Longleaf Lending Memphis Tennessee DSCR Loans

DSCR Loans in Memphis Tennessee:
Modern Financing for Investors

Veteran-owned lender, offering investors DSCR Loans in Memphis Tennessee for no-income-verification, hassle-free long-term financing.

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your Memphis Tennessee DSCR Loan Needs

Crafted with savvy Memphis Tennessee investors in mind, our Long-Term DSCR Loans enable wealth building through a diverse portfolio of rental properties. By prioritizing your investment property's rental income and cash flow metrics, we simplify the loan process. As a top DSCR lender, enjoy competitive interest rates starting at 6.5%.

No Income Verification
Our no-income-verification process eliminates traditional barriers, focusing on your investment's cash flow to qualify you for a loan. This DSCR-centered approach ensures a hassle-free experience, catering specifically to real estate investors' unique needs.
Tailored to Investment Goals
Whether you're investing in short-term vacation rentals or long-term leases, our DSCR loans are crafted to align with your strategic investment plans. This versatility ensures that whatever your goals, our financing solutions fit perfectly.
Efficiency and Speed
At Longleaf Lending, we value your time. Our Memphis Tennessee DSCR loan application and approval processes are optimized for efficiency, ensuring quick, smooth progress from your initial application to the final funding.
Adaptive Financing Solutions
Our financing options are as diverse as the properties you invest in. We're committed to offering flexible DSCR solutions that accommodate a wide range of property types and investor profiles.

Fast and simple

How Longleaf Lending's DSCR Loans Work

DSCR (Debt Service Coverage Ratio) loans are a type of financing used by real estate investors that focus on the income generated by the property rather than the personal income of the borrower. Here’s a simplified explanation:

The DSCR is calculated by dividing the property's Net Operating Income (NOI) by its total annual debt payments. NOI reflects the positive cash flow from the property after operating expenses (mortgage payment, taxes, and insurance) are subtracted.
Criteria for approval.
For Memphis Tennessee, we typically require a DSCR greater than 1.0, indicating the investment property generates sufficient cash flow to cover its debt obligations. A common threshold is a DSCR of 1.0 to 1.2 or higher, but it is possible to go lower.
No personal income verification.
The approval process emphasizes the property’s cash flow potential, not the borrower's personal financial situation, allowing for more accessible financing for investors.
Craftsman house

DSCR Loan Terms

Get the financing you need to build wealth with real estate in Memphis Tennessee using our DSCR long-term 30-year investor loans.

Terms current as of April 25, 2024

Long Term Rental Loan
Loan Value:
Up to 80% (as is)
Interest Rate:
Starting at 6.5%
30 years
Closing Time:
As fast as 2 weeks
600 minimum

DSCR Loan Requirements Simplified

Understand DSCR Loan Memphis Tennessee Requirements

Securing a DSCR Loan in Memphis Tennessee involves a focused evaluation of your experience, liquidity, credit score, and investment property's income potential. Here's a summary of the current requirements you should know before applying for a DSCR Loan in Memphis Tennessee:

DSCR Calculation:
Minimum of 0.65x
Credit Score:
600 minimum
Loan Amount:
$75,000 to $3 million
Investor Experience:
none required
US Citizenship:
not required
Some of the key required documents include personal ID, bank statements, entity documentation if using a company (operating agreement, EIN letter, articles of incorporation), lease agreement (if currently leased), appraisal (requrested by us), and the purchase HUD (if purchased in the last 12 months).
Short or long-term rentals, vacant or occupied
Property Type:
SFR, 2-4 units, multifamily 5+ units, mixed use, or commercial
DSCR Loan Memphis Tennessee requirements

Designed for Memphis Tennessee investors

Build wealth through real estate with our DSCR Loans in Memphis Tennessee

Memphis Tennessee's Real Estate Potential: Ideal for 30-Year Rental and Long-Term DSCR Loans

Memphis Tennessee long term rental property loans

Welcome to the soulful city of Memphis, Tennessee, where the echoes of blues, barbecue, and boundless opportunity resonate through its streets. Amidst the rhythm of this vibrant city, real estate investors find a compelling pathway to success, fueled by the strategic advantages of DSCR (Debt Service Coverage Ratio) loans tailored for the Memphis market.

Why DSCR Loans for Memphis?

  1. Navigating Market Dynamics: Memphis' real estate market is characterized by diverse neighborhoods, varying property types, and evolving demand patterns. DSCR loans offer a steady compass amidst these dynamics, focusing on the property's income potential to provide stable financing solutions that adapt to the city's changing landscape.
  2. Tailored Financing Solutions: With DSCR loans, investors gain access to financing solutions customized for Memphis' real estate market. Whether investing in residential properties in historic districts or commercial spaces in burgeoning business corridors, DSCR loans offer the flexibility needed to capitalize on Memphis' diverse investment opportunities.
  3. Empowering Cash Flow Management: In a city where rental properties are a cornerstone of investment strategies, DSCR loans empower investors to manage cash flow effectively. By prioritizing the property's income-generating capacity, investors can secure financing that ensures positive cash flow, enhancing profitability and mitigating financial risks in Memphis' dynamic market.

