LAMD-D35 DSCR Multi-Tier (to $4.5M, 5–10 Units) | DSCR Guidelines

Loan limits

Lien position: First lien
Minimum credit score: 620 (Tier 3)
Max LTV – purchase: 85% (Tier C: 740, ≤$1.5M); 80% at most tiers (700, to $3M)
Max LTV – rate/term refinance: Same as purchase (Tier E: R/T max 75%)
Max LTV – cash-out refinance: 75% (700 FICO on Tiers A, B and E; Tier C at 680 to $2M)
Minimum loan amount: $100K (Tier D: $200K; Tier F: $125K)
Maximum loan amount: $4.5M (Tier C: 70% at 720); $3M others
Cash-out (cash in hand) limit: Varies: Tier A <65% unlimited / ≥65% $500K; Tier B ≤60% $1M / >60% $500K; Tier C ≤65% unlimited / >65% $1M; Tier E up to $1.75M; Tier F ≤70% unlimited
LTV reductions & overlays: Declining market: −10%. Vacant refinance after renovation: 75% rate/term, 70% cash-out, DSCR 1.00. Cash-out listed 3–6 months ago: value is the lower of appraisal or lowest list price (plus 3-year prepay). Interest-only on some tiers: −5% and 700 FICO. Credit-event tier: 70% on Tier C when 2–3 years. Non-warrantable condo 75% on Tier B. Non-permanent residents capped at 75% (no cash-out) on Tier E. First-time investor 80%, $1M. Exceptions of 5–10% over program max can be requested through the exception desk.

DSCR requirements

Minimum DSCR: 0.75
DSCR below 1.00: Yes – 0.75–0.99 on Tier B, 3, 13 (e.g., 75% at 700/720); Tier A, 4, 15 require ≥1.00
No-ratio (no DSCR calculated): No – minimum 0.75
How DSCR and qualifying rent are calculated: Gross rent ÷ PITIA (IO tiers qualify on the IO payment). Purchase with no lease: appraisal market rent. With a lease: lower of lease or market; a higher lease counts up to 125% of market (120% on one tier) with the 2 most recent months' receipts (deposit doesn't count). Multi-unit properties are calculated unit by unit. Minimum 0.75 on tiers that allow sub-1.00.

Products & terms

Products: 15/30yr fixed, 5/6, 7/6, 10/6 SOFR ARM (margin 4.00), IO versions
Interest-only: Yes – 10/20 IO on fixed & ARM (Tier B & 13: 700 FICO, −5% LTV)
Prepayment penalty: Allowed – up to 5 yrs; state limits (MI/OH 1 yr; NJ none; DC/MD varies)
Reserves: Varies: none (Tier C, ≤$2.5M & ≤80%) to 3/6/9 mo by loan size; Tier D: 6–12 mo; Tier F: 6 mo; FTI 3 mo

Borrower & credit

Housing payment history: 1x30x12 on most tiers (Tier F 0x30x12); only the subject and primary residence go on the REO schedule; private mortgages verified with cancelled checks/bank statements. Rent-free borrowers are eligible if they're experienced investors (12 months of ownership/management within 24 months).
Credit events (BK, foreclosure, short sale, modification): Bankruptcy, foreclosure, notice of default, short sale, deed-in-lieu or modification: at least 2 years from completion to application (tiers range 2 to 4 years; Tier A 4 years, Tiers D and F 3 years, Tier C 2 years with LTV limits). Multiple events need 7 years since the last. Credit re-established and minimum score met.
Forbearance, deferrals & modifications: If housing history shows a forbearance, the 12 months since exiting it must be 0x30, verified by the servicer.
Collections, charge-offs, judgments & liens: Anything affecting title must be paid. Non-title collections, charge-offs, judgments and liens over $5,000 (individually or combined) must be paid; medical collections ignored. IRS payment plans OK if current and not liened. Borrowers currently in credit counseling/debt management are ineligible.
Tradelines & credit depth: N/A
First-time homebuyer: No
First-time investor: Yes – DSCR 1.00, 700 FICO, 80%, $1M, 3 mo reserves; no 5–10 units/mixed use
Foreign national: No
ITIN borrower: No (ITIN-only borrowers ineligible)
Non-permanent resident: Yes on most tiers (Tier D no; Tier E max 75%, no cash-out)
LLC / entity vesting: LLC vesting with guarantors owning at least 25% (one tier requires 51%+). Limited POA not allowed with entities.
Gift funds & assets: Investment purchases: 10% borrower contribution required; gifts of equity and down-payment assistance not allowed (one tier allows no gifts).
Financed property / exposure limits: No limit on financed properties on most tiers (one tier caps at 20); max 10 loans per borrower through this program (more by exception).
Other borrower rules: N/A

