DSCR Loans Knoxville, Tennessee
Finance a Knoxville rental on the property’s cash flow – not your tax returns. A University of Tennessee and Smoky-Mountain-gateway market with steady growth and student-rental demand. We qualify Knoxville investors on rent with up to 85% LTV.
- Qualify on the property’s rent — no tax returns or W-2s
- Rates from 5.75% · up to 85% LTV · DSCR from 0.75x
- Old North Knoxville, Bearden, near UT / Fort Sanders & more
- SFR, Condo, 2–4 Unit, Multi-Family & Commercial Considered
- LLC & foreign nationals OK · no cap on financed properties
Knoxville DSCR Loans — Key Facts (2026)
- What it is: A business-purpose rental loan that qualifies on the property’s rent ÷ payment (DSCR), not your personal income.
- Market: Knox County. Median about about $330,000 with rents roughly about $1,600-$2,200; The University of Tennessee, healthcare, and I-40 plus no state income tax keep student and family rentals leased year-round.
- Max LTV: Up to 85% (purchase) · 75–80% cash-out. Min DSCR: from 0.75x.
- Minimum FICO: 620+ (best pricing 720–780+). Rates: from 5.75%.
- Tennessee note: Tennessee has no state income tax and strong rental demand; county property taxes vary widely, so we underwrite the real assessed bill for an accurate Knoxville DSCR.
- Lender: CambridgeHomeLoan.com — direct DSCR lender since 1998, NMLS #1826020.
DSCR Loans in Knoxville
What is a DSCR loan in Knoxville, Tennessee?
A Knoxville DSCR loan qualifies on the property’s rent divided by its full payment (PITIA), not your income. Knoxville sits in Knox County and draws tenants from A University of Tennessee and Smoky-Mountain-gateway market with steady growth and student-rental demand. The University of Tennessee, healthcare, and I-40 plus no state income tax keep student and family rentals leased year-round. We qualify Knoxville rentals on the property’s rent divided by its full payment (PITIA), so you can scale without tax returns.
Knoxville market data
Knoxville rental market at a glance (2026)
Representative 2026 market indicators for underwriting context — confirmed per property by a Form 1007 appraisal and a real insurance quote.
| Median sale price (2026) | about $330,000 |
| Avg. monthly rent (2026) | about $1,600-$2,200 |
| Property tax (effective) | about 0.6%-0.8% |
| Insurance | Standard – inland wind coverage |
| Investor angle | UT & value-add; student rentals |
Approximate 2026 figures for illustration; not guarantees. Verify current data for your specific property.
Knoxville neighborhoods
Where Knoxville rentals pencil for DSCR
Knoxville rents and DSCR vary by submarket – here is where deals tend to pencil:
| Submarket | Typical monthly rent (2026)* | DSCR outlook |
|---|---|---|
| Old North Knoxville | $1,800-$2,500 | Historic value-add |
| Bearden | $1,900-$2,600 | Premium reno |
| near UT / Fort Sanders | $1,700-$2,400 | Student rentals |
| South Knoxville | $1,600-$2,200 | Value-add BRRRR |
| Fountain City | $1,600-$2,100 | Family SFR |
*Approximate 2026 ranges for illustration — verify current rents for the specific address (an appraiser Form 1007 sets the qualifying figure).
Free tool
Knoxville rent & DSCR calculator
Enter the property’s monthly rent, your loan, and carrying costs to estimate your DSCR (rent ÷ PITIA) and monthly cash flow. Illustrative only; final DSCR uses the appraiser’s Form 1007 rent and quoted insurance.
Property & loan
Carrying costs (Knox County)
Illustrative only; not a rate quote or commitment to lend. We confirm rent with a Form 1007.
Rates
Knoxville DSCR rate tiers (2026)
| Tier 1 (780+ FICO, ≤65% LTV) | From ~5.75% — strongest pricing |
| Tier 2 (720–779, ≤75% LTV) | ~6.25–7.00% |
| Tier 3 (660–719, ≤80% LTV) | ~7.00–7.75% |
| Tier 4 (620–659, up to 85% LTV) | ~7.75–8.50% |
Illustrative tiers, subject to change and underwriting. Not a rate quote.
Tennessee underwriting
Tennessee property taxes & your Knoxville DSCR
Tennessee has no state income tax, and property taxes vary by county – commonly about 0.6%-0.8% in the Knox County area. Because DSCR is rent divided by full PITIA, the assessed tax bill is a real factor in a Knoxville deal, so we underwrite the actual county tax bill and a real insurance quote for an accurate Knoxville DSCR.
| Effective property tax | about 0.6%-0.8% (verify per parcel + exemptions) |
| Impact on DSCR | No state income tax; county property taxes vary – budget the real assessed bill |
| Insurance | Standard – inland wind coverage |
| How we help | We model the true tax + insurance so your DSCR is accurate up front |
Requirements
Knoxville DSCR loan requirements
| Down payment | Typically 20–25% (purchase) |
| Credit | 620+ FICO; best pricing at 720–780+ |
| DSCR | From 0.75x (with factors); 1.0x+ standard; 1.25x+ best pricing |
| Reserves | Typically 3–6 months of PITIA |
| Rent proof | Lease, or appraiser Form 1007 market rent for vacant/purchase |
| Vesting | Individual, LLC, or entity · foreign nationals eligible |
| Uses | Purchase, rate-and-term refinance, cash-out |
Answers
Knoxville DSCR loan FAQ
Why invest in Knoxville?
A University of Tennessee and Smoky-Mountain-gateway market with steady growth and student-rental demand. The University of Tennessee, healthcare, and I-40 plus no state income tax keep student and family rentals leased year-round.
Do you finance 2-4 unit and condo rentals in Knoxville?
Yes. Knoxville is a solid single-family, condo and 2-4 unit market; SFR, condo, 2-4 unit, and small multifamily are all eligible, qualified on rent divided by PITIA.
How do Tennessee taxes affect my Knoxville DSCR?
Tennessee has no state income tax; county property taxes vary (about about 0.6%-0.8% effective here). We underwrite the actual assessed bill and a real insurance quote so your DSCR is accurate.
Can I close in an LLC as a Knoxville investor?
Yes. We lend to individuals, LLCs, and entities, and to foreign nationals, with no cap on the number of financed properties.
Keep exploring
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© 2026 CambridgeHomeLoan.com · NMLS #1826020 · 4830 W Kennedy Blvd, Tampa, FL 33609 · (800) 826-5077 · Equal Housing Lender. DSCR loans are for business-purpose, non-owner-occupied investment properties only. Rates, terms, LTV, and DSCR minimums are illustrative, subject to change without notice, and subject to borrower and property qualification and underwriting approval. Rental income and property-tax figures are estimates for illustration only and are confirmed per property (Form 1007 appraisal and the actual assessed tax bill). This page is informational and does not constitute financial, legal, tax, or investment advice.