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Hard money loans in Townsend, TN
Financing for cabins and rentals on the quieter side of the Smokies, near Cades Cove.
The Townsend market for investors
Townsend is in Blount County, on the western side of the national park. It markets itself as the peaceful side of the Smokies, and the description fits: a small town on the Little River, a short drive from Cades Cove, without the Parkway crowds.
The rental market is smaller than Sevier County’s. Investors buy cabins along the river and in the hills around town, usually for guests who come for the park itself.
What draws investors
- Cades Cove: one of the most visited parts of the national park is reached through Townsend
- The Little River: riverfront cabins rent on tubing and fishing as much as on views
- Walland and the Foothills Parkway: cabins between Townsend and Maryville
- Maryville and Alcoa: long-term rentals near the Knoxville airport
Plan for these on a Townsend deal
- Townsend and Blount County set their own short-term rental rules, separate from Sevier County’s. Confirm what applies to a specific address with the city or the county before you buy.
- A smaller market means fewer comparable rentals. We may lean on 12 months of actual rental history where it exists.
- Many cabins are on septic and wells. The septic permit sets the bedroom count.
- Riverfront property can sit in a flood zone. A flood insurance premium counts in the payment used for the DSCR.
- Tennessee taxes commercial property at a higher assessment ratio than residential. Ask the county assessor how a rental cabin will be classed.
Loans available in Townsend
| 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 |
Townsend hard money loans: common questions
Yes. We finance rental cabins, long-term rentals, new construction and fix and flips in Townsend, Walland, Maryville and the rest of Blount County.
Yes, where short-term rental is allowed at that address. We qualify the cabin on its short-term income and lend up to 85% loan-to-value on a purchase.
Yes. We use 12 months of rental history or AirDNA projections, counted at about 70 to 80%.
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 Townsend?
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.