LAMD-D17 DSCR Prime 680+ | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 680 (lowest middle score of all borrowers)
Max LTV – purchase: 80% (740/720/700, ≤$1M)
Max LTV – rate/term refinance: 75% (740/720/700, ≤$1M)
Max LTV – cash-out refinance: 75% (740/720, ≤$1M); 700: 75%
Minimum loan amount: $150K
Maximum loan amount: $2.0M
Cash-out (cash in hand) limit: LTV >70%: $500K
LTV reductions & overlays: 2–4 units capped at 70% CLTV. Warrantable condos 80% CLTV (limited-review established projects 75%); Florida condos max 50% in all cases. DSCR minimum 1.00 at 720+ FICO and 1.20 at 680–719; the 680 tier also has lower LTVs and a $1.5M cap. Declining market −5%.

DSCR requirements

Minimum DSCR: 1.00 (720+); 1.20 (680–719)
DSCR below 1.00: No
No-ratio (no DSCR calculated): No
How DSCR and qualifying rent are calculated: Rents ÷ PITIA at the start rate on a 30-year amortization (IO payment may be used with 700+ FICO); minimum 1.00 at 720+ FICO, 1.20 at 680–719; no rounding. Purchase: vacant uses 100% of market rent; leased uses the lesser of lease or market. Refinance: lesser of lease or market; a lease above market (up to 125% of market) is usable if it runs 3+ months past closing with 2 months' receipts, or a new 6+ month lease with first month and deposit received. Short-term rentals not allowed.

Products & terms

Products: 30-year fixed (standard term); 5/6, 7/6 and 10/6 SOFR ARMs (6% margin, qualified at the start rate); 40-year term only with interest-only.
Interest-only: Yes – 700 FICO; 10-year IO on the 30-year fixed, 7/6 or 10/6 ARM (no 5/6 IO); 40-year term available with IO.
Prepayment penalty: Prepayment penalty allowed on business-purpose loans: 1–5 year terms, six months' interest on amounts prepaid over 20% of the original balance in any 12 months. NJ: a loan with a prepay must close in a corporation. PA: no prepay on 1–2 units under $319,777.
Reserves: ≤70% LTV 6 mo; >70% 9 mo; none for other REO

Borrower & credit

Housing payment history: 0x30x24 on all housing for this tier. Rent-free only for experienced investors.
Credit events (BK, foreclosure, short sale, modification): No foreclosure, short sale, DIL, short payoff, bankruptcy, default modification or 120+ day late within 4 years – ineligible.
Forbearance, deferrals & modifications: Mortgage forbearance: if all payments were made, the loan just needs to be reinstated (no wait); if payments were missed, 3 on-time payments after forbearance ended (missed payments may have been added to the balance). A modification resolving a COVID forbearance, or from a forbearance exit, isn't a credit event. Non-mortgage accounts may stay in forbearance with the payment counted.
Collections, charge-offs, judgments & liens: All open collections and charge-offs must be paid off at or before closing (judgments/tax liens may stay on a 6-month plan).
Tradelines & credit depth: Each applicant needs 3 tradelines and 24 months of credit history, with one active in the last 6 months and one seasoned 24 months (if spouses apply together only one must meet it; unmarried co-borrowers must each meet it). No alternative-credit or overseas-letter options; authorized-user accounts don't count.
First-time homebuyer: No – all applicants must own current primary or an investment property
First-time investor: 12-month landlord history required, or waiver with 0x30x24, no forbearance with missed payments in 12 months, and owning their current residence. All applicants must own a primary or investment property.
Foreign national: No
ITIN borrower: No
Non-permanent resident: No
LLC / entity vesting: LLC, partnership or corporation (US-formed; max 4 owners, all natural persons; applicants must own at least 50%); all applicants also sign the note individually. Entities owned by other entities or trusts, non-profits, land trusts, IRAs, life estates and blind trusts are ineligible. NJ with a prepayment penalty: corporation only, with full-recourse guarantees.
Gift funds & assets: Not allowed on the program
Financed property / exposure limits: Lender caps at 8 loans / $10M per borrower under this program suite; no more than 10% of a PUD/condo project (1 unit if 10 or fewer units; 20% max concentration in any Florida condo project).
Other borrower rules: Qualifying score is the lowest middle score of all borrowers/guarantors (680 minimum). Non-occupant co-borrowers not allowed. Ineligible: foreign nationals, non-permanent residents, ITIN/EAD borrowers, irrevocable trusts, borrowers with diplomatic immunity, owners of federally illegal businesses (exception only), and mortgage professionals. Power of attorney not allowed on cash-out loans or entity/trust-vested loans.

