LAMD-D05 DSCR Standard (Below 0.75 Allowed) | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 640 (DSCR ≥1) / 660 (DSCR <1)
Max LTV – purchase: 80% (700+, ≤$1.5M, DSCR ≥1)
Max LTV – rate/term refinance: 80% (≤$1M)
Max LTV – cash-out refinance: 75%
Minimum loan amount: $125K
Maximum loan amount: $3.5M
Cash-out (cash in hand) limit: $500K above 65% LTV; $1M at 65% or less.
LTV reductions & overlays: 0x60x12 housing: −5%. Credit event 2–3 years old: −5%. Non-warrantable condo 75% purchase / 70% refi. Condotel 75% / 65% (max loan $1.5M). DACA 75%. Short-term rental 75% purchase / 70% refi. Vacant refinance 70%. Non-arm's length −5%. Declining market −5%. Interest-only: 75% (DSCR 1.00+) or 70% (0.75–0.99), 700 FICO, none below 0.75.

Minimum DSCR: Below 0.75 allowed
DSCR below 1.00: Yes – DSCR 0.75–0.99 and even below 0.75 are on the grid (660+ FICO), at reduced LTVs (e.g., 700 FICO ≤$1M: 75% purchase, 70% refi). No interest-only below 0.75.
No-ratio (no DSCR calculated): Yes (<0.75 tier)
How DSCR and qualifying rent are calculated: Gross rent ÷ PITIA (principal, interest, taxes, insurance, HOA); interest-only uses ITIA. ARMs qualify at the greater of the fully indexed rate or note rate. Market rent from the 1007 rent schedule is required.

Products: 15/30 fixed, 5/6 7/6 10/6 SOFR ARM, 30/40 fixed IO
Interest-only: DSCR ≥1: 700 FICO, 75%; ≥0.75: 700, 70%; <0.75: no
Prepayment penalty: Where permitted
Reserves: 3 months $125K–$500K, 6 months to $1M, 9 months to $2M, 12 months to $3.5M; none for other financed properties; cash-out can count. IO reserves use ITIA.

Housing payment history: Up to 1x30x12 with no LTV hit; 0x60x12 allowed with a 5% reduction. First-time investors need a verified primary-residence history.
Credit events (BK, foreclosure, short sale, modification): Bankruptcy and housing events (foreclosure, short sale, DIL) need 3 years; 2–3 years allowed with a 5% LTV reduction.
Forbearance, deferrals & modifications: N/A
Collections, charge-offs, judgments & liens: N/A
Tradelines & credit depth: N/A
First-time homebuyer: No
First-time investor: Allowed: 700 FICO, DSCR 0.75+, max 75% LTV, verified housing history on the primary residence. First-time homebuyers ineligible.
Foreign national: No
ITIN borrower: No
Non-permanent resident: Yes; DACA max 75%
LLC / entity vesting: LLC, LP, GP, Corp; personal guarantee
Gift funds & assets: Not published – ask us about your scenario
Financed property / exposure limits: No reserve add-on for other REO
Other borrower rules: US citizens, permanent and non-permanent residents and DACA recipients (75% max). Foreign nationals, ITIN and asylees are on separate programs or ineligible. Personal guarantee required.

Eligible property types: SFR, PUD, 2-4, warrantable & non-warrantable condo, condotel
ADUs & unpermitted additions: Not published – ask us about your scenario
Non-warrantable condo: 75% purch / 70% refi
Condotel: Yes – 75% purch / 65% refi, max $1.5M
Rural / acreage: Rural >20 acres ineligible
Minimum square footage: Not published – ask us about your scenario
Mixed use: Not published – ask us about your scenario
5+ units / multi-property: No
Ineligible properties: Manufactured homes, co-ops, unique properties with marketability concerns, and rural properties over 20 acres (rural not allowed at all on the foreign national and ITIN versions).
Declining markets: Declining market per appraisal: at least 5% LTV reduction.
Appraisal, review & insurance: Standard appraisal with 1007 rent schedule; an additional appraisal or third-party review may be required (e.g., non-arm's-length or declining markets). Escrow holdbacks and temporary buydowns not permitted. Manual underwriting only.

Cash-out seasoning: Not published – ask us about your scenario
Delayed financing (cash purchase recoup): Not published – ask us about your scenario
Recently listed for sale: N/A

Seller / interested-party concessions: N/A
Secondary financing: Not permitted.
State & local restrictions: All states; American Samoa, Guam, Northern Mariana Islands, Puerto Rico and USVI are ineligible.

Notes: Declining market −5%. Non-arm's length −5%. No manufactured/co-op. No subordinate financing, buydowns or escrow holdbacks. Manually underwritten.