Colchis DSCR Credit Policy & Rate Sheet

Colchis DSCR investor loan purchase program guidelines and pricing - comprehensive underwriting credit policy

Products

Product Overview

Colchis offers Debt Service Coverage Ratio (DSCR) financing for non-occupying borrowers on income-producing residential real estate. All loans outlined herein are for commercial or business purpose only.

Single Asset Product

Loan Amount Limits

Loan AmountFICO/LTVDSCR >= 1.0xDSCR < 1.0xMin/Max
Purch. & R/TCash-OutPurch. & R/TCash-Out
≤ $1.5mm74080%75%75%70%Min: $75,000
72080%75%75%70%Max: $3,000,000
70080%75%75%70%
68080%75%75%65%
66075%70%70%60%
64070%65%N/AN/A
$1.5mm - $2.5mm74075%70%70%70%
72075%70%70%70%
70075%70%70%70%
68070%65%65%60%
66065%65%60%60%
64065%60%N/AN/A
>$2.5mm - $3mm70070%65%N/AN/A
68065%60%N/AN/A

Single Asset Limits

LimitValue
Max Loan Amount$3,000,000
Max Loan Amount, Crossed$5,000,000
Interest Only Max LTV75%
Max Cash-Out$1,000,000
Max Cash-Out (≤50% LTV)Unlimited
Mortgage History1x30x12
Event Seasoning36 Months
BK 13Discharged

Property Type LTVs

Property TypePurchase & R/TCash-Out
Condo75%70%
2-4 Unit80%75%
5-10 Unit65%50%

Note: 1.25x minimum DSCR required on 5-10 Unit properties

Crossed Collateralized Product

Crossed Loan Parameters

Max Loan AmountFICO/LTVPurchase & R/TCash-OutNotes
$3,00074075%70%Experienced Investors Only
72075%70%
68070%65%
$5,00074075%65%
72070%65%
FN60%50%

Minimum DSCR: 1.15x

Crossed Product Restrictions

  1. Minimum DSCR of 0.75x across portfolio
  2. Minimum DSCR for Short Term Rentals of 1.0x
  3. DSCR < 1.0x & Cash-out: LTV limited to 70%
  4. Foreign Nationals limited to 65% LTV
  5. Non-Permanent Resident Alien restricted to 75% LTV
  6. Unleased properties restricted to 70% LTV

Transaction Types

Purchase & Refinance to Term

Permitted for both Single Asset and Crossed Collateralized products with standard LTV guidelines.

Cash-Out Transactions

Cash-out refinances are subject to additional LTV restrictions:

  • Standard DSCR >= 1.0x: LTV per product matrix
  • DSCR < 1.0x: LTV limited to 70% or per matrix (whichever is more restrictive)
  • Crossed product: LTV limits per crossed matrix

Borrower & Guarantor Requirements

Borrower Profile

  • Non-occupying investors
  • Commercial or business purpose loans only
  • May include legal entities with supporting documentation
  • Foreign Nationals permitted with LTV restrictions (max 65% for Single Asset, max 50% for Crossed Cash-Out)
  • Non-Permanent Resident Aliens: max 75% LTV

Guarantor Requirements

Guarantor required for legal entity borrowers.

Credit Profile

MetricRequirement
Minimum FICO620 (Single Asset); varies by product
Mortgage History1 late 30+ in 12 months maximum
BankruptcyChapter 13 must be discharged
Event Seasoning36 months from date of event
  • Certificate of formation/filed articles of organization/incorporation
  • Operating agreement/partnership agreement/bylaws
  • Certificate of good standing from state of organization (if formed >12 months prior)
  • Loan agreement (if separate from Note)

Property Types

Primary Collateral Types

Property TypeDSCR >= 1.0x (Purch./R/T)DSCR >= 1.0x (Cash-Out)Notes
Condo75% LTV70% LTVCondo questionnaire required
2-4 Unit80% LTV75% LTVStandard residential
5-10 Unit65% LTV50% LTVMin 1.25x DSCR required
Short-Term Rental (STR)RestrictedRestrictedMin 1.0x DSCR (even for Crossed); Limited LTV
Non-WarrantableN/AN/ANot permitted
Prime DSCRStandardStandardStandard pricing applies

