Recently Funded DSCR Loan In Memphis, Tennessee

Loan Scenario:

This DSCR Cash-Out Refinance features a single-family rental in Memphis, Tennessee. Specifically, American Heritage Lending funded $151,200 against an appraised value of $216,000, for a 70% LTV. Notably, the loan carries a DSCR of 1.404, meaning the property covers its debt with room to spare. Additionally, AHL structured the loan as a True Zero Point Loan, keeping upfront costs low. The borrower also secured a 30-year fixed rate, so monthly payments stay stable for the life of the loan.

An experienced investor, the borrower used the DSCR program to access equity without personal income documents. Therefore, the property’s cash flow, not the borrower’s personal finances, drove the approval. As a result, the investor unlocked capital for new deals while keeping a stable, long-term rental asset.

Memphis is a renter-majority city. Specifically, renters occupy over 53% of the housing stock, driving steady demand for quality single-family rentals. Also, the market’s low costs relative to other large metros continue to attract a wide range of renters. Consequently, experienced investors find Memphis a solid market for long-term rental income.

Overall, this deal shows how AHL’s DSCR program helps investors build their rental base. Specifically, the True Zero Point structure removed upfront cost barriers. As a result, the borrower accessed equity, locked in a 30-year fixed rate, and kept their capital working. Furthermore, the DSCR process removed the need for income documents, making funding faster and simpler.