LAMD-D25 DSCR Standard (No-Ratio, ITIN, Foreign National) | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 600 (FICO <620 needs 12 mo reserves)
Max LTV – purchase: 85% (720+, ≤$1.5M; >80% needs DSCR 1.20, 6 mo reserves, SFR/PUD/TH/warrantable condo outside FL)
Max LTV – rate/term refinance: 80% (720+, ≤$1.5M)
Max LTV – cash-out refinance: 75% (660+, ≤$1.5M)
Minimum loan amount: $100K
Maximum loan amount: $3.0M (>$2M needs 700 FICO, 65%, DSCR ≥1.10)
Cash-out (cash in hand) limit: LTV >65%: $1M (loans ≥$1.5M) / $500K (<$1.5M); ≤65% unlimited
LTV reductions & overlays: Above 80%: DSCR 1.20, 6 months' reserves, SFR/townhome/PUD/warrantable condo outside Florida only. DSCR under 1.00 or no-ratio: 75% purchase / 70% rate-term / 65% cash-out, 640 FICO. Loans under $200K: 80% / 75%. 2–4 units 80%. Non-warrantable condo 80% / 75% and condotel/PUDtel 75% / 70% / 65% (each −5% in Florida, DSCR 1.00). Manufactured 65% / 60%. Rural/unique 80% / 75% / 70% with 700 FICO and DSCR 1.00 (more if marketing time is long). STR 75% / 70%. Declining market −5%. Housing lates: 1x30x12 80/75, 0x60x12 75/70, 0x90x12 65%. Thin credit (1 or no score): 65%. Recently listed: 65%.

DSCR requirements

Minimum DSCR: None (no-ratio allowed)
DSCR below 1.00: Yes – DSCR <1 or no ratio: 640 FICO, 75% purch / 70% R/T / 65% CO
No-ratio (no DSCR calculated): Yes – 1007 still required; STR or LTR; 75/70/65, 640 FICO
How DSCR and qualifying rent are calculated: Lesser of in-place or market rent ÷ PITIA (any subordinate financing is included in the payment). The higher actual rent can be used with 2 consecutive months' receipts (no prepaid rent or deposits) and a lease running at least 3 months past closing. Vacant purchases use 1007/1025 rent. No-ratio option: 1007 still required but no DSCR calculated (STR or long-term). Loans over $2M need DSCR 1.10.

Products & terms

Products: 30yr fixed, 5/1 & 7/1 ARM (1-yr CMT), 5-yr IO (30yr), 10-yr IO (40yr)
Interest-only: Yes – min $250K & 640 FICO; 10/40 IO max 80%
Prepayment penalty: Yes – with state buy-out list (IL, KS, MD, MI, MN, NM, OH, PA, RI, VA, VT, NJ)
Reserves: Generally not required on the base grid; 12 months if FICO is under 620; 6 months above 80% LTV, for FTHB and vacant refis; 24 months on recently listed properties.

Borrower & credit

Housing payment history: 0x30x12 for the full grid; 1x30x12 → 80/75; 0x60x12 → 75/70; 0x90x12 → 65%; 0x120x12 ineligible. Rolling 30-day lates (up to six) count as one event. Only the subject, primary and second homes go on the REO schedule.
Credit events (BK, foreclosure, short sale, modification): Bankruptcy or foreclosure: 36+ months no restriction; 24–35 months 80% purchase / 75% refi; 12–23 months 65%; under 12 months ineligible. Short sale, deed-in-lieu or modification: 24+ months no restriction; 12–23 months 80% / 75%; under 12 months still possible at 75% / 70%. Any mortgage 120+ days late is treated as a foreclosure unless on a written forbearance/modification. Two or more unrelated foreclosures in 36 months: max 65% with proof it was a one-time event.
Forbearance, deferrals & modifications: Recent forbearance or modification is allowed (see credit-event limits); a forbearance taken within the last 6 months is case-by-case. If there's been forbearance or a mortgage late in the last 12 months, tenant-occupied properties need the last 2 months of rent receipts or 12 months of payments in reserve (cash-out can fund it).
Collections, charge-offs, judgments & liens: Collections/charge-offs may stay unpaid if medical, or 2+ years since last activity, or on a payment plan with 3 months of on-time payments. Judgments must be paid unless off title, under $5,000, LTV 70% or less, with a 90-day-old plan and 3 payments made. Tax liens and delinquent child support must be paid (on purchases with the borrower's own funds); IRS liens may be subordinated with senior approval after 3 plan payments.
Tradelines & credit depth: Three scores: no tradeline requirement. Two or fewer: 2 tradelines with 24 months or 3 with 12 months. One or no score: 65% max, DSCR 1.10, 0x30x24.
First-time homebuyer: Allowed: 700 FICO, max 70%, DSCR 1.15, loan-size limit around $1M, no IO, impounds and 6 months' reserves.
First-time investor: Not restricted separately
Foreign national: Allowed (primary residence outside the US): 70% purchase / 65% refi, priced as a 700 FICO.
ITIN borrower: Allowed up to $1M with 640 FICO: 700+ 70% / 65%; 660–699 65% / 60%; 640–659 60%.
Non-permanent resident: Allowed with EAD or valid visa: max $1.5M, 80%.
LLC / entity vesting: Business entities allowed (business purpose)
Gift funds & assets: Allowed after the borrower contributes 10% of the purchase price from their own funds.
Financed property / exposure limits: Lender caps at 5 open investment loans or $5M per borrower.
Other borrower rules: N/A

