LAMD-D35 DSCR Multi-Tier (to $4.5M, 5–10 Units) | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 620 (Tier C only); 660 on Tiers A, B, D and E; 680 on Tier F; 700 for first-time investors.
Max LTV – purchase: 85% on Tier C (740 FICO, to $1.5M). 80% on Tiers A and B at 700 FICO to $3M (Tier A also 80% at 660 to $1M with 1.20 DSCR); Tier C 80% at 680 to $2M; Tier D 80% at 680 to $1M; Tier E 80% at 700 to $2M; Tier F 80% at 720 (or 700 with 1.20 DSCR) to $1M. First-time investors 80% max.
Max LTV – rate/term refinance: Same as purchase on Tiers A–D. Tier E: rate/term max 75% with DSCR 1.00+. Tier F: rate/term follows the refinance grid – 75% at 720 FICO (or 700 with 1.20 DSCR) to $1M, 70% at 720 (or 700 with 1.20 DSCR) to $1.5M, 65% at 720 only to $2M. Vacant (post-renovation) rate/term max 75%.
Max LTV – cash-out refinance: 75% max: Tiers A, B and E at 700 FICO; Tier C at 680 to $2M; Tier D at 660 to $500K (65% to $1M); Tier F at 720 (or 700 with 1.20 DSCR) to $1M. Vacant post-renovation refinance 70%.
Minimum loan amount: $100K (Tier D: $200K; Tier F: $125K)
Maximum loan amount: $4.5M on Tier C (purchase/rate-term 70% at 720 FICO; cash-out 60% at 720); $3M on Tiers A, B, D and E; $2M on Tier F. Cash-out max loan: $2.5M Tiers A and B, $1M Tier D, $3M Tier E, $2M Tier F. First-time investors $1M.
Cash-out (cash in hand) limit: Varies: Tier A under 65% unlimited / 65%+ $500K; Tier B 60% or less $1M / over 60% $500K; Tier C 65% or less unlimited / over 65% $1M; Tier D $500K; Tier E under 65% $1.75M / 65–70% $1.25M / over 70% $750K; Tier F 70% or less unlimited / over 70% $500K.
LTV reductions & overlays: Declining market: −10%. Vacant refinance after renovation: 75% rate/term, 70% cash-out, DSCR 1.00. Cash-out listed 3–6 months ago: value is the lower of appraisal or lowest list price (plus 3-year prepay). Purchase where the seller took title 90 days or less before the contract: value is the lowest of prior sale price, current price or appraisal (bank-owned/relocation exempt). Interest-only on Tiers B and E: −5% and 700 FICO. Credit event 2 to under 4 years on Tier C: max 70%. Non-warrantable condo on Tier B: 75% purchase/rate-term, 70% cash-out, max $1.5M. Condotel on Tier E: 75%/70%. Florida warrantable condo on Tier F: 50%. 5–9 units on Tier A: 75%, 680 FICO. Non-permanent residents capped at 75% (no cash-out) on Tier E. First-time investor 80%, $1M. Exceptions of 5–10% over program max can be requested as an exception.

DSCR requirements

Minimum DSCR: 0.75
DSCR below 1.00: Yes – 0.75–0.99 allowed on Tiers B, C and E (e.g., Tier B 75% at 700 to $1M; Tier E 75% at 720 to $1M; Tier C 75% at 680 to $1.5M). Tiers A, D and F require 1.00+. Not available for first-time investors, vacant refinances, or 5–10 unit/mixed use (1.15 minimum).
No-ratio (no DSCR calculated): No – minimum 0.75
How DSCR and qualifying rent are calculated: Gross rent ÷ PITIA (IO loans qualify on the ITIA). Purchase with no lease: appraisal market rent. With a lease: lower of lease or market; a higher lease counts up to 125% of market with the 2 most recent months' receipts (deposit doesn't count). Multi-unit properties are calculated unit by unit; max one vacant unit on 2–4 units and two on 5–10 units; mixed-use commercial income capped at 49% of total. Minimum 0.75 on tiers that allow sub-1.00.

