Product Matrix

 

Single Property Rental Loan

Expanded

 

 Revised Apr. 19, 2024

  Product Overview

Loan Purpose

Borrower Type

Eligible Properties


Ineligible Properties

Occupancy

Minimum DSCR

Loan Amount

FL Condo Requirements

Minimum FICO

660

Non-owner Occupied

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

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

Rural, Mixed-Use, Manufactured, Farms, Storage Facilities, Commercial Properties, Land, among others as indicated in guidelines

• Single Family Residences, attached or detached (inc. PUD)
• 2-4 Unit (75% max LTV)
• Warrantable Condo (75% max LTV)
• Non-Warrantable Condo (5% reduction in LTV from max LTV. See new Appendix B to SPR Guidelines)

0.80

$100,000 Minimum to $3,000,000 Maximum

Condos >25 years old and >5 stories must have an acceptable structural inspection reflecting no structural issues

Properties listed and on the market for longer than 180 days; Credit Policy review & exception required. The lowest list price since the property has been listed on MLS must be utilized for loan valuation purposes


Refinances of a Property Listed for Sale in the last 6 Months


  Loan to Value Maximums

DSCR < 1.00x











Min FICO

Loan Amount

Purchase

Limited  Cash-Out

Cash-Out

700

660

≤ $1 MM

≤ $3 MM

≤ $1 MM

≤ $2 MM

≤ $2 MM

70

70

70

70

N/A

65

70

70

65

65

65

60

70

65

N/A

  Loan Details

Amortization Options

Term Options

None required

None required

No minimum required

< 180 days uses lesser of purchase price + completed improvements OR appraised value

No Restrictions

Lesser of appraised market rent or actual rent; Up to 125% of appraised market rent can be used with 3 months of documented rent receipts

$1,000,000 (not applicable to delayed financing)

Pre-Payment Penalty

Qualifying Rent for Long-Term 1-4 Unit

Cash-Out Seasoning

Max Cash-Out

Credit Tradeline Requirement

Value Seasoning

Vacant Refinance

Experience

Reserve Requirement

Short-Term Rental (Any Units)

30-Year Fixed, 40-Year Fixed

Full Amortization or Interest Only for 10 Years, amortized over remaining term (75% max LTV for IO)

5-Year, 3-Year, 2-Year, 1-Year, all are declining points; or 4-Year

6 months PITIA or ITIA; cash out counts towards reserves

• 1-4 Unit only in C3 or better condition
• Refinances must reflect a furnished property
• Purchase 75% max LTV; Refinance max 70% LTV
• >50% occupancy and 4 comps in same zip code and 12 month forecast from AirDNA OR Short-Term Rents on 1007 eligible with 3 supporting comps
• 80% of the lesser of 12 months documented income or market rents used to qualify (only market rents considered if 12 months can't be documented)

  Borrower & Guarantor Eligibility

1) Limited Liability Company (LLC)
2) Limited Liability Partnership (LLP)
3) Limited Liability Limited Partnership (LLLP)
4) Limited Partnership (LP)
5) Corporation (C Corp or S Corp)
6) 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

Felony Convictions

Eligible Entities

Max of (4) Individual Borrowers allowed on the loan. Individual borrowers not eligible in NJ or IL.

Any felony against any Qualifying Guarantor or any Non-Qualifying Guarantor who has 25% or more ownership in the borrowing entity will make the loan ineligible.

Eligible Guarantor

Entity Guarantor Requirements

1) US Citizen
2) Permanent Resident Alien
3) Non-Permanent Resident Alien

  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

Major Derogatory

Short Sale/DIL/Modification

4+ Years Seasoning

4+ Years Seasoning

48 Months Seasoning

  Appraisal Requirements

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

Appraisal Requirement

Loan Amount

≤ $1,500,000

> $1,500,000

Full appraisal (at Lender’s discretion, an alternative valuation may be ordered when feasible)

  Required Documents Upfront

Borrower & Business Application 

Identification

Guarantor Application

Property Application for Single Rental Loan

[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.

  Required Documents in Processing

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Borrower & Business Application 

Liquidity Verification

• Two most recent statements for any account needed to meet the requirement. Acceptable accounts include: checking, savings, money market accounts, CDs, 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.
If applicable; For Section 8 properties.
Required on all loans

HAP/HUD contract/voucher

Insurance Declarations Page or Acord Forms

Entity Documents

Lease Agreement(s)

Varies based on entity type. Please see chart below.

Fully executed lease agreement(s) for subject property.

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

• 12-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 or Premises Liability on an "occurrence" basis with coverage of no less than $500,000
• 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
• Rent loss coverage in an amount no less than 6 months’ rent as determined by the insurer or 10% of the loan amount
• 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

Entity Review Fee

Lender Processing Fee

Origination Fee

3rd Party Settlement Charges

Closing

Actual Cost
Paid in Processing at time of Appraisal Order
Billed in Processing for Complex/ Layered Entities and Trusts
Paid at Closing
Paid at Closing
Paid at Closing
Paid at Closing
Actual Cost

$500

$0 for entities with simple structure, except Trusts; $995 for Complex or Layered Entities
and all Trusts
$1,295
See Conditional Quote

Property Fees

  Cash Flow Coverage Calculations

Single Rental DSCR is determined by this calculation (for properties except short-term rentals, mixed-use, or 5-8 units):


Qualifying Rent

________________________

PITIA Payment

Example calculation:

Qualifying Rent

Market Rent From Appraisal

$2,600

$2,600

$2,700

Qualifying Rent

Actual Monthly Rent From Lease

Qualifying Rent

Actual Monthly Rent From Lease

Market Rent From Appraisal

Qualifying Rent

$2,600

$2,700

$2,600

Payment Breakdown

Principal & Interest or

Interest Only Payment

Monthly Taxes

Monthly Insurance

Monthly HOA Dues

PITIA or ITIA Payment

$1,618

$250

$150

$0

$2,018

DSCR Calculation

Qualifying Rent

DSCR

PITIA or ITIA Payment

    $2,600

      1.28

÷ $2,018

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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