Recently Funded DSCR Loan In Dunkirk, Maryland

Loan Scenario:

This DSCR rental loan involves the purchase of a detached PUD located in Dunkirk, Maryland. Specifically, the property appraised at $840,000, and the experienced investor secured $284,000 in financing at a purchase price of $355,000. As a result, the loan carries a Loan-to-Value (LTV) ratio of 33.81%. Additionally, the property produced a DSCR of 1.490, confirming strong cash flow relative to the debt obligation. Notably, American Heritage Lending structured this as a True Zero Point Loan with a 30-year fixed rate, giving the borrower stable payments and no upfront discount points.

The borrower, an experienced investor, used the DSCR program to acquire the property well below its appraised value. Therefore, this structure allowed the investor to secure long-term financing based on property income rather than personal tax returns or employment documents. Furthermore, the significant equity position at closing provides a strong foundation for the borrower’s portfolio.

Dunkirk continues to attract strong buyer interest, with the local housing market scoring 87 out of 100 for competitiveness. Moreover, the community sits in Calvert County near the Chesapeake Bay, offering proximity to both Annapolis and Washington, D.C. Consequently, the area benefits from steady rental demand driven by its mix of rural appeal and access to major employment centers. Specifically, the local market consists almost entirely of single-family homes, which supports consistent tenant interest.

Overall, this transaction shows how American Heritage Lending supports experienced investors through DSCR-based financing. Specifically, the True Zero Point Loan structure removed upfront costs while the 30-year fixed rate locked in stable, long-term payments. As a result, the borrower added an income-producing asset with built-in equity and no discount points.