Loan Scenario:

American Heritage Lending backed an experienced investor with a $455,800 DSCR rate-and-term refinance on a three-unit property in Chico, California, stabilizing the debt on a small multifamily hold. The property appraised at $570,000, so the loan closed at 79.965% loan-to-value on a 30-Year term. This was structured as a True Zero Point Loan, keeping closing costs lean. Qualification came from the property’s rental income rather than the borrower’s personal earnings, and the combined rents cover the note at a 1.3 DSCR. That is comfortable coverage across three doors, and it lets the investor lock in a fixed long-term payment without traditional income documentation. For a buy-and-hold owner, refinancing three units under a single note simplifies the position and locks the terms for the long run.

Chico is the largest city in Butte County and the commercial hub of the northern Sacramento Valley. California State University, Chico is the economic and cultural anchor, enrolling well over ten thousand students who drive persistent demand for rentals, and Enloe Medical Center is one of the region’s largest employers. Sierra Nevada Brewing Company, one of the country’s best-known craft brewers, is headquartered here, and the surrounding valley remains a major producer of almonds and rice. Rental demand tightened sharply after the 2018 Camp Fire destroyed nearby Paradise and pushed thousands of displaced residents into Chico, and the market has stayed strained — recent studies have found that roughly a third of Chico renters spend half their income on housing. That combination of a major university, a regional hospital, and post-fire population pressure keeps multifamily units in steady demand.

Overall, this deal shows how American Heritage Lending backs investors with practical DSCR financing. Measured leverage, income-qualified underwriting, and a fixed 30-year payment give the borrower a clean way to hold a well-located three-unit rental in a market with deep, structural tenant demand.

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