Product Matrix

 

New Construction Loan 

 

 Revised Oct. 8, 2024

  Product Overview

Experience Minimum

Properties in Declining Markets

Eligible Properties

Eligible Properties with Special Consideration

Ineligible Properties

Borrower Type

Permits

Cash-Out Definition

LTV Maximum ARV

Minimum FICO

Maximum Loan Amount

Loans >$1M Requirements

  • Subject Property must be typical for the neighborhood and demonstrate proven marketability for the area.
  • Subject Property is required to be in a stable or growing neighborhood market area and MSA.
  • Appraised Value of Subject Property must be similar to the Comparable Sales range and listings from the neighborhood.
  • Appraisal Comparable Sales utilized must be from the neighborhood and within a reasonable proximity to the Subject Property.
  • The Comparable Sales shall be similar to the Subject Property (bed and bath room counts, living area, property & site features).         
  • Borrower must have similar experience with Loan Amt. size and project scope within the subject property market area.


Limited Cash-Out/Delayed Financing Definition

Minimum Loan Amount

Single Family Residences, PUD, & Townhomes
2-4 Units (requires 2+ NC Experience)

75%

None (2+ new construction projects completed in the last 3 years required for loans over $750,000)
Loans in excess of $1M require the borrower has specific experience with similar project of equal size in the subject's market

Vacation properties (typically located at or near beaches, lakes or mountains) that are not supported by larger cities, economies and other industry besides tourism limited to 10% below the Max LTC. For example: Myrtle Beach SC, Pigeon Forge TN, Florida Keys FL, Martha’s Vineyard MA, etc.)

Multifamily, Condos (case by case), Rural, Mixed-Use, Manufactured, Modular, Log Homes, Farms, Storage Facilities, Commercial Properties, Land, among others as indicated in guidelines

Purchase, limited cash-out (includes delayed financing), or cash-out

Entity or Individual (see Borrower/Guarantor section below for details)

LTC Maximum

General Contractor Requirement

Loan Purpose

85%

2+ New Construction Experience: 660
0-1 New Construction Experience: 700

Initial Advance at Closing exceeds the Cost Basis of the Property
(Purchase Price + Documented Improvements Since Purchase)

$2,000,000;
0-1 New Construction Experience: $750,000

Initial Advance at Closing DOES NOT exceed the Cost Basis of the Property
(Purchase Price + Documented Improvements Since Purchase)

0-1 NC Experience: required prior to closing
2-4 NC Experience: permits must have been submitted for approval
5+ Experience: permits not required until draw
All approved permits must be submitted to lender within 90 days of loan closing

$100,000

Licensed Builder/Contractor Required.
For 0-1 New Construction Experience:
• GC required to have 3+ new construction experience
• Budget and Scope of Work must be completed by the GC

Requires 2+ NC Experience and a 5% LTV Reduction

  Loan Details

Amortization

Term Options

Budget Funding Eligible

Initial Disbursement

City Restrictions

State Restrictions

Property MSA Restrictions

Credit Tradeline Requirement

Property Condition Minimum

12 months (18 months available for 2-4 Unit Projects or at Truly discretion)

Amount Remaining After Minimum Borrower Equity Met. Not to Exceed 60% of the Land Cost Basis (purchase/unseasoned refi) or Value of the Land (seasoned refi)

Interest Only

None

None required

No limit

No minimum required

None

Budget Fully Funded up to 100% of Budget (Equity Up-Front); Soft Costs (up to 15%) Included in Lender Budget Funding

Prepayment Penalty

Cash-Out Seasoning

Maximum Cash-Out

Exception Basis Only:
Detroit, MI
Indianapolis, IN
Cleveland, OH
Baltimore, MD
Philadelphia, PA

Exception Basis Only: AK & HI. Not available in NV, ND, SD, & VT

Top 200 MSA required. For properties outside of the MSA requirement, during the loan application process within 24 hours the credit team will conduct a market area assessment for location, valuation, marketability, can several other factors to expand the lending coverage.

