LAMD-D30 Foreign National DSCR | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 680 with US credit; foreign credit allowed
Max LTV – purchase: 65% (≤$1M)
Max LTV – rate/term refinance: 65%
Max LTV – cash-out refinance: 60%; FL condo cash-out 50%
Minimum loan amount: $150K
Maximum loan amount: $1.0M
Cash-out (cash in hand) limit: Max $250K.
LTV reductions & overlays: Max 65% purchase/rate-term, 60% cash-out up to $1M (680+ FICO or foreign credit). 2–4 units (investment) and warrantable condos 60%. Florida condo cash-out 50%.

DSCR requirements

Minimum DSCR: 1.00
DSCR below 1.00: No
No-ratio (no DSCR calculated): No
How DSCR and qualifying rent are calculated: Gross rent ÷ PITIA; minimum 1.00. No interest-only.

Products & terms

Products: 3/6, 5/6, 7/6, 10/6 ARM; 15/30 fixed
Interest-only: No
Prepayment penalty: Per state law
Reserves: 12 months PITIA; cash-out counts.

Borrower & credit

Housing payment history: 0x30x12 mortgage history.
Credit events (BK, foreclosure, short sale, modification): 4+ years clean of housing events.
Forbearance, deferrals & modifications: A loan modification due to default counts as a housing event: it needs 4+ years of seasoning, measured from when the loan was permanently modified. Forbearance and deferrals are not addressed separately.
Collections, charge-offs, judgments & liens: Judgments/liens affecting title must be paid. Non-title collections/charge-offs within 3 years over $5,000 (individually or combined) must be paid; medical under $15,000 can stay. IRS plans OK if current and not liened. Past-due accounts brought current; no one currently in credit counseling/debt management. 60-day consumer lates within 4 years need an explanation. Credit can't be frozen.
Tradelines & credit depth: With US credit: 2 tradelines reporting in the last 24 months with 12 months' history each (or 3 combined with a co-borrower). With foreign credit: 3 open accounts with 2 years' history and no late payments, and 12 months of housing payments at 0x30. A 2-year housing history can count as a tradeline, and US accounts can be combined with reference letters from foreign financial institutions (letters must give relationship type and length, account status and contact information, with certified translation).
First-time homebuyer: Not addressed for this program – ask us about your scenario.
First-time investor: Not published – ask us about your scenario
Foreign national: Non-US citizens not authorized to live/work in the US (or on temporary visas). Max $1M, 65%, DSCR 1.00 (or qualify with foreign income at 45% DTI). Escrows required. Non-warrantable condos and co-ops not eligible.
ITIN borrower: A foreign national with an ITIN (held to report taxes on passive income, not employed in the US) can use it to pull US credit. Foreign nationals with no SSN or ITIN can still proceed under this program.
Non-permanent resident: N/A
LLC / entity vesting: LP, GP, corporation or LLC formed to own and manage real estate, with a personal guaranty. Max 4 entity owners. Guarantors must be managing members or majority owners and hold at least 25% combined. Up to 2 layers of entities allowed if ownership traces cleanly to the individual guarantors; entities layered with a trust are ineligible. Articles, operating agreement, EIN and good standing are required, dated within 30 days of closing. Entity vesting is limited to investment (business-purpose) properties – not available on second-home loans.
Gift funds & assets: Family gifts allowed on purchases only, and not for reserves (at this program's max 65% LTV the gift can cover the whole down payment). Foreign assets must be seasoned 60 days with 2 statements and a currency conversion; assets from OFAC-sanctioned countries aren't allowed.
Financed property / exposure limits: Up to 20 financed residential properties; lender exposure capped at $7.5M or 10 properties per borrower. Reserves for other financed properties: 2 months each, capped at 12 months total including the subject.
Other borrower rules: Personal guaranty required on the DSCR route. Passport and unexpired visa (or I-797 plus I-94) required unless the borrower's country is in the Visa Waiver Program. Spouse/family-visa holders can only be co-borrowers. Citizens of Venezuela or other countries barred from doing business with the US are ineligible. Builder refinances where the builder built more than 4 units in the project, and new construction where the borrower has a relationship with the builder/seller, are ineligible.

