LAMD-D26 DSCR Standard 0.70+ (ITIN & Foreign National) | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 620
Max LTV – purchase: 85% (720, ≤$1M)
Max LTV – rate/term refinance: 80% (700, ≤$1.5M)
Max LTV – cash-out refinance: 75% (700 ≤$1.5M; 680 ≤$1M)
Minimum loan amount: $100K
Maximum loan amount: $2.5M (exceptions to $3.5M / $4.5M)
Cash-out (cash in hand) limit: No limit; <700 FICO cash-out capped 70%
LTV reductions & overlays: Cash-out under 700 FICO: 70%. Credit event 2–4 years old: 70% and $1.5M. DSCR 0.85 or lower: 70%. Short-term rental: −5% (max 70%). Vacant refinance: rate/term −5% (max 70%, waived if just renovated), cash-out −10%. AirDNA-qualified: 80% purchase, 70% rate/term, 65% cash-out. Non-warrantable condo 80% (recreational lease/club membership feature: 75% purchase / 70% refi). Condotel 75%. Manufactured (exception) 60%, no cash-out. Non-permanent residents 75% purchase / 70% cash-out; ITIN/DACA 75%; foreign nationals 70%. 1x30x12 housing capped at 80%.

DSCR requirements

Minimum DSCR: 0.70 floor
DSCR below 1.00: Yes – ≤70 LTV & 680+: purchase no min, refi 0.75; 70–75 LTV purchase 0.75 (680+); DSCR ≤0.85 max 70%; <0.70 ineligible
No-ratio (no DSCR calculated): Purchase ≤70 LTV with 680+ (no min DSCR)
How DSCR and qualifying rent are calculated: Gross rent ÷ PITIA (ITIA on IO). IO payment is used to qualify only at 75% LTV or less with 700+ FICO; otherwise the fully amortizing payment. Minimum DSCR depends on LTV/FICO: at 70% LTV or less with 680+ FICO a purchase has no minimum (refi 0.75); 70–75% LTV purchase with 680+ needs 0.75; above 75% LTV, under 680 FICO, or most refis need 1.00. DSCR under 0.70 ineligible; under 0.75 requires all applicants to own their primary. STR 1.00 (1.15 above 75% LTV); mixed use 1.15.

Products & terms

Products: 5/6 7/6 10/6 ARM, 15/30 fixed, IO
Interest-only: Yes – 10-yr IO, min 680
Prepayment penalty: Investment where legal; DSCR <1 & LTV >70 require ≥1-yr PPP
Reserves: 4 months up to $1M, 6 months to $2M, 12 months to $3.5M; +3 months if DSCR under 1.00; +6 months above 80% LTV; +6 months if post-closing rent increases are used. Cash-out can count up to 75% LTV. No reserves for other REO.

Borrower & credit

Housing payment history: 1x30x12 on the primary residence and subject (refi) – may carry a pricing hit and caps at 80%. Other REO only reviewed if mortgages report on credit. No forbearance in the last 12 months.
Credit events (BK, foreclosure, short sale, modification): Foreclosure, short sale, deed-in-lieu, bankruptcy and similar events: 4+ years is standard; 2–4 years allowed at max 70% and $1.5M; under 2 years ineligible. Multiple events within 7 years not permitted. No active bankruptcy, NOD or lis pendens. Hardship modifications count (seasoned from when brought current); a COVID-forbearance exit modification or a non-hardship maturity extension doesn't.
Forbearance, deferrals & modifications: No forbearance plan within the 12 months before application. COVID forbearance with no missed payments is fine once reinstated; with missed payments, the loan must be reinstated with 3 on-time payments after the forbearance ended (or deferred balance paid off with documented funds).
Collections, charge-offs, judgments & liens: Individual collections/charge-offs under $2,500 with an aggregate under $10,000 may stay open if they don't affect title; medical collections can stay open regardless. Judgments and tax liens may stay open under a repayment agreement or other limited conditions; expired unrenewed judgments can be excluded with title confirmation; otherwise paid at closing (cash-out can pay them). Credit counseling doesn't disqualify.
Tradelines & credit depth: N/A
First-time homebuyer: No
First-time investor: Three paths: (1) property-management waiver – licensed PM company, 700 FICO, 70% max, DSCR 1.00, 0x30x12; (2) purchase – 680 FICO, 80% max, DSCR 1.00 on a 30-year amortizing payment, 0x30x12, no recent forbearance, must own (not rent) their primary; (3) refinance – same plus the subject acquired within 12 months with 3+ months of consecutive rent receipts. Not for foreign nationals, mixed use or cross-collateral loans. FTHBs not permitted.
Foreign national: Allowed at max 70%, 12 months' reserves (to $3M), DSCR: no minimum at 70% or less on a purchase, 0.75 above 70% and on refinances. No mixed use. Funds in a US account at least 10 days before closing.
ITIN borrower: ITIN and DACA borrowers allowed: max 75%, 10% of own funds, DSCR 1.00 (purchase at 75% or less) or 1.10 (purchase above 75% and refinances).
Non-permanent resident: Yes – max 75% purch / 70% CO
LLC / entity vesting: LLCs, partnerships and corporations allowed; also living trusts and blind trusts. Irrevocable trusts ineligible.
Gift funds & assets: Only after the borrower puts 10% down from their own funds. No gift of equity.
Financed property / exposure limits: Max 10 loans / $10M with this lender; no cap on other financed properties for DSCR.
Other borrower rules: At least one applicant needs 12 months of rental ownership/management in the last 3 years (or a first-time investor path). Property can't be occupied by the borrower, an LLC member or family. Non-arm's-length purchases not permitted. Min 620 FICO; 3 tradelines (or 2 with a 12-month mortgage history).

