A big asset in loan approval is display of liquid assets.
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!
Truly Investor Capital, a division of Oaktree Funding Corp., 3133 West Frye Road, Suite #205 Chandler, AZ 85226 (NMLS # 71640 | In the following states AZ, CA, ID, MN, OR, UT loans are originated and made in the name of Oaktree Funding Corp. NMLS #71640 pursuant to the laws of AZ Mortgage Banker Lic. # 0920541 | CA DFPI Lic. # 6035721), 800-429-5000. ©2025. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. Oaktree Funding Corp. is an independent mortgage lender and is not affiliated with the Department of Housing and Urban Development or the Federal Housing Administration. Not intended for legal or financial advice. All state licensing information may be found at NMLS Consumer Access https://www.nmlsconsumeraccess.org