JVM Lending FAQs

JVM Lending is a renowned mortgage lender with offices in Dallas, Texas, and Walnut Creek, California, and a very strong presence in all of the states we’re licensed in, including Oregon, Arizona, Tennessee, Florida, and Illinois. We provide home purchase loans, rate-and-term refinances, cash-out refinances, bridge loans, and home equity loans – along with every type of mortgage available, including VA, FHA, Jumbo, Down Payment Assistance, Non-QM, and numerous specialty products for first-time homebuyers. We are licensed in 11 states, with a focus on low rates, very fast closings, guaranteed 60-minute response times (during business hours), and a team-based service model with no commission loan officers that garners our extraordinary number of five-star reviews.

Learn more on our About Us page or read our client testimonials.

JVM Lending is licensed to originate mortgages in 11 states: Arizona, California, Florida, Georgia, Idaho, Illinois, Louisiana, Massachusetts, Oregon, Tennessee, and Texas. Full licensing details are available on the NMLS Consumer Access site

If your home purchase or refinance is in one of these states, visit our locations page for state-specific information or check today’s rates.

We eliminated the loan officer role to offer lower rates and better service.

1. Traditional loan officers earn large commissions that get baked into your rate.
2. Loan officers often act as communication bottlenecks because most questions and problems need to be addressed by that one person.
3. We discovered that clients prefer expert advisors over high-pressure salespeople.

The result: lower rates, faster responses (guaranteed within 60 minutes during business hours), consistent service no matter who you engage, and much happier clients.

Read more about our no loan officer model or learn about our company.

JVM Lending can close most purchase loans in as little as 10 calendar days from contract to keys, compared to the industry average of 30 to 45 days. This speed comes from in-house underwriting, a dedicated local appraiser network, and a fully pre-underwritten pre-approval process that removes most surprises before you’re in escrow. VA loans require longer (typically 21 days) because of third-party VA appraisal timelines. A fast close also makes your offer more competitive, since sellers prioritize certainty of closing.

Learn more about our fast 10-day close or get pre-approved to start.

JVM Lending combines low rates (marketed at roughly 0.25% below the national average), fast closings (as little as 10 days), and a team-based service model with no commission loan officers. We back our process with the Rate Drop Free-fi™ program (refinance for free if rates fall within 36 months), a 60-minute response guarantee, 7-day-a-week availability, and a 5.0-star rating across 1,300+ reviews. Our pre-approvals are fully pre-underwritten, which means stronger offers and fewer last-minute surprises.

JVM Lending is a hybrid lender, meaning we operate as both a direct lender and a broker. This dual capability lets us choose the most efficient path for each loan: we underwrite and fund many loans in-house through our affiliated mortgage bank, Vellum Mortgage, Inc., and broker others to outside investors when that delivers a better rate or loan terms for the borrower. The flexibility is a major reason we can close in as little as 10 days and offer rates below the national average. We’re not a commercial bank, so we don’t handle deposits or checking accounts. Our sole focus is residential mortgage lending, made possible by our no loan officer model.

Vellum Mortgage, Inc. is our affiliated mortgage bank that underwrites and funds JVM Lending’s loans. A mortgage bank exists solely to underwrite and fund mortgages (different from a commercial bank that holds deposits). JVM Lending operates independently with its own team, tech stack, marketing, and systems, but we affiliate with Vellum to access the lower rates and faster funding a larger mortgage bank can deliver. Because of regulatory requirements, you’ll see Vellum’s name on some of your loan disclosures, but all your interactions are with JVM Lending.

No, JVM Lending does not service the loans it funds. “Servicing” means collecting your monthly payments, managing your escrow account and amortization schedule, handling tax and insurance disbursements, and answering any questions you might have about your loan. After we fund your loan, we sell it on the secondary mortgage market, which is how we make money while keeping your rate low. The servicing rights transfer with the loan, so your servicer is determined by the investor who buys it. Many investors are also servicers, and they demand the servicing rights with their purchase. Other investors, however, will buy our mortgages and the servicing rights, but farm out or sell the servicing to another company. And other investors still just buy mortgages, allowing us to sell your servicing rights separately. You’ll be notified in writing when a servicer takes over your loan, and when your servicer changes (which can happen over the life of the loan). No matter who your servicer is, though, your loan terms will always stay exactly the same.

JVM Lending operates under Vellum Mortgage, Inc., NMLS #1657323, and is an Equal Housing Opportunity lender. You can verify our licensing on the NMLS Consumer Access portal. We’re licensed in 11 states and operate under the California Residential Mortgage Lending Act, regulated by the California Department of Financial Protection and Innovation. Full state-by-state licensing details, including Texas Recovery Fund Notice and complaint procedures, are available on our licensing page.

You can reach JVM Lending by phone, text, or email 7 days a week, with a guaranteed 60-minute response time during weekday and weekend business hours.

• Phone / text: (855) 855-4491
• Email: hello@jvmlending.com
• Hours: Monday-Friday 8 am-6 pm, Saturday-Sunday 10 am-5 pm (Pacific)
• Office: 1212 Broadway Plaza, Suite 2100, Walnut Creek, CA 94596

Visit our full contact page or get started to begin your application.

