LAMD-D27 Foreign National DSCR | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 660 or no FICO (DSCR <1: 680 or no score)
Max LTV – purchase: 75% (≤$1M); 70% $1.5M; 60% $2M; 55% $2.5M; 50% $3M
Max LTV – rate/term refinance: Same as purchase (limited cash-out)
Max LTV – cash-out refinance: 70% ($1M, 680+/no FICO); 660–679 55% ($750K)
Minimum loan amount: $75K
Maximum loan amount: $3.0M
Cash-out (cash in hand) limit: Per foreign national grid limits ($500K–unlimited by CLTV/FICO)
LTV reductions & overlays: Max 75% up to $1M stepping to 50% at $3M; no-FICO uses the same grid. Condotel 70% ($1M) and 65%/60% on cash-out (max $500K). Cash-out 70%→50%. DSCR 0.75–1.00: 70%; under 0.75: 65%. Venezuelan borrowers 60% (55% cash-out) with 12 months' reserves.

DSCR requirements

Minimum DSCR: Below 0.75 allowed (max 65%)
DSCR below 1.00: Yes – <0.75 max 65% CLTV; 0.75–1.0 max 70%
No-ratio (no DSCR calculated): Yes (DSCR <0.75 at 65%)
How DSCR and qualifying rent are calculated: Gross rent ÷ PITIA (ITIA for IO). DSCR under 1.00 needs 680 FICO or no score.

Products & terms

Products: 5/6 ARM, 30yr fixed, 40yr fixed
Interest-only: Yes – 120 mo IO, min FICO 680
Prepayment penalty: Investment only, per state
Reserves: 12 months PITIA.

Borrower & credit

Housing payment history: 0x30x12 and 0x90x24. Payments on a manufactured home or second mortgage count as mortgage history.
Credit events (BK, foreclosure, short sale, modification): Bankruptcy, foreclosure, short sale, deed-in-lieu, loan modification, forbearance, deferral and 120+ day lates all count as credit events and need 48 months (bankruptcy measured from discharge/dismissal to closing). More than one bankruptcy in 7 years requires 7 years from the latest.
Forbearance, deferrals & modifications: Forbearances, deferrals and modifications are credit events (48 months). Exception: after a COVID-19 forbearance the borrower is eligible once 3 consecutive on-time payments are made by the note date.
Collections, charge-offs, judgments & liens: Collections/charge-offs under 24 months old may stay open up to $2,000 total; 24+ months up to $2,500 each; time-barred and all medical collections may stay open. On the DSCR grade, any balances above those limits must be paid in full.
Tradelines & credit depth: N/A
First-time homebuyer: No – must own primary or have owned residential property in past 36 mo
First-time investor: Not published – ask us about your scenario
Foreign national: No US score or 660+ FICO with 1 bank reference letter. Must own a primary residence or have owned residential property (any country) in the past 36 months – foreign first-time homebuyers ineligible. Third-party proof of foreign residence. US bank account required before closing. Russian/Ukrainian citizens eligible but income/assets from Russia/Ukraine not accepted; Venezuelan assets ineligible. Investment or 1-unit second home.
ITIN borrower: No
Non-permanent resident: N/A
LLC / entity vesting: Individual, joint, trust, or LLC/corporation (up to 4 owners, all borrowers and guarantors). Leaseholds eligible.
Gift funds & assets: Allowed with a 10% borrower contribution (under 80% CLTV). Overseas assets seasoned 30 days.
Financed property / exposure limits: No limit on other financed properties. Lender exposure: $5M or 10 loans per borrower within any 6-month span.
Other borrower rules: N/A

