LAMD-D31 Foreign National DSCR | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 700 with US credit; otherwise no score
Max LTV – purchase: 70% (≤$2M)
Max LTV – rate/term refinance: 70%
Max LTV – cash-out refinance: 65% (≤$2M); condo & 2-4 max 65%
Minimum loan amount: $150K
Maximum loan amount: $3.0M
Cash-out (cash in hand) limit: >55% LTV $1M; ≤55% unlimited; condo & 2-4 cash-out max 65%
LTV reductions & overlays: 2–4 units and condos: 70% purchase/rate-term, 65% cash-out. Condotels: max $1.5M, 65% purchase/rate-term, 60% cash-out. 5% LTV reduction if using 6 months of reserves instead of 12. Gift funds cap the loan at $1M. STR: lesser of 70% or the grid, DSCR 1.15. Declining market −5% above 65%.

DSCR requirements

Minimum DSCR: 1.00 (grid shown for DSCR ≥1.00)
DSCR below 1.00: No – DSCR ≥1.00 grid only
No-ratio (no DSCR calculated): No
How DSCR and qualifying rent are calculated: Gross rent ÷ PITIA (ITIA on IO); minimum 1.00 (1.15 STR). Refinances must be leased except STRs or recently rehabbed properties listed for rent.

Products & terms

Products: 15yr fixed, 30yr fixed, 30yr fixed IO (10-yr IO); no 2-1 buydown
Interest-only: Yes – 30yr fixed IO
Prepayment penalty: Required on investment where permitted (no-prepay option affects pricing)
Reserves: 12 months PITIA (or 6 months with −5% LTV); cash-out may count

Borrower & credit

Housing payment history: 0x30x12 if documented; foreign primary history not required
Credit events (BK, foreclosure, short sale, modification): 4 years' seasoning.
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: When US credit is reported: 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: Foreign nationals may qualify with no US credit score. When qualifying with US credit: minimum 700, with scores from at least 2 of the 3 bureaus; tradelines waived if the primary borrower has 3 scores, otherwise 2 open and reporting 24 months or 3 open and reporting 12 months. A free-and-clear primary with 12 months of taxes and insurance paid can count as one tradeline.
First-time homebuyer: No
First-time investor: Allowed with DSCR 1.00 and 700+; not a first-time homebuyer.
Foreign national: Non-US citizen living and working abroad and a legal resident there; US citizen co-borrowers still trigger FN documentation. OFAC-country borrowers ineligible. No power of attorney. With US credit, 700 minimum. Foreign primary-residence history not required (0x30x12 if documented). US-bank ACH required.
ITIN borrower: No
Non-permanent resident: Not available for DSCR/investment. Recently relocated non-permanent residents with no US score can use this program only for a primary-residence or second-home purchase (75%/70%, max $1.5M); non-permanent residents with US credit go through the standard DSCR programs.
LLC / entity vesting: Yes – LLC, partnership or corporation domiciled in the US, max 4 members, personal guaranties from all borrowers and any 50%+ owner, up to 2 entity layers. Power of attorney not allowed.
Gift funds & assets: After a 10% borrower contribution at any LTV; max loan $1M when a gift is used; gift funds may count toward reserves on this program; no gift of equity.
Financed property / exposure limits: Lender exposure per borrower (incl. entities/guarantors): lesser of $10M or 10 loans in aggregate, and $5M or 5 cash-out/5–8 unit loans. No published cap on the number of financed properties for this program.
Other borrower rules: Property can't be occupied by the borrower, any LLC member or family; no single-room or boarder leases. Renters need an active lease; the primary should be in a different area or superior to the subject. Rent-loss insurance of 6 months (or 3 extra months of reserves not from cash-out).

Property

Eligible property types: SFR, PUD, townhome, 2-4 units (70% purchase/rate-term, 65% cash-out), condos (same limits; leasehold ineligible), condotels (max $1.5M, 65%/60%). No 5-8 units.
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: Non-warrantable condos allowed (where the program permits): one owner may finance 2 units in 5–20 unit projects; commercial up to 50%; HOA delinquencies up to 25%; investor concentration up to 70% (higher for investment purchases); single-entity ownership up to 49% (developer-held units for sale excluded; 50%+ by exception); developer control OK with defined turnover; mandatory outside club dues OK; non-structural litigation. Leasehold condos are ineligible.
Condotel: Allowed: max $1.5M; 65% purchase/rate-term, 60% cash-out. Must be in a resort area or affiliated with a national hotel chain; full-size kitchen and at least one separate bedroom (studios case-by-case; units under 400 sq ft need similar-size comps). Condotel = run as a hotel, hotel/motel/resort/lodge name, front desk/housekeeping rentals, a hotel conversion, or marketed as a hotel. Short-term rental ability alone doesn't make it a condotel.
Rural / acreage: Rural properties not eligible; max 2 acres (acreage and land value must be typical for the market).
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); second full appraisal for loans over $2M (lower value used). 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: Lease required (except STR-managed or recently rehabbed and listed). Lesser of lease or market needs nothing more; a higher lease needs 2 months' receipts (not for monthly/seasonal rentals); seasonal/monthly rentals use a 12-month average; a vacant unit in a 2–4 uses 100% of market.
Vacant / unleased refinance: Not eligible unless STR-managed or recently rehabbed & listed
Short-term rental (Airbnb/VRBO): Yes
Short-term rental documentation: Any of: 1007/1025 with STR rents, an AMC STR analysis, or a 12-month look-back of receipts (bank or platform statements). Market rents must account for seasonality. Third-party proof (e.g., Property Guard, Vrolio) that STRs are allowed. Purchase or refinance; not in NYC.
Short-term rental limits: DSCR 1.15; LTV lesser of 70% or the grid; not in NYC.

Refinance seasoning

Cash-out seasoning: 6 months from the most recent transaction (except delayed financing). If acquired within 12 months, LTV uses the lesser of appraised value or purchase price plus documented improvements.
Delayed financing (cash purchase recoup): Yes
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.

Additional details

Notes: Grid: 700+ → 70/70/65 ($2M), 65/65/60 ($2.5M), 60/60/55 ($3M); no score → 70/70/65, 65/65/60, 55/55/50. ACH required. Rent loss insurance 6 mo. POA ineligible.

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