Our Rate Drop Free-fi™ lets you refinance your JVM purchase loan at no cost if rates drop within 36 months of closing. If rates fall, JVM covers your refinance closing costs through a lender credit:

• Up to $4,500 on refinance loan amounts of $350,000 or more
• Up to $1,500 on refinance loan amounts between $150,000 and $349,999

You can use the program as many times as the early payoff restriction (typically 180 days after each closing) allows.

Eligibility highlights:

• Primary residence purchase loan with JVM Lending
• Original purchase closing date between 10/24/2022 and 12/31/2026
• Minimum loan amount of $150,000
• Refinance rate lock between 120 days and 36 months from the original purchase closing date
• Same subject property as the original purchase loan

The offer is not available to Oregon consumers and cannot be combined with other JVM promotional offers. Specialty programs (DPA, Non-QM, brokered/wholesale, bridge loans) may have additional eligibility requirements.

See full terms on the Rate Drop Free-fi™ program page

JVM Lending can close most purchase loans in as little as 10 calendar days from contract to keys, compared to the 30-to-45-day industry average. This speed comes from in-house underwriting, a dedicated local appraiser network, and fully pre-underwritten pre-approvals.

Some loan types require longer closing periods, including VA loans (typically 21 days) due to third-party VA appraisal timelines.

A fast close strengthens your offer because sellers prioritize certainty of closing over price alone, giving you a real edge in competitive markets.

Learn more about our fast 10-day close.

The First-Time Buyer Rate Discount offers qualifying first-time homebuyers an interest rate 1% lower than market with as little as 3% down. The program is designed to help new buyers overcome the two biggest hurdles to homeownership: high monthly payments and large down payments.

A lower rate also expands your buying power, since the same monthly payment qualifies you for a larger loan amount. Eligibility and program terms are confirmed during pre-approval.

See program details and eligibility.

EasyPath is JVM Lending’s buy-before-you-sell solution that guarantees the sale of your current home within 180 days of buying your new one. Through a partnership with an outside investor, you receive a fully ratified, non-contingent contract to purchase your existing home at a set price. This contract lets underwriters ignore your current mortgage payment when calculating your debt-to-income (DTI) ratio, making it possible to qualify for your new home without selling first.

How the 180-day guarantee works:

• List and sell your home on the open market within 180 days → keep 100% of the profits after paying the flat program fee
• If your home doesn’t sell within 180 days, the EasyPath investor purchases it and resells it → you keep 90% of the net profits

Program highlights:

• One-time flat fee of $2,500 (or $3,500 for homes valued over $1.3M)
• Minimum 25% equity in current home
• Minimum 3% down payment on the new home
• Eligible for conventional, jumbo, and VA loans
• Primary residences only
• Roughly 10x more affordable than a typical bridge loan

Explore the EasyPath program or compare with bridge loan options.

The FREE 2-1 Temporary Buydown lowers your interest rate by 2% in year one and 1% in year two, with no cost to you. JVM funds the buydown with a lender credit. Our free buydown significantly reduces your monthly payment during the first two years of your loan, when most buyers feel the biggest cash-flow squeeze.

Starting in year three, your rate returns to the original locked rate for the remainder of the loan term. If rates fall during the buydown period, you can refinance at no cost through our Rate Drop Free-fi™ – and any unused portion of the cost of the buydown gets applied to your principal.

Learn more about the FREE 2-1 Temporary Buydown.

JVM Lending guarantees a 60-minute response to every client email or call during business hours. This is a core benefit of our team-based service model.

Because every member of your JVM team is up to speed on your file, you don’t have to wait for one specific person to be available (a major bottleneck at other lenders). Whoever responds can answer your question, update your file, or move your loan forward immediately.

But please rest assured that your primary Client Advisor will always be fully aware of everything, in charge, and available if you need them.

We’re available 7 days a week:

• Monday-Friday: 8 am-6 pm Pacific
• Saturday-Sunday: 10 am-5 pm Pacific

See how our team works or contact us directly.

JVM Lending offers a full range of home loans for purchase, refinance, and home equity needs. Explore our complete loan types page or use the categories below:

Conventional (Conforming) loans — backed by Fannie Mae and Freddie Mac, available in fixed or adjustable terms:

• 30-Year Fixed-Rate
• 15-Year Fixed-Rate
• Adjustable-rate mortgages (ARM)

Government-backed loans:

• FHA loans
• VA loans

Specialty and high-balance loans:

• Jumbo loans
• Bridge loans
• Non-QM loans
• Investment property loans
• DSCR loans for investors
• No income verification loans

Refinance and home equity:

• Rate-and-term refinance
• Cash-out refinance
• No-cost refinance
• Home equity loans
• HELOCs

Not sure which loan is right for you? Try our Find My Loan Match tool.

A conventional loan is a mortgage not directly backed by the federal government. Most conventional loans “conform” to guidelines set by Fannie Mae and Freddie Mac, and they are known as “conforming loans” as a result. These are the most common loan type of loan for buyers with solid credit and a reasonable down payment. But there are many conventional loans that are “non-conforming.” These primarily include “jumbo loans” or loans that are too large to meet Fannie Mae and Freddie Mac guidelines.

