Loan Scenario:

American Heritage Lending backed an experienced investor with a $262,500 DSCR cash-out refinance on a detached PUD home in Midland, Texas, pulling equity out of a stabilized rental as a True Zero Point Loan. The property appraised at $350,000, so the loan closed at 75% loan-to-value on a 30-Year term. Qualification came from the property’s rental income rather than the borrower’s personal earnings, and the rent covers the note at a 1.429 DSCR.

That is strong coverage, and the zero-point structure means the borrower paid no discount points to secure the terms, lowering the up-front cost of pulling equity out. DSCR fits this move cleanly: the underwriting rests on the asset, not tax returns or work papers, so a seasoned investor can free up capital while keeping the property in the portfolio. A 30-year fixed structure gives a predictable payment for a long hold, which matters in a market as cyclical as this one.

Midland sits at the heart of the Permian Basin, the most productive oil region in the country, and its economy rises and falls with energy. ExxonMobil, Chevron, and Diamondback Energy, whose headquarters is in Midland, anchor a deep base of operators and oilfield-services firms, and drilling activity draws a steady inflow of workers. That demand has long outrun local housing supply, keeping rents firm and occupancy high whenever crews are in the field. Additionally, many energy workers prefer to rent rather than buy in a market tied to commodity cycles, which sustains a durable pool of tenants for single-family homes. That combination of an oil-driven job base and persistently tight supply keeps Midland rentals in demand.

Overall, this deal shows how American Heritage Lending backs investors with practical DSCR financing. Measured leverage, a no-points structure, and asset-based underwriting give the borrower a clean way to unlock equity and hold a well-located rental in the Permian Basin’s economic hub.

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