  Program Options




0+ NC Experience


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1+ NC Experience



















































2+ NC Experience



















































5+ NC Experience


















































Experience (Last 3 Years)

Terms

LTC

LTV

Reserves Required

*Based upon full note amount

Initial Advance

Holdback Options

Soft Costs

Contingency

Foreign National

2-4 Unit Property

Verified Minimum Reserve Requirement

Max Loan Amount

Declining Markets

Min FICO

70%

12 months (18 months available for 2-4 unit projects or at Truly discretion)

12 months (18 months available for 2-4 unit projects or at Truly discretion)

12 months (18 months available at Truly discretion)

12 months (18 months available at Truly discretion)

Up to 100% of Budget

Up to 100% of Budget

Up to 100% of Budget

Up to 100% of Budget

Up to 60% of Land

Cost-Basis/Value

Up to 60% of Land

Cost-Basis/Value

Up to 60% of Land

Cost-Basis/Value

Up to 60% of Land

Cost-Basis/Value

82.50%

Not Eligible

Excluding any cash-back to the Borrower from the transaction (Limited Cash-Out, Delayed Financing, or Cash-Out), the Borrower must document (x) months of monthly payment reserves based on the full note amount.

Excluding any cash-back to the Borrower from the transaction (Limited Cash-Out, Delayed Financing, or Cash-Out), the Borrower must document (x) months of monthly payment reserves based on the full note amount.

Excluding any cash-back to the Borrower from the transaction (Limited Cash-Out, Delayed Financing, or Cash-Out), the Borrower must document (x) months of monthly payment reserves based on the full note amount.

Excluding any cash-back to the Borrower from the transaction (Limited Cash-Out, Delayed Financing, or Cash-Out), the Borrower must document (x) months of monthly payment reserves based on the full note amount.

6 months reserves* + cash

to close + Borrower Funded

Portion of the Budget (Equity

Shortage) + 10% of the

holdback

6 months reserves* + cash

to close + Borrower Funded

Portion of the Budget (Equity

Shortage) + 10% of the

holdback

9 months reserves* + cash

to close + Borrower Funded

Portion of the Budget (Equity

Shortage) + 10% of the

holdback

9 months reserves* + cash

to close + Borrower Funded

Portion of the Budget (Equity

Shortage) + 10% of the

holdback

80%

Not Eligible

Not Eligible

70%

65%

Included

Included

$2M

$2M

Included

10% Contingency Required

10% Contingency Required

Eligible

5% Reduction in LTV

$750,000

$750,000

Not Eligible

5% Reduction in LTV

Eligible

Not Eligible

Not Eligible

Not Eligible

Not Eligible

10% Contingency Required

10% Contingency Required

660

75%

660

85%

700

700

Included

80%

  LTC Cost Basis Determination

Purchase

Unseasoned Refinance (<1 Year Ownership)

Seasoned Refinance (1 Year+ Ownership)

Lesser of Purchase Price of Lot OR As-Is Value of Lot

Lesser of Purchase Price of Lot OR As-Is Value of Lot

As-Is Value of the Lot

  Loan Count Maximums

5+ NC Experience

2-4 NC Experience

0-1 NC Experience

All Outstanding New Construction Loans,
All Property Types

Lesser of 10 or $5M

Lesser of 2 or $2M

1

  Appraisal Requirements

Two full new construction appraisals (at Lender’s discretion, an alternative valuation may be ordered in lieu of the second full appraisal when feasible)

Appraisal Requirement

Loan Amount

≤ $1,000,000

> $1,000,000

Full New Construction Appraisal (URAR, 1025, 1073)

  Borrower & Guarantor Eligibility

1) Limited Liability Company (LLC)

2) Limited Liability Partnership (LLP)

3) Limited Partnership (LP)

4) Corporation

5) Inter Vivos Revocable Trust

All entity members with ownership are required to sign a personal guarantee; At least one individual with ownership is required as a Qualifying Guarantor.

Individual Borrower

Ineligible Borrowers

Eligible Entities

Max of one Individual Borrower allowed on the loan. Individual borrowers not eligible in NJ or IL.

