Recently Funded DSCR Loan In Dadeville, Alabama

Loan Scenario:

This financing scenario involves a Debt Service Coverage Ratio (DSCR) purchase loan for a single-family rental property located in Dadeville, Alabama. Specifically, the investor purchased the property for $287,000 and secured $229,600 in financing through American Heritage Lending. As a result, the Loan-to-Value (LTV) ratio came in at 80%. Additionally, with a DSCR of 1.366, the property’s rental income provides a strong cash-flow cushion. Because of this, the loan supports a 30-year fixed rate without requiring tax returns or employment documents.

The borrower, an investor with limited experience, used the DSCR program to acquire a cash-flowing rental while preserving liquidity. Because approval is based on how the property performs rather than personal income, the investor was able to secure long-term, stable financing.

This also allowed them to begin building their rental portfolio with confidence. Notably, this transaction was structured as a True Zero Point Loan. Therefore, the borrower avoided upfront discount points and reduced their out-of-pocket costs at closing.

Dadeville sits along the shores of Lake Martin, one of Alabama’s most desirable lakeside destinations. As a result, the area continues to attract renters drawn to its natural setting and recreational access. In addition, the relative affordability compared to larger metro markets adds to its appeal. Consequently, steady rental demand and limited inventory make it an attractive location for investors seeking dependable income-producing properties.

Overall, this transaction demonstrates how American Heritage Lending supports investors at varying experience levels. By focusing on property performance rather than personal income, DSCR financing offers a clear path forward.

Furthermore, by pairing an 80% LTV purchase loan with a True Zero Point structure, AHL enabled this limited-experience investor to acquire a cash-flowing asset with reduced closing costs.