Property

Eligible property types: SFR, PUD, 2-4, warrantable & non-warrantable condo, condotel, rural SFR
ADUs & unpermitted additions: One-unit homes with ONE ADU are eligible (multiple ADUs not permitted); the ADU needs a full kitchen and bath. Unpermitted ADUs, outbuildings and conversions are acceptable when they're excluded from the appraised value, typical for the area, and the title commitment shows no permit violations – but they earn no value. ADU rent can count when the appraisal shows zoning compliance is legal (a permit itself is not required to establish that) with at least one comp that has an ADU. Purchase: lower of 1007 or actual rent; refinance: 1007 rent with the current lease and 2 months' receipts. ADUs can't be used for short-term rent.
Non-warrantable condo: Warrantable and non-warrantable condos eligible under a limited review: single-entity ownership up to 2 units in 5–20 unit projects or 30% in 21+ units; commercial space up to 50%; other features case-by-case. Review waived for detached units and 2–10 unit projects (not condotels). Minimum DSCR 1.00 for condos. Florida new-construction condos capped at 70%.
Condotel: Allowed: 500+ sq ft with full kitchen and separate bedroom (kitchenettes case-by-case), no 'motel' in the name, no mandatory rental pools, no termination/bankruptcy proceedings, not rural or agricultural zoning, 660+ FICO. Lender finances at most 20% of units in projects over 10 units. Minimum DSCR 1.00.
Rural / acreage: Rural/agricultural properties allowed (rural = rural or agricultural zoning, appraiser designation, or factors like 50%+ vacant land use, 10+ acre neighbors, outbuildings, unpaved road, population under 25,000): 680 FICO, 1 unit only (one ADU allowed), neighborhood at least 25% built up, not a working farm or income-producing, max 10 acres. Rural condos and rural condotels are not eligible.
Minimum square footage: 500 sq ft living space
Mixed use: Not published – ask us about your scenario
5+ units / multi-property: No
Ineligible properties: C5/C6 or fair/poor condition, Q6 construction, under 500 sq ft (each unit), model leasebacks, private transfer covenants, commercial, co-ops, domes, geothermal homes, timeshares, over 10 acres, unique properties, assisted living, working farms/ranches/orchards, mobile and manufactured homes, 5–8 units, mixed use, incomplete properties, barndominiums. Leaseholds are case-by-case (never tribal land). Every unit needs a full kitchen with a stove or stove hookup.
Declining markets: N/A
Appraisal, review & insurance: Full appraisal (no waivers) plus a secondary valuation up to $2M; second appraisal above $2M. Points and fees under 7%.

Rental income

Rent used on a purchase: Lease or 1007/1025; new lease with 2 mo payments
Rent used on a refinance: Lease or 1007; lease >125% of 1007 capped at 125% unless 2 cancelled checks support
Vacant / unleased refinance: Allowed – max 70% CLTV
Short-term rental (Airbnb/VRBO): Not published – ask us about your scenario
Short-term rental documentation: 12-mo STR agreement average, 1007 (STR), or purchase-only AirDNA Rentalizer (occupancy ≥60%) – all at 75%; STR addendum; not in VT or NYC boroughs (except condotels)
Short-term rental limits: 75% of STR income used; refi STR not allowed if under long-term lease

Refinance seasoning

Cash-out seasoning: Existing first mortgage must be 6+ months old. Under 6 months on title only with delayed financing, a no-value quitclaim within 12 months (max 65%), inheritance/divorce award, or time in the borrower's majority-owned LLC or revocable trust. 6–12 months: −5% from the grid, renovations must justify the value, and if listed after purchase value is the lower of list price or appraisal.
Delayed financing (cash purchase recoup): Cash purchases within 6 months: treated as cash-out; loan capped at total cash investment (price plus documented improvements); value is the lower of appraisal or cost; gifts used to buy can't be reimbursed.
Recently listed for sale: Rate/term: must be off the market by application. Cash-out: not listed within 6 months of application. Investment property listed within the past 12 months requires a 36-month prepayment penalty that can't be bought down (unless the state prohibits prepays).

Other terms

Seller / interested-party concessions: 6% at CLTV of 80% or less, 4% above. Not allowed when the purchase price exceeds list price by 3% or $5,001.
Secondary financing: N/A
State & local restrictions: Not available in Hawaii, Maryland, Philadelphia County PA or the USVI.

Additional details

Notes: Venezuelan borrowers max 60% (CO 55%), 12 mo reserves. Russian/Ukrainian eligible but no RU/UA income/assets. Excluded: HI, MD, Philadelphia County PA, VI. FL PUD max 75%. 1031 eligible.

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