LAMD-D25 DSCR Standard (No-Ratio, ITIN, Foreign National) | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 600 (FICO <620 needs 12 mo reserves)
Max LTV – purchase: 85% (720+, ≤$1.5M; >80% needs DSCR 1.20, 6 mo reserves, SFR/PUD/TH/warrantable condo outside FL)
Max LTV – rate/term refinance: 80% (720+, ≤$1.5M)
Max LTV – cash-out refinance: 75% (660+, ≤$1.5M)
Minimum loan amount: $100K
Maximum loan amount: $3.0M (>$2M needs 700 FICO, 65%, DSCR ≥1.10)
Cash-out (cash in hand) limit: LTV >65%: $1M (loans ≥$1.5M) / $500K (<$1.5M); ≤65% unlimited
LTV reductions & overlays: Above 80%: DSCR 1.20, 6 months' reserves, SFR/townhome/PUD/warrantable condo outside Florida only. DSCR under 1.00 or no-ratio: 75% purchase / 70% rate-term / 65% cash-out, 640 FICO. Loans under $200K: 80% / 75%. 2–4 units 80%. 10-year IO / 40-year term: 80% max. Non-warrantable condo 80% / 75% and condotel/PUDtel 75% / 70% / 65% (each −5% in Florida, DSCR 1.00); one large Orlando resort complex 60%. Manufactured 65% / 60%. Mixed use 65% / 60%. Rural/unique 80% / 75% / 70% with 700 FICO and DSCR 1.00 (more if marketing time is long). STR 75% / 70%. Declining market −5%. No 12-month housing history: 70%. Housing lates: 1x30x12 80/75, 0x60x12 75/70, 0x90x12 65%. Bankruptcy/foreclosure 24–35 months 80/75, 12–23 months 65%; short sale/deed-in-lieu/modification 12–23 months 80/75, under 12 months 75/70; short payoff: lower of 65% or 5% below the grid; 2+ unrelated foreclosures in 36 months: 65%. Vacant refinance: 70% rate/term to $1M, 65% to $2M; 60% cash-out to $1.5M. Thin credit (1 or no score): 65%. First-time homebuyer 70%. Foreign national 70% / 65%. ITIN 70% / 65% (700+), 65% / 60% (660–699), 60% (640–659). Non-permanent resident 80%. Recently listed: 65%.

DSCR requirements

Minimum DSCR: None (no-ratio allowed)
DSCR below 1.00: Yes – DSCR <1 or no ratio: 640 FICO, 75% purch / 70% R/T / 65% CO
No-ratio (no DSCR calculated): Yes – 1007 still required but no DSCR calculated and no proof of actual rents; STR or long-term; 75% purchase / 70% rate-term / 65% cash-out, 640 FICO. Not available on loans over $2M (DSCR 1.10 required).
How DSCR and qualifying rent are calculated: Lesser of in-place or market rent ÷ PITIA (any subordinate financing is included in the payment), using the first payment due under the note (the interest-only payment on IO loans). The higher actual rent can be used with 2 consecutive months' receipts (no prepaid rent or deposits) and a lease running at least 3 months past closing. Short-term rent is documented with 12-month ledgers. Vacant purchases use 1007/1025 rent. No-ratio option: 1007 still required but no DSCR calculated (STR or long-term). Loans over $2M need DSCR 1.10.

Products & terms

Products: 30yr fixed, 5/1 & 7/1 ARM (1-yr CMT), 5-yr IO (30yr), 10-yr IO (40yr)
Interest-only: Yes – min $250K & 640 FICO; 10/40 IO max 80%
Prepayment penalty: Yes – hard step-down prepayment penalty. Must be bought out in IL, KS, MD, MI, MN, NM, OH, PA, RI, VA, VT and NJ under state-specific conditions; Mississippi single-unit loans are limited to a 5-year step-down or 3-, 2- or 1-year terms (3x3, 2x3, 1x3). Minimum 2-year prepay on vacant rate/term refinances and 3-year on vacant cash-out and recently listed properties (where allowed).
Reserves: Generally not required on the base grid; 12 months if FICO is under 620; 6 months above 80% LTV, for FTHB and vacant refis; 12 months on mixed use; 24 months on recently listed properties. Above 70% LTV, 6 months' rent-loss insurance is required; if it can't be obtained, 2 months' reserves per missing month of coverage. Reserves must be seasoned 30 days; cash-out proceeds can count; gift funds can't.

