Loan Scenario:

American Heritage Lending funded a $101,250 rate-and-term DSCR loan on a single-family rental in Memphis, Tennessee, helping a newer investor refinance out of short-term financing and into a stable 30-year structure. The home appraised at $135,000 and the loan came in at a conservative 75% loan-to-value, with a healthy 1.38 debt-service coverage ratio confirming the property comfortably carries its own payment.

Because a DSCR loan qualifies on the rental’s cash flow rather than the borrower’s personal income, this investor was able to lock in a predictable long-term payment without the tax returns and income documentation a conventional refinance would demand. That is exactly the kind of no-cash-out refinance that lets a growing landlord clean up their financing and keep the property working as a buy-and-hold.

Memphis remains one of the country’s most dependable cash-flow markets for rental investors, with affordable entry prices, strong rent-to-value ratios, and steady tenant demand anchored by the city’s logistics, healthcare, and distribution economy. A single-family home at this price point fits squarely into the kind of durable, income-producing asset that rewards long-term ownership.

It is a practical example of how American Heritage Lending helps Tennessee rental investors move from a short-term close into permanent financing built around the asset. Investors ready to do the same can start by exploring their financing options.

Similar Recently Funded Case Studies: DSCR Loan in Memphis, TN  •  DSCR Loan in Nashville, TN  •  DSCR Loan in Oak Ridge, TN

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