Not Eligible

Eligible Guarantor

Entity Guarantor Requirements

1) US Citizen

2) Permanent Resident Alien

3) Non-Permanent Resident Alien

Foreign National

Felony Convictions

1) Trusts

2) Sole Proprietorships

Felony Convictions Require an Exception

  Credit Requirements

Single Qualified Guarantor

3 FICO Scores = Use Middle Score;
2 FICO Scores = Use Lowest

Multiple Qualified Guarantors

Bankruptcy/ Foreclosure

Use Highest Middle

Mortgage Lates

No 30 day late payments in the last 12 months and no 60 day late payments in the last 48 months

Short Sale/DIL/Modification

4+ Years Seasoning

4+ Years Seasoning

  Documents Required Upfront

Borrower & Business Application 

Identification

Guarantor Application

Short-Term Application

[Truly Provided] 

Purchase Contract or HUD Statement

Broker Authorization Form

[Truly Provided]

[Truly Provided]

[Truly Provided]

Copy of currently valid, government issued, photo ID

One application per property

Contract required for all purchase loans. Refinances of properties owned fewer than six (6) months require either the Contract or HUD Statement.

If Applicable: Brokered loans only

Each Guarantor is required to complete their own personal Guarantor application. This application is good for 12 months, and can be used for subsequent loans if the entity and guarantor structure is unchanged.

This application is good for 12 months, and can be used for subsequent loans if the entity and guarantor structure is unchanged.

Budget & Project Scope

Plans & Specs

Line item budget of planned costs including an overall description of the project scope. (Any format accepted; Truly form available upon request.)

Any format accepted; Truly form available upon request.

  Documents Required In Processing

Liquidity Verification








• The most recent statement for any account needed to meet the requirement. Acceptable accounts include: checking, savings, money market accounts, CD's, brokerage accounts.
Must be complete statements -- no online screen shots.
• Sourcing for large deposits will be required in these instances:
    1) Any deposit over 10% of the subject loan amount for loan amounts up to $750K;

    2) Any deposit over 25% of the cumulative amount of documented liquid assets;
    3) All non-depository accounts with large increases in balances (more than 25%) since the previous statement balance.

Required on all loans

Insurance Declarations Page or Acord Forms

Entity Documents

Permits

Varies based on entity type. Please see chart below.

0-1 NC Experience: approved permits required prior to closing
2-4 NC Experience: permits must have been submitted for approval prior to closing
5+ NC Experience: approved permits not required until draw
All approved permits must be submitted to lender within 90 days of loan closing

LLC

LP / LLP

C-Corp / S-Corp

Trust

Required Entity Documents*

Articles of Organization

Operating Agreement

IRS SS-4 Letter

W9

W9

W9

W9

Articles of Incorporation

Stock Certificates or

Shareholder's Ledger

Corporate bylaws

Director & Officer Appointments

Trust Agreement / Certification

Partnership Agreement

Certificate of Partnership

IRS SS-4 Letter

IRS SS-4 Letter

IRS SS-4 Letter

*Truly Investor Capital will pull a Certificate of Good Standing on all entities. If subject property is located in a state other than the entity's registered state, Foreign Qualification is required.

Insurance Requirements

• 3-month policies required on purchases and refinances where existing policy expires within 30 days of closing
• Hazard coverage equal to the lesser of 100% of the insurable value as established by the property insurer or the loan amount so long as it is not less than 80% of the insurable value
• Commercial General Liability on an "occurrence" basis with coverage of no less than $500,000
• Builder's Risk coverage of no less than the amount of remaining project costs to be completed
• Condo master policy must cover 100% of the insurable replacement cost of the project improvements and HO-6 coverage sufficient to repair the condo to current condition if the master policy doesn't cover interior improvements
• Flood insurance equal to the lesser of the total amount of the mortgage, 100% of the insurable value of the improvements, or the maximum insurance available from the NFIP

Service

Cost

Payment Timing

Valuation

Foreign National Background Fee

Entity Review Fee

Lender Processing Fee

Origination Fee

3rd Party Settlement Charges

Draw Fee    (includes any inspection and wire fee)

Title Date Downs & Searches    (based on state requirements and lender discretion)

Actual Cost

Paid in Processing at time of Appraisal Order 

Paid in Processing at time of Background Order (if applicable)

Billed in Processing for Complex/ Layered Entities and Trusts

Paid at Closing

Paid at Closing

Paid at Closing

Paid at Closing

Subtracted From Wire

Actual Cost

Actual Cost

$175

Actual Cost

$0 for entities with simple structure, except Trusts; $995 for Complex or Layered Entities and all Trusts

$1,595

See Conditional Quote

Property Fees

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

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