Borrower & credit

Housing payment history: 0x30x12 for the full grid; 1x30x12 → 80/75; 0x60x12 → 75/70; 0x90x12 → 65%; 0x120x12 ineligible. No 12-month mortgage/rent history → max 70% (free-and-clear homeowners exempt). Rolling 30-day lates (up to six) count as one event. Only the subject, primary and second homes go on the REO schedule. Entity-vested loans: no mortgage lates at closing, no 30-day lates in the past 6 months (max one in 12), no 60+ day lates in 24 months for the entity or guarantors.
Credit events (BK, foreclosure, short sale, modification): Bankruptcy or foreclosure: 36+ months no restriction; 24–35 months 80% purchase / 75% refi; 12–23 months 65%; under 12 months ineligible. Short sale, deed-in-lieu or modification: 24+ months no restriction; 12–23 months 80% / 75%; under 12 months still possible at 75% / 70%. Entity-vested loans: no bankruptcy, foreclosure, short sale or deed-in-lieu in the past 24 months for the entity or guarantors. Short payoff: max lower of 65% or 5% below the grid. Chapter 7 must be discharged; an open Chapter 13 must be paid off at or before closing. Any mortgage 120+ days late is treated as a foreclosure unless on a written forbearance/modification. Two or more unrelated foreclosures in 36 months: max 65% with proof it was a one-time event.
Forbearance, deferrals & modifications: Recent forbearance or modification is allowed (see credit-event limits); a forbearance taken within the last 6 months is case-by-case. If there's been forbearance or a mortgage late in the last 12 months, tenant-occupied properties need the last 2 months of rent receipts or 12 months of payments in reserve (cash-out can fund it).
Collections, charge-offs, judgments & liens: Collections/charge-offs may stay unpaid if medical, or 2+ years since last activity, or on a payment plan with 3 months of on-time payments. Judgments must be paid unless off title, under $5,000, LTV 70% or less, with a 90-day-old plan and 3 payments made. Tax liens and delinquent child support must be paid (on purchases with the borrower's own funds); IRS liens may be subordinated with senior approval after 3 plan payments.
Tradelines & credit depth: Three scores: no tradeline requirement. Two or fewer: 2 tradelines with 24 months or 3 with 12 months. One or no score: 65% max, DSCR 1.10, 0x30x24.
First-time homebuyer: Allowed: 700 FICO, max 70%, DSCR 1.15, max loan $1M, fully amortizing (no IO), impounds and 6 months' reserves. Entity-vested loans need at least one guarantor with prior homeownership.
First-time investor: Not restricted separately
Foreign national: Allowed for business-purpose loans to borrowers who live outside the US (ITIN holders living abroad included): 70% purchase / 65% refi, priced as a 700 FICO. Funds must be seasoned 60 days and on deposit with escrow 3 business days before closing. A credit reference is required (US credit with 2 tradelines, international credit report, bank reference letter, or 60 days of foreign bank statements). Applicants from countries on a sanctioned/high-risk list are ineligible unless they have legal residency, income and banking established in a non-listed country and pass OFAC review; no Florida/Texas loans to buyers tied to countries named in those states' foreign-ownership laws. W-8BEN required; power of attorney acceptable if it meets lender and title requirements. No escrow waiver; not eligible for the thin-credit option.
ITIN borrower: Allowed up to $1M with 640 FICO: 700+ 70% / 65%; 660–699 65% / 60%; 640–659 60%.
Non-permanent resident: Allowed with EAD or valid visa: max 80%, loan amount up to $1M (ask us about larger). Visas with diplomatic immunity aren't eligible; a visa expiring within a year of closing needs an eligible renewal path.
LLC / entity vesting: Business-purpose loans may close in a US-formed, US-based single-purpose entity (corporation, LLC, LLP, LLLP, GP, LP or sole proprietorship; no series LLCs, foreign or foreign-owned entities, co-ops, irrevocable or land trusts, IRAs, non-profits or joint ventures). Everyone owning 20%+ must personally guarantee, at least one guarantor must have owned a home before, and only one level of wholly owned subsidiary is allowed. Revocable living trusts are allowed.
Gift funds & assets: Gifts allowed on purchases only, from family members, after the borrower contributes 10% of the purchase price from their own sourced and seasoned funds; gifts can't count toward reserves. Funds to close need 30 days' documentation, and seasoning must be verified above 70% CLTV or when funds to close exceed $50,000.
Financed property / exposure limits: Lender caps exposure at 5 open investment first mortgages or $5M per borrower/guarantor, whichever is less (a primary and a second home don't count toward the 5 but do count toward $5M). Borrowers may own no more than 20 investment properties in total, including the subject, financed or not.
Other borrower rules: Qualifying score is the highest middle score among all applicants (entity loans: highest middle score among guarantors with equal ownership, otherwise the largest owner's); on refinances only on-title applicants count. The primary applicant/guarantor must meet the score and tradeline rules. Felony convictions, or any conviction involving fraud or financial crimes, make the loan ineligible. A background check is required at $3M+. Borrowers who work in mortgage or real estate must use an unaffiliated broker.

