LAMD-D18 DSCR Prime 720+ | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 720 (additional borrowers 640; highest representative score)
Max LTV – purchase: 80% (740 ≤$2M; 720 ≤$1.5M); 720 $2M: 75%
Max LTV – rate/term refinance: 80% (same as purchase)
Max LTV – cash-out refinance: 75% (740 ≤$2M; 720 ≤$1.5M); 720 $2M: 70%
Minimum loan amount: $150K
Maximum loan amount: $2.0M
Cash-out (cash in hand) limit: Unlimited at 60% or less; $1M above 60% (unlimited with 18 months of reserves).
LTV reductions & overlays: 2–4 units: −5% from the grid. Warrantable condos 75% (leasehold condos ineligible; non-warrantable not offered). STR (refinance only): lesser of 75% or the grid. Declining market −5% above 65%.

DSCR requirements

Minimum DSCR: 1.00 (STR 1.15)
DSCR below 1.00: No
No-ratio (no DSCR calculated): No
How DSCR and qualifying rent are calculated: Gross rent ÷ PITIA (ITIA on IO); minimum 1.00 (1.15 for STR). Same lease/market rules as the standard tier.

Products & terms

Products: 30yr fixed, 30yr fixed IO, 5/6 & 7/6 SOFR ARM (30-yr)
Interest-only: Yes – 30yr fixed with 10-yr IO
Prepayment penalty: Required on investment where permitted (no-prepay option affects pricing)
Reserves: 3 months up to $500K; 6 months $500K–$2M. Cash-out counts.

Borrower & credit

Housing payment history: 0x30x12 on subject and primary.
Credit events (BK, foreclosure, short sale, modification): 4 years from any credit/housing event; unrelated multiple events ineligible.
Forbearance, deferrals & modifications: Forbearance is treated as a housing event and must meet the program's housing-event seasoning (unless caused by a FEMA-declared disaster).
Collections, charge-offs, judgments & liens: Collections and charge-offs under 24 months old totaling up to $5,000, all medical collections, and factoring-company collections (original debt verifiable) may stay open; any remaining balance may stay open only if covered by reserves beyond the program requirement, otherwise it must be paid. Judgments and liens must be paid at or before closing. IRS repayment plans OK if no lien filed, approved plan provided, and 2+ timely payments made.
Tradelines & credit depth: All borrowers with 3 credit scores: tradelines waived. With 2 scores: standard tradelines required — 3 tradelines reporting 12+ months or 2 reporting 24+ months (activity in last 12 months), or a 24-month mortgage history on credit with 0x30x12; only the primary borrower must meet it and spouses may combine; no tradeline over 0x60 in 12 months; authorized users, collections/charge-offs and deferred loans don't count. Fewer than 2 scores: ineligible.
First-time homebuyer: No
First-time investor: Investor experience not required; first-time homebuyers ineligible.
Foreign national: No
ITIN borrower: No
Non-permanent resident: Yes – with US credit
LLC / entity vesting: Yes – 25%+ member's score used
Gift funds & assets: After a 5% borrower contribution; not for reserves; no gift of equity.
Financed property / exposure limits: Lender exposure: lesser of $10M or 10 loans, and $5M or 5 cash-out/5–8 unit loans (no-ratio: $7.5M/10 loans, $5M/5 cash-outs). Up to 20 financed properties including LLC-held.
Other borrower rules: 720 minimum qualifying score (additional borrowers 640). No exceptions on this tier. Max $2M.

