Tennessee’s real estate market has been experiencing significant growth, attracting investors to cities like Nashville and Knoxville. But as real estate opportunities continue to expand, so does the need for capital.
Hard money lenders can help you finance your investments when traditional lenders won’t even return your calls. However, choosing the right hard lender is as important to your investment’s success as the property itself. That’s why I felt compelled to share the best hard money lenders in Tennessee (based on my experience).
1. Loan Mountain Capital: Quickest Draw
The founders of Loan Mountain Capital have been in real estate for over 35 years, starting as investors before transitioning to hard money lenders. As former investors, they understand the value of speed and it shows–Loan Mountain is the fastest hard lender I’ve had the pleasure of working with. Their lightning-fast approvals and reliable draw schedules have saved my bacon more than once.
Why They’re the Best in the Business
- Lightning-Fast Closings: In the world of real estate investing, time is money, and Loan Mountain knows it. With a 30-minute pre-approval process and the ability to close in as little as 24 hours, they have no competition in the space.
- Reliable Draws: we’ve all been there – waiting on draws that take forever. Loan Mountain Capital flips that script with quick, dependable draw schedules. No more twiddling your thumbs or sweet-talking subcontractors while you wait for funds.
- No FICO Score Minimums: They look at the big picture of your deal, not just a number. This opens doors for investors who might get the cold shoulder from traditional lenders or other hard money lenders.
Loan Terms: Flexible Options for Every Project
All loans work for single-family homes or small multifamily properties (2-6 units). Interest rates typically fall between 11.8-12%, depending on the project’s scope. While you might find slightly cheaper rates elsewhere, the speed and reliability more than make up for it.
- Fix and Flip Loans: Perfect for those diamond-in-the-rough properties. Terms range from 6-12 months, and here’s the kicker – no appraisal needed.
- New Construction Loans: For the builders out there, they offer 9-18 month terms to bring your vision to life.
- Rental Loans: Looking to expand your portfolio? Their rental loans stretch up to 30 years, again with no appraisal required.
One thing to keep in mind
Loan Mountain Capital offers hard loans between $50k and $1.5 million. If you are working on larger projects, you might need access to hard money lenders with deeper pockets. However, for most investors, $50k to $1.5 million is good enough. If you do need deeper pockets, check our review on Coverest.
2. Easy Street Lending: No Appraisals Required
Easy Street Capital might be headquartered in Austin, Texas, but don’t let that fool you – they’re making waves as one of the most sought after hard money lenders in Tennessee. That’s mostly because, like Loan Mountain Capital, they claim a 24-hour closing. They achieve faster times because they don’t require appraisals, saving you time and money.
Why They’re a Top Pick for Tennessee Hard Loans
- No Appraisals Required: For fix and flip loans, they skip the appraisal altogether. That means you’re saving money and time, and your loan terms stay locked in.
- Competitive Rates: With rates starting as low as 5.50% for rental properties and up to 90% LTC for fix and flips.
Loan Terms
Fix and Flip Loans:
- Loan amounts: $75K – $2M
- Rates: 9.90%-11.90%
- LTC: Up to 90%, LTV up to 70%
- Terms: 6-12 months with extension options
- No appraisal required, saving you $695 and 30 days
Rental Loans:
- Loan amounts: $75K – $3.5M (up to $5M for portfolio loans)
- Rates starting at 5.50%
- Up to 85% LTV for purchases, 75% for cash-out refinance
- 30-year fixed-rate mortgages
- No DTI requirements – they focus on the property’s performance, not your personal finances
Construction Loans:
- Loan amounts: $75K – $2M per unit
- 9-12 month terms with extension options
- Rates: 10.9% – 11.9%
- Up to 85% LTC, 65% LTV
- In-house servicing with 48-72 hour draw processing
One thing to keep in mind
While Easy Street Lending claims to be as quick as our #1 choice, Loan Mountain Capital, they do require a minimum FICO score of 600 for most of their loans. Since a FICO requirement is a non-starter for lots of real estate investors, I had to deduct points and put them in second place. However, if you do have a high FICO score, you might want to contact both companies and see which lender offers better terms or quicker closing.
3. LongHorn Investments: Great Customer Service
I decided to include LongHorn Investments on my list of top hard money lenders in Tennessee for a couple of key reasons. First and foremost, their customer service is consistently praised by borrowers. They have an impressive 5-star rating from 239 Google reviews, with reviewers specifically mentioning LongHorn’s responsiveness and willingness to answer questions – a godsend for first-time flippers.
Their loan terms are competitive, with interest rates starting at 10.99% for hard money loans and 12.99% for construction loans. However, it’s worth noting that they do have a fair number of additional fees and stricter borrower requirements compared to some other lenders. This includes a minimum credit score of 600 and at least $15,000 in liquid assets.
Fees include a 2% origination fee, loan admin fees, flood certificate fee, monthly servicing fee, appraisal fee, and loan documents fee. That being said, you’d be hard pressed to find a hard money lender in Tennessee with better online reviews.
Now’s Your Turn
If you are looking for a hard money lender in Tennessee, now you know the best options available. Loan Mountain Capital offers fast closings and reliable draws, making it ideal for those who prioritize speed. Easy Street Lending can save you time and money by eliminating the need for appraisals. LongHorn Investments is known for its exceptional customer service, providing valuable support especially for first-time investors.
Assess what matters most to you—be it speed, cost savings, or personalized support—and choose the lender that best fits your needs. Best of luck!
