Loan Scenario:

A newer investor who already holds three rental properties came to American Heritage Lending looking to reposition a single-family rental in Citrus Heights, California. The borrower was carrying financing that no longer fit their long-term strategy, and they wanted a clean rate-and-term refinance that would lower their monthly obligation and free up cash flow without pulling any equity out of the home. Because the loan was underwritten on the property’s own income rather than the borrower’s personal tax returns, we were able to qualify the deal on the strength of the rental itself.

The single-family detached property appraised at $465,000, and our DSCR loan supported a $325,500 loan amount at a conservative 70% loan-to-value. With a debt-service coverage ratio of 1.152, the rent comfortably covered the new payment, giving the borrower breathing room and a durable 30-year fixed structure to build on. For an investor still growing a portfolio, that combination of low leverage and steady cash flow is exactly the kind of foundation that makes the next acquisition possible.

Citrus Heights sits in the northeastern corner of the Sacramento metro, a mature suburb prized by renters for its established neighborhoods, strong school access, and easy commute along the I-80 corridor into downtown Sacramento and Roseville. Steady demand from working families keeps occupancy high and rents dependable, which is precisely why single-family rentals here continue to perform for buy-and-hold investors. Markets like this reward patient owners, and this borrower is well positioned to keep expanding.

If you own rental property in California and want to explore a refinance built around your property’s income rather than your paperwork, American Heritage Lending can help you find the right financing.

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