Tennessee Home Loans
Updated: April 2026 ● Todd Orlando
Home buying and home refinancing is complicated enough without a lender making it worse. Defy Mortgage offers Tennessee home loans that actually fit your situation — seasoned real estate investor, first-time home buyer, or anywhere in between. Nashville, Memphis, Franklin — we’ve got the loan option for it.
Cities in Tennessee We Serve
We don’t cherry-pick zip codes. Defy Mortgage offers home loans across Tennessee — from the mountains to the delta — because every corner of the Volunteer State deserves a lender that shows up and delivers FAST.
Here’s where you can find us:
- Nashville
- Memphis
- Bartlet
- Johnson City
- Knoxville
- Franklin
- Jackson
- Chattanooga
- Clarksville
- Murfreesboro
Home Loans Offered In Tennessee
At Defy Mortgage, we are fully licensed in the state of Tennessee, which means that we can provide all purchase and refinance Non-QM and Traditional loans, including:
- DSCR Loans
- Bank Statement Loans
- P&L Loans
- Interest-Only
- Foreign National
- Asset Depletion
- Cash-Out Refinances
How Do Home Loans Work In Tennessee
Tennessee home loans play by the same rules as the rest of the country, which means if your finances are solid, getting one is more straightforward than you’d think. Lenders are looking at a handful of key factors:
Tennessee Home Loan Requirements
- Credit Score
- Income
- DTI (ie: what you owe vs. what you earn)
- Assets
- The type of mortgage you’re applying for
Hit those marks and you’re in the game.
Tennessee Mortgage Programs 2026
As of March 2026, Defy Mortgage offers the following mortgage programs to those looking to purchase or refinance properties in the state of Tennessee. For specific licensing information, please visit our State Licensing Page.
For real estate investors looking to purchase or refinance. Our DSCR loans in Tennessee flip the script on traditional financing. Instead of digging through your personal income history, lenders look at one thing: whether your property generates enough cash to cover its own debt. That ratio, your debt service coverage ratio, is what gets you qualified, nothing more.
- Up to 85% LTV purchase SFR (most lenders only go up to 80%)
- No hard maximum loan limit
- DSCR options down to 0.75 minimum
- Min FICO as low as 640 (most lenders have a 660 min!)
Empire builders like the self-employed don’t have time for red tape. Our P&L statement program in Tennessee is designed for exactly that — speed, power, and a direct line to funding. No bureaucratic nonsense. Just the flexibility and firepower to get you where you’re going.
- Up to 90% LTV purchase & R/T refi
- No hard maximum loan limit
- Single Family, Condo, Co-ops and Condotels
- Min FICO as low as 640
W-2s weren’t built for the self-employed — bank statement loans were. In Tennessee, 12 or 24 months of bank records replace traditional income verification, giving entrepreneurs and independent workers a straight shot at financing that actually fits their financial reality. Our Bank Statement loans in Tennessee flex however you need them to. Less red tape, alternative income documentation, lower down payments and endless possibilities.
- Up to 90% LTV Purchase & R/T Refi (most lenders stop at 85%, not us!)
- No hard maximum loan limit
- Primary, Second Home and Investments
- Min FICO as low as 640
IO options allow Tennessee borrowers to pay only the interest on the loan for a set period of time, with fixed rates and no requirement for a principal paydown. Following that period, you can either refinance, pay the remaining balance in full or begin making regular monthly payments. Ideal for Contract workers, entrepreneurs, business owners, annual or quarterly paid employees… WHATEVER, Interest-Only loans in Tennessee are gold for those who want flexibility in principal reduction payments or peeps expect an increase in income within the near future.
- No principal paydown during the IO period
- Pay off your mortgage as you see fit (yes, really)
- IO periods of 5, 7, or 10 years
- Options for purchase, RT refi and cash-out
Asset Depletion loans in Tennessee are a great option for high-net-worth, self-employed, or retired individuals with substantial liquid assets looking to purchase or refinance.
- Up to 80% Loan to Value (LTV)
- No hard maximum loan limit
- Min FICO score down to 640
- Primary & second home
If you are a non-US citizen looking to purchase or refinance an investment or second home in Tennessee, we’re ready to fund it. No US credit score or SSN needed. It’s that simple.