Property

Eligible property types: SFR (including modular), townhome, PUD, warrantable & non-warrantable condo, condotel/PUDtel, 2–4 units, manufactured (multi-wide); mixed use up to 4 units with conditions (ask us before submitting).
ADUs & unpermitted additions: No ADU-specific restriction on this DSCR program (ADUs are only excluded on certain Texas home-equity loans). Unpermitted conversions or additions are acceptable if completed in a workmanlike manner: the appraiser includes a cost to cure and excludes the unpermitted area from the living area, so it adds no square footage or value. Where permits aren't required, the appraiser documents when and how the work was done. Rent from an unpermitted unit isn't separately addressed – qualifying rent comes from the 1007/1025.
Non-warrantable condo: Allowed at 80% purchase / 75% refi (Florida −5%), DSCR 1.00+. Non-warrantable features accepted include HOA litigation, 50%+ investor units, or HOA delinquencies over 15% when HOA financials show a year of reserves. No single entity may own more than 25% of the units, and no more than 20% of a project's units may be financed by the investor. The project must be common for the area and marketable. The appraisal must exclude personal property (otherwise value may be cut 15%).
Condotel: Condotels and PUDtels allowed: 75% purchase / 70% rate-term / 65% cash-out (Florida −5%), DSCR 1.00+. Must be in a resort area with a rental management company (bona fide resort areas are exempt from occupancy limits; areas with prevalent short-term stays, like near military bases, considered). One large Orlando resort complex is capped at 60%.
Rural / acreage: Rural properties (including under 25% built-up) allowed: 700 FICO, DSCR 1.00, 80% / 75% / 70%; marketing time over 6 months may reduce LTV further. Underwriting can reclassify as rural based on gravel roads, 5+ acres, private utilities, distant or stale comps. Max 25 acres.
Minimum square footage: No minimum square footage if marketable with similar-size comps and a kitchen, bedroom and bath (studios considered).
Mixed use: Allowed (up to 4 units, commercial 49% or less of the building, retail or office only): 65% purchase / 60% refi, 700 FICO, DSCR 1.20, 12 months' reserves, max $1M (higher only with senior approval and lower LTV), fully amortizing (no IO), impounds required, appraisal on 1025 (no narrative). Not in a primarily commercial/industrial neighborhood and not combined with rural or manufactured property. Ask us before submitting.
5+ units / multi-property: No
Ineligible properties: Agricultural-use properties, barndominiums, leasehold closings, co-ops, earth-berm and dome homes, highly unique properties, zoning or building-code violations, industrial/manufacturing/forest-commercial zoning, Hawaii lava zones 1–2, log cabins, mobile homes and mobile-home parks, single-wide or pre-1976 manufactured homes, own-your-own apartments, pole buildings, below-average condition, no permanent heat, not year-round, reservation land, interim-use properties, condemned or uninhabitable homes, remaining economic life shorter than the loan term, landlocked properties, off-grid electricity (solar/generator other than backup), properties used for marijuana, deed-restricted properties other than 55+ communities, hotels/motels/rooming houses, retail/office/hospitality/school/daycare, timeshares, vacant land, working farms/ranches. Multi-wide manufactured and modular homes are eligible.
Declining markets: Declining markets: 5% below the grid LTV, and an internal appraisal review may be required.
Appraisal, review & insurance: Every appraisal is reviewed (generally accepted if CU score ≤2.5 or the review is at least 90% of value). Second full appraisal over $2M. 1007/1025 rent schedule on every DSCR loan. Appraisal update needed at 120 days, new appraisal at 180 days. A 100% rebuild letter from the municipality is required (for legal non-conforming properties) unless land value exceeds the loan by 120%. Insurance: no blanket policies; 6 months' rent-loss coverage above 70% LTV; deductible up to 5% / $50,000; separate wind/wildfire policy if excluded.