Key differences between conventional and FHA loans:

• Backing: Conventional loans are technically “guaranteed” by the federal government through Fannie Mae and Freddie Mac, but they are not directly insured by the federal government. FHA loans are directly insured by the federal government via Federal Housing Administration.
• Down payment: Conventional loans require as little as 3% down for qualified buyers who do not exceed income limits, but the more common down payment is 5% or more. FHA loans require 3.5% down.
• Mortgage insurance: Conventional loans require PMI when you put less than 20% down, but PMI can be removed once you reach 20% equity. FHA loans require mortgage insurance for the life of the loan in most cases, regardless of down payment.
• Upfront insurance fee: Conventional loans have no upfront mortgage insurance premium. FHA loans charge 1.75% of the loan amount upfront, irrespective of the down payment amount.
• Credit flexibility: Conventional loans have stricter credit requirements. FHA loans are more flexible for borrowers with lower credit scores or higher debt ratios.

Which is better? Conventional is almost always the better choice for stronger borrowers with good credit and 5% or more to put down, since you avoid FHA’s upfront and lifetime mortgage insurance premiums. FHA is often the better fit for buyers with credit scores under 700, limited funds, or higher debt ratios.

Compare 30-year fixed-rate and FHA loan options.

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. FHA loans are designed to help buyers who may not qualify for conventional financing, with more flexible credit and down payment requirements.

FHA basics:

• Minimum down payment: 3.5%
• Credit score: More flexible than conventional (typically 580+)
• Debt-to-income ratio: More lenient, up to 56%.
• Mortgage insurance: Upfront premium of 1.75% of the loan amount plus a monthly premium (typically 0.55% annually) that lasts for the life of the loan in most cases
• Gift funds: 100% of the down payment can come from gift funds

FHA is often the right fit for:

• Buyers with credit scores below 700
• Buyers with limited savings for a down payment
• Buyers with higher debt-to-income ratios
• First-time homebuyers
• Buyers who have had major credit events, like bankruptcy or foreclosure
• Condo buyers who need more flexibility compared to Conventional guidelines

Borrowers with credit scores 700 or higher, even those putting as little as 3-5% down, should compare FHA to Conventional financing, since lifetime mortgage insurance on FHA loans may offset the lower interest rate. Learn more about FHA loans.

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs, available to eligible service members, veterans, and surviving spouses. VA loans are one of the most desirable financing options available because they require no down payment, no monthly mortgage insurance, and offer some of the lowest interest rates in the market.

Key VA loan benefits:

• 0% down payment required
• No loan limits for borrowers with full entitlement
• No monthly mortgage insurance, regardless of down payment
• Lower interest rates than conventional in most cases
• Flexible credit and debt-to-income guidelines
• VA funding fee can be financed into the loan or waived depending on Veteran’s disability.

Who is eligible:

• Active-duty service members
• Veterans with qualifying service history
• Members of the National Guard and Reserves
• Surviving spouses of service members who died in the line of duty or from a service-connected disability

VA loans typically take 21 calendar days to close (vs. our 10-day standard) because they require a VA-approved appraiser, which we coordinate through the VA’s appraisal network.

Learn more about VA loans or our dedicated VA home loan experts.

A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA) for Fannie Mae and Freddie Mac. For 2026, the baseline conforming limit is $832,750 for a one-unit property in most U.S. counties, with a high-cost area ceiling of $1,249,125 in designated markets. Loan amounts above the applicable limit are considered jumbo and follow different underwriting guidelines.

Jumbo loan characteristics:

• Used for higher-priced homes, especially in California and other high-cost markets
• Typically require larger down payments (often 10% or more)
• Generally require stronger credit profiles and lower debt-to-income ratios
• May require additional reserves (cash on hand after closing)

JVM’s jumbo advantage: Our jumbo rates are currently among the lowest available, especially for well-qualified borrowers, often beating conventional conforming rates for high-balance loans. We have direct relationships with the leading jumbo investors, which lets us offer better pricing than most lenders.

Learn more about jumbo loans or check today’s rates.

An adjustable-rate mortgage (ARM) is a loan with an interest rate that’s fixed for an initial period, then adjusts periodically based on a market index. ARMs typically offer lower initial rates than fixed-rate loans, making them appealing for buyers who don’t plan to stay in the home long term. ARM loan structures are available with Conventional, FHA, VA, and Jumbo programs.

Common ARM structures:

• 5/6 ARM: Fixed for 5 years, then adjusts every 6 months for the remaining loan term
• 7/6 ARM: Fixed for 7 years, then adjusts every 6 months for the remaining loan term
• 10/6 ARM: Fixed for 10 years, then adjusts every 6 months for the remaining loan term

Key ARM terms:

• Index: The market benchmark used to set future rate adjustments after the introductory fixed-rate period (commonly SOFR)
• Margin: The fixed percentage added to the index to determine your new rate once the loan begins to adjust
• Caps: Limits on how much your rate can increase at each adjustment and over the life of the loan

When an ARM makes sense:

If you plan to sell or refinance within the initial fixed-rate period (typically 5-10 years), an ARM can save you significantly compared to a 30-year fixed. If you plan to stay long term, a fixed-rate loan is usually the safer choice.