- Up to 70% LTV Purchase & R/T Refi
- Up to $3M Max Loan Amount
- No FICO score required (with alternative credit options)
- DSCR loan or foreign income options
We offer cash-out refinance loans for all of our Non-QM loan options listed above, allowing homeowners and real estate investors to access equity using alternative income documentation — such as rental income (DSCR), bank statements, or P&L statements — instead of W-2s or tax returns.
| Program | Income Documentation | Max LTV | Min FICO | Best For |
|---|---|---|---|---|
| DSCR Cash-Out | Rental income (no personal income required) | 80% | 640 | Real estate investors |
| Bank Statement Cash-Out | 12–24 months bank deposits | 80% | 640 | Self-employed borrowers |
| P&L Cash-Out | CPA-prepared P&L statement | 80% | 640 | Business owners with write-offs |
| Asset Depletion Cash-Out | Liquid assets | 75% | 640 | High-net-worth, retired borrowers |
| Foreign National Cash-Out | Alternative credit | 65% | Not required | International property owners |
Current Non-QM Rates in Tennessee by Loan Type
Example rate ranges shown for a 740 FICO borrower at standard LTV in Tennessee. Actual rates vary based on borrower profile, points, reserves, property type, and market conditions. These reflect current rate indications from Defy Mortgage for typical borrower scenarios.
| Loan Type | Purchase Rate | Refi Rate | Standard LTV | Notes |
|---|---|---|---|---|
| DSCR Loan | 6.000% | 6.125% | 75% | Qualifies on property cash flow, min 0.75 DSCR |
| Bank Statement (Personal or Business) | 6.250% | 6.250% | 75% | 12–24 months statements |
| P&L Loan | 6.500% | 6.625% | 75% | CPA-prepared P&L accepted |
| Asset Depletion | 6.250% | 6.250% | 75% | Qualify on liquid assets, no income docs required |
| Foreign National DSCR | 6.750% | 6.750% | 70% | No US FICO required |
Interest-only option: Available on all products above. Add approximately 0.25% to the applicable rate.
Example rates shown are not a commitment to lend and do not include discount points, fees, or APR. These rates are for Tennessee only.
Buying a Home In Tennessee
Buying a home in Tennessee doesn’t need to be a headache. And with the right lending partner, it never is.
Average Cost of a Home in Tennessee
As of early 2026, the median home value in Tennessee is approximately $323,800 to $394,100, reflecting a varied market with significant growth over the past decade. Prices are highest in Middle Tennessee ($455k–$460k+) and lower in West Tennessee ($255k–$275k), with Memphis offering more affordable options.
However, keep in mind that home values fluctuate depending on a variety of factors, such as:
- Closing costs
- Down payment
- Mortgage payment
- Homeowner’s Association (HOA) fees
- Maintenance and repairs
- Insurance
- Location
As you begin your home buying journey, it’s important to keep these factors in mind to ensure you find a home that you can afford with your budget.
Average Down Payment For a Home in Tennessee
Because the down payment is a variable factor in the home-buying process, there isn’t an average down payment for homes in Tennessee. However, the traditional customary down payment on a home is 20% — although you may be able to put down much less. For this example, we’ll assume you put down a high down payment of 20% — using an average Tennessee home price of $350,000, your down payment would be around $70,000.
For some, affording a down payment this large can be a challenge. Fortunately, there are several home loan options that you might be eligible for that require a smaller down payment or no down payment at all. At Defy Mortgage for example, we offer down payment options as low as 10% for some of our Non-QM lending options pending borrower criteria.
Tennessee Real Estate Market Overview
Tennessee’s real estate market is one of the strongest in the Southeast — driven by Nashville’s explosive population growth, Memphis’s affordable investor-friendly market, and the Smoky Mountains’ booming STR economy.
Nashville / Middle Tennessee: Nashville has added over 100 people per day for the past decade. The metro’s population growth, strong job market, and limited housing supply have sustained rental demand across both urban and suburban submarkets. DSCR loans in Nashville are among the most active in the Southeast, with investors targeting SFR and small multifamily across Davidson, Williamson, and Rutherford counties.
Memphis: Memphis rental yields often range from 8–12% on SFR investments in established neighborhoods — among the highest in the U.S. The affordable price points ($100K–$250K range) and strong rental demand make Memphis one of the most cash-flow-positive DSCR markets in the nation.
Smoky Mountains / East Tennessee: Gatlinburg, Pigeon Forge, and the Smoky Mountain corridor are among the top STR markets in the United States. According to AirDNA STR market data, the Smokies consistently rank as a top-10 national STR market by revenue. DSCR loans using AirDNA-based income projections are widely used here for first-time and experienced STR investors alike.
Knoxville and Chattanooga: Both cities offer growing rental markets with strong university-driven demand (UT Knoxville) and corporate relocation activity. Average single-family rental rates across Tennessee range from $1,200–$2,400/month depending on market.
