Refinance an Airbnb NO Tax Return in Jackson NOW!

How to Refinance an Airbnb Property Without a Tax Return: The Ultimate Investor’s Guide for Jackson, TN

JACKSON, TN – AUGUST 1, 2025: You’ve done the hard work. You’ve identified a promising market, acquired a property, and turned it into a profitable short-term rental powerhouse. Your Airbnb is generating fantastic cash flow, and now you’re ready to leverage that success. You want to pull cash out to acquire your next property, or perhaps you want to secure a better rate and term.

There’s just one problem: when you approach a traditional bank, they ask for your last two years of tax returns.

For a savvy real estate investor, this can be a deal-killer. Your tax returns, perfectly prepared by your CPA to minimize your tax liability through legitimate deductions and depreciation, don’t show the massive income needed to satisfy a conventional lender‘s strict debt-to-income (DTI) ratios.

Refinance an Airbnb Property Without a Tax Return:

You feel stuck. Your property is a high-performing asset, but the traditional lending system just doesn’t get it.

What if there was a way to refinance your Airbnb or short-term rental based solely on the property’s income, completely ignoring your personal tax returns?

There is. It’s called a DSCR loan, and for investors in areas like Jackson, Tennessee, it’s a game-changing financial tool. This guide will show you exactly how to use it to scale your portfolio.

The Traditional Lending Trap for Airbnb Investors

Traditional mortgages were designed for W-2 employees with predictable, easily documented pay stubs. They rely on a simple formula: your personal income vs. your personal debts. When you’re a real estate investor, your financial picture is far more sophisticated. You maximize write-offs—from cleaning fees and supplies to mortgage interest and property depreciation.

While this is smart tax planning, it makes your Adjusted Gross Income (AGI) on your tax return look deceptively low. A traditional underwriter sees this and denies the loan, not because you’re a risk, but because you don’t fit into their outdated box. This is where so many investors hit a wall, unable to access the equity they’ve rightfully built.

The Solution: The DSCR Loan – Financing Based on Cash Flow, Not Tax Returns

The key to refinancing your Airbnb without showing a personal tax return is the Debt Service Coverage Ratio (DSCR) loan.

A DSCR loan is a type of non-QM (Non-Qualified Mortgage) financing designed specifically for real estate investors. Instead of looking at your personal income, lenders evaluate the property’s ability to pay for itself.

The core of the loan is the DSCR formula:

DSCR=PITIAGross Rental Income​

Where:

• Gross Rental Income is the total income the property generates (from Airbnb, Vrbo, etc.).
• PITIA is the new total monthly housing payment (Principal, Interest, Taxes, Insurance, and any Association dues).

If the ratio is 1.0 or greater, it means the property’s income is enough to cover the mortgage payment. Most lenders, like the specialists at GHC Funding, look for a DSCR of 1.25 or higher for the best terms, but programs are available for ratios as low as 1.0, and sometimes even slightly less for strong applicants.

This is the ultimate USP for an investor: Your property qualifies for the loan, not you.

Unlocking Your Jackson, TN Portfolio with DSCR Loans

Jackson, Tennessee, presents a unique and robust opportunity for short-term rental investors. With economic drivers like the Jackson-Madison County General Hospital attracting traveling nurses, Union University and Lane College bringing in visiting faculty and families, and a growing industrial base, the demand for flexible housing is strong.

Imagine you own an Airbnb property in one of these scenarios:

• The Downtown Loft (Zip Code 38301): You own a stylish loft apartment near the restaurants and venues of downtown Jackson. It’s a hotspot for weekend tourists and business travelers. A DSCR cash-out refinance could pull tens of thousands of dollars in equity for you to acquire a second property, maybe a duplex in North Jackson.
• The Historic Home (LANA Neighborhood): Your charming, renovated single-family home in the historic Lambuth Area Neighborhood Association (LANA) is a hit with families visiting for university events. Instead of letting that equity sit, a DSCR loan allows you to leverage it without touching your personal finances.
• The North Jackson Duplex (Zip Code 38305): You have a duplex near the commercial corridors of North Jackson, consistently rented by corporate clients and healthcare professionals. A rate-and-term refinance using a DSCR loan could lower your monthly payment, instantly boosting your cash flow.

