Learn from our Industry experts why liquidity is crucial, when it comes to Business Purpose Lending.

Understanding liquidity is crucial when applying for business purpose loans. These are not low-down payment loans; instead, they require a solid display of liquid assets.

In simple terms, a borrower needs to have the capital required to obtain the loan.

Borrowers must demonstrate sufficient liquidity to cover:

• All cash required at closing (typically includes down payment + closing costs).

• 6 months (or more) of future payments at the maximum loan amount in reserves.

• For Rehab or New Construction Loans, an additional 10% of the budget in liquid reserves and any applicable borrower funded portion of the budget.

This preparation showcases your readiness to manage budget changes effectively.  Liquidity is typically verified by providing most recent complete statements for any account needed to meet the requirement.

Speak with Truly Investor Capital today to learn more and get started!