Recently Funded DSCR Loan In Houston, TX

Loan Scenario:

This recently funded single family rental loan involves a cash-out refinance for a property located in Houston, Texas. The loan amount is $154,125, backed by an appraised value of $210,000, which provides a solid equity cushion. This financing is structured as a 40-year Debt Service Coverage Ratio (DSCR) loan with a 10-year interest-only period, allowing for lower monthly payments during the initial phase. The property currently has an existing lien of $78,860, which will be paid off during the loan refinance. With a DSCR ratio of 1.01, the property is currently leased for $1,650 per month, demonstrating sufficient cash flow to cover debt obligations thanks to the creative structure of the loan. This strategic refinancing will enable the borrower to leverage their equity while maintaining a manageable payment structure.