Recently Funded DSCR Loan In West Memphis, Arkansas

Loan Scenario:

American Heritage Lending closed a $164,310 DSCR cash-out refinance on a single-family detached home in West Memphis, Arkansas, for an investor who has owned the subject property since 2021 and was ready to convert equity into working capital. Against a strong $298,000 appraised value, AHL funded at a conservative 55% loan-to-value on a 30-Year term, leaving substantial equity in place.

DSCR financing meant this loan qualified on the property’s rental income rather than personal income documentation, and with a robust 1.940 debt-service coverage ratio the rent covers the new payment nearly twice over. Pulling cash out at such low leverage is a low-risk way to free up capital for the next opportunity while keeping a well-covered rental in hand, giving this investor room to grow from a solid foundation.

West Memphis sits directly across the Mississippi River from Memphis, at the crossroads of Interstates 40 and 55, one of the busiest logistics corridors in the country. Trucking, warehousing, and distribution drive the local economy, feeding directly into the enormous Memphis-area freight and cargo network, and the Southland entertainment district adds a steady employment draw. Renters are attracted by the abundance of transportation and logistics jobs plus housing costs that undercut the Memphis metro just across the bridge. That combination of blue-collar employment and affordability keeps demand for rentals reliable.

Low leverage, strong coverage, and equity put to work. This is the kind of clean cash-out AHL closes with confidence.

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