LAMD-D17 DSCR Prime 680+ | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 680 (lowest middle score of all borrowers)
Max LTV – purchase: 80% (740/720/700, ≤$1M)
Max LTV – rate/term refinance: 75% (740/720/700, ≤$1M)
Max LTV – cash-out refinance: 75% (740/720, ≤$1M); 700: 75%
Minimum loan amount: $150K
Maximum loan amount: $2.0M
Cash-out (cash in hand) limit: LTV >70%: $500K
LTV reductions & overlays: 2–4 units capped at 70%. Warrantable condos 80% (Florida condos 50%). Limited-review established condos 75% (Florida 65%). DSCR minimum depends on FICO: 1.00 at 720+, 1.20 at 680–719 (which also lowers the grid). Declining market −5%.

DSCR requirements

Minimum DSCR: 1.00 (720+); 1.20 (680–719)
DSCR below 1.00: No
No-ratio (no DSCR calculated): No
How DSCR and qualifying rent are calculated: Rents ÷ PITIA (IO payment allowed with 700 FICO); minimum 1.00 at 720+ FICO, 1.20 at 680–719; no rounding. Same lease/market rules as the standard tier (a higher lease up to 125% of market with 2 months' receipts); short-term rentals not allowed.

Products & terms

Products: Fixed & ARM per product section
Interest-only: Yes – 700 FICO; 10-yr IO (no 5/6 IO)
Prepayment penalty: Allowed per state (PA <$319,777 1-2 units prohibited)
Reserves: ≤70% LTV 6 mo; >70% 9 mo; none for other REO

Borrower & credit

Housing payment history: 0x30x24 on all housing for this tier. Rent-free only for experienced investors.
Credit events (BK, foreclosure, short sale, modification): No foreclosure, short sale, DIL, short payoff, bankruptcy, default modification or 120+ day late within 4 years – ineligible.
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: All open collections and charge-offs must be paid off at or before closing (judgments/tax liens may stay on a 6-month plan).
Tradelines & credit depth: N/A
First-time homebuyer: No – all applicants must own current primary or an investment property
First-time investor: 12-month landlord history required, or waiver with 0x30x24, no forbearance with missed payments in 12 months, and owning their current residence. All applicants must own a primary or investment property.
Foreign national: No
ITIN borrower: No
Non-permanent resident: No
LLC / entity vesting: LLC, partnership or corporation (NJ with PPP: corporation only)
Gift funds & assets: Not allowed on the program
Financed property / exposure limits: Not published – ask us about your scenario
Other borrower rules: N/A

Property

Eligible property types: SFR, 2-4 (max 70% CLTV), PUD, warrantable condo (max 80%; FL 50%)
ADUs & unpermitted additions: One ADU allowed if the appraiser states it's legally permitted and rentable, with like-kind comps. ADU rent counts only if the appraiser verifies with the building department that it's legal and legally rentable. Unpermitted additions case-by-case with no value given.
Non-warrantable condo: Not eligible (warrantable condos only; no high-rises).
Condotel: Not eligible.
Rural / acreage: Rural properties not eligible; max 10 acres for DSCR.
Minimum square footage: 500 sq ft condos, 700 sq ft single-family.
Mixed use: No
5+ units / multi-property: No
Ineligible properties: Rural, non-warrantable condos, condotels, high-rise condos, Florida condos over 50%, 5–10 units, mixed use, manufactured, modular, log homes, co-ops, unique properties, working/hobby farms, oil/gas leases, C5/C6, commercial, raw land, timeshares, boarding houses, TICs, marijuana use, and other standard exclusions.
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: 100% market if vacant; lesser of lease or market if leased; new lease within 60 days OK with receipt
Rent used on a refinance: Lesser of lease or market; lease above market up to 125% with 2 mo receipts and 3+ mo remaining
Vacant / unleased refinance: Allowed – vacancy defined by unit count; follow rent table (LTV reduction may apply)
Short-term rental (Airbnb/VRBO): No
Short-term rental documentation: N/A
Short-term rental limits: Short-term rentals not allowed.

Refinance seasoning

Cash-out seasoning: 6 mo on title
Delayed financing (cash purchase recoup): Yes – technical refinance
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: NJ prepay loans must close in a corporation; PA no prepay on 1–2 units under about $320K.

Additional details

Notes: Grid (max LTV, $1M/$1.5M/$2M; min DSCR): Purchase 740 & 720 → 80/75/70 @1.0x; 700 → 80/75/70 @1.2x; 680 → 75/70 @1.2x. R/T 740 & 720 → 75/70/65 @1.0x; 700 → 75/70 @1.2x; 680 → 70/65 @1.2x. Cash-out 740 & 720 → 75/70/65 @1.0x; 700 → 75/70 @1.2x; 680 → 70/65 @1.2x. Prime-credit DSCR tier.

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