LAMD-D40 Blanket DSCR (2–15 Properties) | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 680
Max LTV – purchase: 75%
Max LTV – rate/term refinance: 75%
Max LTV – cash-out refinance: 70% (≤$1.5M, 700+); 60% at $2M
Minimum loan amount: $250K (min $150K value per property)
Maximum loan amount: $2.0M
Cash-out (cash in hand) limit: $500K above 60% LTV.
LTV reductions & overlays: Max 75% purchase/rate-term (680–740+ up to $1.5M), cash-out 70% to 60%. IO: 700 FICO, 75%. Declining market −5%.

DSCR requirements

Minimum DSCR: 1.10 loan-level AND 1.10 per property
DSCR below 1.00: No
No-ratio (no DSCR calculated): No
How DSCR and qualifying rent are calculated: Both the overall loan DSCR (all rents ÷ total PITIA/ITIA) and every individual property (rent ÷ allocated-loan PITIA) must be at least 1.10. Allocated amount = property value × loan LTV. A higher lease needs 3 months' receipts.

Products & terms

Products: 3/6, 5/6, 7/6 ARM; 30 fixed; 40yr IO
Interest-only: Yes – 700 FICO, 75%
Prepayment penalty: Per state law
Reserves: 6 months; cash-out counts.

Borrower & credit

Housing payment history: 0x30x12.
Credit events (BK, foreclosure, short sale, modification): 4+ years from housing events.
Forbearance, deferrals & modifications: N/A
Collections, charge-offs, judgments & liens: Judgments/liens affecting title must be paid. 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 and not liened. Past-due accounts brought current; no one currently in credit counseling/debt management. 60-day consumer lates within 4 years need an explanation. Credit can't be frozen.
Tradelines & credit depth: N/A
First-time homebuyer: No – FTI may not be FTHB
First-time investor: No – 12 mo experience in last 5 yrs
Foreign national: Not published – ask us about your scenario
ITIN borrower: No
Non-permanent resident: Not published – ask us about your scenario
LLC / entity vesting: LP, GP, Corp, LLC with personal guaranty; layered entities must trace to individuals
Gift funds & assets: Family gifts allowed; not on NOO >80% LTV; not for reserves
Financed property / exposure limits: Up to 20 financed residential properties; lender exposure $7.5M or 10 properties per borrower (not applicable to the cross-collateral program). No extra reserves for other properties on DSCR.
Other borrower rules: US citizens and permanent residents only. Cash-out for personal use ineligible.

Property

Eligible property types: 2–15 properties, same state; SFR, PUD, 2-4, warrantable condo
ADUs & unpermitted additions: Single-family homes with ADUs follow Fannie Mae's ADU rules (legal ADUs acceptable). Multiple dwellings on one lot are ineligible except legal ADUs. Unpermitted additions/alterations are judged under Fannie Mae rules – generally acceptable if typical for the market, well built and not given full value – rather than an automatic decline. Rent is the lower of lease or 1007 market rent.
Non-warrantable condo: Not allowed (warrantable condos only); co-ops not eligible.
Condotel: No
Rural / acreage: Max 20 acres; rural not specifically excluded
Minimum square footage: Not published – ask us about your scenario
Mixed use: No
5+ units / multi-property: 2 to 15 properties in the same state; $250K–$2M; each property worth at least $150K. Partial releases allowed (prepay penalty on release price).
Ineligible properties: Manufactured homes, 5+ units, log homes (faux-log by exception), condotels/motels, projects with registration services or limits on owner occupancy, unique properties, mixed use, model leasebacks, boarding houses, group homes, timeshares/fractional, assisted living, mandatory country-club memberships, zoning violations, under construction, barndominiums, agricultural zoning (by exception), Hawaii lava zones 1–2, multiple dwellings on one lot (legal ADUs OK), working farms, C5/C6, live/work condos, earth-berm homes, domes, houseboats, reservation land, marijuana use, theme-park resort properties. Leaseholds OK; max 20 acres.
Declining markets: 5% reduction to the LTV caps (declining per appraisal or any third-party valuation).
Appraisal, review & insurance: Escrow holdbacks not allowed. Disaster-area damage over $2,000 or affecting habitability is ineligible. Rent-loss insurance of 6 months required. Manual underwriting.

Rental income

Rent used on a purchase: Lower of lease or 1007 market rent
Rent used on a refinance: Higher lease allowed with 3 consecutive months' receipt
Vacant / unleased refinance: Not eligible unless recently renovated (appraiser confirms).
Short-term rental (Airbnb/VRBO): No
Short-term rental documentation: N/A
Short-term rental limits: Short-term rental income not allowed.

Refinance seasoning

Cash-out seasoning: 6+ months of ownership (acquisition to note). Owned 6–12 months: LTV on the lower of purchase price plus documented improvements or appraisal. Refinancing a cash-out loan less than 1 year old counts as cash-out. Inherited or divorce-awarded properties have no seasoning. Cash-out for business purposes only (no renovations that make it uninhabitable). No POA on cash-out or entities.
Delayed financing (cash purchase recoup): Yes – cash purchase within 180 days, arm's length
Recently listed for sale: If listed within 6 months of the note date: not listed at application, with a borrower letter and listing cancellation. Multiple listings within 12 months are ineligible.

Other terms

Seller / interested-party concessions: Interested-party contributions up to 6%.
Secondary financing: N/A
State & local restrictions: N/A

Additional details

Notes: 680: 75/75/65 ($1M), 70/70/60 ($1.5M), 65/65 ($2M). Partial release rules in

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