Learn more about adjustable-rate mortgages.

A bridge loan is a short-term loan that lets you tap your current home’s equity to fund the down payment or purchase of a new home before you sell the old one. JVM Lending offers multiple bridge solutions, including some extremely affordable Bridge Loan Alternatives, such as JVM’s EasyPath mortgage.

When a bridge loan makes sense:

• You’ve found your next home but haven’t sold your current one
• You need access to your home’s equity for the new down payment
• You want to make a non-contingent offer to compete in a hot market
• You don’t have time to wait for your current home to sell

EasyPath is JVM’s best buy-before-you-sell solution. For most clients, our EasyPath program is a more affordable and flexible alternative to a traditional bridge loan. EasyPath doesn’t lend you money directly, but it guarantees the sale of your current home within 180 days, removing the old mortgage payment from your debt-to-income ratio so you can qualify for the new purchase. The flat fee is roughly 10x cheaper than typical bridge loan costs.

Many JVM clients combine programs together: a HELOC or bridge loan for the down payment funds, plus EasyPath for DTI relief.

Learn more about bridge loans or EasyPath.

A Non-QM (Non-Qualified Mortgage) loan is a home loan that doesn’t meet the standard documentation or underwriting rules required for conventional, FHA, VA, or jumbo loans. Non-QM loans are designed for borrowers who don’t fit traditional underwriting boxes but are still creditworthy.

JVM Lending’s main Non-QM loan options:

• Bank statement loans: Qualify using business or personal bank statement deposits instead of tax returns. Ideal for self-employed borrowers and contractors/1099 employees whose write-offs reduce reported income. See our 12-month bank statement loan for more details.
• No-income-verification loans: Qualify based on liquid assets or other alternative criteria without verifying personal income. Especially useful for retirees, asset-rich borrowers, and high-net-worth buyers.
• DSCR loans: Qualify based on the rental income of the subject investment property rather than personal income.
• ITIN mortgage loans: Available to borrowers without a Social Security number who file taxes using an Individual Taxpayer Identification Number.

Trade-offs to expect:

• Slightly higher interest rates or fees than conventional or jumbo loans
• Larger down payment requirements (10%+)
• More flexible documentation (bank statements, P&L statements, asset verification)

Non-QM loans are not a fallback; they’re a strategic tool for creditworthy borrowers whose income or financial profile doesn’t translate well to conventional underwriting. Learn more about Non-QM loan options.

A DSCR (Debt Service Coverage Ratio) loan is an investment property loan that qualifies the borrower based on the subject property’s rental income rather than the borrower’s personal income. This makes DSCR loans ideal for real estate investors who want to scale a portfolio without being limited by personal debt-to-income calculations or without being bogged down by tax returns and paperwork.

How DSCR loans work:

• Lenders calculate the property’s expected rental income vs. the new mortgage payment
• The “DSCR” is the ratio: rental income ÷ total housing payment (principal, interest, taxes, insurance, and HOA dues)
• A DSCR of 1.0 means rent equals the payment; 1.25 means rent exceeds the payment by 25%

Key DSCR benefits:

• No personal income documentation required (no tax returns, W-2s, or paystubs)
• Faster qualification for experienced investors
• Easier to qualify for multiple properties
• Property cash flow drives the approval, not personal DTI

Typical requirements:

• Minimum 20% down payment
• Credit score of 640 or higher
• Property must generate enough rent to support the DSCR threshold
• A lower DSCR or lower credit score may require higher down payments

Learn more about DSCR loans on our Non-QM loan types page.

Yes! JVM Lending offers home equity loans, HELOCs, renovation loans, and land loans.

Available home equity products:

• Home Equity Loan: A fixed-rate second mortgage that gives you a lump sum based on your home’s equity, repaid over a set term
• HELOC: A revolving line of credit secured by your home’s equity, allowing you to draw funds as needed
• Renovation Loan: A 1st or 2nd loan that lends you money based on the home’s value AFTER repairs are completed. This includes funding for building value-add projects like Additional Dwelling Units (ADUs), pools, or home expansion. Our programs do not currently support ground-up construction.
• Land Loan: a loan used for purchasing raw, undeveloped land that will eventually be developed to add a 1-4 unit residential home.

Both Home Equity Loans and HELOCs options let you tap your home’s equity without refinancing your primary mortgage, which is especially valuable when you want to keep a low first-mortgage rate intact.

Not currently offered:

• Ground-up construction loans
• USDA loans

If you’re looking to fund a renovation project, a land loan, a cash-out refinance, home equity loan, or HELOC may still be a viable alternative depending on your situation. Compare options with our refinance calculator.

Yes. JVM Lending offers financing for a wide range of property types beyond primary single-family homes.

Property types we finance:

• Investment properties: Minimum 20% down typically required; both traditional and DSCR financing available
• Second homes: Rates on par with investment properties, but only a 10% down payment required.
• Condos: Warrantable and non-warrantable condos are both eligible (non-warrantable condos typically require a higher rate and down payment)
• Multi-unit properties: 2-to-4-unit properties available for both owner-occupied and investment use

Manufactured homes: Eligible if they are built after 1976, have a permanent foundation, and the buyer also owns the land underneath the home (no lot leases).