In all these cases, your success is measured by your property’s performance, not your tax returns. This is the freedom that allows savvy investors in the Jackson market to scale rapidly.

What's the most appealing aspect of a DSCR loan for your investment property financing needs?

A) No personal income verification (no W-2s or tax returns needed!)B) Approval based on the property's cash flow (DSCR)C) Faster closing times compared to traditional mortgagesD) Flexibility for self-employed investors and complex financial situations

Vote

Current Market Rates & Requirements (As of August 1, 2025)

DSCR loans are priced based on risk, but they are highly competitive. Here’s what you can expect in the current market:

• Interest Rates: For a DSCR loan on a short-term rental, expect rates to be in the range of 7.50% to 9.75%.
• Influencing Factors:
  • Loan-to-Value (LTV): Lower LTVs (more equity) receive better rates. Cash-out refinances typically max out at 70-75% LTV.
  • DSCR Ratio: A higher ratio (e.g., 1.50+) demonstrates lower risk and can secure a better rate.
  • Credit Score: A minimum credit score of 660 is often required, with the best rates reserved for scores of 720+.
  • Property Type: Single-family homes and 2-4 unit properties are standard.

Typical DSCR Loan Requirements:

• No Personal Income Verification: No W-2s, no pay stubs, no tax returns required.
• Property-Based Underwriting: The appraisal will include a rental analysis to establish market rent, which is used in the DSCR calculation. For Airbnbs, lenders often use data from sources like AirDNA.
• Minimum Credit Score: Generally 660+.
• LTV: Up to 75% for a cash-out refinance.
• DSCR Ratio: Typically 1.0 or greater.
• Entity Vesting: You can (and should) hold the property in an LLC for liability protection. DSCR lenders are comfortable lending to business entities.
• Property Types: Single Family Residences (1-4 units), condos, and townhomes are all eligible.

Why GHC Funding is the Go-To Lender for Investor Refinancing

While many lenders offer DSCR loans, not all are created equal. You need a partner who understands the nuances of investment properties and the specific needs of an Airbnb host. This is where GHC Funding excels.

• Specialized Expertise: GHC Funding lives and breathes investor finance. Their core product is the DSCR Loan. They aren’t a traditional bank trying to fit you into a conventional box.
• Flexible Underwriting: They understand that a property might have great potential even with a borderline DSCR. Their team looks at the whole picture—the location, the quality of the asset, and the investor’s experience.
• Streamlined Process: GHC Funding has built its process around speed and efficiency. They know that in real estate, time is money. Their goal is to get your refinance closed so you can move on to your next deal.
• A Full Suite of Solutions: As your portfolio grows, your financing needs will change. GHC Funding offers a complete toolkit for investors, including Bridge Loans for acquiring and renovating properties, and even SBA 7a and SBA 504 loans for larger, owner-occupied commercial ventures. They are a one-stop-shop for Alternative Real Estate Financing.

Frequently Asked Questions (Q&A)

Here are some common questions investors have about refinancing an Airbnb without a tax return.

Helpful Resources for Jackson, TN Real Estate Investors

• Tennessee Real Estate Commission (TREC): The official source for state licensing laws, regulations, and disciplinary actions. A must for any serious investor. Visit TREC
• West Tennessee Real Estate Investors Association (West TN REIA): A vital local resource for networking with other investors, finding contractors, and staying up-to-date on the Jackson market. Visit West TN REIA
• Jackson Chamber of Commerce: Provides excellent data on local economic trends, major employers, and development projects that can impact your investment strategy. Visit the Jackson Chamber

Your Next Step to Financial Freedom

Stop letting your tax returns dictate your investment growth. Your success as an Airbnb operator in Jackson, TN, should be the metric that matters—and with a DSCR loan, it is.

You have a performing asset. You have equity ready to be deployed. Now you have the key to unlock it.

Ready to refinance your Airbnb property based on its real performance? Contact the investor-focused experts at GHC Funding today. Their team understands the Jackson market and is ready to help you scale your portfolio.

Call GHC Funding now at 833-572-4327 or visit their website to explore their DSCR Loan programs and get a free consultation.

Ready to refinance your Airbnb property based on its real performance?

Loan amount requested *

USD

First Name *

Last Name *

Email Address *

Phone Number *

Consent *

Yes, I agree with the privacy policy and terms and conditions. You may unsubscribe at any time. 

Request Quote