Recently Funded DSCR Loan In Parsippany, NJ

Loan Scenario:

This financing scenario involves a Debt Service Coverage Ratio (DSCR) cash-out refinance for a single-family rental property in Parsippany, New Jersey. The home appraised at $545,000, and the investor secured a $381,500 loan at 70 percent Loan-to-Value (LTV). With a DSCR of 1.011, the rental income was strong enough to qualify for a 40-year fixed-rate loan with an interest-only payment structure, helping improve the property’s monthly cash flow.

The borrower, an experienced real estate investor, used the DSCR program to access the equity in the property without needing to provide tax returns or employment documentation. The home generates $3,000 per month in rental income, which allowed the loan to be approved based entirely on the property’s performance. The cash-out proceeds give the investor additional capital to reinvest while maintaining long-term financing that supports steady cash flow.

Parsippany is located in Morris County, one of New Jersey’s most stable rental markets. The area benefits from strong employment centers, proximity to New York City, and consistent tenant demand, all of which support dependable rental income for single-family properties. The 40-year interest-only structure gives the investor additional flexibility to manage the asset and continue expanding their portfolio.

This financing example shows how American Heritage Lending supports experienced investors by offering DSCR loans that focus on property performance rather than traditional income documentation. With long-term fixed-rate and interest-only options, AHL provides tools that help investors tap into equity, stabilize payments, and scale their real estate strategies.