Jo-Capital
Jo-Capital
Lending
We're a fully integrated lending company, experts in long-term refinancing and hard money lending for real estate investors and property owners. With extensive experience and a deep industry understanding, we're devoted to helping clients reach their financial goals. Our seasoned loan specialists offer personalized guidance, prioritizing integrity and transparency to empower clients in making informed financial choices.
Qualified Mortgages
A qualified mortgage, or QM for short, is a type of home loan that meets certain standards set by the government to protect both lenders and borrowers. These standards aim to ensure that borrowers can afford their loans and reduce the risk of default.
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Here's what makes a mortgage qualified:
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Ability to Repay: Lenders must make sure that borrowers can afford to repay the loan. They do this by looking at the borrower's income, assets, and debts.
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Certain Terms and Features: Qualified mortgages have certain terms and features, like no excessive fees or risky features such as interest-only payments or negative amortization.
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Stable Payments: Payments must be relatively stable over the life of the loan. This means no risky payment structures that could cause payments to increase sharply.
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Underwriting Standards: Lenders must follow specific underwriting standards when approving a qualified mortgage, ensuring consistency and fairness.
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Meeting these criteria means the mortgage is less risky for both the borrower and the lender. It gives borrowers more confidence that they can afford their loans and helps lenders avoid risky lending practices.
Our Products
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Conventional Loans: Conventional mortgages are not insured or guaranteed by the government. They typically require higher credit scores and down payments but offer competitive interest rates.
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FHA Loans: Insured by the Federal Housing Administration (FHA), these loans are popular among first-time homebuyers due to their low down payment requirements and flexible credit score guidelines.
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VA Loans: Guaranteed by the Department of Veterans Affairs (VA), these loans are available to eligible veterans, active-duty service members, and their families. They offer competitive interest rates, no down payment options, and relaxed credit requirements.
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Conforming Loans: These loans adhere to the loan limits set by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. They typically offer favorable terms and interest rates.
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Jumbo Loans: Jumbo mortgages exceed the conforming loan limits set by GSEs. While they don't conform to QM standards, some lenders offer jumbo QM loans that meet specific criteria to minimize risk.
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Conforming Loans: These loans adhere to the loan limits set by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. They typically offer favorable terms and interest rates.
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Jumbo Loans: Jumbo mortgages exceed the conforming loan limits set by GSEs. While they don't conform to QM standards, some lenders offer jumbo QM loans that meet specific criteria to minimize risk.
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Non- Qualified Mortgages
A non-qualified mortgage, often called a non-QM loan, is a type of home loan that doesn't meet the strict standards set by the government for qualified mortgages. Unlike qualified mortgages, which have clear guidelines to ensure borrowers can repay them, non-QM loans are more flexible but may come with higher risks.
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Here's what sets non-QM loans apart:
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Less Stringent Requirements: Non-QM loans may have more flexible requirements for things like income verification or credit scores. This can be helpful for borrowers who don't fit the mold of traditional borrowers.
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More Variety in Terms: Non-QM loans can come with a wider range of terms and features. For example, they might offer interest-only payments or allow for higher debt-to-income ratios than qualified mortgages.
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Higher Interest Rates: Because non-QM loans are riskier for lenders, they often come with higher interest rates compared to qualified mortgages. This means borrowers may end up paying more over the life of the loan.
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Potential for Adjustable Payments: Some non-QM loans might have features that allow for payments to change over time, which can be riskier for borrowers if they're not prepared for potential increases.
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Non-QM loans can be useful for borrowers who have unique financial situations or don't meet the strict criteria for qualified mortgages. However, they also come with higher risks and costs, so borrowers should carefully consider their options and make sure they understand the terms before choosing a non-QM loan.
Our Products
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Bank Statement Loans: These loans allow self-employed borrowers to qualify based on their bank statements rather than traditional income documentation, making them ideal for individuals with fluctuating income or non-traditional employment.
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Asset-Based Loans: Borrowers can qualify for these loans based on their assets, such as savings, investments, or real estate holdings, rather than traditional income verification.
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Interest-Only Loans: These loans allow borrowers to make interest-only payments for a specified period, typically 5 to 10 years, before transitioning to fully amortizing payments.
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Stated Income/Stated Asset (SISA) Loans: Borrowers can state their income and assets without providing documentation, making these loans suitable for individuals with high net worth or complex financial situations.
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Foreign National Loans: Designed for non-U.S. citizens or permanent residents, these loans allow foreign nationals to finance investment properties or second homes in the United States.
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Fix-and-Flip Loans: Short-term financing for real estate investors looking to purchase, renovate, and sell properties quickly. These loans are based on the property's potential value rather than the borrower's creditworthiness.
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Bridge Loans: Bridge financing helps borrowers bridge the gap between the purchase of a new property and the sale of an existing property. These short-term loans typically have higher interest rates and are repaid once the existing property is sold.
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Debt-Service Coverage Ratio (DSCR) Loans: These loans focus on the property's income-generating potential rather than the borrower's personal income, making them suitable for investment properties or commercial real estate.
Cash-Out Refinancing
Unlock the potential of your property's equity with a cash-out refinance—an innovative mortgage solution empowering investors to tap into their property's value. With the difference paid out in cash, investors gain financial flexibility to pursue a multitude of opportunities.
Acess to Equity
Cash-out refinancing is a powerful tool for investors, providing access to cash that can be directed towards home renovations,
consolidating debts, or fueling further property investments.
Lower Interest Rates
Cash-out refinancing opens the door to potentially lower interest rates compared to alternative borrowing options like credit cards or personal loans. This not only leads to reduced monthly payments
but also translates into significant long-term savings.
Debt Consolidation
Opting for a cash-out refinance to settle high-interest debt can yield savings on interest payments for investors. Additionally, it streamlines financial matters by consolidating multiple debts into a single monthly payment, offering convenience and potential long-term financial benefits.
Property Value Increase
Utilizing cash-out refinancing for home improvements has the potential to not only enhance the property but also yield a higher return on investment over time. This strategic approach can elevate the value of the property, ensuring a lucrative long-term outcome
Tax Benefits
In certain scenarios, investors have the potential to claim tax deductions on the interest paid for their cash-out refinancing loan. This not only offers additional savings but also contributes to making the overall cost of the loan more manageable.
Improved Cash Flow
Property owners can bolster their financial stability and cash flow by employing the cash from a cash-out refinance to eliminate high-interest debt or venture into other investments. This strategic approach enhances overall financial health, paving the way for greater stability and prosperity.