What to expect:

• Investment properties and multi-unit homes typically carry slightly higher rates than primary residences
• Condos may have additional underwriting on the HOA (financials, owner-occupancy ratio, insurance coverage)
• Multi-unit primary residences (owner-occupied 2-4 units) qualify for many of the same low-down-payment programs as single-family homes

Learn more about investment property loans or find your loan match.

JVM Lending can complete a pre-approval in as little as one hour if we receive a complete application upfront, or if you request a rush. Please always reach out to our team if you are up against a deadline. We are always happy to help expedite reviews

To ensure you don’t miss an opportunity. For standard applications, expect a pre-approval update within 1 to 2 days at most. Pre-approval is the only credential most sellers will accept with an offer.

Pre-approval vs. pre-qualification:

• Pre-qualification is an informal estimate of qualification based on what you tell a lender about your income, assets, and credit. No documentation is verified. Sellers and listing agents generally do not consider pre-qualification letters credible.
• Pre-approval is a formal review of your verified income, assets, credit report, and debt obligations. At JVM, every pre-approval is fully pre-underwritten, so the so our qualifications are much more reliable. Sellers strongly prefer offers backed by a true pre-approval letter.

A formal pre-approval letter also makes your offer more competitive when paired with our fast 10-day close. Quick closes and formal pre-approvals with a reputable lender can help get offers accepted in competitive markets – sellers often choose a faster, more certain close over a higher price.

Learn more about how to get pre-approved.

To get pre-approved, you’ll provide income, asset, and identity documentation. We send a personalized document checklist after you start your application, but here’s what to expect:

Income documentation:

• Most recent 30 days of paystubs
• W-2s from the past 2 years
• Federal tax returns from the past 2 years (all schedules)
• Year-to-date Profit & Loss statement (self-employed borrowers)

Asset documentation:

• Most recent 2 months of statements for all bank, brokerage, and retirement accounts (all pages)

Identity and other:

• Government-issued photo ID
• Authorization for JVM to pull your credit report
• Explanation letters for any unusual deposits, employment gaps, or credit events

Borrowers using jumbo, Non-QM, or other special financing may follow different documentation paths.

If preferred, our application portal will also give an option to direct link bank accounts to help with a more streamlined Underwriting experience.

Get started on the pre-approval page

JVM pre-approval letters never expire as long as your financial situation doesn’t change. If anything changes (income, employment, debts, assets, credit), simply request an updated pre-approval letter and your JVM team will request any updated items needed to process the change.

We also customize your pre-approval letter for each specific offer you make. Rather than handing out one generic letter showing your maximum purchase price, your JVM team tailors the letter to match each offer price, which protects you from inadvertently signaling to sellers that you’re willing to pay more.

Learn more about how pre-approval works.

JVM Lending can start your pre-approval with a soft credit pull if you aren’t ready to jump into the market right away. A soft pull does not affect your credit score and lets you get a clear picture of your buying power early. When you’re ready to formally finalize your pre-underwritten pre-approval, we’ll do a hard credit pull, which has a minimal impact on your credit score.

A few key points:

• The credit score on your free credit-monitoring app is almost always different from your mortgage credit score. Mortgage lenders use a specific “FICO” model (typically FICO 2, 4, or 5) that often scores 20-60 points lower than the VantageScore most consumer apps show.
• Credit bureaus treat all mortgage credit inquiries within a 45-day window as a single inquiry, so shopping multiple lenders during that period won’t compound the hit.

No. Getting pre-approved with JVM does not commit you to using us for your loan. Pre-approval is free, there’s no application fee, and you can walk away at any time before signing your final loan documents.

That said, switching lenders mid-purchase often creates real risk: new credit pulls, restarted underwriting, missed contingency deadlines, and the potential loss of any seller-negotiated close timeline. Staying with the lender you got pre-approved with (and got your offer accepted with) also imbues trust with the sellers, since they know the financing path has already been vetted and is unlikely to fall apart late in escrow.

Minimum credit scores vary by loan type.

Typical minimums by loan type:

• FHA loans: 580 or higher (some scenarios down to 500 with 10% down)
• VA loans: 620 or higher
• Conventional (conforming) loans: 620 or higher; best pricing at 740+
• Jumbo loans: Typically 700 or higher; best pricing at 780+
• DSCR loans: 640 or higher
• Non-QM loans: Varies by program; bank statement loans often accept 660+

Credit score affects pricing more than approval. A borrower with a 750 score can have a rate as much as 1% lower than a borrower with a 670 score, even if both qualify. If your score is borderline, a “rapid rescore” or small payoff strategy can sometimes move you into a better pricing tier.

Debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward your monthly debt payments, including your new proposed mortgage payment. Lenders use DTI to confirm you can afford the loan you’re applying for.

How DTI is calculated:

DTI = Total monthly debt payments ÷ Gross monthly income

Monthly debt includes the new total housing payment (principal, interest, taxes, insurance, HOA dues) plus minimum payments on credit cards, student loans, car loans, alimony, child support, and other recurring obligations. It does not include utilities, groceries, gas, insurance premiums other than homeowner’s, or other variable living expenses.