Condo Requirements

  • Condo questionnaire required
  • Copy of master insurance policy/certificate required
  • Max LTV: 75% (Purchase/R/T), 70% (Cash-Out)

Multi-Unit Properties (5-10 Unit)

  • Minimum DSCR: 1.25x
  • Max LTV: 65% (Purchase/R/T), 50% (Cash-Out)
  • Max Loan Amount: $3,000,000

Credit Analysis & FICO Requirements

FICO Score Bands and LTV Adjustments

FICO BandSingle Asset LTV (Purchase/R/T)Single Asset LTV (Cash-Out)Crossed LTV
760+80%75%75%
740-75980%75%75%
720-73980%75%75%
700-71980%75%75%
680-69980%75%70-75%
660-67975%70%70%
640-65970%65%70%
620-639N/AN/ARefer

Credit Event Requirements

EventMaximum FrequencySeasoning Period
Late Mortgage Payment (30 days)1 in 12 monthsMust be >36 months seasoned
BankruptcyChapter 13 onlyDischarged
ForeclosureNot permittedN/A

Income & DSCR Analysis

DSCR Calculation

Debt Service Coverage Ratio is calculated as: DSCR = Net Operating Income / Total Debt Service

DSCR Tiers and Loan Parameters

Single Asset DSCR Tiers

DSCR LevelMax LTV (Purchase/R/T)Max LTV (Cash-Out)FICO RequirementSpecial Restrictions
< 1.00x75%70%740+Limited products; No 5-10 Unit
1.00x - 1.14xPer matrixPer matrix640+Standard guidelines apply
>= 1.15xPer matrixPer matrix620+Preferred tier

Crossed Collateralized DSCR

  • Minimum: 0.75x across portfolio
  • Preferred: >= 1.15x
  • Short-Term Rentals: Minimum 1.0x (even for Crossed)

Income Documentation

  • IRS Tax Returns: 2 years required
  • Rent roll or lease agreements for all properties
  • Profit & Loss statement (if self-employed)
  • W-2s and recent paystubs (if salaried)
  • Bank statements (typically 2 months)

Occupancy & Use Restrictions

Property Occupancy

  • Non-owner occupied properties only
  • For primary income calculation, property must be leased or unleased with restrictions
  • Unleased properties: Maximum 70% LTV; refer to Section 8 for additional restrictions

Permitted Uses

  • Single-family rental (SFR) - standard guidelines apply
  • Multi-family rental (2-4 units, 5-10 units) - per property type matrix
  • Short-Term Rental (STR) - minimum 1.0x DSCR; restricted LTV
  • Commercial mixed-use with residential component - case-by-case review

Short-Term Rental (STR) Requirements

  • Minimum DSCR: 1.0x (applies even to Crossed Collateralized product)
  • Income documentation via AirDNA, Hostaway, or equivalent platform
  • Maximum LTV: Subject to additional restrictions
  • LLPA adjustment: -1.25 to -2.5 depending on DSCR tier
  • Licensed and compliant with local regulations

Lease Requirements

Lease Documentation

  • Signed lease agreement required for all tenant-occupied properties
  • Lease term minimum: Extends beyond loan maturity
  • Permitted modifications: Standard rent adjustment clauses acceptable

Unleased Property Restrictions

  • Maximum LTV: 70%
  • DSCR must support projection-based income
  • Documentation: Property inspection, market rent estimate, management agreement
  • Special approval may be required for extended vacancy periods

Short-Term Rental (STR) Guidelines

STR Eligibility

RequirementDetail
Minimum DSCR1.0x (portfolio level for Crossed)
Max LTVPer DSCR tier, subject to additional restrictions
Income DocumentationAirDNA, Hostaway, or equivalent platform data required
LicensingMust be licensed and compliant with local regulations
Appraisal TypeFull appraisal required; field review or AVM insufficient
Rent Estimate VendorAirDNA (preferred), Opteon, Fastapp, or NAN

STR Income Calculation

  • Use 80% of trailing 12-month average gross rental income
  • If < 12 months data available: Use 70% of available period
  • Adjust for seasonality and local market conditions
  • Conservative approach recommended for properties with volatile occupancy

STR LLPA Adjustments

LLPA penalty for STR ranges from -1.25 to -2.5 depending on DSCR tier and LTV.

