Product Matrix

 

Standard Rehab Loan 

 

 Revised Oct. 8, 2024

  Product Overview

Experience Minimum

Properties in Declining Markets

Ineligible Project Scope

Loan Amount

  • 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.


Loans >$1M Requirements

Loans >$1M or Budgets >$250k

Eligible Properties

Eligible Properties with Special Consideration


Ineligible Properties


Borrower Type

LTV Maximum ARV

Minimum FICO

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

660 (see Program Options section for additional details)

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

None except for loans >$1M; experience with similar sized projects required

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

Non-Structural, Non-Gut Rehab

Entity or individual (see Borrower & Guarantor Eligibility section for details)

LTC Maximum

0-1 Experience Borrowers

Loan Purpose

Cash-Out Definition

Limited Cash-Out Definition/Delayed Financing Definition

Project Scope

90%

5% Reduction in LTC and LTV (2+ experience required)

75%

• New or Mid-Construction
• Structural Renovations
• Properties not structurally sound
• Removal of exterior walls (including the roof structure)
• Removal of interior load bearing walls
• Adding additional story, detached ADU or additional units
• Adding/Subtracting square feet
• Conversions
• Properties with Extensive Damage (Fire or Water)
• Full Gut Rehab (Down to the Studs)
• Budgets with Significant:
- Demo
- Framing
- Mechanical
- Rough Plumbing
- Rough Electrical

Experience similar in size and scope to the project submitted is required.
Budgets >$250k require additional review and may be deemed Extensive Rehab

Maximum budget of $100k or 50% of acquisition, whichever is less. Properties in declining markets, 2-4 unit properties, and loans over $1M are ineligible

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

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

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.)

• 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)

Loan Details

Prepayment Penalty

Property Condition Minimum

Property MSA Restrictions

State Restrictions

City Restrictions

None

Interest Only

12 months (18 months available at Truly discretion)

None

Property Condition Minimum

Credit Tradeline Requirement

Amortization

Term Options

No minimum required

Exception Basis Only:
Detroit, MI
Indianappolis, IN
Cleveland, OH
Baltimore, MD
Philidelphia, PA

Top 300 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.

None

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

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


80/10
































































85/10
































































90/90 (10% Down)































































Programs

Terms

Experience (Last 3 Years)

LTC

LTV

Cash-Out (700 Min FICO)

Initial Advance

Holdback Options

Soft Costs

Contingency

Budget Restriction

2-4 Unit Property

Non-Warrantable Condos

Declining Markets

Foreign National

Reserves Required

Verified Minimum Reserve Requirement

Max Loan Amount

Min FICO

90%

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

70% (75% 10+ Exp)

Not Eligible

90%

Up to 85%

Up to 80%

5% Reduction in LTC & LTV

70%

Not Eligible

85%

80%

Not Included

Up to 100% of Budget

Up to 100% of Budget

Included

10% Contingency Required

None

Eligible

5% Reduction in LTV

5% Reduction in LTC & LTV

5% Reduction in LTC & LTV

Not Eligible

5% Reduction in LTV

5% Reduction in LTV

Eligible

Not Eligible

None

Lesser of $100k or 50% of acquisition price

10% Contingency Required

10% Contingency Required

5+

2+

660

700

0+

700

Up to 90% of Budget

Borrower can self-fund entire budget with 10% LTC Reduction

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

$2M

$1M

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.

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

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

Not Eligible

*Based on full note amount

Not Eligible

•5% Reduction in LTC & LTV

•Max Loan Amount $1M

•5+ Experience Required

•Requires similar experience in the project's market

Included

70% (75% 5+ Exp)

  Appraisal Requirements

Appraisal Requirement

Loan Amount

≤ $1,500,000

≤ $1,500,000

Full Appraisal (alternative valuation may be ordered when feasible, at Truly’s discretion)

2 Full Appraisals

  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)

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

Ineligible Borrowers

Foreign National Requirements

Eligible Entities

Eligible Guarantor

Entity Guarantor Requirements

1) U.S. Citizen
2) Permanent Resident Alien
3) Non-Permanent Resident Alien
4) Foreign National

Felony Convictions Require an Exception

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

1) Trusts
2) Sole Proprietorships

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

Felony Convictions

Individual Borrower

  Credit Requirements

Single Qualified Guarantor

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

Multiple Qualified Guarantors

Bankruptcy/ Foreclosure

Use Highest Middle

Major Derogatory

Mortgage Lates

Short Sale/DIL/Modification

4+ Years Seasoning

4+ Years Seasoning

48 Months Seasoning

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

  Required Documents 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

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

  Required Documents in Processing

Liquidity Verification











• The most recent statement 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.

Required on all loans

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

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

Insurance Declarations Page or Acord Forms

Condo Questionnaire

Permits

Entity Documents

Varies based on entity type. Please see chart below.

[Truly Provided, unless FL]

LLC

LP / LLP

C-Corp / S-Corp

Required Entity Documents*

Articles of Organization

Operating Agreement

IRS SS-4 Letter

W9

W9

W9

Articles of Incorporation

Stock Certificates or

Shareholder's Ledger

Corporate bylaws

Director & Officer Appointments

Partnership Agreement

Certificate of Partnership

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 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)

Actual Cost

Paid in Processing at time of Appraisal Order, prior to submission

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

Billed in Processing for Complex/ Layered Entities

Paid at Closing

Paid at Closing

Paid at Closing

Subtracted From Wire

Actual Cost

$175

Actual Cost

$0 for entities with simple structure;
$995 for Complex or Layered Entities

$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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