Home / Investment property loans
Investment property loans in Gatlinburg and the Smokies
Financing for non-owner-occupied real estate: rental cabins, condos, long-term rentals, new builds and flips. Investment property is the only kind of lending we do.
Non-owner-occupied loan terms
| Rental purchase | up to 85% LTV |
| Rental cash-out | up to 80% LTV |
| Ground-up construction | up to 90% of cost |
| Fix and flip | 90% purchase, 100% rehab |
| Credit scores from | 600 |
| Loan amounts | $75K to $10M+ |
Top leverage depends on credit, track record and property type. We do not finance a home you will live in.
What a non-owner-occupied loan is
A non-owner-occupied property is one the borrower does not live in: a cabin rented by the night, a house leased by the year, a property bought to renovate and sell, or a lot where a cabin will be built. Lenders treat these as business-purpose loans, and the rules differ from the mortgage on a primary residence.
Gatlinburg Hard Money Loans lends only on non-owner-occupied property. We are the Smoky Mountain division of Optimus Capital Corp, a nationwide lender that works only with real estate investors, and the team is Andrew Shanti and Collin Cook, with more than 20 years of combined lending and real estate experience.
How to choose a lender for a Gatlinburg investment property
The right lender depends on what you plan to do with the property. Three kinds of lender finance investment real estate, and each one approves the loan on something different.
| Lender type | Approves the loan on | Fits best |
|---|---|---|
| Bank or conventional mortgage | Your tax returns, employment and debt-to-income ratio | Borrowers with strong documented income and only a few financed properties |
| DSCR lender | Whether the rent covers the payment | Rental cabins and long-term rentals, self-employed investors, LLC borrowers and investors with many loans |
| Hard money or bridge lender | The deal: price, budget and finished value | Ground-up construction, flips and purchases that have to close quickly |
Questions to ask before you pick a lender
Mountain rental property has features that some lenders will not touch. These questions sort out quickly who can close your deal.
- Do you count short-term rental income? We underwrite cabins on 12 months of rental history or on AirDNA projections, not on long-term market rent.
- Do you lend on log cabins, condos and condotels? We finance all of them. Non-warrantable condos and condotels come at slightly lower leverage.
- Will you check my personal income? We do not. There are no tax returns and no employment or debt-to-income review.
- Can I close in an LLC, and from out of state? Yes. We lend to LLCs and to out-of-state owners, and to foreign nationals on rental loans.
- Is there a limit on how many properties you will finance for me? No. We finance as many as your deals support.
- How do property tax and insurance affect the loan? Both count in the monthly payment used for the DSCR. In Sevier County a rental cabin is taxed at the commercial assessment rate, so use the real figures.
- How fast can you close? Rental loans take about 30 days, appraisal included. Fix and flip loans average up to 21 days and can close in about 7 days once title and insurance are ready.
- What is the prepayment penalty? None on fix and flip loans. Rental loans come with a 3-year or 5-year penalty, or none at a higher rate.
What we finance in the Smokies
- DSCR rental loans for cabins, condos and long-term rentals: up to 85% loan-to-value to buy and 80% on a cash-out refinance, fixed for 5 to 30 years.
- Ground-up construction loans: up to 90% of cost for experienced builders, with the lot included.
- Fix and flip loans: up to 90% of the purchase price and 100% of the rehab at a 720+ credit score.
- Mid-rehab, portfolio and commercial loans for projects that need capital to finish, groups of rentals, and multifamily or hospitality property.
For permit rules and the areas investors ask about, see hard money loans in Gatlinburg.
Investment property loans: common questions
It depends on the deal. For a rental cabin you will hold, look for a DSCR lender that counts nightly rental income and lends on log cabins and condos. For a new build or a flip, look for a hard money lender that funds the construction or renovation and can close quickly. Gatlinburg Hard Money Loans does both and lends only on non-owner-occupied property. The team, Andrew Shanti and Collin Cook, has more than 20 years of combined experience.
It is a loan on a property the borrower will not live in, such as a rental cabin, a flip or a new build for sale. It is a business-purpose loan, approved on the property and the deal, and it is not reported on personal credit like a conventional mortgage.
Yes. A DSCR rental loan is approved on whether the rent covers the payment, and a construction or fix and flip loan on the deal. We do not verify income or employment.
As little as 15% with strong credit, since we lend up to 85% loan-to-value on a rental purchase. At a 600 credit score the limit is 70%, so plan on 30%.
No. We lend on investment property only, and the property cannot be a home you will live in. For a primary residence, talk to a conventional mortgage broker.
Yes, where the property is allowed to operate as a short-term rental. We use 12 months of rental history, or AirDNA projections counted at about 70 to 80%.
Loan programs at a glance
| Program | Use it for | Top leverage |
|---|---|---|
| DSCR rental loans | Purchase or refinance of rental cabins, condos and long-term rentals | 85% loan-to-value to buy, 80% on a cash-out refinance |
| Ground-up construction loans | Building a cabin or home from the ground up, with the lot included | 90% of cost for experienced builders, up to 70 to 75% of the finished value |
| Fix and flip loans | Purchase plus renovation of a property you intend to sell | 90% of the purchase price and 100% of the rehab, up to 70 to 75% of after-repair value |
| Portfolio and commercial loans | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal |
Buying an investment property in the Smokies?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.