Reserves

Cash Reserve Requirements

Borrower must maintain reserves based on:

  • Annual debt service: 6-12 months minimum
  • Property type and number of properties
  • Crossed Collateralized product: Portfolio-wide reserve calculation

Reserve calculation is included in borrower qualification and approval process.

Geographic Restrictions

Approved States

Colchis lends in all 50 U.S. states, D.C., and select territories.

State-Specific Requirements

  • Community property state spousal consent required if applicable
  • State compliance with closing requirements and escrow regulations
  • Flood insurance required in designated flood zones
  • Environmental assessment required if environmental issues identified on appraisal

Appraisals

Appraisal Requirements

Loan AmountAppraisal Requirement
All loansFull appraisal required for Purchase/Cash-Out
Field Review acceptable for R/T Refi
Short-Term RentalFull appraisal required; no AVM/desktop acceptable
Properties > $1mmFull appraisal with third-party review consideration

Appraisal Type Options

TypeUsageRequirements
Full AppraisalPrimary methodUSPAP compliant; Market rent analysis required for STR
Field ReviewR/T Refi onlyLicensed appraiser; visual inspection of exterior/interior
AVM (Automated Valuation Model)Desktop/secondary onlyNot acceptable as primary for any loan type
BPO (Broker Price Opinion)Desktop/secondary onlyNot acceptable as primary
Desk ReviewDesktop/secondary onlyNot acceptable as primary
Digital/3D ReviewSecondary optionSupplemental only; not primary

Rent Estimate Vendors (STR Properties)

  • AirDNA (primary for STR)
  • Opteon (STR only)
  • Fastapp (STR only)
  • NAN (STR only)
  • RentRange (residential only)

Approved Appraisal Management Companies & Vendors

Primary AMCSecondary AppraisalTertiary/Digital OptionsSpecial Vendors
Appraisal NationFull AppraisalAVM, BPO, Desk Review, Field ReviewClass Valuation, RentRange
Countryside (SimusAMC)Full AppraisalAVM, BPO, Desk Review, Field ReviewRecon Review
LRESFull AppraisalAVM, BPO, Desk Review, Field ReviewSummit Valuation Solutions (SVR)
NationwideFull AppraisalAVM, BPO, Desk Review, Field ReviewHouseCanary AVM w/Rents
Accurate GroupFull AppraisalAVM, BPO, Desk Review, Field ReviewCollateral Analytics AVM w/Rents
ClearCapitalFull AppraisalAVM, BPO, Desk Review, Field ReviewAirDNA (STR only)
FastappFull AppraisalAVM, BPO, Desk Review, Field ReviewNAN (STR only)
Mercury_VmpFull AppraisalAVM, BPO, Desk Review, Field ReviewOpteon (STR only)
INCENTERFull AppraisalAVM, BPO, Desk Review, Field Review
Dart AppraisalsFull AppraisalAVM, BPO, Desk Review, Field Review
Valuation ServicesFull AppraisalAVM, BPO, Desk Review, Field Review
AAA AMCFull AppraisalAVM, BPO, Desk Review, Field Review
VISION VMCFull AppraisalAVM, BPO, Desk Review, Field Review
BNL AMCFull AppraisalAVM, BPO, Desk Review, Field Review
Appraisers FirstFull AppraisalAVM, BPO, Desk Review, Field Review
Cushman and WakefieldFull AppraisalAVM, BPO, Desk Review, Field Review

Alternative Appraisal Vendors

  • Home Genius / Redbell: AVM only
  • HouseCanary: AVM only

Excluded Appraisal Companies & Appraisers

Appraiser NameCompany/AddressStateLicense/Certification #
Jacob Goldmunzer645 Madison Ave, New York, NY 10022NY45000044224
Jason Taylor4044 Ganford Court, Jarrettsville, MD 21084MD30029212
Christopher Actie739 Westhills Pkwy, Baltimore, MD 21229-1118MD20028943
Contact Appraisals LLC3593 Arcola Rd, Collegeville, PA 19426PAGA003952