Property

Eligible property types: Investment 1-4; mixed-use allowed
ADUs & unpermitted additions: Single-family homes with up to 2 ADUs are acceptable, including a non-permitted unit when the appraisal shows comparable sales with similar ADUs (proving market acceptance) and zoning doesn't prohibit it as an illegal use; the second ADU gets no value. ADU rent can never be used for qualifying, permitted or not. Multi-unit properties with ADUs are exception-only; manufactured homes can't have ADUs. Unpermitted room additions are acceptable if done in a workmanlike manner with no adverse marketability impact.
Non-warrantable condo: Allowed at 80% with full review and only ONE non-warrantable feature. Accepted features include single-entity ownership up to 30% (counting related LLCs), investor occupancy up to 75%, commercial space up to 40%, HOA delinquencies up to 25%, reserves under 7% with management's plan, and mandatory recreational leases/club memberships (75%/70%). Ineligible: non-gut conversions under 2 years old, mobile/manufactured units, timeshares, co-op units, assisted-living options, community-apartment projects, developer-leased amenities, transfer fees to outside parties.
Condotel: Allowed (max 75%) when hotel-like features are common to the area and don't hurt marketability; full kitchen with stove/oven, 500+ sq ft, no black-out dates restricting owner occupancy. Priced as non-warrantable.
Rural / acreage: Max 20 acres (over 10 acres needs like-kind comps with minimal land value attribution). Properties the appraiser designates rural are not eligible on the DSCR program.
Minimum square footage: Condos/condotels 500 sq ft.
Mixed use: Allowed (not for foreign nationals or first-time investors): more than 50% residential square footage, appraised on a 1025 by sales comparison, DSCR 1.15 on an amortizing payment. Commercial rent limited to 49% of gross rent (30% if the commercial unit is vacant; vacant commercial gets no rent on refinances). Neither unit may be occupied by the borrower, titleholders, family, or their businesses.
5+ units / multi-property: No
Ineligible properties: Over 20 acres, rural designation, single-wide manufactured, manufactured homes in condo/co-op/PUD projects, condos with multiple non-warrantable features. Co-ops are eligible (limited to specific NY/NJ counties per the guide); leaseholds per Fannie Mae. Manufactured homes only by exception (60%, no cash-out).
Declining markets: N/A
Appraisal, review & insurance: Purchase: 1 appraisal up to $2M, 2 above. Refinance: 1 up to $1.5M; $1.5–2M needs 2 above 70% LTV; 2 above $2M. CU score 2.5 or less, otherwise a desk review within 10% ($1.5–2M can't rely on CU). Rent-loss insurance of 6 months PITIA required.

Rental income

Rent used on a purchase: Higher of the current lease or appraiser's market rent (market rent may be used up to 10% above the lease); no vacancy factor; vacant uses 100% of market rent. Rent step-ups after closing used for DSCR require 6 extra months of reserves.
Rent used on a refinance: Lesser of in-place rent or market rent. An above-market lease can be used with 2 months of timely receipts if it continues 6+ months after closing. A new lease starting within 60 days uses the lesser of actual or market. Multi-year step-ups within 12 months can be used, capped at market.
Vacant / unleased refinance: Allowed with 100% of market rent: rate/term −5% (max 70%, waived when the appraisal shows recently completed renovations), cash-out −10%.
Short-term rental (Airbnb/VRBO): Yes
Short-term rental documentation: Refinance: 12-month average of actual receipts (even if owned under 12 months); rents can't decline more than 10% in any 6-month period; must not be in an area that restricts STRs. Purchase: AirDNA Rentalizer allowed (property vacant at closing, 12-month forecast, 50%+ occupancy, 5 comps in the same ZIP, market/sub-market score 60+, 20% expense factor).
Short-term rental limits: 5% LTV reduction (max 70%) and DSCR 1.00+; AirDNA purchases up to 80% with DSCR 1.00 (1.15 above 75% LTV).

Refinance seasoning

Cash-out seasoning: Owned under 6 months: by exception, value is the lower of cost plus improvements or market. 6–12 months: current value if justified. Over 12 months: current appraised value. No cap on cash-out amount; proceeds for business purposes with a signed letter.
Delayed financing (cash purchase recoup): Yes – within 180 days; priced as rate/term; no gift recoupment
Recently listed for sale: Can't be listed at application. Rate/term: must come off the market before the new loan and the borrower signs a letter of intent to keep it. Cash-out: can't have been listed by the current owner within 6 months of application.

Other terms

Seller / interested-party concessions: Interested-party contributions up to 6% at any LTV for investment properties, closing costs and prepaids only; excess reduces both price and value.
Secondary financing: Permitted (new or existing), including private seconds, if CLTV fits, there's no negative amortization, and payments cover at least interest (market rate imputed on seller seconds).
State & local restrictions: Puerto Rico not eligible. Loans with DSCR under 1.00 and LTV over 70% must carry at least a 1-year prepayment penalty (where legal).

Additional details

Notes: Investor history: 12 mo ownership in prior 3 yrs (FTI pathways available).

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