Lowering your DTI before applying (by paying down a car loan or credit card balance) can expand your purchase price significantly. Our team is well versed in reviewing options with paying debt down/off to help reach your pre-approval goals, when needed.

Yes. Self-employed borrowers qualify for mortgages every day, though the documentation process is more involved.

For traditional (conforming, FHA, VA, jumbo) financing, you’ll typically need:

• The last 2 years of personal and business federal tax returns (all schedules)
• A year-to-date Profit & Loss statement
• Proof of business existence (CPA letter, business license, or articles of incorporation)
• Standard 2-month asset statements

Lenders average your net (post-write-off, with a few allowable ‘add backs’) income from the last 1-2 years of tax returns to determine your qualifying income. If your write-offs significantly reduce reported income, traditional financing may not give you the full purchasing power you have in reality. For these clients, we do have some alternate options.

Alternative options for self-employed borrowers:

• Bank statement loans: Qualify using business or personal bank statement deposits instead of tax returns
• 12-month bank statement loan: Use just one year of statements for faster qualification
• No-income-verification loans: Qualify on liquid assets without verifying personal income
• DSCR loans: For investment property purchases, qualify on the property’s rental income

Talk to your JVM client advisor about which path makes sense for your situation.

Yes. JVM Lending offers loans for borrowers without a Social Security number, including ITIN loans and foreign national loans.

• ITIN mortgage loans: For non-U.S. citizens and non-permanent residents who file taxes using an Individual Taxpayer Identification Number instead of an SSN.
• Foreign national loans: For non-U.S. citizens without traditional U.S. credit profiles or tax history, often used for second homes and investment properties.

Typical requirements for these loans:

• Valid ITIN (for ITIN loans) or qualifying foreign documentation
• 2 years of U.S. tax returns filed with the ITIN (for ITIN loans)
• Larger down payment than traditional financing (often 15-25%)
• Higher interest rate than conforming loans
• Standard credit and income documentation, with flexibility for non-U.S. profiles

These borrowers can purchase primary residences, second homes, and investment properties.

Yes. When you apply jointly, lenders use the lower of the two middle credit when considering rate options. Your “middle score” is the middle of your three credit bureau scores (Equifax, Experian, TransUnion). On a joint application, the lender takes the middle score for each borrower, then uses the lower of those two for pricing.

Strategies to consider:

• Apply with only the higher-scoring borrower: If only one spouse’s name is on the loan, only that score is used. The other spouse can still be on the title (deed) without being on the loan. Trade-off: you can only use the income of the borrower on the loan to qualify.
• Rapid rescore the lower-scoring spouse: If specific accounts are dragging down a score (a high credit card balance, an unpaid collection), a strategic paydown plus a rapid rescore can sometimes raise the score by 20-50 points within days.
• Wait and improve credit first: If timing allows, focused credit work over 60-90 days can substantially change your rate.

Your JVM Client Advisor can run scenarios multiple ways to see which approach helps you best meet your goals.

Mortgage lenders use a different credit scoring model than the free credit apps. The mortgage version often scores 20 to 60 points lower than the common consumer credit score tracking models.

Why the scores differ:

• Free apps (Credit Karma, Experian app, bank apps) typically show your VantageScore, which is a consumer-friendly model designed for general credit monitoring.
• Mortgage lenders are required to pull the older FICO models (FICO 2, FICO 4, and FICO 5 from the three bureaus). These models weigh late payments, collections, and credit utilization more heavily than VantageScore does.
• Lenders pull all three FICO scores and use your middle score for qualification and pricing.

What this means for you:

• Don’t be surprised if your mortgage credit report comes back lower than you expected based on your credit monitoring or bank account apps.
• If your score is borderline for a better rate option or qualification, our team can help pursue a “rapid rescore” to expedite a scoring update to reflect recent positive changes. This helps update scores within a few days rather than the typical 30-60 days bureaus can take to process updates.

No, not in any meaningful way. Credit bureaus treat all mortgage credit inquiries within a 45-day window as a single inquiry for scoring purposes. This means you can compare multiple lenders during that period without compounding any impact on your score.

A few things to keep in mind:

• The 45-day window starts on the date of your first mortgage credit pull, so any additional pulls within that window count as one inquiry.
• This applies to mortgage, auto, and student loan inquiries, but not credit card inquiries.
• The single hard pull itself has a minimal impact on your credit score.

The bigger issue with shopping multiple lenders isn’t credit impact; it’s the operational risk of switching mid-purchase, which can disrupt contingency timelines and erode seller confidence in your offer.

Lenders generally require a 1-2-year history of any income source before they can use it to qualify you.  Income such as hourly income, bonus, commission, rental income, self-employment are considered variable income sources that are reviewed differently by  Federal lending guidelines. In order to confirm stability if this income – the Underwriter will be looking to verify a 1-2 year history of earnings and continuance. This is often done (depending on the income type) with reviewing year end paystubs, current paystubs, verification of employment form or your federal tax return. If there is a recent drop in the trajectory of earnings, the underwriter will often ask for an explanation for the change before utilizing the income toward qualification.

I have included some examples below.

