LAMD-D21 DSCR Standard 0.80+ & No-Ratio | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 680
Max LTV – purchase: 85% purchase only (720, ≤$1M, DSCR 1.00)
Max LTV – rate/term refinance: 80% (700 FICO, DSCR 1.00; to $2M on 1 unit, to $1.5M on 2–4 units)
Max LTV – cash-out refinance: 75% (700, ≤$2M)
Minimum loan amount: $100K (<$125K needs DSCR 1.00; >80% LTV needs $150K)
Maximum loan amount: $3.0M (60%)
Cash-out (cash in hand) limit: Unlimited at 50% LTV or less; $2M at 50–60%; $500K above 60%.
LTV reductions & overlays: Purchase-only 85% at 720+ to $1M (min loan $150K above 80%); otherwise 80% at 700 (to $2M on 1 unit, $1.5M on 2–4 units), 75% at 680 to $2M, 60% at 680 to $3M. DSCR 0.80–0.99: 700 FICO, 75% (70% cash-out). No-DSCR (under 0.80): 70% at 720 to $1.5M, or 65% at 700 to $2M (cash-out 65% at 700). Cash-out: 70% at 680, 75% at 700 (to $2M), 60% at 680 to $3M. Non-permanent residents −5% (DSCR 1.00). Foreign nationals 70% purchase/rate-term, 65% cash-out, max $1.5M. Credit event 36–48 months old: 75% max. Gift funds: 80% (75% with IO). IO: 75% at 680, 80% at 720. Condotel 75% purchase / 65% refi. Short-term rental: 75% purchase/rate-term, 70% cash-out.

DSCR requirements

Minimum DSCR: 0.80; below 0.80 = no-DSCR tier
DSCR below 1.00: Yes – 0.80: 75% (700) / CO 70%
No-ratio (no DSCR calculated): Yes – DSCR under 0.80 treated as no-DSCR: 70% at 720 (to $1.5M) or 65% at 700 (to $2M); cash-out 65% at 700 (to $2M). Vacant refinances follow these limits.
How DSCR and qualifying rent are calculated: Rent ÷ (PITI + HOA); IO uses the interest-only payment (loan × rate ÷ 12) plus taxes and insurance. Loans under $125K need DSCR 1.00. Purchase: appraisal market rent. Refinance: market rent, or the lease with 3 months' receipts. Vacant refinances follow the no-DSCR rules.

Products & terms

Products: 30yr fixed, 30yr fixed IO
Interest-only: Yes – 10-yr IO; 680 → 75%, 720 → 80%; 75% with gift funds
Prepayment penalty: 5% of the amount prepaid in excess of 20% of the original balance (5% of the balance if paid in full), unless restricted by law; 1–5 year terms or no prepay available (affects pricing).
Reserves: 3 months on the subject; cash-out counts (foreign nationals 12 months).

Borrower & credit

Housing payment history: Either 1x30x12 with no lates in months 13–24, or 0x30x12 with up to 2 lates in months 13–24. Consumer credit up to 2x30x12. Should own a primary residence (not mandatory with a rental-ownership history); FTHB not allowed.
Credit events (BK, foreclosure, short sale, modification): Foreclosure, short sale, deed-in-lieu, loan modification, 120-day late or bankruptcy: 48 months, or 36 months at 75% LTV or less.
Forbearance, deferrals & modifications: Loan modifications follow credit-event seasoning: 48 months, or 36 months at 75% LTV or less. Foreign nationals: no forbearance history allowed. No other forbearance rule published.
Collections, charge-offs, judgments & liens: N/A
Tradelines & credit depth: 3 tradelines reporting 12+ months or 2 reporting 24+ months.
First-time homebuyer: No – should own primary (not mandatory with rental ownership history)
First-time investor: Not restricted beyond FTHB rule
Foreign national: Must be a citizen of a foreign country who does not live or work in the US, with no SSN/TIN, and clear OFAC. 30-year fixed only (no IO), max $1.5M, 70% (65% cash-out), DSCR 1.00, no forbearance history, no gifts, ACH required, 12 months' reserves (may be held abroad), assets seasoned 60 days and in a US account 30 days. Visas B-1, B-2, H-2, H-3, I, J-1, J-2, O-2, P-1, P-2. Not eligible for short-term rental, condotel or escrow waiver; not allowed in Osceola County, FL.
ITIN borrower: Not published – ask us about your scenario (foreign nationals must not have an SSN or TIN).
Non-permanent resident: Yes – −5% LTV, DSCR 1.00
LLC / entity vesting: Not published – ask us about your scenario
Gift funds & assets: Gifts: purchase only, from immediate family, 10% minimum borrower contribution, max 80% LTV (75% with IO), not usable for reserves, not allowed for foreign nationals. Assets must be sourced or seasoned 30 days (foreign nationals 60 days).
Financed property / exposure limits: No limit on properties owned elsewhere; lender exposure 5 properties / $3M.
Other borrower rules: Qualifying score: the middle score; with multiple borrowers, the highest middle score among all borrowers. Investment occupancy only. First-time homebuyers not allowed (borrower should own a primary residence, though not required with a history of owning rental property). Max exposure with this lender: 5 properties / $3M aggregate (no limit on properties owned elsewhere). Cash-out can't be used to pay off personal debt.

