomeAbroad, eliminating the need for a US credit score, making it a flexible financing option for global investors.
Can I buy a Tennessee investment property through an LLC?
Yes. DSCR loans can be structured under a US-based LLC. HomeAbroad assists foreign nationals with LLC formation and ownership structuring to ensure the setup aligns with lender requirements.
How long does it take to get a DSCR loan in Tennessee?
At HomeAbroad, we streamline the application process to ensure a smooth experience from loan application to closing. We guarantee that the closing will happen within 30 days.
Do I need to live in the US to buy a rental property in Tennessee?
No. You can purchase and finance a Tennessee investment property while living outside the US. HomeAbroad manages the process remotely so you don’t need to be physically present.
About the author:
Steven Glick is the Director of Mortgage Sales at HomeAbroad and has over a decade of experience in the mortgage industry. As a licensed mortgage originator (NMLS# 1231769), Steven brings deep expertise in loan processing, sales operations, and non-traditional mortgages.
* Scenario-based rate shown for illustrative purposes. Reflects current pricing available to qualified borrowers with strong credit, low loan-to-value, qualifying DSCR, and selected loan terms. Actual rates vary by borrower, property, and market conditions. Not a commitment to lend. Foreign national DSCR pricing may differ from U.S. borrower programs.
Tennessee Investment Properties On Sale
Build wealth with HomeAbroad DSCR loans across Tennessee’s top markets.
Our streamlined digital process gets you from application to funding faster than traditional lenders.
1
Get Pre-Qualified
Submit a quick online application. No credit pull required for initial quote.
⏱ 5 minutes
2
Submit Documents
Upload property details, lease agreements, and basic ID verification.
⏱ Same day
3
Property Appraisal
We order an appraisal and a rent schedule to confirm DSCR qualification.
⏱ 5–7 days
4
Close & Fund
Sign closing documents and receive your funds. Remote closing available.
⏱ 27 days total
Why Investors Choose HomeAbroad
DSCR Loan Experts
We focus on DSCR investor loans. Expect clear cash flow math, rent documentation, and underwriting that reflects how rental properties are evaluated.
Foreign National Mortgage Experts
No US credit? No problem. At HomeAbroad, our expert loan officers can still qualify you for a DSCR loan. We do not rely on US income or tax returns to underwrite your loan.
AI-Powered Property Search Platform
Our investment property search helps you shortlist rentals that fit DSCR qualification. Screen for rent strength, yield, and investor criteria before you write the offer.
End-to-End Support
We keep the process moving, from LLC formation to bank accounts, insurance to property management. Everything is handled by us so you can focus on growing your portfolio.
Why Choose Us
Built for Foreign Real Estate Investors
HomeAbroad is a one-stop shop for global investors, from finding properties to securing financing, setting up your LLC, opening a US bank account, and managing your portfolio.
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Foreign National Mortgage Experts
No US credit history, income, or residency required. We've helped thousands of international real estate investors finance Tennessee real estate.
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AI–Powered Property Search
Our investment property search platform helps you discover high-yield rentals across Tennessee using smart algorithms.
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Fast Digital Process
Close in as fast as 27 days with our streamlined application, remote notarization [remote closing], and digital document signing.
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500+ Expert Agents
Work with our network of experienced real estate agents who specialize in investment properties across Tennessee.
Ready to Get Started?
Get your personalized rate quote in minutes. No credit pull, no obligation.
48
States We Lend In
27 Days
Average Close Time
500+
Partner Real Estate Agents
4.9 Star
Customer Rating
What Foreign Investors Say About Us
Real reviews from international investors who closed with HomeAbroad
★★★★★
“Quick response, reliable & trustworthy. HomeAbroad helped me find the perfect agent & purchase my investment property in Katy, TX. Would definitely recommend!”
RM
Rashmi Mayekar
Non-US Resident Investor • Property
★★★★★
“HomeAbroad was a game-changer! They helped me get mortgage financing and find an agent who understood my needs. I couldn’t be happier with their assistance.”
SP
Steve Papadakis
Newcomer on H1-B Visa
★★★★★
“Awesome experience in working with them. Very patient in understanding my needs as an investor and helped me with the correct loan product for me. I will recommend them and use them again.”
JB
John Bolla
Investor from New York, NY
★★★★★
“Jonet from HomeAbroad answered all my questions regarding specifics for work visa holders to purchase our first investment property in Tampa. Was patient and kind and also connect me with a real estate agent.”
Ok
Okissa
Purchased Investment Property in Tampa.
Pre-qualify for a DSCR Loan as an international investor
No U.S. credit history. No personal income verification. Qualify based on property’s rental income.