How each income type is treated:

• Self-employment income: Net (post-write-off) income from your last 1-2 years of tax returns is averaged. If year 2 is lower than year 1, lenders may use only the most recent year or the lower of the two.
• Bonus and commission income: Averaged over the most recent 2 years if the income is consistent and expected to continue. A 1-year history may be acceptable in some cases with strong compensating factors.
• Overtime income: Same as bonus and commission. Must show a 1-2-year history and a reasonable likelihood of continuing.
• Rental income (existing rentals): Use the rental income shown on Schedule E of your tax returns, averaged over 1-2 years. Vacancy and expense adjustments are baked into Schedule E.
• Rental income (new purchase): Lenders use 75% of the appraiser’s market rent estimate (the remaining 25% accounts for vacancy and operating costs).

Special considerations:

• Job changes within the same line of work usually don’t reset the 2-year clock.
• Income from a new job in a different industry may require a longer waiting period.
• Borrowers whose income doesn’t translate well to traditional underwriting can often qualify through bank statement, no-income-verification, or DSCR loans.

Yes. Gift funds from a family member can cover all or part of your down payment and closing costs on most loan types.

Rules for using gift funds:

• Eligible donors: Immediate family members (parents, grandparents, siblings, spouses, domestic partners). Some loan programs allow gifts from fiancés, godparents, or close friends with a documented relationship.
• Documentation required: A signed gift letter stating the funds are a gift (not a loan), the dollar amount, the donor’s name and relationship to you, and that no repayment is expected.
• Paper trail: Lenders need to source the gift funds, which in some cases means a copy of the donor’s bank statement showing the funds and a record of the transfer to you or directly to escrow.

Best practice: Have the donor wire the funds directly to escrow rather than to your bank account. Depositing into your account creates an extra paper-trailing step (lenders will need the donor’s bank statements to source the gift). Sending directly to escrow keeps the documentation simple.

Loan-type-specific notes:

• Conventional loans (primary residence): 100% of the down payment can come from gift funds.
• FHA loans: 100% of the down payment can come from gift funds.
• VA loans: Gift funds allowed for all funds to close.
• Jumbo loans: Vary by investor; some require the borrower to contribute a minimum percentage from their own funds.
• Investment properties and second homes: Gift funds are generally not allowed; expect to use your own funds.

JVM Lending offers rates at roughly 0.25% below the national average because of three key advantages:

• No loan officers. Traditional lenders bake loan officer commissions into the rate. By eliminating that role, we pass the savings directly to borrowers. Learn more about our no loan officer model
• Hybrid lender model. As both a direct lender and a broker, we can choose the most efficient path for each loan, whether that’s funding in-house through our affiliated mortgage bank or brokering to an outside investor for better pricing.
• Operational efficiency. Our team-based model puts specialists at every stage of your loan, backed by in-house underwriting and AI, to eliminate the games of telephone, redundant steps, and bloated overhead that other lenders quietly roll into your rate. Less friction in the process means lower costs, and we pass those savings directly to you.

Check today’s rates or get an instant rate quote.

Your interest rate is shaped by both loan-specific factors you can influence and market conditions you can’t.

Borrower and loan factors:

• Credit score: A borrower with a 750 score can have a rate as much as 1% lower than a borrower with a 670 score.
• Down payment / loan-to-value: Larger down payments generally produce lower rates.
• Loan amount: Very small loans (under ~$150,000) and very large jumbos (over $3M) often carry higher rates. “Low balance” conforming loans price better than “high balance” conforming loans.
• Loan type: FHA and VA rates are usually lower than conventional conforming rates. JVM’s jumbo rates are often the lowest of all for strong borrowers.
• Property type: Condos and 2-4 unit properties usually carry higher rates than single-family homes.
• Property use: Investment properties tend to have higher rates than owner-occupied homes; second homes price between the two.
• Loan term: Shorter-term fixed loans (15-year, 20-year) typically carry lower rates than a 30-year fixed because the lender’s risk is locked in for less time.
• Fixed vs ARM: Adjustable-rate mortgages (ARMs) like a 7/6 ARM will often price lower than a 30-year fixed, though this depends on the shape of the yield curve at the time.
• Rate lock period: Longer rate-lock periods (45, 60 days) often have slightly higher rates than shorter ones (15, 30 days).

Market factors:

• Bond market movements, especially the 10-year Treasury yield, which mortgage rates broadly track.
• Federal Reserve policy, inflation data, employment reports, and other macroeconomic conditions.

Get a personalized rate quote based on your scenario at our interactive rate comparison tool.

Interest rate is the percentage charged on your loan balance — it’s what drives your monthly payment. APR (Annual Percentage Rate) wraps the interest rate together with most lender fees and expresses the total cost of borrowing as a single annualized percentage. 

Quick breakdown:

• Interest rate determines your monthly principal and interest payment.
• APR includes the interest rate plus origination fees, discount points, mortgage insurance (where applicable), and certain other lender fees, all spread across the loan term.

APR is meant to help compare loans on a level playing field, but it has limitations:

• APR assumes you’ll keep the loan for the full term, which most borrowers don’t.
• APR calculations can vary between lenders because not all fees are required to be included — some lenders leave costs out to make their APR look lower.
• A lower APR doesn’t always mean a better loan if you plan to refinance or sell within a few years.

