Loan Scenario:

An experienced investor came to American Heritage Lending looking to unlock the equity trapped in a performing rental, and our team structured a DSCR loan that let the numbers do the talking. The single-family detached home appraised at $160,000, and with an already-signed lease in place, the property carried a healthy 1.490 debt-service coverage ratio—comfortably above the threshold where rental income covers the note. By holding the cash-out refinance to a conservative 65% loan-to-value, we delivered $104,000 in tax-deferred liquidity on a fixed 30-year term while leaving a meaningful equity cushion intact.

Fayetteville continues to be one of North Carolina‘s steadiest rental markets, anchored by the enormous, recession-resistant demand engine of Fort Liberty and a consistent flow of military and healthcare tenants. That stability is exactly what makes buy-and-hold investors here so bankable: vacancy risk stays low, rents stay dependable, and a well-located single-family home tends to lease quickly.

Because the borrower qualified on the strength of the asset rather than personal income, the file moved efficiently from application to funding. If you are sitting on equity in a rental and want to see how a DSCR cash-out could put that capital back to work, financing starts with a quick conversation.

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