Property

Eligible property types: 1–4 units, condominiums and condotels (condotel: $150K–$1M, 700 FICO, DSCR 1.00).
ADUs & unpermitted additions: Not published – ask us about a specific ADU scenario.
Non-warrantable condo: Condominiums eligible; non-warrantable rules: ask us
Condotel: Allowed: $150K–$1M, 700 FICO, DSCR 1.00, 75% purchase / 65% refinance; not for foreign nationals.
Rural / acreage: Not published – ask us about your scenario
Minimum square footage: Not published – ask us about your scenario
Mixed use: No (1-4 units & condos only)
5+ units / multi-property: No
Ineligible properties: N/A
Declining markets: N/A
Appraisal, review & insurance: Second appraisal (borrower-paid) at $2M+.

Rental income

Rent used on a purchase: Market rent from appraisal
Rent used on a refinance: Market rent, or lease with 3 months' receipts
Vacant / unleased refinance: Allowed under the no-DSCR limits: rate/term 70% at 720 (to $1.5M) or 65% at 700 (to $2M); cash-out 65% at 700 (to $2M).
Short-term rental (Airbnb/VRBO): Yes
Short-term rental documentation: Purchase and rate/term: appraiser's seasonal/short-term rent, or AirDNA projected annual revenue (purchase only) – max 75%, 700 FICO, DSCR 0.80 (below 0.80: 70% at 720 or 65% at 700; 65% max above $1.5M). Cash-out: 12-month VRBO/Airbnb or national rental company statement plus 2 months of bank statements showing receipt – max 70%, 700 FICO, DSCR 1.00. Appraiser rental analysis required. Foreign nationals can't use STR.
Short-term rental limits: Purchase/rate-term 75%, 700 FICO, DSCR 0.80 (below 0.80: 70% at 720 or 65% at 700; 65% max above $1.5M); cash-out 70%, 700 FICO, DSCR 1.00. Not available to foreign nationals.

Refinance seasoning

Cash-out seasoning: 6 months to use appraised value. Cash-out can't pay off personal debt.
Delayed financing (cash purchase recoup): Not published – ask us about your scenario
Recently listed for sale: N/A

Other terms

Seller / interested-party concessions: Seller concessions up to 6%.
Secondary financing: N/A
State & local restrictions: Foreign nationals: not allowed in Osceola County, FL. Prepayment penalties apply unless restricted by state law. No other state restrictions published.

Additional details

Notes: Grid read 2/19/25: 1-unit purchase/rate-term 85% (720, $1M, purchase only), 80% (700, $2M), 75% (680, $2M), 60% (680, $3M); DSCR 0.80–0.99: 75% (700). Cash-out 75% (700), 70% (680), 60% (680, $3M); DSCR 0.80–0.99 cash-out 70% (700). No DSCR (<0.80): 70% (720, $1.5M) / 65% (700, $2M); cash-out 65% (700). 2-4 units: 80% (700) capped at $1.5M. Foreign national 70% / 65% cash-out to $1.5M. Seller concessions 6%. Escrow waiver ≤80%, 700 FICO, not for foreign nationals. Osceola County FL excluded for FN.

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