Rental income

Rent used on a purchase: 1007/1025 market rent if vacant; lesser of lease or market
Rent used on a refinance: Lesser of in-place lease or 1007/1025 market rent. The higher actual rent can be used with 2 consecutive months' receipts (no deposits or prepaid rent) and a lease running at least 3 months past closing.
Vacant / unleased refinance: Allowed with 700 FICO, no IO, impounds and 6 months' reserves. Rate/term: 70% up to $1M or 65% up to $2M, DSCR 1.00+, at least a 2-year prepay (where legal). Cash-out: 60% up to $1.5M, DSCR 1.15+, at least a 3-year prepay (where legal), property owned 15+ months; cash-out proceeds can count as reserves.
Short-term rental (Airbnb/VRBO): Yes
Short-term rental documentation: 12-month ledgers from Airbnb, VRBO, property managers or condotel management companies, or an STR-specific appraisal form.
Short-term rental limits: Max 75% purchase / 70% refinance; 640 FICO.

Refinance seasoning

Cash-out seasoning: No minimum seasoning to apply, but under 12 months of ownership the value is the lower of the appraisal or the lowest transfer price in the past 12 months. With documented improvements: purchase price plus receipts in months 0–6, appraised value from month 6. Cash purchases under 180 days are treated as delayed financing (rate/term pricing, cash-out LTV, up to $1.5M). Owners added by quit claim need 90 days on title. Vacant cash-out needs 15 months of ownership.
Delayed financing (cash purchase recoup): Yes – <180 days, up to $1.5M, recoup purchase price
Recently listed for sale: If listed within the last 6 months: tenant-occupied (not vacant), DSCR 1.00, 3-year prepay, 24 months' reserves (cash-out can count), fully amortizing (no IO), max 65% of the lower of appraisal or lowest recent list price, no subordinate financing, impounds required, and a rate/points adjustment.

Other terms

Seller / interested-party concessions: Seller and other interested-party concessions are limited to 3% of the sale price and may only cover closing costs; 6% when the seller is a builder that sold 50+ homes last year. Any excess, and any repair or condition credits, are deducted from the price for LTV.
Secondary financing: Allowed within the program CLTV limits: an institutional or seller-carry (from the original purchase) junior lien with regular payments (at least interest-only), no future advances or wrap terms, and an existing junior lien term of 5+ years remaining. The junior payment is included in the DSCR. HELOC junior liens are intended for owner-occupied or second-home properties; where a HELOC is allowed, CLTV uses the greater of the line limit or balance. Not allowed on recently listed properties.
State & local restrictions: Not available in AK, ND, SD. Prepayment penalties must be bought out in KS, MD, MI, MN, NM (1–4 units), OH (1–2 units), NJ and VA (individuals), IL (all 1–4 unit loans of $250K or less, and loans to individuals over $250K with a rate above 8%), PA (individuals, 1–2 units under about $320K), RI (purchases), VT (under $1M); Mississippi single-unit loans limited to the rate-sheet options (5-year step-down or 3-, 2- or 1-year terms). Florida and Texas: no loans to foreign nationals, ITIN borrowers or entities tied to countries named in those states' foreign-ownership laws (FL: China, Cuba, Iran, North Korea, Russia, Syria, Venezuela; TX: China, Iran, North Korea, Russia).

Additional details

Notes: Ineligible states AK, ND, SD. Declining market −5%. 2-4 units max 80%. Manufactured 65/60. Loan <$200K: 80% purch / 75% refi. Seller concessions 3% (6% from builders with 50+ sales). 1 or no score: 65%, DSCR 1.1, 0x30x24. Escrow waiver: $1.5M, 80%, 700, 0x30x24, not for foreign nationals.

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