Recently Funded DSCR Loan In Ridgecrest, CA

Loan Scenario:

This financing scenario involves a Debt Service Coverage Ratio (DSCR) purchase loan for a detached 2-unit property located in Ridgecrest, California. The investor purchased the property for $325,000, with an appraised value of $350,000. American Heritage Lending provided $243,750 in financing, resulting in a Loan-to-Value (LTV) ratio of 69.64%. With a DSCR of 1.424, the property’s rental income comfortably covers the debt obligation. Notably, the loan is structured as a 40-year fixed interest-only term, and it also closed as a True Zero Point Loan, allowing the borrower to secure long-term financing without upfront discount points.

The borrower, a professional investor, used the DSCR program to acquire an income-producing multi-unit asset without traditional income documents. Because approval is based on the property’s cash flow rather than personal income, this structure fits investors managing larger portfolios. Additionally, the 40-year IO term keeps monthly payments low, while the zero-point structure removes extra closing costs from the deal.

Ridgecrest sits just outside Naval Air Weapons Station China Lake, one of the Navy’s largest test and training facilities. As a result, the area benefits from steady rental demand driven by military personnel, civilian workers, and defense contractors. Moreover, renters make up roughly 40% of all households in the area, and the city’s affordability compared to coastal California markets continues to attract tenants. Consequently, multi-unit properties with strong cash flow remain well-placed for consistent occupancy.

Overall, this deal is another example of how American Heritage Lending supports professional investors with DSCR-based financing that removes the limits of standard underwriting. The combination of a 40-year fixed IO term, zero discount points, and a strong 1.424 DSCR gives the borrower stable payments and room to continue growing their rental portfolio.