Loan Scenario:

American Heritage Lending funded a $195,077 DSCR loan for a newer investor purchasing a townhouse-style condominium in Ashburn, Virginia. This borrower was building a rental portfolio using proceeds from a 1031 exchange after selling a commercial building, and the subject was one of several condos acquired to reposition that capital into residential income property. Specifically, the deal came together at an exceptionally low 35% loan-to-value against a $550,000 appraised value, with a strong 1.518 debt-service coverage ratio and a straightforward 30-year term. Because of the sizable down payment and the healthy coverage, the loan carried a substantial equity cushion from day one.

Ashburn anchors eastern Loudoun County, one of the fastest-growing and highest-income counties in the country. The area is the heart of “Data Center Alley,” where a dense concentration of internet infrastructure supports a deep base of high-earning technology workers, and the Silver Line Metro extension now links Ashburn directly to Washington, D.C. Together those drivers sustain some of the strongest rental demand in Northern Virginia. As a result, a well-capitalized purchase in this submarket gives the investor durable tenant demand to support the financing while the coverage ratio does the rest.

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