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Hard money loans in Knoxville, TN
Loans for flips, long-term rentals and new construction in East Tennessee’s largest city.
The Knoxville market for investors
Knoxville is the largest city in East Tennessee and about an hour from Gatlinburg. The University of Tennessee, Oak Ridge National Laboratory and a growing population give it the kind of demand the cabin market does not have: year-round tenants.
Investors here mostly renovate older houses in the neighborhoods around downtown, hold single-family and small multifamily rentals, and build infill homes. The numbers work on resale value and long-term rent, not nightly rates.
Areas investors ask about
- North Knoxville: early twentieth-century houses in neighborhoods such as Fourth and Gill, Old North and Oakwood-Lincoln Park
- South Knoxville: older houses across the river, near the Urban Wilderness trails
- East Knoxville and Parkridge: Victorian and craftsman houses at lower entry prices
- Fort Sanders and the university area: student rentals
- West Knoxville, Farragut and Powell: newer subdivisions suited to long-term rentals
Plan for these on a Knoxville deal
- Knoxville limits non-owner-occupied short-term rentals to non-residential zoning districts. A house in a residential neighborhood should be underwritten on long-term rent.
- Houses built before 1978 can contain lead paint, and many older houses need electrical, plumbing and foundation work. Budget for it.
- Several older neighborhoods have historic overlays that control exterior changes. Check before you plan the work.
- Student rentals depend on the academic calendar. Leases usually start in August.
Loans available in Knoxville
| 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 |
Knoxville hard money loans: common questions
Yes. We finance up to 90% of the purchase price and 100% of the rehab, within 70 to 75% of the after-repair value, at a 720+ credit score.
Only where the property is allowed to operate as a non-owner-occupied short-term rental, which in Knoxville means non-residential zoning. Most houses are underwritten on long-term rent.
Yes. Two- to four-unit properties are financed with a DSCR rental loan or a fix and flip loan, and the rent from every unit counts. Larger buildings go through our commercial program.
Rental and DSCR loans take about 30 days, appraisal included. Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready.
Looking at a property in Knoxville?
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.