LAMD-D28 Foreign National DSCR | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 680 if US credit exists; otherwise no FICO
Max LTV – purchase: 75% (≤$1M, DSCR ≥1)
Max LTV – rate/term refinance: 70%
Max LTV – cash-out refinance: 65%
Minimum loan amount: $125K
Maximum loan amount: $3.0M
Cash-out (cash in hand) limit: Max $500K.
LTV reductions & overlays: 0x60x12 housing: −5%. Condotel 70% purchase / 60% refi. Non-warrantable condo 70% / 65%. Short-term rental 70% (purchase). Vacant refinance 65%. Declining market −5%. No-FICO grid: 75% purchase / 70% rate-term / 65% cash-out at DSCR 1.00+ up to $1M, stepping down to 60/55/50 at $3M.

DSCR requirements

Minimum DSCR: Below 0.75 allowed
DSCR below 1.00: Yes – DSCR 0.75–0.99 available to $3M: 70/65/65 (≤$1M), 70/65/60 (≤$1.5M), 65/60/55 (≤$2.5M), 60/55/50 (≤$3M). Below 0.75: 70/65/65 up to $1M; purchase only at 70% up to $1.5M. No interest-only below DSCR 1.00.
No-ratio (no DSCR calculated): No – DSCR is calculated on every loan. Ratios below 0.75 are allowed on the grid at reduced LTVs, but this is a low-DSCR tier, not a no-ratio option. Interest-only requires DSCR 1.00+.
How DSCR and qualifying rent are calculated: Gross rent ÷ PITIA (principal, interest, taxes, insurance, HOA); interest-only uses ITIA. Market rent from the 1007 rent schedule is required.

Products & terms

Products: 30yr fixed, 30yr fixed IO
Interest-only: Yes – DSCR ≥1.0, 30yr fixed IO
Prepayment penalty: Where permitted
Reserves: 3 months $125K–$500K, 6 to $1M, 9 to $2M, 12 to $3M; cash-out can count.

Borrower & credit

Housing payment history: 1x30x12; 0x60x12 allowed with a 5% LTV reduction.
Credit events (BK, foreclosure, short sale, modification): No bankruptcy or housing-event seasoning is stated for this program – ask us about your scenario. (Credit requirements: 680 FICO if US credit exists; 2 tradelines open 12 months within the last 24.)
Forbearance, deferrals & modifications: N/A
Collections, charge-offs, judgments & liens: N/A
Tradelines & credit depth: At least 2 tradelines open for 12 months within the past 24 months.
First-time homebuyer: Not addressed directly, but the borrower must have 12 months of documented experience owning and/or managing income-producing real estate within the last 36 months; first-time investors are ineligible.
First-time investor: No – 12 mo investor experience in last 36 mo
Foreign national: Professional investors only (12 months owning/managing income property within 36 months). Foreign nationals holding an ITIN are ineligible; asylees ineligible. Gifts not permitted. Interest-only only with DSCR 1.00+.
ITIN borrower: No (FN with ITIN ineligible)
Non-permanent resident: No
LLC / entity vesting: Entities (LLC, LP, GP, corporation) appear on the ineligible-borrower list for this program – vesting in the individual foreign national's name; confirm with us before structuring in an entity. Personal guarantee required from the borrower.
Gift funds & assets: Not permitted.
Financed property / exposure limits: No add-on reserves
Other borrower rules: Foreign nationals only. US citizens, permanent and non-permanent residents, DACA recipients, asylees and foreign nationals holding an ITIN are ineligible; entities (LLC, LP, GP, corporation) are also listed as ineligible. Borrower must have 12 months of documented experience owning and/or managing income-producing real estate within the last 36 months (first-time investors ineligible). Personal guarantee required. Gifts not permitted.

Property

Eligible property types: SFR, PUD, 2-4, warrantable & non-warrantable condo, condotel
ADUs & unpermitted additions: Not published – ask us about your scenario
Non-warrantable condo: 70% purch / 65% refi
Condotel: 70% purch / 60% refi
Rural / acreage: Rural properties not eligible.
Minimum square footage: Not published – ask us about your scenario
Mixed use: Not published – ask us about your scenario
5+ units / multi-property: No
Ineligible properties: Manufactured homes, co-ops, unique properties with marketability concerns, and rural properties over 20 acres (rural not allowed at all on the foreign national and ITIN versions).
Declining markets: Declining market per appraisal: at least 5% LTV reduction.
Appraisal, review & insurance: Standard appraisal with 1007 rent schedule; an additional appraisal or third-party review may be required (e.g., non-arm's-length or declining markets). Escrow holdbacks and temporary buydowns not permitted. Manual underwriting only.

Rental income

Rent used on a purchase: 1007 required
Rent used on a refinance: 1007 rent schedule required on every loan (purchase or refinance) to verify market rent for the DSCR calculation; lease-versus-market-rent rules for refinances are not published.
Vacant / unleased refinance: Allowed at max 65% LTV.
Short-term rental (Airbnb/VRBO): Yes – purchase
Short-term rental documentation: Not published – ask us about your scenario
Short-term rental limits: Max 70% on purchase.

Refinance seasoning

Cash-out seasoning: Not published – ask us about your scenario
Delayed financing (cash purchase recoup): Not published – ask us about your scenario
Recently listed for sale: N/A

Other terms

Seller / interested-party concessions: N/A
Secondary financing: Not permitted.
State & local restrictions: All states; American Samoa, Guam, Northern Mariana Islands, Puerto Rico and USVI are ineligible.

Additional details

Notes: Declining market −5%. No manufactured/co-op. No subordinate financing or buydowns. Manually underwritten.

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