Recently Funded DSCR Loan In Lemon Grove, California
Loan Scenario:
American Heritage Lending funded a $532,000 DSCR cash-out refinance on a detached PUD in Lemon Grove, California, helping a newer investor pull equity from a San Diego-area rental while keeping the payment as light as possible. The property appraised at $760,000, so the loan closed at 70% loan-to-value on a 40-Year Interest-Only term. The rent covers the note at a 1.001 DSCR.
The structure is the story here. A 40-Year Interest-Only term keeps the monthly payment low, which is what lets the rent clear the note at breakeven coverage on a cash-out this size. Qualification came from the property’s rental income rather than the borrower’s personal earnings, so a newer investor could access equity without tax returns or work papers. The interest-only payment maximizes monthly cash flow while the hold matures, which suits an investor focused on liquidity in the early stage of a portfolio.
Lemon Grove is a compact city in the East County of the San Diego metro, just east of downtown and wrapped by the larger city on several sides. The San Diego Trolley’s Orange Line runs through town, giving residents a direct rail link to downtown jobs and San Diego State University. The city has leaned into infill and affordable-housing development in recent years, and its prices sit well below the coastal and central San Diego neighborhoods. That relative affordability, paired with trolley access and proximity to the region’s naval and university employment, keeps rentals here in steady demand across a chronically supply-short county. For renters who want a detached home in San Diego without a coastal price tag, Lemon Grove is one of the last reachable options.
Overall, this deal shows how American Heritage Lending backs investors with practical DSCR financing. A low-payment interest-only structure, measured leverage, and income-qualified underwriting give the borrower liquidity and cash flow to hold a rental in a well-connected, affordable San Diego submarket.
Similar Recently Funded Case Studies: DSCR Loan in Anaheim, CA • DSCR Loan in Glendora, CA • DSCR Loan in Gainesville, FL
Key Deal Points
| Address | Lemon Grove, CA |
| Loan Type | DSCR Cash Out Refinance |
| Borrower Profile | Newer Investor |
| Property Type | Detached PUD |
| Appraised Value | $760,000 |
| Loan Amount | $532,000 |
| Loan To Value (LTV) | 70% |
| DSCR | 1.001 |
| Loan Term | 40-Year Interest-Only |
Additional Images