Products & terms

Products: 30yr fixed and 5/6 & 7/6 SOFR ARMs (margin 4.00) on all tiers except Tier D (fixed only); 15yr fixed on Tiers C and D; 10/6 ARM on Tier C only; 30-year 10/20 interest-only versions.
Interest-only: Yes – 30-year with 10-year IO then 20-year amortizing, fixed or ARM (Tier D fixed only); qualified on the IO payment. Tiers B and E: 700 FICO and −5% LTV.
Prepayment penalty: Allowed 1–5 years: 6 months' interest on prepayment over 20%, or fixed/declining structures (e.g., 5/5/5/5/5, 5/4/3/2/1, 3/2/1, 2/1, 1%). Not allowed in AK, IL or NM. MI max 3 years at 1% (1 year on Tiers A, C, D, F); OH only over $116,356, max 5 years at 1% (1 year on Tiers A, C, D, F); NJ only for LLCs/corporations (not allowed on Tiers A, C, D, F); LA and MS declining only beyond 1 year (MS max 3 years on Tier E); MN no seller leaseback/rent-back; PA not on 1–2 units at $329,411 or less. Tier B: not allowed in DC or MD; Tier E: MD max 2 years (2/1 or 1% flat). Loans without a prepay are priced up.
Reserves: Tiers A, B and E: 3 months to $1M, 6 months to $2M, 9 months to $3M. Tier C (1–4 units): none to $2.5M at 80% LTV or less, 6 months over 80% LTV, 12 months $2.5M–$3M, 18 months over $3M; Tier C 5–10 units/mixed use: 6 months to $2M, 9 to $2.5M, 12 to $3M, 18 over $3M. Tier D: 6 months to $500K, 12 over. Tier F: 6 months. First-time investors 3 months minimum. IO loans use the IO payment; cash-out proceeds may be used.

Borrower & credit

Housing payment history: 1x30x12 on most tiers (Tier F 0x30x12); only the subject and primary residence go on the REO schedule; private mortgages verified with cancelled checks/bank statements. Rent-free borrowers are eligible if they're experienced investors (12 months of ownership/management within 24 months).
Credit events (BK, foreclosure, short sale, modification): Bankruptcy, foreclosure, notice of default, short sale, deed-in-lieu or modification: at least 2 years from completion to application (tiers range 2 to 4 years; Tier A 4 years, Tiers D and F 3 years, Tier C 2 years with LTV limits). Multiple events need 7 years since the last. Credit re-established and minimum score met.
Forbearance, deferrals & modifications: If housing history shows a forbearance, the 12 months since exiting it must be 0x30, verified by the servicer.
Collections, charge-offs, judgments & liens: Anything affecting title must be paid. Non-title collections, charge-offs, judgments and liens over $5,000 (individually or combined) must be paid; medical collections ignored. IRS payment plans OK if current and not liened. Borrowers currently in credit counseling/debt management are ineligible.
Tradelines & credit depth: Each borrower needs at least 2 tradelines: one open 24+ months and active in the last 6 months, and one rated 12+ months (open or closed). Authorized-user and non-traditional credit don't count. At least 2 credit scores required (classic FICO); no frozen credit; the lowest representative score among borrowers is used. Limited tradelines can be submitted as an exception.
First-time homebuyer: No
First-time investor: Yes – DSCR 1.00, 700 FICO, 80%, $1M, 3 mo reserves; no 5–10 units/mixed use
Foreign national: No
ITIN borrower: No (ITIN-only borrowers ineligible)
Non-permanent resident: Yes on Tiers A, B, C and F with no overlays; Tier E max 75% with no cash-out; Tier D not allowed in any role (borrower, guarantor, trustee or entity member). Passport and unexpired visa required; an expired visa is OK with an unexpired EAD/I-94/I-797 and employer letter (not for self-employed). Granted asylum and DACA eligible. No funds from outside the US.
LLC / entity vesting: US-based LLCs, partnerships and corporations may hold title; one or more members together owning at least 25% must personally guarantee (max 4 guarantors, each fully underwritten). Layered entities allowed if every layer is traced to individuals. Guarantors in community-property states need a spousal consent. No POA when vested in an entity. Inter-vivos revocable trusts allowed; irrevocable and land trusts and life estates are not.
Gift funds & assets: Gifts allowed for closing (not reserves) from a relative or family-type relationship, with a 10% minimum borrower contribution of the purchase price; gifts of equity and down-payment assistance not allowed. Business funds: full balance if held by the vesting entity, otherwise 25%+ ownership and pro-rata share with other owners' consent. 1031 funds for closing only (no reverse 1031). Reserves: stocks/bonds 100%, retirement 70% (100% at age 59.5), BTC/ETH on Coinbase at 60% without liquidation. Large deposits don't need sourcing.
Financed property / exposure limits: No limit on financed properties. Max exposure through this program: 10 loans or $5M per borrower/guarantor (more than 10 loans considered by exception).
Other borrower rules: All borrowers need a valid SSN. Ineligible: ITIN-only borrowers, first-time homebuyers, foreign nationals, parties to a lawsuit, diplomatic immunity, guardianships, life estates, irrevocable and land trusts. Neither the borrower nor family may occupy (business-purpose affidavit required); cash-out can't be used for personal purposes. Non-arm's-length deals are eligible for family sales, seller as own agent, borrower/relative as agent, or borrower/relative employed by the lender; other non-arm's-length situations only case by case with underwriting. Foreclosure bailouts and land contracts ineligible. Rent-free borrowers eligible only if they are experienced investors. No income or employment is documented.

