Product Matrix

 

Single Property Rental Loan
Multifamily

 

 Revised Apr. 19, 2024

 

  Product Overview

 

Loan Purpose

Borrower Type

Eligible Properties

Occupancy

Minimum DSCR


Ineligible Properties


Minimum FICO

700

Non-owner Occupied

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

Entity only (see Borrower/Guarantor section below for details)

5-8 Unit Multifamily

Any properties listed for sale in the last 6 months. Rural, Mixed-Use, Manufactured, Farms, Storage Facilities, Commercial Properties, Land, among others as indicated in guidelines

1.00 required

$250,000 Minimum to $3,000,000 Maximum

Loan Amount

 

  Loan to Value Maximums

 

DSCR ≥ 1.00x








Min FICO

Loan Amount

Purchase

Limited
Cash-Out

Cash-Out

700

≤ $1.5 MM

≤ $2 MM

70

65

65

75

70

65

  Loan Details

Amortization Options

Term Options

None required

1 rehabbed or constructed property sold or stabilized in the last 36 months OR 12 months experience owning income-producing real estate within the most recent 36 months

No minimum required

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

Maximum of 1 vacant unit. Underwritten rent will be Market Rent as established by the Appraiser and will be subject to the 15% haircut to account for common expenditures.

Pre-Payment Penalty

Cash-Out Seasoning

Max Cash-Out

Credit Tradeline Requirement

Value Seasoning

Vacancy

Experience

30-Year Fixed

Full Amortization or
Interest Only for 10 Years, amortized over remaining term

5-Year declining points or 4-Year, 3-Year, 2-Year, 1-Year all 3% fixed or No
Prepayment Penalty (required in AK, KS, Ml, MN, NM, OH, PA, RI)

No limit

Qualifying Rent

Reserve Requirement

Short-Term Rental (Any Units)

6 months PITIA or ITIA for loan amounts ≤ $1.5 MM;
9 months PITIA or ITIA for loan amounts > $1.5 MM;
Cash-Out counts towards reserve requirement

Not Eligible

A 15% haircut to underwritten rent is applied by Advantage to account for common expenditures. Underwritten rent will be the lesser of Market Rents as established by the Appraiser or Actual Rent. If actual rent can be documented by 3 months validation of receipt, then up to 125% of market rent can be utilized.

  Appraisal Requirements

Transferred appraisals are not eligible. 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

Transferred appraisals are not eligible. Full appraisal (at Lender’s discretion, an alternative valuation may be ordered when feasible)

  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

Eligible Entities

Not eligible

Eligible Guarantor

Entity Guarantor Requirements

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

Not eligible

Foreign National

  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

No FICO

Short Sale/DIL/Modification

4+ Years Seasoning

4+ Years Seasoning

Not Eligible

  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 $100,000 per occurance and $2,000,000 aggregate
• 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
$1,495
See Conditional Quote

Property Fees

  Cash Flow Coverage Calculations

DSCR for a Multifamily Single Property Rental is determined by this calculation:


Net Operating Income

________________________


P&I or I/O 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

Gross Qualifying Rent

Qualifying Rent after 15% haircut

$2,600

$2,700

$2,600

$2,210

Net Operating Income Breakdown

Qualifying Rent

Monthly Taxes

Monthly Insurance

Monthly HOA Dues

Net Operating Income

$2,210

- $250

- $150

- $0

$1,810

DSCR Calculation

Net Operating Income

DSCR

P&I or I/O Payment

    $1,810

      1.11

÷ $1,618

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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