Loan Scenario:

American Heritage Lending funded a $188,500 DSCR cash-out refinance on a single-family detached rental in Phillipsburg, New Jersey, working with an experienced investor who owns two investment properties and held this one free and clear. Against a $290,000 appraised value, the loan came in at a comfortable 65% loan-to-value on a 30-Year term, turning trapped equity into deployable capital.

DSCR financing let this deal qualify on the property’s own rental income rather than the borrower’s personal earnings, and with a debt-service coverage ratio of 1.324 the rent clears the new payment with real margin. Pulling cash out of a free-and-clear asset is a smart way for an active investor to fund the next purchase or build reserves without disturbing a well-performing tenant, and the moderate leverage keeps the position durable.

Phillipsburg sits on the Delaware River in Warren County, directly across from Easton and firmly within the Lehigh Valley economy. The town’s old industrial bones have given way to a booming logistics and warehouse corridor along the Interstate 78 and Route 22 spine, drawing distribution and manufacturing employers and the workforce that follows them. It also offers a relative bargain compared with pricier North Jersey, plus commuter access toward the broader New York metro. Renters are drawn by that affordability and steady blue-collar and warehouse employment.

A free-and-clear rental refinanced at sensible leverage is a lender’s favorite kind of file. AHL was pleased to get it done.

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