Frequently Asked Question
What exactly is JIC loan?
JIC loan is a short-term, asset-based loan that provides funding for acquisition and repairs on investment properties. These loans are funded by private individuals, like the investors behind Jones Investment Company, Llc.
What are the advantages of using a JIC loan?
This type of loan allows for a simple qualification process, a more competitive offer, quicker closing, enablement of multiple purchases, and leverages your buying power to name a few.
What qualifies me for JIC loan?
The main criteria for qualification is the evaluation of the deal, property, repairs, and the ARV using comparable sales data. We make sure the borrower has cash upfront for closing costs and fees, but also cash reserves and/or collateral to support interest payments and possible refinance costs. We don't focus on your credit score or other documents typically requested by a conventional lender.
What and where does Jones Investment Company, Llc lend?
We enjoy partnering with investors nationwide and we istently strive to support the local investment communities and neighborhood revitalization efforts. We continue to launch our full services in new markets, which we announce as they become available.
How long of a period is the loan?
We typically write the notes for 10 years. Longer-term notes are available but may be subject to increased costs or interest rates.
How much cash will I need to purchase a home?
The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
- Earnest Money: The deposit that is supplied when you make an offer on the house
- Down Payment: A percentage of the cost of the home that is due at settlement
- Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
Can I get money to pay for repairs?
We loan money for the purchase, the repair costs, or both. We can include repair costs with the acquisition, as long as the loan-to-value (LTV) of the after-repair value (ARV) does not exceed 85%. Repair funds are based on the requested fund amount submitted in the Scope of Work. If you're simply looking for repair cost money, we require a minimum loan amount of $50,000. We do require a Draw Request form to be filled out to identify the completed repairs to the property, along with copies of the invoices from the contractors. After work is inspected (typically within 24-48 hours). draws can be dispersed. Typically, repair work is not paid in advance
Do I need to put any money down?
Yes. You will need money upfront for closing costs and origination fees. On some occasions, deals require a minimal down payment. You can use our Loan Calculator to help determine costs based on your loan amount.
What are typical costs associated with JIC loans?
There is no standard rate since each deal is unigue and all of our loans are custom. We price each deal based on the individual needs of our clients. However, costs do include closing costs, an origination fee ( 1%-5% of loan principal amount), and interest payments (5%-15% interest only).
What are third party fees?
Third party fees are any fees associated with the loan that are charged by parties other than Jones Investment Company, Llc. Generally, third party fees may include appraisal fees, title and closing fees, notary fees, recording fees, delivery/ courier fees, or transfer taxes.
Do I have to pay closing costs if I am an existing Jones Investment Company, Llc customer?
Yes, closing costs Have to be paid on all loans. However, depending on your loan terms and the selected loan program, Jones Investment Company, Llc may pay for some or all of your closing costs in exchange for selecting a higher interest rate.
How long does the loan process take?
The loan process varies based upon current market conditions, the program you select, how fast can the client provide the request documents and the state in which the properties or deals are located. The process generally can take as few as 3days or as long as 3weeks.
How much will I need to pay for closing costs?
The amount vou will need to pay for closing costs is determined by many factors including the loan purpose, loan type and loan state. Based on the interest rate you select, there may be loan points paid to Jones Investment Company, Llc.
Can I get Pre-approved for a mortgage?
Yes. To get Pre-approved for a purchase loan, please reach out to us via email or contact us directly to apply. A Pre-approval will consider your financial situation to determine if you are likely to qualify based on the estimated loan amount and purchase price. A Pre-approval will provide you with security, leverage and flexibility while you are searching for a home.
How long does it take to get Pre-approved?
Once you have submitted an application online or through email and submitted all documents we requested. JIC can provide you with a Pre-approval decision within 1 business day.
What is the minimum down payment allowed?
The minimum down payment Jones Investment Company, Llc allows on most conforming loan programs is 5% of the current property value or the purchase price, whichever is less. To find out if you qualify please contact us directly.
Do you charge a pre-payment penalty?
Absolutely not. Our clients are free to pay-off the loan at any time within the loan period, without incurring any additional charges or fees.
How quickly can Jones Investment Company, Llc close and fund the loan?
Typically, it takes 3-10 business days for us to fund a loan, compared to typical bank funding times of 4-8 weeks. We are able to fund much faster because our loans are funded directly the company (this is big, we personally fund every loan we approve), with minimal paperwork. Once we have the title commitment, we can usually close in 3 days or less.
I have a property under contract and need to close quickly. What should I do next?
Fill out our Loan Application or email us at info@jonesinvestmentcompanyllc.com as soon as possible and send us your contract, business plan and repair estimate(s).