Sequoia DSCR
Program type: dscr
DSCR rules
- Minimum DSCR
- 1.00
- Sub-1.0 DSCR allowed
- Yes
- Sub-1.0 floor
- 0.75
- No-ratio option
- No
- No-ratio max LTV
- n/a
Credit and leverage
- Minimum FICO
- 640
- Max LTV, purchase
- 80%
- Max LTV, rate/term
- 80%
- Max LTV, cash-out
- 80%
- Loan amount
- $125,000 to $3,000,000
Geography and collateral
- States
- Not published
- Property types
- Single-family, PUD, 2-4 units, Condo
- Short-term rentals
- Yes
- STR minimum DSCR
- 1.00
- Rural allowed
- Yes
- Max acres
- 10.00
- Min square feet
- Not published
Borrower rules
- Entity (LLC) borrowers
- Yes
- Individual borrowers
- Yes
- Foreign nationals
- No
- ITIN borrowers
- No
- First-time investors
- Yes
- Minimum experience
- Not published
- Cash-out seasoning
- 3 months
- Reserves
- 3 months
- Max loans per borrower
- 10
Terms
- Prepay options
- 6 months interest (1-5 yr term), fixed 5% (1-5 yr term), 5-4-3-2-1 step-down
- Prepay required
- Not published
- Interest-only
- Yes
- Terms
- 15 yr, 30 yr, 40 yr
- Rate types
- 30-yr fixed, 40-yr fixed, 5/6 ARM, 7/6 ARM
Provenance
- Source
- Program page
- Document
- Guideline PDF
- Source retrieved
- Oct 4, 2026
- Last verified
- Not yet verified by a human
- Auto-checked
- Oct 4, 2026, matched the source
Research notes
Values from the Sequoia DSCR matrix PDF (downloaded, read with pdftotext) plus the DSCR program page. LTV grid: 80% purchase/rate-term and 80% cash-out require 720 FICO and loan <= $1.5M (700 FICO: 80%/75%; 660: 75%/70%); 640 FICO only up to $500k at 75%/70%; $3M loans cap at 70%/65% (720). Sub-1.0 band (DSCR 0.75-<1.00): max $2M, 660 FICO, 70% purchase/rate-term, cash-out N/A ('Cash out available only on DSCR >= 1'). No no-ratio option. Min loan $125k ($179,500 in Missouri); loans < $150k max 70% LTV. Reserves 3 mo <= $1.5M, 6 mo > $1.5M, 9 mo > $2M, novice investors 6 mo (<= $2M); reserves may come from loan proceeds. Novice investors (no 12-mo investment-property ownership in last 36 mo) allowed with min 680 FICO and STR income only on refinances; 'First Time Property Owners' (no real estate owned in 36 months) are NOT allowed - so firstTimeInvestorAllowed=true means first-time investor who already owns a home. STR: max 75% LTV, DSCR >= 1.0 only, purchase STR only for experienced investors, 80% of gross receipts via 1007/AirDNA Rentalizer/12-mo history. Rural allowed with 5% LTV reduction; max 10 acres; no minimum GLA. Ineligible: mixed-use, condotels, co-ops, leaseholds, manufactured/mobile, Hawaii lava zones 1-2; non-warrantable condos by exception only; Florida condos max 75% LTV. Entities: LLC or Corporation, US-domiciled, personal guarantee required. Foreign nationals ineligible; ITIN not mentioned (set false). Max exposure 10 loans / $5M UPB at DSCR >= 1.0 (2 loans / $3M for 0.80-<1.0). Prepay not allowed in AK, DC, IL, MD, MI, MS, NM, RI, VT, with restrictions in CO, IN, LA, MN, NJ, OH, PA, WA. Products: 5/6 and 7/6 ARM (incl. IO), 15/30/40-yr fixed, 30/40-yr fixed IO (10-yr IO period). 15-year fixed is not in the rateTypes vocabulary so appears only in termsYears. NOT found: lending-state footprint, min sqft, number of experience deals.