dscr reserve requirement in arizona

dscr reserve requirement in arizona

DSCR reserve requirements in Arizona generally range from 2 to 12 months of PITIA (Principal, Interest, Taxes, Insurance, and Association dues), depending on the lender, program, loan amount, and sometimes LTV or DSCR. Some programs may require up to 18 or even 24 months for large or complex loans.

Below is a comparison of DSCR reserve requirements by lender and program for Arizona:

DSCR Reserve Requirements by Lender

Lender/ProgramReserve RequirementKey Notes
Champions Funding
Accelerator DSCR 1-4 Unit		6 months (≤ $1.5M); 9 months (> $1.5M)Cash-out can be used for reserves
Champions Funding
Ambassador DSCR 1-4 Unit		12 months (< $1M)Cash-out can be used for reserves
Champions Funding
Accelerator DSCR 5-8 Unit		6 months (< $1M); 9 months ($1M–$1.5M); 6 months ($1.5M–$2M)Cash-out cannot be used for reserves
Newfi Lending
Sequoia DSCR		4 months (min); 6 months (> $1M); 12 months (> $2M); 8 months for novice investorsUse highest requirement if multiple apply
Newfi Lending
Sequoia Foreign National DSCR		12 monthsCash-out can be used for reserves
HomeXpress
InvestorX		0 months (≤ 65% LTV); 3 months (65–70% LTV); 6 months (> 70% LTV); 6 months if DSCR < 0.75Applies to non-owner occupied
Orion Lending
COIN Business Purpose Investor Cash Flow		0–9 monthsBased on DSCR, loan amount, FICO, LTV
Orion Lending
COIN X Business Purpose Investor Cash Flow		2–12 months2 months (≤ $1.5M), 6 months (> $1.5M), 12 months (> $2.5M)
ACC Mortgage
DSCR Residential		2 months (≤ $1.5M); up to 12 months (> $1.5M)Based on loan amount, FICO, DSCR
LendSure Mortgage
Investor Income Qualified		3 months (min); 6 months (LTV > 70%); 12 months (> $1M)DSCR required for qualification
LendSure Mortgage
Foreign National		12 monthsFor non-US citizens
Oaktree Funding
Professional Investor		6 months (< $1.5M); 9 months (> $1.5M)Cash-out not allowed for reserves
Oaktree Funding
Platinum/Titanium Advantage		3–18 months (Platinum); 3–12 months (Titanium)Based on loan amount; 6 months min for IO
The Loan Store
Flex DSCR Non-QM		6 months (min); 12 months if escrow waivedBased on subject property PITIA
UWM
Investor Flex 30-Year Fixed		3–12 months3 months (Pink), 6 months (Yellow), 12 months (Blue) + 6 months per additional property
Newrez Wholesale
SmartVest Platinum		6–15 monthsMinimum 6 months for most loans

Key Takeaways

  • Most DSCR programs in Arizona require 3–12 months of reserves.
  • Higher loan amounts, higher LTVs, or lower DSCRs may increase reserve requirements.
  • Some programs allow cash-out proceeds to be used for reserves, others do not.
  • Always check the specific program for exact requirements.

If you have a specific loan amount, property type, or scenario, let me know for a more tailored answer!

Review the updated loan scenario and answer again.

For a $680,000 DSCR purchase loan in Arizona with a 697 credit score, reserve requirements generally range from 2 to 12 months of PITIA, depending on the lender and program. Most programs require 3–6 months, but some may require more if you waive escrows or have a high LTV.

Below is a lender-by-lender summary for your scenario:

DSCR Reserve Requirements in Arizona ($680,000 Purchase, 697 Credit Score)

Lender & ProgramReserve RequirementKey Details
Champions Funding
Accelerator DSCR 1-4 Unit		6 months PITIAApplies to loans ≤ $1.5M. No LTV/DSCR variation for this amount.
Champions Funding
Ambassador DSCR 1-4 Unit		12 months PITIAFor loans < $1M. No LTV/DSCR variation.
Newfi Lending
Sequoia DSCR		4 months PITIA8 months if novice investor. No LTV/DSCR variation for this amount.
HomeXpress
InvestorX		0–6 months PITIA0 months if LTV ≤ 65%, 3 months if 65% < LTV ≤ 70%, 6 months if LTV > 70% or DSCR < 0.75.
Orion Lending
COIN Business Purpose Investor Cash Flow		6–9 months PITIABased on DSCR, LTV, and FICO. For your scenario, expect 6–9 months.
Orion Lending
COIN X Business Purpose Investor Cash Flow		2 months PITIAFor loans ≤ $1.5M.
ACC Mortgage
DSCR Residential		2 months PITIAApplies to loans ≤ $1M. No LTV/DSCR variation.
LendSure Mortgage
Investor Income Qualified		3–6 months PITIA3 months if LTV ≤ 70%, 6 months if LTV > 70%.
Oaktree Funding
Professional Investor		6 months PITIAApplies to loans < $1.5M. No LTV/DSCR variation.
The Loan Store
Flex DSCR Non-QM		6 months PITIA12 months if escrow is waived. No LTV/DSCR variation.
The Loan Store
Flex Non-QM AUS Inv +		6 months PITIA + 2–6% of UPB on other financed propertiesApplies to all investment properties. No LTV/DSCR variation.

Key Takeaways

  • Most common reserve requirement: 6 months PITIA.
  • Lowest reserve requirement: 2 months (ACC Mortgage, Orion COIN X).
  • Highest standard reserve requirement: 12 months (Champions Funding Ambassador DSCR, The Loan Store with escrow waiver).
  • LTV, property type, and DSCR: For your loan amount and credit score, most programs do not increase reserves based on these factors, but some do if LTV is high or escrows are waived.
  • Novice investors or special cases (e.g., foreign nationals) may require higher reserves.

Would you like a more detailed breakdown for a specific lender, program, or property type? If you know your LTV or property type, I can further narrow the options for you.

which lenders will do a dscr on a mixed use property

The following lenders will consider a DSCR loan for a mixed use property in Arizona: HomeXpress, Orion Lending, Oaktree Funding, and The Loan Store.

Here’s a summary of each lender’s DSCR program for mixed use properties:

DSCR Programs for Mixed Use Properties in Arizona

LenderProgram NameMixed Use Allowed?Key Notes
HomeXpressInvestorXNoMixed use is NOT eligible for DSCR (InvestorX) program.
Orion LendingCOIN X Business Purpose Investor Cash FlowYesDSCR for investment properties, including mixed use.
Oaktree FundingProfessional Investor, Cash Flow AdvantageYesBoth programs allow mixed use (2–8 units). DSCR qualification.
The Loan StoreFlex DSCR Non-QMYesDSCR for investment properties, including mixed use and 5–8 units.

Details

Next Steps:
If you want to compare guidelines, rates, or reserve requirements for these programs, let me know! If you have more details (like number of units or commercial/residential split), I can help you further narrow down the best fit.