Recently Funded DSCR Loan In Casa Grande, AZ

Loan Scenario:

American Heritage Lending recently funded this DSCR loan in Casa Grande, Arizona. This loan for the purchase of a 3 unit rental property in Arizona was structured as a 40-year term, with the first 10 years being interest only. This structure is unique compared to most DSCR loans which offer either a 30-year fixed term, or an interest only period followed by full amortization over the next 20 years. This structure, with the longer term and upfront interest only period allows the borrower to maximize the property’s near-term cashflow with the Debt Service Coverage Ratio clocking in at almost 1.5x. The subject property is a fully rented 4 bed, 3 bath home originally built in 1936 being purchased for $470,000.