Property

Eligible property types: Residential incl. rural residential, non-warrantable condo, condotel, leasehold; 5–10 units & mixed use (delegated sellers only)
ADUs & unpermitted additions: One-unit homes with one ADU are eligible if the property conforms to zoning, the ADU is substantially smaller than the main house and isn't a manufactured home, and the appraisal has two comps with similar ADUs. Permitted ADU rent can be used. Unpermitted ADUs are not allowed on this program – one of the stricter programs for ADUs.
Non-warrantable condo: Allowed with only ONE non-warrantable reason: investor concentration up to 60% (new projects), commercial space up to 50%, single-owner concentration up to 50%, 30% presold (new projects), HOA delinquencies up to 25%, non-structural litigation within 25% of reserves or insured, or low reserve allocation backed by a strong reserve balance. Florida condos must be fully warrantable. Some tiers don't allow non-warrantable condos at all.
Condotel: Allowed on some tiers when the project is otherwise fully warrantable: full kitchen and a separate bedroom. Indicators: hotel/motel/resort/lodge name, hotel conversions, daily/weekly rental registration services.
Rural / acreage: Rural-residential and agricultural-residential properties are eligible; purely rural- or agricultural-zoned properties and working/hobby farms are not. Max 20 acres; over 10 acres needs two comps with similar acreage.
Minimum square footage: 750 sq ft per unit for single-family; 400 sq ft per unit for condos and 2–10 units.
Mixed use: 2–8 unit mixed use (delegated sellers only): 1 commercial unit in 3 or fewer units, 2 in 4–5, 3 in 6+; commercial under 49% of building area; retail/office/restaurant only (no dry cleaners, laundromats, auto repair); the borrower's own business may occupy the commercial unit.
5+ units / multi-property: 5–10 unit residential through delegated sellers only, appraised with a 5+ unit form or narrative, rent roll and income/expense statement, full interior of each unit.
Ineligible properties: Manufactured/mobile, co-ops, log homes, timeshares, unique properties, zoning non-conformance (legal non-conforming OK with rebuild letter), working or hobby farms, commercial properties (residential in commercial zones OK), rural- or agricultural-only zoning, Hawaii lava zones 1–2, over 20 acres, deed/resale-restricted properties, lot loans, US territories.
Declining markets: N/A
Appraisal, review & insurance: One appraisal up to $2M; transferred/assigned appraisals OK if not borrower-ordered.

Rental income

Rent used on a purchase: Lease up to 125% of market (tier: 120%)
Rent used on a refinance: Same
Vacant / unleased refinance: Only when vacant due to recent renovation: active rental listing, rent = lower of market or listing rent, DSCR 1.00+, max 75% rate/term / 70% cash-out. Multi-units with any unleased unit fall under these limits.
Short-term rental (Airbnb/VRBO): Yes – purchase & refi (tier purchase min 1.25 DSCR)
Short-term rental documentation: Purchase: lower of AirDNA Property Earning Potential (12-mo forecast, ≥50% occupancy, 4 comps, market score ≥60) or appraiser STR analysis; refi: 12-mo Airbnb/VRBO average
Short-term rental limits: Tier-specific: Tier A refi only; Tier E purchase only with DSCR ≥1.25; Tier D & 15 none; no STR on 5–10/mixed use

Refinance seasoning

Cash-out seasoning: One borrower on title 6 months (time in the borrower's majority-owned LLC counts; inherited or awarded property exempt). Texas 50(a)(6) ineligible.
Delayed financing (cash purchase recoup): Yes
Recently listed for sale: Rate/term: listing must be withdrawn or expired before closing. Cash-out: withdrawn more than 6 months before closing – no restriction; 3–6 months – requires a 3-year prepay and value at the lower of appraisal or minimum list price; under 3 months – ineligible.

Other terms

Seller / interested-party concessions: Interested-party contributions up to 6% (one tier 3% above 80% LTV).
Secondary financing: N/A
State & local restrictions: Investment loans not allowed (tier-dependent) in Lee County FL, Baltimore City and Cecil County MD, Orange County NY, Philadelphia and surrounding PA counties (Bucks, Chester, Delaware, Montgomery), New Castle County DE, Burlington/Camden/Gloucester/Salem NJ, and AK/HI on one tier. US territories ineligible.

Additional details

Notes: Six credit tiers (A–F) with different limits. Only the subject property and primary residence go on the real estate schedule. Not available for investment properties in Lee County FL, Baltimore City MD, Orange County NY, Philadelphia and nearby PA counties, select NJ/DE counties, AK and HI (one tier). Tier A: 1–9 units, 5–10 units at 680 FICO / 75%. Tier B: leasehold OK, non-warrantable condo 75/70. Tier C: up to $4.5M, 5–10 units and mixed use, condotel OK. Tier D: fixed rate only, no non-permanent residents. Tier E: condotel 75/70, no Florida warrantable condos. Tier F: 0x30x12 housing, several county exclusions.

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