DSCR Loans in Memphis, TN: 2026 Investor Guide

Memphis, Tennessee — Long-time cash-flow favorite — sub- entry, no state income tax, strong Section 8 demand in select neighborhoods.

DSCR Capital Partners closes Memphis DSCR loans across long-term rentals, short-term Airbnb properties, and small multifamily. This guide covers exactly how the 2026 program works for Memphis investors: pricing, sub-market color, STR rules, and the qualifying math on a representative property.

Memphis Investor Snapshot — 2026

Median SFR Price

,425Median Rent

1.30–1.60Typical DSCR

1.55%Property Tax

Memphis DSCR Loan Snapshot

2026 Memphis DSCR Program HighlightsRates: From 6.50% on strong files (720+ FICO, DSCR 1.20+)
Max LTV: 80% on purchase, 75% on cash-out refinance
Min FICO: 620 (660+ for best pricing tiers)
Min DSCR: 1.0 standard, 0.75 case-by-case at lower LTV
Loan Amount: $100K–$3M+ in Memphis
Property Types: SFR, 2–4 unit, condo, 5+ unit small multifamily
Borrowers: Individual, LLC, foreign national, ITIN
Close time: 21–30 days standard

Memphis Sub-Markets We Lend In

Whether you're buying, refinancing, or pulling cash out, we close DSCR loans across all major Memphis neighborhoods and surrounding metro communities:

East Memphis, Midtown, Cooper-Young, Germantown, Collierville, Bartlett, Cordova, Olive Branch (MS), Southaven (MS), DeSoto County

Worked Example: $K SFR in Memphis

Representative DSCR math on a median-priced Memphis SFR purchase:

Purchase price:
Down payment (25%): ~25% of purchase
Loan amount (75% LTV): ~75% of purchase
Estimated monthly PITIA: Calculated from current rate + 1.55% effective property tax + insurance + HOA (if applicable)
Market rent (Form 1007 / lease): ,425/month
DSCR: Typically lands in the 1.30–1.60 range
Result: Qualifies under standard DSCR program at 75% LTV

Short-Term Rental Notes for Memphis

Out-of-state investors dominate Memphis acquisitions. Property management quality is the make-or-break factor. STR DSCR files use AirDNA market projections discounted to 75–80% as the qualifying rent. Verify city or county STR registration requirements before going under contract.

Why Investors Choose DSCR Capital Partners for Memphis Files

Wholesale lender access. We shop your Memphis file across 8–12 wholesale DSCR programs and route to whichever investor pricing wins.
21–30 day close. Memphis appraisals turn quickly with our preferred AMC; clean files often close on the early end.
LLC, foreign national, ITIN, condo, multifamily — all in-house. Whatever the file complexity, we have a program that fits.
One loan officer per file. Direct cell-phone access, no call center.

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Frequently Asked Questions

What is the typical DSCR for a Memphis investment property? +

Memphis DSCRs typically run 1.30–1.60 at 75% LTV depending on neighborhood and property type. Median rent of ,425 on a median-priced property pencils into the qualifying range on most files.

Can I get a DSCR loan for a Memphis Airbnb? +

Yes. Memphis STR financing is available under our short-term rental DSCR program using AirDNA full-year projections. Out-of-state investors dominate Memphis acquisitions. Property management quality is the make-or-break factor.

What credit score is needed for a Memphis DSCR loan? +

620 minimum on most Memphis DSCR files. 720+ unlocks the lowest rates and highest LTV (up to 80%). Credit thresholds are universal — no Memphis-specific overlay.

Are foreign nationals approved for Memphis DSCR loans? +

Yes. Memphis is open to foreign national DSCR borrowers at 70% max LTV. Documents notarized at the US embassy in the borrower's country are accepted.

How long does a Memphis DSCR loan take to close? +

21 to 30 days for a clean file. Appraisal turn time in Memphis is typically 7 to 10 business days. Bridge variants close in 14 to 21 days.

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Related Resources

DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548), a licensed mortgage broker. Median price/rent figures are approximate market estimates as of May 2026 and vary by sub-market. DSCR ranges shown are typical; specific files may price differently. Equal Housing Lender. Not a loan commitment.