Recently Funded DSCR Loan In Lynwood, CA

Loan Scenario:

This financing scenario involves a Debt Service Coverage Ratio (DSCR) rental loan used to acquire a detached 5-unit property in Lynwood, California. The building both appraised at $800,000 and was purchased for $800,000, and the investor secured a $600,000 loan, resulting in a Loan-to-Value (LTV) ratio of 75%. With a DSCR of 1.173, the rental income provided sufficient cash flow to support a 30-year fixed-rate loan, even without traditional income documentation.

The borrower, an experienced investor used DSCR financing to add a five-unit building to their rental portfolio without relying on tax returns or employment records. Instead, approval was based solely on the property’s income performance. The building generates $6,450 in monthly rent, allowing the investor to secure long-term, stable financing while expanding in a competitive Southern California market.

Lynwood sits within the high-demand Los Angeles rental corridor, where multi-unit properties benefit from strong tenant demand and historically low vacancy rates. Acquiring a cash-flowing 5-unit property at market value positions the investor well for consistent rental income and long-term appreciation.

This transaction demonstrates how American Heritage Lending supports experienced investors with DSCR financing solutions that prioritize property performance making it easier to scale a rental portfolio without the barriers of conventional income-based underwriting.