LAMD-D23 DSCR No-Ratio | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 700 (additional borrowers 660)
Max LTV – purchase: 75% (740, ≤$1M)
Max LTV – rate/term refinance: 75% (740, ≤$1M)
Max LTV – cash-out refinance: 65% (740, ≤$1M)
Minimum loan amount: $125K
Maximum loan amount: $1.5M
Cash-out (cash in hand) limit: Unlimited at 60% or less; $1M above 60%.
LTV reductions & overlays: 3–4 unit refinances 70%. Declining market −5% above 65%. Cash-out not available on properties bought within 12 months or for non-permanent residents.

DSCR requirements

Minimum DSCR: 0 to <0.75 (no-ratio)
DSCR below 1.00: Yes – this program is for DSCR <0.75
No-ratio (no DSCR calculated): Yes
How DSCR and qualifying rent are calculated: For DSCR from 0 up to 0.75 – qualification doesn't require a minimum ratio; rent is the lesser of lease or 1007 market rent (lease copy not required).

Products & terms

Products: 15/30 fixed
Interest-only: No
Prepayment penalty: Required on investment where permitted (no-PPP pricing per rate sheet)
Reserves: 3 months up to $500K; 6 months to $1.5M. Cash-out counts.

Borrower & credit

Housing payment history: 0x30x12; any 60-day consumer late within 4 years must be explained.
Credit events (BK, foreclosure, short sale, modification): 3 years for housing events; Chapter 13 discharged or dismissed 2+ years; multiple bankruptcies ineligible.
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: 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, not liened, with 2+ payments.
Tradelines & credit depth: N/A
First-time homebuyer: No
First-time investor: Not permitted; FTHB not permitted.
Foreign national: No
ITIN borrower: No
Non-permanent resident: Purchase/RT only (E, H1-B, L-1, O-1, TN etc.)
LLC / entity vesting: Entities allowed but no layered entities.
Gift funds & assets: After a 10% borrower contribution; not for reserves; no gift of equity.
Financed property / exposure limits: Lender exposure: lesser of $10M or 10 loans, and $5M or 5 cash-out/5–8 unit loans (no-ratio: $7.5M/10 loans, $5M/5 cash-outs). Up to 20 financed properties including LLC-held.
Other borrower rules: 700 minimum score (lowest representative score used; additional borrowers 660). Each borrower needs 2 tradelines with 12 months history in 24 months, no lates in 24 months. Non-permanent residents purchase/rate-term only with approved visas. Max $1.5M, fixed only, no IO.

Property

Eligible property types: SFR, PUD, townhome, 2-4 (3-4 refi max 70%), warrantable & non-warrantable condo
ADUs & unpermitted additions: Same ADU rules (unpermitted ADUs OK if the appraiser calls them a legal use), though no DSCR is calculated on this program.
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: Not eligible.
Rural / acreage: Rural not eligible; max 2 acres.
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 only through delegated correspondents. Islands without a bridge case-by-case.
Declining markets: 5% LTV reduction when LTV is above 65%.
Appraisal, review & insurance: N/A

Rental income

Rent used on a purchase: Lesser of lease or market (lease copy not required)
Rent used on a refinance: Same
Vacant / unleased refinance: Not permitted (vacant OK on purchases).
Short-term rental (Airbnb/VRBO): No
Short-term rental documentation: N/A
Short-term rental limits: Short-term rentals ineligible.

Refinance seasoning

Cash-out seasoning: Continuity required: a borrower on title for 6 months with timely payments (or inherited/awarded). Properties acquired within 12 months can't do cash-out.
Delayed financing (cash purchase recoup): Yes
Recently listed for sale: Refinances not allowed if listed for sale in the last 12 months.

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: N/A
State & local restrictions: Investment properties ineligible in Charlotte, Lee, Hendry and Glades Counties FL; Indianapolis; Paterson NJ; Lubbock TX. All loans ineligible in Cook County IL, Baltimore City MD, Orange County NY and several Philadelphia ZIP codes (no Philadelphia row homes). Hawaii delegated correspondents only. STRs not allowed in NYC's five boroughs. Brooklyn and Memphis investment loans need a field review. Texas: no ITIN/foreign national loans for citizens of China, Russia, Iran, North Korea. Puerto Rico, Guam, USVI ineligible.

Additional details

Notes: 720: 70/70/60 (≤$1M); 700: 65/65/60. Rent loss insurance 6 mo required. No exceptions.

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