Loan Scenario:

American Heritage Lending backed an experienced investor with a $183,750 DSCR cash-out refinance on a single-family detached home in Chattanooga, Tennessee, pulling equity from a stabilized rental to fund the next move. The property appraised at $245,000, so the loan closed at 75% loan-to-value on a 30-Year term, and it closed as a True Zero Point Loan. Qualification came from the property’s rental income rather than the borrower’s personal earnings, and the rent covers the note at a 1.355 DSCR. That comfortable coverage carries the debt while returning proceeds to an investor already managing three properties. Because DSCR skips tax returns and work papers, a cash-out on a seasoned rental stays clean and quick, and the fixed 30-year structure locks the new payment in place. For an investor scaling a small portfolio, tapping trapped equity without touching personal income documentation is often the fastest route to the next deal.

Chattanooga has reinvented itself from a rail-and-manufacturing hub into one of the Southeast’s most talked-about mid-size economies. Volkswagen builds vehicles at its only U.S. assembly plant here, and Amazon, McKee Foods, maker of Little Debbie, and BlueCross BlueShield of Tennessee anchor a broad employment base. The Enterprise South Industrial Park that houses the Volkswagen plant and Amazon has become a magnet for advanced manufacturing and logistics jobs. The city’s municipal fiber network, the reason it is called “Gig City,” has drawn tech and remote workers, while Lookout Mountain and the Tennessee Aquarium feed a steady tourism trade. Tennessee levies no state income tax, and Chattanooga’s affordability relative to Nashville keeps renters and buyers moving into the area. That combination of manufacturing, tech, and tourism keeps single-family rentals in steady demand.

Overall, this deal shows how American Heritage Lending backs investors with practical DSCR financing. Measured leverage, income-qualified underwriting, zero points, and a fixed 30-year payment give the borrower liquidity to redeploy while holding a well-located rental in a diversified market.

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