Property

Eligible property types: SFR, 2-4 (max 70% CLTV), PUD, warrantable condo (max 80%; FL 50%)
ADUs & unpermitted additions: One ADU allowed if the appraiser states it's legally permitted and rentable, with like-kind comps. ADU rent counts only if the appraiser verifies with the building department that it's legal and legally rentable. Unpermitted additions case-by-case with no value given.
Non-warrantable condo: Not eligible (warrantable condos only; no high-rises).
Condotel: Not eligible.
Rural / acreage: Rural properties not eligible; max 10 acres for DSCR.
Minimum square footage: 500 sq ft condos, 700 sq ft single-family.
Mixed use: No
5+ units / multi-property: No
Ineligible properties: Rural, non-warrantable condos, condotels, high-rise condos, Florida condos over 50%, 5–10 units, mixed use, properties with more than one ADU, over 10 acres, agricultural zoning over 20 acres, income-producing acreage, manufactured, modular, log homes, co-ops, unique properties, working farms, oil/gas leases, C5/C6, commercial, raw land, timeshares, boarding houses, TICs, marijuana use, condos under 500 sq ft or houses under 700 sq ft, and other standard exclusions. Hobby farms case-by-case.
Declining markets: 5% below the maximum LTV, plus credit-risk review.
Appraisal, review & insurance: Unpermitted additions case-by-case: appraiser must confirm workmanlike quality and no adverse marketability impact, and the addition gets no value. Declining market: 5% below max with credit-risk review. Escrow holdbacks up to 30 days/$25K on purchases (case-by-case).

Rental income

Rent used on a purchase: 100% market if vacant; lesser of lease or market if leased; new lease within 60 days OK with receipt
Rent used on a refinance: Lesser of lease or market; lease above market up to 125% with 2 mo receipts and 3+ mo remaining
Vacant / unleased refinance: Not published – refinances require leases in place. Ask us about your scenario.
Short-term rental (Airbnb/VRBO): No
Short-term rental documentation: N/A
Short-term rental limits: Short-term rentals not allowed.

Refinance seasoning

Cash-out seasoning: 6 months on title as of the note date (transfer from an entity or trust counts if the borrower held 50%+ for 6 months). Owned 6–12 months: value is the lesser of purchase price or appraised value unless the appraiser supports the increase.
Delayed financing (cash purchase recoup): Yes – cash purchase within 6 months of application; proceeds capped at the documented investment; LTV on the lower of cost plus improvements or appraised value; no gift recoupment; priced as cash-out.
Recently listed for sale: Refinance of a property listed in the last 6 months: must be delisted before funding with a motivation letter to keep it. Cash-out also needs a field review, and the value used can't exceed the latest list price.

Other terms

Seller / interested-party concessions: Interested-party/financing contributions up to 6% at any LTV, limited to actual closing costs and prepaids.
Secondary financing: New or existing secondary financing allowed within the program's CLTV limits. It need not be institutional, but must carry a market rate, have no negative amortization, and not balloon within 5 years of the new first mortgage.
State & local restrictions: NJ loans with a prepayment penalty must close in a corporation (not an LLC or partnership) with full-recourse guarantees. PA: no prepay on 1–2 units under $319,777. Florida condos max 50% LTV/CLTV. Texas cash-out refinances not allowed.

Additional details

Notes: Grid (max LTV, $1M/$1.5M/$2M; min DSCR): Purchase 740 & 720 → 80/75/70 @1.0x; 700 → 80/75/70 @1.2x; 680 → 75/70 @1.2x. R/T 740 & 720 → 75/70/65 @1.0x; 700 → 75/70 @1.2x; 680 → 70/65 @1.2x. Cash-out 740 & 720 → 75/70/65 @1.0x; 700 → 75/70 @1.2x; 680 → 70/65 @1.2x. Prime-credit DSCR tier.

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