Why Defy Mortgage For Tennessee Home Loans
As a direct Non-QM lender, we originate, underwrite, and fund entirely in-house — no middleman, no delays, no file sitting on someone else’s desk. Based in Nashville and active across every Tennessee market from Memphis to Knoxville to the Smoky Mountains, our team brings deep, boots-on-the-ground Non-QM lending expertise to every deal.
For real estate investors in Tennessee, we work with a 0.75 minimum DSCR — the most flexible threshold available — which means we’re closing deals other lenders are turning away. And because we don’t require W-2s or tax returns, nothing slows your file down if you’re self-employed or 10-99.
Plus, we close fast. Most loans close in 14 to 21 days, driven by appraisal and title, not income verification.
More Information On Tennessee Lending
Tennessee Home Loan FAQs
What Tennessee home loans can I get?
Most home loan options are available depending upon your lender of choice in the state of Tennessee. At Defy Mortgage, we are fully licensed in the state of Tennessee, which means that we can provide all purchase and refinance Non-QM and Traditional loans, including:
- DSCR Loans
- Bank Statement Loans
- P&L Loans
- Interest-Only
- Foreign National
- Asset Depletion
- Cash-Out Refinances
What credit score do I need to get a home loan in Tennessee?
It depends on the loan type. FHA loans can go as low as 580 with a 3.5% down payment. Conventional loans typically require a 620 or higher. Non-QM products like bank statement and DSCR loans have more flexible requirements. The short answer: don't count yourself out before talking to us. Most of our loan options permit credit scores down to 640.
What is a DSCR loan and is it available in Tennessee?
In Tennessee, DSCR loans allow investors to qualify using rental income instead of personal income, with lenders offering up to 85% LTV and DSCR as low as 0.75 — no W-2s, tax returns, or personal income verification required.
A DSCR loan qualifies real estate investors based on a property's rental income — not personal income, tax returns, or W-2s.
For Tennessee investors building rental portfolios, DSCR loans in Tennessee are the most flexible and scalable financing tool available in 2026.
Compared to conventional investment property loans, DSCR loans in Tennessee allow investors to scale portfolios without debt-to-income (DTI) limitations.
Who should use a DSCR loan in Tennessee?
DSCR loans are the right fit for:
- Nashville portfolio investors scaling beyond 4 properties where conventional financing becomes restrictive
- Memphis cash flow investors targeting high-yield SFR with strong rent-to-price ratios
- Smoky Mountain STR investors financing cabin and chalet properties using AirDNA income projections
- Self-employed borrowers whose tax returns understate actual income
- LLC borrowers who want entity-level ownership and liability separation
- Foreign nationals investing in Tennessee real estate without US income documentation
Investors who qualify based on personal income may also consider a bank statement loan or P&L loan for primary residence or second home financing.
P&L loans are one of several Non-QM options designed for self-employed borrowers, alongside bank statement loans, DSCR loans, and asset-based qualification programs.
Can I get a home loan in Tennessee if I'm self-employed?
Absolutely. Traditional lenders make it unnecessarily hard for self-employed borrowers — we don't at Defy Mortgage. Our bank statement loans use 12 or 24 months of bank records in place of W-2s or tax returns, giving entrepreneurs and independent workers a financing path that actually reflects how they earn.
How long does it take to close a home loan in Tennessee with Defy Mortgage?
Most loans close in 14 to 21 days. At Defy Mortgage, we originate, underwrite, and fund in-house, which eliminates the delays that come with third-party lenders. The timeline is driven by appraisal and title — not stacks of income documentation slowing your file down.
What is the average home price in Tennessee?
The average home price in Tennessee sits around $350,000, making it significantly more affordable than coastal markets like California and New York. That said, prices vary widely — Nashville and its suburbs run higher, while markets like Memphis, Knoxville, and Chattanooga offer strong value for buyers and investors alike.
Does Defy Mortgage lend in my area of Tennessee?
We're active across the entire state — Nashville, Memphis, Knoxville, Chattanooga, the Smoky Mountains, and everywhere in between. If you're buying, refinancing, or investing in Tennessee, we're already there.
Example rates shown are not a commitment to lend and do not include discount points, fees, or APR. Rates current as of March 2026 and subject to change based on market conditions, borrower profile, and property details. Programs, guidelines, and availability may vary by state. All rate information on this page is specific to the state of Tennessee.
Author: Todd Orlando, Co-Founder & CEO of Defy Mortgage — 25 years of experience in Non-QM and investment property lending.