Appraisal Management Notes

  • Third-party review cannot be conducted by same appraiser or AMC as original appraisal
  • Appraisal must be dated within 120 days of closing
  • Rent estimates for STR properties must be from approved vendor

Escrow & Title Requirements

Title Insurance

  • Owner's and lender's title insurance required
  • Title examination by licensed attorney in applicable state
  • Title must be free and clear of liens (except property taxes and utilities)
  • Title examination must be dated within 90 days of closing

Escrow Requirements

  • Property taxes and insurance must be escrowed
  • HOA/condominium assessments must be escrowed (if applicable)
  • Escrow analysis required annually
  • Escrow shortage/surplus handling per servicer guidelines

Title & Insurance Requirements

Property Insurance

RequirementSpecification
Homeowners / Dwelling FireRequired; coverage at 100% of dwelling value minimum
Insurance AmountMinimum coverage = loan amount or dwelling value (whichever is greater)
Lender's Loss PayeeRequired on policy; mortgagee clause acceptable
DeductibleMaximum $2,500 (may vary by property type/location)
Coverage TypeReplacement cost preferred; actual cash value minimum
Insurance PeriodCurrent through closing; coverage must remain in force
Multi-Unit BuildingsMaster policy required for condos/HOA

Additional Insurance Considerations

  • Flood insurance required if property is in designated flood zone (FEMA)
  • Earthquake insurance may be required in high-risk areas
  • Proof of insurance required at closing
  • Servicer added as additional insured (if required by loan documents)
  • Annual renewal proof required during loan term

Condominiums

Condominium Requirements

RequirementDetail
Condo QuestionnaireRequired for all condo properties
Master Insurance PolicyCopy required; lender listed as loss payee
HOA AssessmentMay not exceed 30% of property's monthly rental income
Special AssessmentsDisclosed; any pending assessments noted
HOA DelinquenciesNone permitted (borrower or original unit owner)
HOA ReservesHOA must maintain adequate reserves (varies by state)
Established AssociationAssociation must be established and functioning
Owner OccupancyMaximum % owner-occupied units varies by state/lender

Condo LTV Limits

  • Purchase/R/T: Maximum 75% LTV
  • Cash-Out: Maximum 70% LTV
  • Foreign Nationals: Maximum 60% LTV (Purchase/R/T), 50% (Cash-Out)

Required Documents

Standard Documentation Package

Property Documents:

  • Signed purchase agreement/sales contract (if applicable)
  • Title report/commitment
  • Appraisal (type per loan amount)
  • Flood certification
  • Property inspection report (if applicable)
  • Environmental Screen Assessment (if environmental issue identified on appraisal)
  • Proof of homeowners/dwelling insurance
  • Master insurance policy/certificate (if condo)
  • HOA documents, bylaws, financial statements (if condo or HOA subject property)
  • Condominium questionnaire (if condo)

Borrower/Guarantor Documentation:

  • Credit report
  • Background report
  • OFAC screening
  • Income documentation (IRS tax returns - 2 years required, P&L, paystubs, W-2s)
  • Gift letter (if down payment sourced from gift)
  • Bank statements (typically 2 months)
  • Letter of explanation (if any credit issues or documentation gaps)
  • Power of Attorney (if applicable)

Loan Documentation:

  • Signed promissory note
  • Signed mortgage/security instrument
  • Closing disclosure (TRID compliant)
  • Loan agreement (if separate from Note)
  • ACH Form (transferable) for US Citizens or Permanent Residents
  • Personal guarantee (if legal entity borrower)

Business Entity Documents (if applicable):

  • Certificates of formation/filed articles of organization/incorporation
  • Operating agreement/partnership agreement/bylaws
  • Certificate of good standing from state of organization (if formed >12 months prior to origination)

Closing Documents:

