Product Matrix

 

Portfolio Rental Loan

 

 Revised Aug. 20, 2024

  Product Overview

Loan Purpose

Borrower Type

Eligible Properties



Property Location

Required Property Count

Occupancy

Any Property in a Declining Market

Minimum DSCR

Ineligible Properties

Minimum FICO

Non-owner occupied, business purpose only

1.10 required

700

$75,000 Minimum to $1,000,000 Maximum

80% Purchase or Limited Cash-Out; 75% Cash-Out

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

Loan Amount

Min/Max Loan Amount Per Property

LTV Maximums

FL Condo Requirements


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



Purchase, limited cash-out (includes delayed financing), or cash-out
(combination of purchase and refinance in one loan not allowed)

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

• Single Family Residences, attached or detached (inc. Condo/PUD)
• 2-4 Units
• Warrantable Condo

All properties must be in the same state

Minimum 2 Properties and Maximum of 10 Properties

Rural, Mixed-Use, Manufactured, Non-Warrantable Condos, Condotels, Farms, Storage Faciliites, Commercial Properties, Land, among others as indicated in guidelines

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

5% LTV Reduction

$400,000 Minimum to $5,000,000 Maximum

  Loan Details

Amortization Options


Term Options

None required

No Limit

None required

No minimum required

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

No Restrictions

6 months PITIA or ITIA; cash out counts towards reserves

Leased Property - Lesser of Market Rents established by the Appraiser or Actual Rent. If actual rent can be documented by 3 months validation of receipt then up to 125% of the Market Rent can be utilized.

Eligible, with Long-Term market Rent from 1007 only. No Short-Term Rental Income Allowed (AirDNA or 12 Months Actual)

One closing attorney/title company must be used for all properties

120% of the allocated loan amount to the property being released and the remaining properties must meet a DSCR test of 1.00X based upon current lease agreements

Not Allowed

Full appraisal required for all loan amounts

30-Year Fixed

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

5-Year, 4-Year, 3-Year; all are declining points

Pre-Payment Penalty


Long-Term Rental Qualifying Rent


Cash-Out Seasoning

Max Cash-Out

Credit Tradeline Requirement

Value Seasoning

Vacant Refinance

Experience

Reserve Requirement

Short-Term Rental (Any Units)

Closing Requirements


Release Provisions (Life of Loan)


Property Substitution

Appraisal Requirement

  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.

Eligible Entities

Eligible Guarantor

Entity Guarantor Requirements

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

Not Eligible

Foreign National

Felony Conviction


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.

Not eligible – Entity Borrower Required

Individual Borrower

  Credit Requirements

Single Qualified Guarantor

Multiple Qualified Guarantors

Bankruptcy/Foreclosure

Mortgage Lates

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

No FICO

Short Sale/DIL/Modification

4+ Years Seasoning

4+ Years Seasoning

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

Use Highest Middle

Not Eligible

  Required Documents Upfront

Borrower & Business Application 

Identification

Guarantor Application

Property Application

[Truly Provided] 

Purchase Contract or HUD Statement

Broker Authorization Form

Short-Term Application

Rent Roll

[Truly Provided]

[Truly Provided]

[Truly Provided]

[Truly Provided]

[Truly Provided]

Copy of currently valid, government issued, photo ID

One application for loan

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

One application per property

Single Family Residences, attached or detached (inc. Condo/PUD), 2-4 Units, Warrantable Condo

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.

IF Applicable; Required for all condos (FNMA 1076 or equivalent always required in FL)

Required on all loans

[Truly Provided, unless FL]

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.

Condo Questionnaire

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.

  Required Documents Pre-Closing

Attorney's Opinion Letter Required

on Loan Amounts >$1MM or Loan

Amounts >$2MM in CA & HI

An attorney's opinion letter is essential for a mortgage loan as it safeguards both the lender and the borrower. It verifies the borrower's legal capacity, ensures the loan agreement is enforceable, and helps mitigate legal risks. For the borrower, it provides expert legal guidance and can streamline the loan process.


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
• Blanket policy covering all properties is acceptable

Service

Cost

Payment Timing

Valuation

Lender Processing Fee

Origination Fee

3rd Party Settlement Charges

3rd Party Lender's Attorney Closing Charges

Actual Cost

Paid in Processing at time of Appraisal Order 

Paid at Closing

Paid at Closing

Paid at Closing

Actual Cost

$3,000 for 2-4 properties;
add $750 for each additional property

See Conditional Quote

Actual Cost

Paid at Closing

Property Fees

  Cash Flow Coverage Calculations

DSCR is determined by this calculation (for properties except short-term rentals and 5+ 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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