Property

Eligible property types: SFR, townhome, PUD, warrantable & non-warrantable condo, condotel/PUDtel, 2-4, manufactured, mixed use (≤4 units)
ADUs & unpermitted additions: No ADU-specific restriction on this DSCR program (ADUs are only excluded on certain Texas home-equity loans). Unpermitted conversions or additions are acceptable if completed in a workmanlike manner: the appraiser includes a cost to cure and excludes the unpermitted area from the living area, so it adds no square footage or value. Where permits aren't required, the appraiser documents when and how the work was done. Rent from an unpermitted unit isn't separately addressed – qualifying rent comes from the 1007/1025.
Non-warrantable condo: Allowed at 80% purchase / 75% refi (Florida −5%), DSCR 1.00+. Lender won't finance more than 20% of a project's units; the project must be common for the area and marketable. Appraisal must exclude personal property.
Condotel: Condotels and PUDtels allowed: 75% purchase / 70% rate-term / 65% cash-out (Florida −5%), DSCR 1.00+. Must be in a resort area with a rental management company (bona fide resort areas are exempt from occupancy limits; areas with prevalent short-term stays, like near military bases, considered). One large Orlando resort complex is capped at 60%.
Rural / acreage: Rural properties (including under 25% built-up) allowed: 700 FICO, DSCR 1.00, 80% / 75% / 70%; marketing time over 6 months may reduce LTV further. Underwriting can reclassify as rural based on gravel roads, 5+ acres, private utilities, distant or stale comps. Max 25 acres.
Minimum square footage: No minimum square footage if marketable with similar-size comps and a kitchen, bedroom and bath (studios considered).
Mixed use: Allowed (up to 4 units, commercial 49% or less): 65% purchase / 60% refi, 700 FICO, DSCR 1.20, 12 months' reserves, max $1M.
5+ units / multi-property: No
Ineligible properties: Agricultural-use properties, barndominiums, leasehold closings, co-ops, earth-berm and dome homes, highly unique properties, zoning or building-code violations, industrial/manufacturing/forest-commercial zoning, Hawaii lava zones 1–2, log cabins, mobile homes and mobile-home parks, single-wide or pre-1976 manufactured homes, own-your-own apartments, pole buildings, below-average condition, no permanent heat, not year-round, reservation land, interim-use properties, condemned or uninhabitable homes, timeshares, vacant land, working farms/ranches. Multi-wide manufactured and modular homes are eligible.
Declining markets: N/A
Appraisal, review & insurance: N/A

Rental income

Rent used on a purchase: 1007/1025 market rent if vacant; lesser of lease or market
Rent used on a refinance: Higher actual rent with 2 months' receipt and lease running ≥3 mo past closing
Vacant / unleased refinance: Allowed with 700 FICO, DSCR 1.15+, at least a 3-year prepay (where legal), no IO, impounds, 6 months' reserves and 15+ months of ownership: 70% rate/term under $1M, 65% under $2M; 60% cash-out under $1.5M.
Short-term rental (Airbnb/VRBO): Yes
Short-term rental documentation: 12-month ledgers from Airbnb, VRBO, property managers or condotel management companies, or an STR-specific appraisal form.
Short-term rental limits: Max 75% purchase / 70% refinance; 640 FICO.

Refinance seasoning

Cash-out seasoning: Cash purchase <180 days treated as delayed financing (R/T pricing, CO LTV); otherwise per program rules
Delayed financing (cash purchase recoup): Yes – <180 days, up to $1.5M, recoup purchase price
Recently listed for sale: If listed within the last 6 months: tenant-occupied (not vacant), DSCR 1.00, 3-year prepay, 24 months' reserves (cash-out can count), fully amortizing (no IO), max 65% of the lower of appraisal or lowest recent list price, no subordinate financing, impounds required, and a rate/points adjustment.

Other terms

Seller / interested-party concessions: Seller concessions limited to 3% of the sale price.
Secondary financing: N/A
State & local restrictions: Not available in AK, ND, SD. Prepayment penalties must be bought out in KS, MD, MI, MN, NM (1–4 units), OH (1–2 units), NJ and VA (individuals), IL (most loans under $250K), PA (individuals, 1–2 units under about $320K), RI (purchases), VT (under $1M); MS uses step-down structures.

Additional details

Notes: Ineligible states AK, ND, SD. Declining market −5%. 2-4 units max 80%. Manufactured 65/60. Loan <$200K: 80% purch / 75% refi. Seller concessions 3%. 1 or no score: 65%, DSCR 1.1, 0x30x24. Escrow waiver: $1.5M, 80%, 700.

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