Loan Scenario:

An experienced investor turned to American Heritage Lending for a cash-out refinance on a rental property in San Juan, Texas. The borrower had purchased the home earlier in the year, in April 2026, and had since stabilized it as a rental. AHL closed the transaction as a DSCR loan, allowing the investor to qualify on the property’s own cash flow rather than personal income.

The detached PUD appraised at $170,000, and AHL structured the cash-out refinance at a $127,500 loan amount. This reflects a conservative 75% loan-to-value. Notably, the property carried a debt-service coverage ratio of 1.165, meaning rental income comfortably exceeded the new debt obligation. The loan was written on a 30-year term.

Because the deal was a cash-out refinance, the investor was able to recover equity built since the spring purchase and redeploy it toward the next acquisition. As a result, the structure turns a single stabilized rental into working capital without forcing a sale.

San Juan sits in the heart of the Rio Grande Valley in Hidalgo County, one of Texas’s fastest-growing and most affordable regions. The area draws steady rental demand from a young, expanding population and a workforce tied to cross-border trade, healthcare, and agriculture. Because entry prices remain low relative to much of the state, investors can achieve the kind of rent-to-value ratios that support a DSCR above 1.0 — exactly the profile this property delivered.

Overall, this transaction illustrates how AHL helps rental investors in Texas unlock equity and keep capital moving. Investors holding a stabilized rental can explore financing options of their own.

Similar Recently Funded Case Studies: DSCR Loan in Tomball, TX  •  DSCR Loan in Spring, TX  •  DSCR Loan in Hockley, TX

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