Property

Eligible property types: SFR, PUD, townhome, 2-4 (−5% LTV), warrantable condo
ADUs & unpermitted additions: Homes with one or more ADUs (granny units, in-law suites) are acceptable when typical for the market and the property conforms to zoning. The ADU does NOT have to be permitted, as long as the appraiser says it's a legal use of the property and was built skillfully; legal non-conforming is fine if it doesn't hurt value. Two comps with a similar setup are required. Multiple ADUs are OK where the municipality allows them and the appraiser confirms compliance. The ADU must be substantially smaller than the main house, or the property is treated as 2–4 units. If any of these aren't met, the ADU gets no value. ADU rent can count when these rules are met and market rent is on the 1007. Unpermitted additions/modifications: appraiser comments they look professionally done and the use conforms to zoning.
Non-warrantable condo: Not offered – warrantable condos only (75%).
Condotel: Not eligible on this tier.
Rural / acreage: Rural not permitted; max 2 acres.
Minimum square footage: No minimum (full kitchen required; condos <400 sq ft need similar comps); 5–8 units 400 sq ft/unit
Mixed use: No
5+ units / multi-property: No
Ineligible properties: Container homes, assisted living, Baltimore City row homes, boarding houses, farms/hobby farms, leasehold condos, farm tax-abatement properties, rent-controlled properties (annual-increase caps alone are OK), unique properties (earth/berm, domes, barndominiums, churches), timeshares, C5/C6 condition (C4 reviewed; no structural deferred maintenance), 2+ detached homes on one lot unless typical with comps, blanket mortgages. Log-façade homes OK with comps (not true log cabins). Co-ops and manufactured homes: limited availability. Islands without a bridge case-by-case.
Declining markets: 5% LTV reduction when LTV is above 65%.
Appraisal, review & insurance: Full interior/exterior appraisal with 1007/1025 rent schedule (or AMC short-term rental analysis). Appraisal review product required unless a second appraisal is obtained (CU/LCA score 2.5 or less — not allowed on cash-out above 75% LTV; HouseCanary AVM; desk review within 10%; field review; or second full appraisal). Field review required in Memphis TN and for Brooklyn investment properties. Appraisals over 120 days old need a 1004D recertification (365-day max). C3 condition generally expected; C4 must be justified for marketability; C5/C6 and structural deferred maintenance ineligible; property should be free of deferred maintenance and excessive clutter. Rent-loss insurance of 6 months PITIA required (blanket OK), or waived with 3 extra months of reserves not from cash-out.

Rental income

Rent used on a purchase: Market rent
Rent used on a refinance: Lesser of lease or market; higher lease w/ 2 mo receipt
Vacant / unleased refinance: Same lease rules as Investor DSCR
Short-term rental (Airbnb/VRBO): Refi only
Short-term rental documentation: Refinance only. Any of: 1007/1025 with STR rents, an AMC STR analysis (with comp addresses), or a 12-month look-back of receipts (bank or platform statements) plus a 1007/STR analysis. Seasonality must be addressed or a 50% vacancy factor applies. Must be actively marketed as STR. Third-party proof (Property Guard, Vrolio) that STRs are allowed.
Short-term rental limits: Refinance only; DSCR 1.15; LTV lesser of 75% or grid.

Refinance seasoning

Cash-out seasoning: 6 mo from last transaction (except delayed financing)
Delayed financing (cash purchase recoup): Yes (lease exception)
Recently listed for sale: Investment properties must be off the market before closing when the new loan has a prepayment penalty (before application if no prepay). If listed within 6 months, value is the lower of appraisal or lowest list price.

Other terms

Seller / interested-party concessions: Interested-party contributions up to 6% of the lower of price or value on investment properties; giveaways under $1,000 ignored; excess deducted from price.
Secondary financing: Not permitted.
State & local restrictions: Investment properties ineligible in DC; Charlotte, Lee, Hendry and Glades Counties FL; Indianapolis IN; Paterson NJ; Lubbock TX. All loans ineligible in Cook County IL, Baltimore City MD, Orange County NY and Philadelphia ZIP codes 19121, 19122, 19123, 19125, 19130, 19132, 19133 and 19140; Philadelphia row homes not permitted. Florida: foreign nationals, ITINs and non-permanent residents from China ineligible. Texas: investment properties ineligible for foreign nationals, ITINs and non-permanent residents from China, Russia, Iran and North Korea (non-permanent residents from those countries are primary-residence only). Hawaii: limited availability. STRs not allowed in NYC's five boroughs. Brooklyn investment properties and all Memphis TN properties need a field review from a different AMC (appraisal transfers not accepted). Puerto Rico, Guam, USVI ineligible. NY: no 5/6 ARMs on investment loans below the conforming loan limit.

Additional details

Notes: Prime DSCR tier. No exceptions, no subordinate financing, no 2-1 buydown. Rent loss insurance 6 mo (or +3 mo reserves). Declining market −5% when LTV >65.

← LAMD-D17 · All programs · LAMD-D19 →