Bank Statement / No-Doc in Nashville

It changes what paperwork exists, not what we read. Tennessee doesn't tax wage or salary income, and the Hall income tax on interest and dividends was repealed for tax periods beginning on or after January 1, 2021, so most Nashville borrowers have no personal state return at all. That is usually a relief and occasionally a gap, because there is no state filing sitting alongside the federal return to corroborate it. On this program it matters less than you'd think: the qualifying record is 12 to 24 months of bank statements, not returns. Send complete statements for the accounts the income actually lands in, keep personal and business accounts separated where you can, and be ready to explain large one-time deposits. Credit from 640 and 20% down are the usual starting points, and pricing, documentation and final terms are set in underwriting.

There is one, and it catches out-of-state buyers regularly. Tennessee franchise and excise tax applies to corporations, limited partnerships, LLCs and business trusts chartered, qualified, registered, or doing business in the state, with a $100 minimum franchise tax for any entity registered with the Secretary of State whether it is active or not. "No income tax" describes personal wages, not your holding company. The relief most small landlords look at is the FONCE exemption for a family-owned non-corporate entity, which requires at least 95% of the voting rights, capital interest or profits to be held by relatives or trusts for their benefit, and at least 66.67% of the entity's activity to be the production of passive investment income. Two details decide most real cases. Passive investment income includes rents from residential and farm property, and residential property cannot have more than four residential units at any one location. So a set of houses and small 1-4 unit buildings can qualify where a 20-unit building at a single address does not, and rent from commercial space is not passive investment income at all. The exemption is claimed and renewed on Form FAE183 rather than assumed. Take your structure to your CPA before you close. We are a lender, not tax counsel.

The deposits can help. The subject property's short-term rental history usually cannot. Metro Nashville recognizes two permit types, owner-occupied and not owner-occupied, and the ordinance is explicit that a permit shall not be transferred or assigned to another individual, person, entity, or address. Tennessee's Short-Term Rental Unit Act points the same way, terminating grandfathered status on sale or transfer. New not-owner-occupied permits are not available in AR2A, R, RS or RM zoning, which is the whole conventional residential stack, and reporting indicates none have issued in residentially zoned areas since January 1, 2022. Buy a Davidson County house on the seller's short-term rental numbers and you are buying revenue you will not inherit. An entity can't hold the owner-occupied permit either, because that one requires a natural person permanently residing at the property. Where your own operating business runs rentals you already control, those deposits are ordinary bank statement income and we'll read them. What we won't do is underwrite a new purchase to a permit that dies at closing.

Yes, because the tax bill sits in the payment whether or not it sits in your paperwork, and the assessment ratio is the part people get wrong. Tennessee assesses residential and farm property at 25% of appraised value and commercial and industrial property at 40%. Davidson County's 2025 rates are $2.814 per $100 of assessed value in the Urban Services District and $2.782 in the General Services District. Work it through on a $500,000 house in the GSD: assessed at $125,000, then $125,000 divided by 100 times $2.782 is about $3,478 a year, roughly 0.70% of market value. The same $500,000 assessed as commercial is about $5,564, closer to 1.11%. A change of use, or a classification you didn't plan for, can lift the carry by about 60% on unchanged value. Short-term rentals are reported to be assessed at the 40% commercial ratio in Tennessee, and that is material enough to your carry math that you should confirm the classification on the parcel with the Davidson County Assessor rather than take it from us. Underwrite the post-purchase number, not the seller's old bill.

Two recording taxes, and one of them scales with the loan. Tennessee charges a realty transfer tax of $0.37 per $100, calculated on the greater of consideration or property value, and by statute the grantee, meaning the buyer, pays it. Separately there is an indebtedness tax of 11.5 cents per $100 of recorded debt with the first $2,000 exempt, owed by the borrower and collected and remitted by the note holder. On a $400,000 loan that is roughly $458. Every recorded debt instrument has to carry the legend stating the maximum principal indebtedness for Tennessee recording tax purposes, and on a revolving line the tax is charged once on the stated maximum, with re-draws untaxed and any later increase taxed on the increase without the $2,000 exclusion. The state runs a discovery program comparing sworn deed values against assessor values, so the sworn consideration statement on the deed face is not a place to improvise. Your closing agent quotes the exact figures on your file.

Often, and the test is whether flat rent still carries the property. Nashville rents are falling, not growing. As of August 2026 Apartment List put metro rent growth at -3.6% year over year, Zumper had 1-bedroom medians down 5%, and CoStar had average advertised asking rent down 1.2%. Multifamily vacancy was 8.5% in the first quarter of 2026, a cyclical high. Underwrite flat rent and be skeptical of a pro forma that needs a bump. The constructive half of the story is supply: deliveries drop from 12,852 units in 2024 to 9,011 in 2025 to a forecast 6,020 in 2026, units under construction are down about 25%, and absorption is holding near 8,700 units, so the pressure has a visible end even while 2026 is still soft. If stressed rent covers the payment and the carry, a DSCR loan is usually the cleaner file. If it doesn't, bank statements can do the qualifying. We originate either one and a lending partner funds it, so your application finishes on the partner's portal while we stay on the file, and terms are set in underwriting rather than quoted up front. Send us the address and the scenario and we'll tell you which fits. You can start an application or talk to us first.

Well inside. Bank statement loans run from $100,000 to $3,000,000. The qualifying record is bank statements or no income documents at all, depending on the structure, and the loan is investment or business-purpose only. The Nashville metro median sale price of $495,000 sits well inside that range. If a single door falls below the floor, tell us the rest of what you own, because the file often works better as a portfolio than as one small note. Subject to underwriting.

Down payment starts at 20%, and credit starts at 640. On a $495,000 Nashville purchase that is $99,000 from you and $396,000 financed (495,000 x 20% = 99,000). Closing costs sit on top, and in Tennessee that includes the realty transfer tax at $0.37 per $100, paid by the buyer. Since we are reading deposits rather than returns, the reserve picture matters: show us the account the money actually lands in and be ready to explain any large one-time deposit. Subject to underwriting.

Either. The term is short-term or 30-year, and the property decides which. Which one fits depends on what you are doing with the property, not on how you document income. A 30-year term suits a Nashville door you intend to hold through the current soft-rent stretch; a short-term structure suits a property you are repositioning and expect to refinance or sell. Same documentation either way, which is bank statements rather than tax returns. Subject to underwriting.