Given that financial institutions continue to tighten credit requirements to potential applicants, JV Capital has taken on a more sensible approach to provide these applicants with financial solutions. JV Capital places a very large emphasis on the equity position of its loans to provide a safe and secure lending environment.
Much of the risk inherent in equity-based mortgage financing arises from insufficient equity remaining in the borrower’s property to satisfy their existing creditors. JV Capital mitigates this risk by capping the loan-to-value (LTV) they will lend up to on the property. The key to JV Capital’s success has been their ability to secure loans from their borrowers with substantial equity remaining in their homes. Moreover, experience has shown JV Capital that when a borrower has significant equity remaining in their home, they are much less likely to default on their loan and risk losing their home. When a loan’s one-year term expires, JV Capital can either renew the mortgage or allow the borrower to repay the mortgage back in full.