Property

Eligible property types: Residential incl. rural residential, non-warrantable condo, condotel, leasehold; 5–10 units & mixed use (limited availability)
ADUs & unpermitted additions: One-unit homes with one ADU are eligible if the property conforms to zoning, the ADU is substantially smaller than the main house and isn't a manufactured home, and the appraisal has two comps with similar ADUs. Permitted ADU rent can be used. Unpermitted ADUs are not allowed on this program – one of the stricter programs for ADUs.
Non-warrantable condo: Allowed on Tiers B (max $1.5M, 75% purchase/rate-term, 70% cash-out), C and E only, with only ONE non-warrantable reason: investor concentration up to 60% (new projects), commercial space up to 50%, single-owner concentration up to 50%, 30% presold (new projects), HOA delinquencies up to 25%, non-structural litigation within 25% of reserves or insured, or a low reserve allocation backed by reserve balances (50% of annual budget at 7%+, 75% at 5–7%, 100% under 5%) with no significant repairs noted. Florida condos must be fully warrantable. Not allowed on Tiers A, D and F.
Condotel: Allowed on Tier C (no overlays) and Tier E (75% purchase/rate-term, 70% cash-out) when the project is otherwise fully warrantable: full kitchen and a separate bedroom. Indicators: hotel/motel/resort/lodge name, hotel conversions, daily/weekly rental registration services. Not allowed on Tiers A, B, D and F.
Rural / acreage: Rural-residential and agricultural-residential properties are eligible; purely rural- or agricultural-zoned properties and working/hobby farms are not. Max 20 acres; over 10 acres needs two comps with similar acreage.
Minimum square footage: 750 sq ft per unit for single-family; 400 sq ft per unit for condos and 2–10 units.
Mixed use: Tier C only (limited availability): 2–8 unit mixed use with 1 commercial unit in 3 or fewer units, 2 in 4–5, 3 in 6+; commercial space no more than 49% of building area and no more than 49% of income, no vacant commercial space; retail/office/restaurant only (no dry cleaners, laundromats, auto repair); the borrower's own business may occupy the commercial unit. Minimum DSCR 1.15; purchase/rate-term up to 75% (680 FICO to $2M, 700 to $3M) or 65% at 720 to $4.5M; cash-out up to 70% (680 to $2.5M), 60% at 720 to $4.5M. Reserves 6–18 months by loan size. No STR income, no first-time investors. Appraised on a commercial form or narrative (sales approach) with a commercial BPO review; commercial general liability insurance $1M per occurrence / $2M aggregate required.
5+ units / multi-property: 5–10 unit residential on Tier C (DSCR 1.15 minimum, up to 75% at 700 FICO to $3M or 65% at 720 to $4.5M) and Tier A (5–9 units only, 680 FICO, 75% max); not on other tiers. Limited availability; no first-time investors; no STR income; max two vacant units. Appraised with a 5+ unit form or narrative (sales approach), rent roll, income/expense statement and full interior of each unit, plus a commercial BPO review.
Ineligible properties: Manufactured/mobile, co-ops, log homes, timeshares, unique properties, zoning non-conformance (legal non-conforming OK with rebuild letter), working or hobby farms, commercial properties (residential in commercial zones OK), rural- or agricultural-only zoning, Hawaii lava zones 1–2, over 20 acres, deed/resale-restricted properties, lot loans, US territories.
Declining markets: Max LTV reduced by 10% when the appraiser reports declining property values.
Appraisal, review & insurance: One appraisal up to $2M; two over $2M (lower value used). 1–4 units with no CU score or a CU over 2.5 need a CDA/ARR desk review; if it's more than 10% low, a field review or second appraisal is needed and a still-low value sets the LTV. 5–10 units/mixed use need a commercial BPO (BPO value used if more than 10% low). Appraisals must be as-is, average or better condition, and under 120 days old. Transferred/assigned appraisals OK if not borrower-ordered. 6 months' rent loss insurance required; mixed use also needs $1M/$2M commercial liability.

