Recently Funded DSCR Loan In Conroe, TX

Loan Scenario:

This financing scenario involves a Debt Service Coverage Ratio ( DSCR) rental loan for a 2-4 unit detached property in Conroe, Texas. The property appraised at $470,000, and the investor secured a loan of $376,000- resulting in a Loan-to-Value (LTV) of 80.00%. With a DSCR of 1.474, the property’s rental income comfortably exceeds its monthly debt obligations, demonstrating strong cash flow from the outset.

The loan was structured as a 40-year interest-only term, providing the investor with lower monthly payments and greater cash flow flexibility. As an experienced investor, the borrower utilized the DSCR program to expand their rental portfolio without the need to provide traditional income documentation such as tax returns or W-2s. This structure allowed for a streamlined closing process while keeping the focus on the property’s income performance.

Conroe, located just north of Houston, has seen steady growth in both population and housing demand. Multi-unit properties in this area offer attractive rental income potential while benefiting from the city’s expanding job market and proximity to a major metro.

This transaction is another example of how American Heritage Lending helps seasoned investors grow their portfolios in competitive rental markets—leveraging the power of DSCR loans to secure financing based on the property’s income potential rather than personal income history.