  • Closing instructions and closing protection letter (as required by state compliance)
  • Spousal consent (if married individual in community property state)
  • P&S agreement, trustee receipt, disbursement letter, or HUD (if property acquired within 90 days or 180 days for Delayed Purchase)

Conditional Documentation

The following documents are required if applicable:

  • Loan agreement (if separate from Note)
  • ACH Form (US Citizens/Permanent Residents)
  • Personal guarantee (legal entity borrowers)
  • Certificates of formation/articles of incorporation (legal entity borrowers)
  • Operating agreement/partnership agreement/bylaws (legal entity borrowers)
  • Certificate of good standing (legal entity borrowers formed >12 months prior)
  • Closing instructions and closing protection letter (per state requirements)
  • Spousal consent (married borrowers in community property states)
  • Environmental Screen Assessment (if environmental issue identified)
  • Condo questionnaire (condo collateral)
  • Copy of condominium master insurance policy/certificate (condo collateral)
  • For refinance loans: Pay off letter and verification of mortgage (VOM) from prior lender, or alternatively:
    • Loan reported on credit report showing 1x30x12, or
    • 12 months of bank statements evidencing mortgage payment plus original note showing terms/payment amount
  • Other documents as required (inspection reports, explanation letters, etc.)
  • Optional: Term sheet, credit approval, underwriter worksheet

Document Age Requirements

Document TypeMaximum Age (Days)
Appraisal120
Background Report90
Certificate of Good Standing90
Credit Report90
Flood Certificate90
Insurance3 months until renewal
OFAC90
Power of Attorney (PoA)90
Title Report90
Verification of Mortgage (VOM) / Payoff Statement60
VOM from Credit Report90

Document age is determined from the closing date of the signed mortgage note.

Rate Sheet & Pricing

Pricing Date: March 23, 2026

Base Rates (30 Day Lock Period)

Coupon5/6 ARM30Y Fixed
6.0%98.187597.6875
6.125%98.937598.4375
6.25%99.687599.1875
6.375%100.437599.9375
6.5%101.1875100.6875
6.625%101.9375101.4375
6.75%102.6875102.1875
6.875%103.4375102.9375
7.0%104.1375103.6875
7.125%104.65104.25
7.25%105.1625104.8125
7.375%105.675105.375
7.5%106.0105.75
7.625%106.325106.125
7.75%106.7106.5
7.875%106.95106.75
8.0%107.2107.0
8.125%107.45107.25
8.25%107.7107.5
8.375%107.95107.75
8.5%108.2108.0
8.625%108.45108.25
8.75%108.7108.5
8.875%108.95108.75
9.0%109.2109.0
9.125%109.45109.25
9.25%109.7109.5
9.375%109.95109.75
9.5%110.2110.0
9.625%110.45110.25
9.75%110.7110.5
9.875%110.95110.75
10.0%111.2111.0
10.125%111.45111.25
10.25%111.7111.5

Minimum Price: 99.7 Maximum Price: 100.225 (for loan amounts >$3.0mm)

Investor DSCR LLPA Adjustments

Single Property DSCR Adjustments

DSCR Level / FICO0.50x0.55x0.60x0.65x0.70x0.75x0.80x
760+1.01.01.01.00.750.125-0.625
740-7591.01.00.8750.8750.375-0.125-1.375
720-7390.750.750.6250.50.0-0.75-2.625
700-7190.1250.0-0.375-0.625-1.125-1.25-3.5
680-699-0.25-0.375-0.875-1.375-2.125-3.25-5.5
660-679-0.875-1.25-2.0-2.625-3.0-4.25N/A
640-659-2.25-2.375-2.875-3.875-4.125N/AN/A
620-639N/AN/AN/AN/AN/AN/AN/A
FN0.1250.0-0.375-0.625N/AN/AN/A

Crossed Collateralized DSCR Adjustments

DSCR Level / FICO0.50x0.55x0.60x0.65x0.70x0.75x0.80x
760+0.8750.8750.8750.8750.6250.0N/A
740-7590.8750.8750.750.750.25-0.25N/A
720-7390.6250.6250.50.375-0.125-0.875N/A
700-7190.0-0.125-0.5-0.75-1.25N/AN/A
680-699-0.375-0.5-1.0-1.5-2.25N/AN/A
FN0.0-0.125-0.5N/AN/AN/AN/A