DSCR Loan Benefits for Real Estate Investors

  1. Optimized Investment Leverage: DSCR loans enable investors to optimize their investment leverage, allowing for higher loan-to-value (LTV) ratios compared to traditional financing options. This increased leverage amplifies investment potential, enabling investors to expand their portfolios and capitalize on Memphis' diverse real estate opportunities.
  2. Risk Mitigation and Asset Protection: By emphasizing the property's income potential, DSCR loans mitigate personal liability for investors, safeguarding personal assets against unforeseen challenges. This risk mitigation is particularly valuable in Memphis' evolving real estate landscape, providing investors with peace of mind as they pursue growth opportunities.
  3. Diversification Potential: With DSCR loans facilitating access to financing across various property types, investors can diversify their portfolios strategically. From historic homes in vibrant neighborhoods to industrial properties in emerging districts, Memphis offers a range of investment options, and DSCR loans empower investors to capitalize on this diversity.

Strategic Advantages of Investing in Memphis

  1. Cultural and Musical Heritage: Memphis is renowned for its rich cultural heritage and musical legacy, drawing visitors and residents alike to its vibrant atmosphere. Properties located near iconic landmarks and cultural attractions benefit from heightened demand, presenting lucrative investment opportunities in the heart of Memphis' cultural scene.
  2. Logistical Hub and Economic Engine: As a logistical hub with a strong industrial base, Memphis enjoys robust economic activity and sustained demand for commercial real estate. The city's strategic location along major transportation routes and its status as a distribution center contribute to its appeal among investors seeking stable, income-producing assets.
  3. Growing Healthcare and Biotech Sector: With a growing healthcare and biotech sector, Memphis offers investment opportunities in medical office buildings, research facilities, and biotech campuses. The city's expanding healthcare infrastructure and research institutions attract investment, driving demand for specialized real estate assets in Memphis' thriving life sciences ecosystem.

DSCR loans serve as a cornerstone for unlocking the full potential of real estate investments in Memphis, Tennessee. With stability, flexibility, and optimized cash flow at their core, DSCR financing empowers investors to navigate the city's dynamic market landscape and capitalize on its boundless opportunities for growth and prosperity. 

Explore the possibilities, leverage the advantages, and embark on your journey to real estate success in the vibrant soul of Memphis, where every investment has the potential to make history.

Memphis Tennessee DSCR Loan frequently asked questions

How is DSCR Calculated in Memphis Tennessee?

How is DSCR calculated in Memphis Tennessee?

In Memphis Tennessee, the Debt Service Coverage Ration (DSCR) is calculated by dividing a property's rental income by it's expenses. In some cases another method could be used which involves dividing Net Operating Income (NOI) by the Debt Service.

Income: For simplicty purposes, you can think about the top line as the annual rental income for your investment property. In some cases a 90% factor might be applied.

Expenses: There are four main components of the expenses.

  • Principal and Interest
  • Taxes
  • Insurance
  • HOA fees

Here's an example so you can see exactly how DSCR is calculated. To keep things easy, we are assuming there is no principal payment, which you might expect with an interest only period. To learn more about how DSCR loans work, check out our detailed article.

How is DSCR calculated in Memphis Tennessee?

About the Longleaf Lending Team

Longleaf Lending is a veteran-owned, direct lending firm with a deep focus on the real estate market. Established in Texas, we bring over two decades of combined experience in real estate, hard money lending, and investment banking.

Funding Experience

Since 2018, we have funded over 600 hard money loans, totaling more than $125 million in loan value.

Expert Leadership

Our leadership includes co-founders Pete Underwood and Matt Weidert, who bring extensive experience from real estate investment, investment banking, and military service.

Commitment to Innovation

We are committed to providing innovative real estate solutions, with a strong focus on integrity and professionalism as a member of the American Association of Private Lenders.

For more about our journey and the dedicated team behind Longleaf Lending, visit our full About Us page.

Explore other Tennessee DSCR markets

Submit your Memphis Tennessee loan request today

Start your DSCR Loan funding today

Ready to propel your Memphis Tennessee rental project forward? Our simple loan request process is designed to get you the funding you need quickly and efficiently.

How the DSCR funding process works with Longleaf Lending

Submit our Online Form

Begin by filling out our short form. It's straightforward and only takes a minute. Provide us with some basic information about you and your project.

Get a Term Sheet in less than 24 Hours

After submitting your form, you'll receive a detailed term sheet from us within 24 hours. This term sheet will outline the terms of your loan and give you the confidence to proceed with your project.

Get Funded

Experience fast and straightforward funding. At Longleaf Lending, you'll work directly with our team throughout the entire process, from application to funding.

Applying does not affect your credit score

Apply for a Memphis Tennessee DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.