LAMD-D31 Foreign National DSCR | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 700 with US credit; otherwise no score
Max LTV – purchase: 70% (≤$2M)
Max LTV – rate/term refinance: 70%
Max LTV – cash-out refinance: 65% (≤$2M); condo & 2-4 max 65%
Minimum loan amount: $150K
Maximum loan amount: $3.0M
Cash-out (cash in hand) limit: >55% LTV $1M; ≤55% unlimited; condo & 2-4 cash-out max 65%
LTV reductions & overlays: DSCR investment: 65% purchase/rate-term, 60% cash-out to $2.5M (700+ or no score). STR: lesser of 70% or the grid. Declining market −5% above 65%.

DSCR requirements

Minimum DSCR: 1.00 (grid shown for DSCR ≥1.00)
DSCR below 1.00: No – DSCR ≥1.00 grid only
No-ratio (no DSCR calculated): No
How DSCR and qualifying rent are calculated: Gross rent ÷ PITIA (ITIA on IO); minimum 1.00 (1.15 STR). Refinances must be leased except STRs or recently rehabbed properties listed for rent.

Products & terms

Products: 30yr fixed, 30yr fixed IO
Interest-only: Yes – 30yr fixed IO
Prepayment penalty: Required on investment where permitted (no-PPP pricing per rate sheet)
Reserves: 12 months PITIA (or 6 months with −5% LTV); cash-out may count

Borrower & credit

Housing payment history: 0x30x12 if documented; foreign primary history not required
Credit events (BK, foreclosure, short sale, modification): 4 years' seasoning.
Forbearance, deferrals & modifications: Forbearance is treated as a housing event and must meet the program's housing-event seasoning (unless caused by a FEMA-declared disaster).
Collections, charge-offs, judgments & liens: N/A
Tradelines & credit depth: N/A
First-time homebuyer: No
First-time investor: Allowed with DSCR 1.00 and 700+; not a first-time homebuyer.
Foreign national: Non-US citizen living and working abroad and a legal resident there; US citizen co-borrowers still trigger FN documentation. OFAC-country borrowers ineligible. No power of attorney. With US credit, 700 minimum. Foreign primary-residence history not required (0x30x12 if documented). US-bank ACH required.
ITIN borrower: No
Non-permanent resident: Recently relocated NPRA with no score: max $1.5M
LLC / entity vesting: Per program rules; POA ineligible
Gift funds & assets: After a 10% borrower contribution.
Financed property / exposure limits: Lender exposure: lesser of $10M or 10 loans, and $5M or 5 cash-out/5–8 unit loans (no-ratio: $7.5M/10 loans, $5M/5 cash-outs). Up to 20 financed properties including LLC-held.
Other borrower rules: Property can't be occupied by the borrower, any LLC member or family; no single-room or boarder leases. Renters need an active lease; the primary should be in a different area or superior to the subject. Rent-loss insurance of 6 months (or 3 extra months of reserves not from cash-out).

Property

Eligible property types: Per FN program (no 5-8 units)
ADUs & unpermitted additions: Homes with one or more ADUs (granny units, in-law suites) are acceptable when typical for the market and the property conforms to zoning. The ADU does NOT have to be permitted, as long as the appraiser says it's a legal use of the property and was built skillfully; legal non-conforming is fine if it doesn't hurt value. Two comps with a similar setup are required. Multiple ADUs are OK where the municipality allows them and the appraiser confirms compliance. The ADU must be substantially smaller than the main house, or the property is treated as 2–4 units. If any of these aren't met, the ADU gets no value. ADU rent can count when these rules are met and market rent is on the 1007. Unpermitted additions/modifications: appraiser comments they look professionally done and the use conforms to zoning.
Non-warrantable condo: Non-warrantable condos allowed (where the program permits): one owner may finance 2 units in 5–20 unit projects; commercial up to 50%; HOA delinquencies up to 25%; investor concentration up to 70% (higher for investment purchases); single-entity ownership up to 49% (developer-held units for sale excluded; 50%+ by exception); developer control OK with defined turnover; mandatory outside club dues OK; non-structural litigation. Leasehold condos are ineligible.
Condotel: Must be in a resort area or affiliated with a national hotel chain; full-size kitchen and at least one separate bedroom (studios case-by-case; units under 400 sq ft need similar-size comps). Condotel = run as a hotel, hotel/motel/resort/lodge name, front desk/housekeeping rentals, a hotel conversion, or marketed as a hotel. Short-term rental ability alone doesn't make it a condotel.
Rural / acreage: Rural (under 25% built-up, agricultural zoning nearby, dirt road, comps over 5 miles, population under 25,000, amenities over 25 miles, 10+ acre lots, large outbuildings) must not be agricultural or income-producing, can't receive farm/idle-acreage tax breaks, and must be year-round. Investment acreage capped at 5 acres (2 acres on the prime tier, no-ratio and 5–8 unit programs).
Minimum square footage: No minimum (full kitchen required; condos <400 sq ft need similar comps); 5–8 units 400 sq ft/unit
Mixed use: No
5+ units / multi-property: No
Ineligible properties: Container homes, assisted living, Baltimore City row homes, boarding houses, farms/hobby farms, leasehold condos, farm tax-abatement properties, rent-controlled properties (annual-increase caps alone are OK), unique properties (earth/berm, domes, barndominiums, churches), timeshares, C5/C6 condition (C4 reviewed; no structural deferred maintenance), 2+ detached homes on one lot unless typical with comps, blanket mortgages. Log-façade homes OK with comps (not true log cabins). Co-ops and manufactured homes only through delegated correspondents. Islands without a bridge case-by-case.
Declining markets: 5% LTV reduction when LTV is above 65%.
Appraisal, review & insurance: N/A

Rental income

Rent used on a purchase: Market rent
Rent used on a refinance: Lease required
Vacant / unleased refinance: Not eligible unless STR-managed or recently rehabbed & listed
Short-term rental (Airbnb/VRBO): Yes
Short-term rental documentation: Per program rules
Short-term rental limits: DSCR 1.15; LTV lesser of 70% or the grid; not in NYC.

Refinance seasoning

Cash-out seasoning: Per program rules
Delayed financing (cash purchase recoup): Yes
Recently listed for sale: Investment properties must be off the market before closing when the new loan has a prepayment penalty (before application if no prepay). If listed within 6 months, value is the lower of appraisal or lowest list price.

Other terms

Seller / interested-party concessions: Interested-party contributions up to 6% of the lower of price or value on investment properties; giveaways under $1,000 ignored; excess deducted from price.
Secondary financing: N/A
State & local restrictions: Investment properties ineligible in Charlotte, Lee, Hendry and Glades Counties FL; Indianapolis; Paterson NJ; Lubbock TX. All loans ineligible in Cook County IL, Baltimore City MD, Orange County NY and several Philadelphia ZIP codes (no Philadelphia row homes). Hawaii delegated correspondents only. STRs not allowed in NYC's five boroughs. Brooklyn and Memphis investment loans need a field review. Texas: no ITIN/foreign national loans for citizens of China, Russia, Iran, North Korea. Puerto Rico, Guam, USVI ineligible.

Additional details

Notes: Grid: 700+ → 70/70/65 ($2M), 65/65/60 ($2.5M), 60/60/55 ($3M); no score → 70/70/65, 65/65/60, 55/55/50. ACH required. Rent loss insurance 6 mo. POA ineligible.

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