LAMD-D37 DSCR 5–10 Units | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 680
Max LTV – purchase: 75% (700 ≤$3M; 680 ≤$2M)
Max LTV – rate/term refinance: 75% (same)
Max LTV – cash-out refinance: 70% (700 ≤$2.5M; 680 ≤$2M)
Minimum loan amount: $750K
Maximum loan amount: $3.0M
Cash-out (cash in hand) limit: Unlimited ≤65% LTV; $1M above 65%
LTV reductions & overlays: Grid tops at 75% purchase/rate-term (700 FICO to $3M; 680 to $2M); cash-out 70%/65%. Declining market −5%.

DSCR requirements

Minimum DSCR: 1.15
DSCR below 1.00: No
No-ratio (no DSCR calculated): No
How DSCR and qualifying rent are calculated: Minimum DSCR 1.15 on the full PITIA (not interest-only); lesser of market or actual rents; long-term rent only; max 2 vacant units.

Products & terms

Products: Per program rules
Interest-only: Allowed but DSCR calculated on full PITIA
Prepayment penalty: Min 3-yr on loans >$2.5M
Reserves: 9 months up to $2M; 12 months above $2M.

Borrower & credit

Housing payment history: 0x30x24.
Credit events (BK, foreclosure, short sale, modification): Per program rules (2–4 yr events max 70% & $1.5M)
Forbearance, deferrals & modifications: Mortgage forbearance: if all payments were made, the loan just needs to be reinstated (no wait); if payments were missed, 3 on-time payments after forbearance ended (missed payments may have been added to the balance). A modification resolving a COVID forbearance, or from a forbearance exit, isn't a credit event. Non-mortgage accounts may stay in forbearance with the payment counted.
Collections, charge-offs, judgments & liens: Judgments and tax liens may stay open on a repayment plan with 6 months of on-time payments (subordinated if recorded against the property); otherwise paid at closing (cash-out can pay them). Disputed collections of $250 or less can stay; other disputed accounts with derogatory history in 2 years must be removed and credit re-pulled.
Tradelines & credit depth: N/A
First-time homebuyer: No
First-time investor: Not allowed.
Foreign national: Not published – ask us about your scenario
ITIN borrower: No
Non-permanent resident: Per program rules
LLC / entity vesting: Must vest in an LLC, partnership or corporation with full-recourse personal guarantees.
Gift funds & assets: Not allowed
Financed property / exposure limits: 8 the program loans / $10M
Other borrower rules: N/A

Property

Eligible property types: 5–10 unit residential
ADUs & unpermitted additions: Not applicable – 5–10 unit buildings.
Non-warrantable condo: N/A
Condotel: N/A
Rural / acreage: Rural not allowed.
Minimum square footage: 500 sq ft
Mixed use: Case-by-case (program rules)
5+ units / multi-property: 5–10 residential units: commercial USPAP appraisal (71A/1050) with rent roll, map and income/expense statement (no transferred appraisals), plus a BPO/drive-by with 0% variance; average or better condition; LTV on the lower of market value or appraisal; escrows and 6 months of rent-loss insurance required.
Ineligible properties: N/A
Declining markets: 5% below the maximum LTV, plus credit-risk review.
Appraisal, review & insurance: Unpermitted additions case-by-case: appraiser must confirm workmanlike quality and no adverse marketability impact, and the addition gets no value. Declining market: 5% below max with credit-risk review. Escrow holdbacks up to 30 days/$25K on purchases (case-by-case).

Rental income

Rent used on a purchase: Lesser of market or actual rents
Rent used on a refinance: Lesser of market or actual rents
Vacant / unleased refinance: Max 2 vacant units
Short-term rental (Airbnb/VRBO): No – long-term rents only
Short-term rental documentation: N/A
Short-term rental limits: No short-term rental income.

Refinance seasoning

Cash-out seasoning: Per program rules
Delayed financing (cash purchase recoup): Per program rules
Recently listed for sale: Refinance of a property listed in the last 6 months: must be delisted before funding with a motivation letter to keep it; cash-out gets extra review.

Other terms

Seller / interested-party concessions: Interested-party/financing contributions up to 6% at any LTV, limited to actual closing costs and prepaids.
Secondary financing: N/A
State & local restrictions: N/A

Additional details

Notes: Grid: 700 75% $3M purch/RT, CO 70% $2.5M / 65% $3M; 680 75% $2M / 70% $2.5M / 65% $3M, CO 70/65/60.

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These are summaries of DSCR (debt service coverage ratio) loan programs offered through L.A. Mortgage Dude, NMLS #2513002, licensed in Arizona, California, Colorado, Florida, Georgia, New Jersey, North Carolina, Oregon, Pennsylvania, Texas, Washington and Virginia. Not all programs are available in every state. Program codes are internal names. Limits shown are maximums or minimums before scenario-specific adjustments; actual terms depend on credit, property, appraisal, reserves and full underwriting. This is not a commitment to lend, a loan approval or a rate quote. Guidelines change without notice. Business-purpose investment property loans only. Equal Housing Opportunity.

Guidelines last reviewed October 17, 2026. Machine-readable copy: dscr-guidelines.json · llms.txt