Rental income

Rent used on a purchase: No lease: appraisal market rent. With a transferring lease: lower of lease or market; a higher lease counts up to 125% of market with the 2 most recent months' receipts.
Rent used on a refinance: Lower of lease or market rent; a higher lease counts up to 125% of market with the 2 most recent months' receipts. Leases need a 6–36 month initial term (month-to-month after expiry OK); no room, boarder or model-home leases. Unleased units fall under the vacant-refinance rules.
Vacant / unleased refinance: Only when vacant due to recent renovation: active rental listing, rent = lower of market or listing rent, DSCR 1.00+, max 75% rate/term / 70% cash-out. Multi-units with any unleased unit fall under these limits.
Short-term rental (Airbnb/VRBO): Yes – purchase & refi (tier purchase min 1.25 DSCR)
Short-term rental documentation: Purchase: lower of AirDNA Property Earning Potential (12-mo forecast, ≥50% occupancy, 4 comps, market score ≥60) or appraiser STR analysis; refi: 12-mo Airbnb/VRBO average
Short-term rental limits: Tier-specific: Tiers B and C purchase and refinance; Tier A refinance only; Tier E purchase only with DSCR 1.25+; Tiers D and F none; no STR on 5–10 units/mixed use.

Refinance seasoning

Cash-out seasoning: One borrower on title 6 months (time in the borrower's majority-owned LLC counts; inherited or awarded property exempt). Texas 50(a)(6) ineligible.
Delayed financing (cash purchase recoup): Yes – within 6 months of a cash purchase (arm's length, no financing, no liens, funds sourced; bought individually, in an eligible trust or in a 100%-owned LLC/partnership). Loan limited to the documented investment plus closing costs, at cash-out LTVs and pricing. Gifts can't be reimbursed; if purchase funds were borrowed against another asset, proceeds must pay that loan down.
Recently listed for sale: Rate/term: listing must be withdrawn or expired before closing. Cash-out: withdrawn more than 6 months before closing – no restriction; 3–6 months – requires a 3-year prepay and value at the lower of appraisal or minimum list price; under 3 months – ineligible.

Other terms

Seller / interested-party concessions: Interested-party contributions up to 6%, for closing costs and prepaids only; any excess is deducted from the price.
Secondary financing: Not allowed (new or existing), except solar financing subordinated to the first mortgage; PACE loans not allowed.
State & local restrictions: Investment loans not allowed (tier-dependent) in Lee County FL, Baltimore City and Cecil County MD, Orange County NY, Philadelphia and surrounding PA counties (Bucks, Chester, Delaware, Montgomery), New Castle County DE, Burlington/Camden/Gloucester/Salem NJ, and AK/HI on one tier. US territories ineligible.

Additional details

Notes: Six credit tiers (A–F) with different limits. Only the subject property and primary residence go on the real estate schedule. Tier-specific location exclusions (investment properties): Tier C – Lee County FL, Baltimore City MD, Orange County NY, Philadelphia County PA; Tier E – Baltimore City MD, Philadelphia County PA; Tier F – AK, HI, New Castle County DE, Baltimore City and Cecil County MD, Burlington/Camden/Gloucester/Salem Counties NJ, Bucks/Chester/Delaware/Montgomery/Philadelphia Counties PA. Tier A: 1–9 units (5–9 units at 680 FICO / 75%), no leasehold. Tier B: leasehold OK, non-warrantable condo 75/70. Tier C: up to $4.5M, 5–10 units and mixed use, condotel OK, no leasehold. Tier D: fixed rate only, $200K minimum loan, no non-permanent residents, no STR, no leasehold. Tier E: condotel 75/70, no Florida warrantable condos, leasehold OK. Tier F: 0x30x12 housing, low-rise warrantable condos only (Florida 50%), leasehold OK.

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