Product Matrix

 

Extensive Rehab Loan

 

 Revised Oct. 8, 2024

  Product Overview

Experience Minimum

Ineligible Project Scope

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









Eligible Properties



Eligible Properties with Special Consideration

Ineligible Properties

Borrower Type

LTV Maximum ARV

Minimum FICO

• Single Family Residences, attached or detached (inc. Condo/PUD)
• 2-4 Units
• Warrantable Condo
• Non-Warrantable Condos (5% LTV reduction from max. See guidelines for
property eligilbity)

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

75%

660

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

• Any Structural Work
• Full Gut Rehab (down to the studs)
• Budgets with Significant:
- Demo
- Framing
- Mechanical
- Rough Plumbing
- Rough Electrical

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

LTC Maximum

Loan Purpose





Project Scope




85%

New or Mid-Construction; Conversions; Mid-Rehab Refinance paying off a loan; Properties with Extensive Damage (Fire or Water)

$100,000 Minimum to $2,000,000

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

2+ investment properties rehabbed or constructed and sold or stabilized in the last 3 years. Loans >$1M required experience with similar sized projects

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

Cash-Out Definition

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 5% below the Max LTC. For example: Myrtle Beach SC, Pigeon Forge TN, Florida Keys FL, Martha's Vineyard MA, etc.)

  Loan Details

Amortization

Term Options

Budget Funding Requirements

Ineligible Budget Funding

Credit Tradeline Requirement

Property Condition Minimum

Borrower funded budgets

Interest Only

None

None required

No limit

None

None

Prepayment Penalty

Cash-Out Seasoning

Maximum Cash-Out

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

Budget must be fully funded (up to 100%), Soft Costs included in the budget must be funded. 10% Contingency required



City Restrictions

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

State Restrictions

Property MSA Restrictions

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.

  LTC Cost Basis Determination

Purchase

Unseasoned Refinance (<180 Days Ownership)

Seasoned Refinance (180+ Days Ownership)

Lesser of Purchase Price OR As-is Value

Lesser of Purchase Price + Completed Improvements OR As-is Value

As-Is Value (Max 125% of purchase price plus completed improvements for properties seasoned between 6 and 12 months)

Program Options


2













































































5+













































































Terms

Experience (Last 3 Years)

LTC

LTV

Cash-Out (700 Min FICO)

Initial Advance

Holdback Options

Soft Costs

Contingency

2-4 Unit Property

Non-Warrantable Condos

Declining Markets

Foreign National

Reserves Required

Verified Minimum Reserve Requirement

Max Loan Amount

Min FICO

85%

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)

75%

5% Reduction in LTC & LTV

Up to 85%

Up to 80%

5% Reduction in LTC & LTV

80%

Included

Up to 100% of Budget

Included

10% Contingency Required

Eligible

5% Reduction in LTV

5% Reduction in LTC & LTV

5% Reduction in LTC & LTV

5% Reduction in LTV

Eligible

10% Contingency Required

700

660

Up to 100% of Budget

6 months reserves* + cash to close + Borrower Funded Portion of the Budget (Equity Shortage) + 10% of the holdback

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.

$2M



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.

12 months reserves* + cash to close + Borrower Funded Portion of the Budget (Equity Shortage) + 10% of the holdback

Not Eligible

*Based on full note amount

•5% Reduction in LTC & LTV

•Max Loan Amount $1M

•5+ Experience Required

•Requires similar experience in the project's market

70%

$2M

  Appraisal Requirements

Appraisal Requirement

Loan Amount

≤ $1,500,000

> $1,500,000

Full appraisal required

Two full appraisals required

  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

Eligible Entities


Eligible Guarantor



Entity Guarantor Requirements


1) US Citizen

2) Permanent Resident Alien

3) Non-Permanent Resident Alien

4) Foreign National

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



Foreign National Requirements


• 5% LTC <TV reduction
• Max $1M loan amount
• Requires similar experience in the project’s market
• 12 months reserves required
• 5+ experience

  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.

Rehab 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



Condo Questionnaire


Varies based on entity type. Please see chart below.

If project requires permits, all approved permits must be submitted to lender within 90 days of loan closing

If applicable. Required for all condos (FNMA 1076 or equivalent always required in FL)

[Truly Provided, unless FL]

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
• 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
• Builder's Risk coverage of no less than the amount of remaining project costs to be completed.
• 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

Subtracted From Wire

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