DSCR Tier Adjustments

DSCR CategoryAdjustment (bps)
< 1.00x-125
1.00x - 1.14x-50
>= 1.15x+25 to +50

Product Adjustments

ProductAdjustment (bps)
30Y FixedPar (0 bps)
30Y Fixed IO-25
5/6 ARM0 bps
7/6 ARM-25
7/6 ARM IO-25
15Y Fixed+12.5
Interest-Only-25

Loan Amount LLPA Adjustments

Loan Amount0.50x0.55x0.60x0.65x0.70x0.75x0.80x
< $150,000-100-100-100-150-150-150-175
< $250,0000000-12.5-12.5-25
> $1,000,000000000-12.5
> $1,500,000-12.5-12.5-25-25-37.5-50-150
> $2,000,000-12.5-12.5-25-37.5-50-150N/A
> $2,500,000-37.5-37.5-37.5-50-75N/AN/A
> $3,000,000 (Crossed)-12.5-12.5-25-25-37.5-50N/A

Crossed-Only Large Loan Adjustments

Loan Amount0.50x0.55x0.60x0.65x0.70x0.75x0.80x
> $2,500,000-12.5-12.5-25-25-37.5-50N/A
> $3,000,000-12.5-12.5-25-25-37.5-50N/A

Property Type & Occupancy LLPA Adjustments

Category0.50x0.55x0.60x0.65x0.70x0.75x0.80x
Cash-Out00-25-62.5-100-162.5N/A
R/T Refi00-25-62.5-100-162.5-212.5
Condo-25-25-25-25-50-50N/A
Non-WarrantableN/AN/AN/AN/AN/AN/AN/A
Short-Term Rental-125-125-150-175-200-250N/A
2-4 Unit-12.5-12.5-12.5-37.5-75-100-200
5-10 Unit-500-500-625-650N/AN/AN/A
Foreign Nationals-125-125-125-125N/AN/AN/A
Prime DSCR00000N/AN/A

Lock Period & Extension Adjustments

Lock PeriodFee (bps)
30 Day LockPar (0 bps)
45 Day Lock-13.5

Prepayment Penalty Schedule

Prepayment Penalty PeriodLLPA (bps)Max Price
No Prepay Penalty-150101.875
12 Month Prepay-100102.375
24 Month Prepay-50102.875
36 Month Prepay0103.875
48 Month Prepay+25103.875
60 Month Prepay+50104.625

Product Term Details

ProductIO MonthsAmortization MonthsInterest Rate CapsMarginExtension Costs
30Y Fixed-360 months---
30Y Fixed IO120240 months--5 days / 7.5bps
5/6 ARM-360 months2/2/50.0610 days / 15bps
7/6 ARM-360 months5/2/50.06-
7/6 ARM IO120240 months5/2/50.06-

Additional Pricing Information

  • $500 LLPA applied on loan amounts of $125,000 or less
  • 1x5 Prepay Penalty has a net -37.5 bps LLPA
  • Maximum 2 extensions per lock period

General Loan Program Information

Purpose

Colchis DSCR program is designed to provide financing for income-producing, residential real estate to non-occupying borrowers for commercial or business purposes only. Loans must be fully underwritten and approved.

Cost Basis

All financed improvements and acquisition costs are included in cost basis calculation for down payment and LTV purposes.

Seasoning Requirements

  • Event seasoning: 36 months from date of credit event
  • Bankruptcy Chapter 13: Must be discharged
  • Mortgage history: Maximum 1 late 30+ days in 12 months

Loan Program Limitations

  • Non-occupying borrower requirement is mandatory
  • Commercial/business purpose certification required
  • All underwriting is full and manual; automated approvals are not available
  • Loans are subject to approval and may be rejected or conditioned based on underwriting

Additional Program Notes

This document outlines the underwriting guidelines for Colchis DSCR investor loan purchase program. Guidelines are subject to change. All loans remain subject to full underwriting and approval per investor requirements.