Loan Scenario:

American Heritage Lending funded a $177,000 DSCR cash-out refinance on a single-family detached home in Sewell, New Jersey, letting a newer investor pull equity while keeping leverage exceptionally low. The property appraised at $360,000, so the loan closed at just 49.17% loan-to-value on a 30-Year term, leaving more than half the value untouched behind the note. The rent covers the debt at a 1.112 DSCR.

DSCR fits this move well. Qualification came from the property’s rental income rather than the borrower’s personal earnings, so a newer investor could access equity without producing tax returns or work papers. With leverage this conservative and coverage above breakeven, the borrower gains liquidity to fund the next deal while a fixed long-term payment carries a durable hold. The low loan-to-value also builds in a wide margin of safety against any softness in the local market.

Sewell is an unincorporated community within Washington Township in Gloucester County, part of the South Jersey suburbs across the Delaware River from Philadelphia. The township functions largely as a commuter and bedroom community, with easy access to Philadelphia and its job centers by way of Route 42, Route 55, and the connecting highway network. Regional healthcare is a major economic driver, with systems such as Jefferson Health and Rothman Orthopaedics serving the area, and the township is known for its large, well-regarded public school district. Notably, housing costs sit well below Philadelphia’s, drawing families who want space and quality schools at suburban prices, which keeps single-family rentals in steady demand. Detached homes in a top-rated district tend to hold tenants for years, exactly the kind of stability a low-leverage hold is built on.

Overall, this deal shows how American Heritage Lending backs investors with practical DSCR financing. Conservative leverage, income-qualified underwriting, and a fixed payment give the borrower a low-risk way to hold a rental in a stable, school-driven suburban market within reach of Philadelphia.

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