Property

Eligible property types: SFR (attached/detached/modular), PUD, townhouse, leasehold, 2–4 units (investment only, max 60%), warrantable condo (max 60%). Non-warrantable condos and co-ops not eligible.
ADUs & unpermitted additions: Single-family homes with ADUs follow Fannie Mae's ADU rules (legal ADUs acceptable). Multiple dwellings on one lot are ineligible except legal ADUs. Unpermitted additions/alterations are judged under Fannie Mae rules – generally acceptable if typical for the market, well built and not given full value – rather than an automatic decline. Rent is the lower of lease or 1007 market rent.
Non-warrantable condo: Not allowed (warrantable condos only, max 60%); co-ops not eligible.
Condotel: No
Rural / acreage: Max 20 acres; rural not specifically excluded
Minimum square footage: Not published – ask us about your scenario
Mixed use: No
5+ units / multi-property: No
Ineligible properties: Manufactured homes, 5+ units, log homes (faux-log by exception), condotels/motels, projects with registration services or limits on owner occupancy, unique properties, mixed use, model leasebacks, boarding houses, group homes, timeshares/fractional, assisted living, mandatory country-club memberships, zoning violations, under construction, barndominiums, agricultural zoning (by exception), Hawaii lava zones 1–2, multiple dwellings on one lot (legal ADUs OK), working farms, C5/C6, live/work condos, earth-berm homes, domes, houseboats, reservation land, marijuana use, theme-park resort properties. Leaseholds OK; max 20 acres.
Declining markets: 5% reduction to the LTV caps (declining per appraisal or any third-party valuation).
Appraisal, review & insurance: One appraisal plus a third-party review (CU/LCA score of 2.5 or less, CDA or ARR) that comes within −10% of the appraised value. 1007 rent schedule required on investment SFRs (1025 for 2–4 units). C5/C6 ineligible. Tax and insurance escrows are mandatory. Escrow holdbacks not allowed. Disaster-area damage over $2,000 or affecting habitability is ineligible. Manual underwriting.

Rental income

Rent used on a purchase: Gross rent ÷ PITIA, minimum 1.00. A 1007 rent schedule (1025 for 2–4 units) is required with the appraisal. Ask us how qualifying rent is set.
Rent used on a refinance: Not stated for this program – ask us about your scenario.
Vacant / unleased refinance: Not stated for this program – ask us about your scenario.
Short-term rental (Airbnb/VRBO): Not published – ask us about your scenario
Short-term rental documentation: Not published – ask us about your scenario
Short-term rental limits: Not published – ask us about your scenario

Refinance seasoning

Cash-out seasoning: 6+ months of ownership (acquisition to note). Owned 6–12 months: LTV on the lower of purchase price plus documented improvements or appraisal. Refinancing a cash-out loan less than 1 year old counts as cash-out. Inherited or divorce-awarded properties have no seasoning. A property listed for sale in the past 6 months must be off the market at application (letter of explanation and listing cancellation required); multiple listings in the past 12 months are ineligible. For DSCR-qualified loans: proceeds for business purposes only, with a letter of explanation, and no major renovations that would make the property uninhabitable. Max $250K cash out; Florida condo cash-out max 50% LTV. No POA on cash-out or entities.
Delayed financing (cash purchase recoup): Yes – for a cash purchase within 180 days of the new note date, arm's length. The source of the purchase funds must be documented and title must show no liens. LTV is based on the lower of the appraised value or purchase price plus documented improvements. The loan is treated as a cash-out refinance, so cash-out LTV, loan-amount and cash-out limits apply (max 60% LTV, $250K cash-out cap).
Recently listed for sale: If listed within 6 months of the note date: not listed at application, with a borrower letter and listing cancellation. Multiple listings within 12 months are ineligible.

Other terms

Seller / interested-party concessions: Interested-party contributions up to 6%.
Secondary financing: Not allowed.
State & local restrictions: All 50 states and DC; Puerto Rico, Guam, American Samoa, Northern Mariana Islands and the U.S. Virgin Islands are ineligible. Florida condos 3+ stories and 30+ years old (25+ years within 3 miles of the coast) must have completed SB-4D milestone inspections, any required structural repairs, and a structural integrity reserve study, or they are ineligible; even when compliant, Florida condo projects subject to SB-4D are case-by-case only and need an exception approval. Hawaii lava zones 1–2 are ineligible. Florida condo cash-out max 50% LTV.

Additional details

Notes: Second home or investment; DSCR route for investment only, personal guaranty required. Declining market −5%.

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