A DSCR loan in Tennessee is sized on the property's rent against its full monthly payment — principal, interest, taxes, insurance and any HOA. The program does not change by state; what changes is the tax and insurance line inside that ratio, the closing table and the legal process behind the lien. Here is what is specific to Tennessee.
Silt's terms do not change at the state line. The term sheet reflects the property, the file and the supported value.
The loan terms do not change in Tennessee — same DSCR test, same 80% purchase leverage, same grid. Two things do change your cash to close. Tennessee's recordation tax has two halves: a realty transfer tax of $0.37 per $100 of the purchase price on the deed, and an indebtedness tax of $0.115 per $100 of the debt on the mortgage, with the first $2,000 of debt exempt. That second one is unusual — most states do not tax the loan — so budget it as a closing cost on every Tennessee purchase and cash-out.
ILLUSTRATIVE — published program floors, not a quote or a commitment to lend. Subject to underwriting, appraisal and final credit approval.
The Department of Revenue sets the indebtedness (mortgage) tax at $0.115 per $100 of indebtedness, with the first $2,000 of the debt exempt. On a $300,000 loan that is roughly $343. The realty transfer half of the recordation tax is $0.37 per $100, generally based on the greater of the consideration paid or the value of the property, so a $400,000 purchase carries about $1,480 on the deed. Both are collected by the county register at recording. Your title company will quote the exact figures with recording fees on the settlement statement.
The indebtedness tax is imposed on recorded debt, so a new mortgage means the tax is calculated again on the new amount. That is one of the quiet arguments for doing a Tennessee cash-out once, at the right size, rather than in two passes twelve months apart. It also nudges portfolio investors toward a single blanket note over five separate mortgages, though the release terms matter more than the tax. Your title company or closing attorney is the authority on how the tax applies to your specific instrument.
Tennessee is a deed-of-trust, non-judicial foreclosure state: a trustee can sell after statutory notice without a lawsuit. Lenders like the speed, which is part of why Tennessee stays broadly available in the DSCR market. It does not change Silt's pricing — the grid is national — but it does affect the deals you will see, because distressed inventory clears faster here than in a judicial state like Pennsylvania. It is also why title work and payoff accuracy matter: the machinery moves quickly in both directions.
Tennessee's effective property tax rates run low by national standards and there is no state tax on wage income, which is a meaningful part of the in-migration story behind Nashville and Chattanooga. Residential property is assessed at a statutory fraction of appraised value, so the headline millage rate is not the effective rate — take the actual bill from the assessor, not a rule of thumb. Insurance is ordinary: a landlord policy, with wind and hail deductibles worth reading in the storm-exposed western counties. The desk underwrites the real bill on both lines.
Nashville is one of the country's most actively regulated short-term rental markets: Metro runs a permit system that distinguishes owner-occupied from non-owner-occupied properties and restricts the latter by zoning district. Gatlinburg, Pigeon Forge and the Smokies corridor operate their own rules, and HOAs add minimum-stay covenants on top. Check the ordinance and the HOA before you underwrite a nightly number. Where the use is not clearly permitted, the desk prices the file on long-term market rent instead, which is usually the difference between a deal and a decline.
Nashville's core prices like a growth market — thinner yields, strong rent growth, heavy STR regulation — while the ring counties, Rutherford and Wilson especially, carry a better long-term rent-to-price posture. Memphis remains the state's classic cash-flow market with well-worn out-of-state ownership and correspondingly careful management underwriting. Chattanooga and Knoxville sit in between, with Knoxville's university demand supporting steady occupancy. Clarksville draws Fort Campbell demand. Qualitative posture, not a forecast.
Illustrative only, from published program floors — not a quote, an approval, or a commitment to lend. The indebtedness tax is a cash-to-close item; it does not enter the DSCR calculation.
Yes, on the same programs and the same grid as everywhere else in the 42-state footprint.
$0.115 per $100 of indebtedness, with the first $2,000 of the debt exempt, collected by the county register when the mortgage is recorded.
Only where the ordinance and HOA permit the use. Where they do, the desk uses twelve months of host revenue net of platform fees, divided by twelve, and prices short-term rental at +37.5 basis points.
No. Silt lends to US citizens, permanent residents, non-permanent residents and foreign nationals; foreign-national files cap at 70% LTV and price 75 basis points higher.
No. Quoting is free and takes no credit pull. Credit is pulled only when you want a written term sheet, and it sets the pricing tier.
Reviewed 6 September 2026 · Silt Capital lends on 1–10 unit residential DSCR only.
By Census Bureau population estimates. Silt lends statewide — these markets are not a limit. Metro areas may cross state lines. [4]
Yes. Tennessee is one of the states Silt lends in, and the dscr program covers 1–10 unit rentals, long-term or short-term, purchase or refinance.
Tennessee is listed as a non-judicial-foreclosure jurisdiction: a power-of-sale clause in the deed of trust or mortgage lets the sale proceed without a court judgment, following the statutory notice steps.
No. The program terms are the same in every state Silt lends in: loan amounts $200K – $10M; max ltv 80% purchase · 75% cash-out; amortization 30-year; minimum dscr 1.00; qualifies on Property rent, not personal income. The final term sheet reflects the property and the file.
Every Silt loan closes in an LLC or corporation, never a personal name. An out-of-state LLC files for a certificate of authority with the Secretary of State.
Realty transfer tax is $0.37 per $100 of the greater of consideration or value.
No. Quoting is free and takes no credit pull. Credit is pulled only when you want a written term sheet, and it sets the pricing tier.
Estimates on this page are not a commitment to lend. State facts reviewed October 2026; laws and rates change — confirm with your title company or attorney.