Loan Scenario:

An experienced investor who already owns a primary residence and a rental property turned to American Heritage Lending to purchase a detached PUD in Hockley, Texas, and the deal is a great example of looking past a single ratio to the full picture. We financed the acquisition with a DSCR loan of $198,750 against a $265,000 appraised value, a 75% loan-to-value on a 30-year term. Although the property’s in-place DSCR came in at 0.877, the borrower’s experience and the overall strength of the file meant the deal met every requirement of the program. Closing it as a True Zero Point loan kept the borrower’s upfront costs lean on the way into the asset.

Hockley sits in the fast-growing northwest corridor of the Houston metro in Harris and Waller counties, an area benefiting from suburban expansion, new master-planned communities, and the region’s deep and diversified job base. Strong population growth and continued household formation support both appreciation potential and rising rents over a long hold, which is often how a near-term coverage ratio becomes a moot point. For this investor, buying into a path-of-growth market was the real thesis. Investors looking to do the same can explore our Texas programs and start with a fast financing pre-qualification.

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