Practical rule: When comparing loan estimates from different lenders, look at the rate, the points, and the total lender fees side by side, not just the APR. The JVM rate comparison tool lets you see the trade-offs at different price points and loan structures.

You can lock your rate once you have an accepted purchase contract or a submitted refinance application. Rates cannot be locked without a specific property address on file.

Typical lock periods:

• 15 days: Shortest standard lock. Lowest rate of the available lock periods.
• 30 days: Most common lock period for purchases on a normal timeline.
• 45 days: Used for slightly longer escrows or when conditions need extra time.
• 60 days: Used for longer escrows, new construction, or complex transactions.

The longer the lock, the higher the rate (we’re talking very marginally though – often just a slight change to points or credits rather than a rate change). Your JVM team will recommend a lock period that matches your closing timeline so you’re not paying for more lock than you need.

Rate quotes vs. rate locks: A rate quote is an estimate based on current market conditions. A rate lock is a binding commitment from the lender that holds your rate for the lock period, regardless of how the market moves.

Check today’s rates or talk to your client advisor about timing your lock.

If your rate lock expires before closing, the rate can be extended for a fee or relocked, whichever the lender allows. 

Typical scenarios:

• Lock extension: Most lenders allow short extensions (5 to 15 days) for a fee, usually a small percentage of the loan amount per day. This is the simplest option when escrow runs a little long.
• Worst-case pricing: Some lenders relock at the “worse of” your original rate or the current market rate, so if rates have risen, you get the higher rate.
• New lock at current market: In other cases, the loan is relocked entirely at today’s pricing (sometimes a 30 day waiting period after lock cancellation is required for this option).

How to avoid lock expiration:

• Choose a lock period that comfortably exceeds your expected close date (build in 5-10 days of buffer).
• Submit all conditions and signed disclosures promptly during underwriting.
• Stay in close communication with your JVM team so any delays are caught early.

If rates have dropped during your lock period, see the next question about lowering your rate before close.

Sometimes, yes. Once you’ve locked your rate, that rate is generally fixed for the lock period. The lender bought an option that guaranteed your rate – even if rates go up substantially. However, if rates drop significantly between your lock date and closing, a few options may be available:

• Renegotiation: In some market conditions, lenders will renegotiate a locked rate if the market has moved meaningfully. This is not guaranteed, and would require the drop to exceed a minimum threshold (often 0.25% or .5%). You won’t get the full drop, but a renegotiation can still put you in a better position than your original lock.
• Rate Drop Free-fi™: This is one of the best perksof financing with JVM. If rates drop within 36 months of closing, qualifying borrowers can refinance at no cost. It’s the most reliable way to capture a future rate drop without gambling on timing your lock perfectly.

If you’re worried about locking too early, your JVM client advisor can talk through floating options as well.

Compare quotes apples-to-apples by looking at the rate, the points or origination fees, and the total lender fees together, not just the headline rate.

Use a Loan Estimate (LE) for comparison. The LE breaks down rate, points, lender fees, and third-party costs in a consistent format.

Key line items to compare:

• Interest rate on the same loan type, lock period, and loan amount.
• Origination fees and discount points charged to achieve that rate.
• Underwriting, processing, and other lender fees (often listed under Section A of the Loan Estimate).

Watch for these red flags:

• A rate quoted with no fee breakdown or no Loan Estimate provided.
• “Lender credits” being treated like a discount when they actually come with a higher rate.
• Estimated third-party fees (title, escrow, taxes) that appear unusually low and may be padded later.

If you’d like a second opinion on a competing quote,send it to us for a free review

No. JVM Lending typically quotes interest rates with no discount points or origination fees, which means our entire commission comes from the secondary market premium when our mortgage bank sells the loan to an investor.

You can still choose to pay points to buy down your interest rate, but it’s optional and based on your goals (see the next question). For most borrowers, the no-point option produces the better return because you keep more cash in your pocket and retain flexibility to refinance later if rates drop.

A note on exceptions: certain specialty loan programs — including non-QM loans and some niche brokered products — may require origination fees or points due to the nature of those programs. Your JVM advisor will always be upfront about any costs before you move forward.

Discount points let you pay an upfront fee to lower your interest rate. One point equals 1% of the loan amount and usually buys down the rate by about 0.25%, depending on market conditions. 

Paying points usually makes sense when all four of these are true:

• Rates are generally considered low and aren’t expected to drop further.
• You plan to keep the home long enough to recoup the upfront cost — often 4 or more years, depending on your loan size and the rate reduction.
• You don’t expect to refinance in the near future.
• You have the cash to pay the points without straining your reserves.

Note: Discount points may be tax-deductible in the year of purchase, which can shift the breakeven math. Consult your tax advisor for specifics.

A smarter alternative for most JVM borrowers: Rather than paying points to lock in a lower rate today, you can take the standard rate and refinance for free through Rate Drop Free-fi™ if rates fall within 36 months. For qualifying loans, this often delivers a better outcome than paying points upfront — you keep your cash, stay flexible, and still capture the drop if it comes.

The minimum down payment depends on your loan type and ranges from 0% to 20% or more. 

Common down payment ranges by loan type:

• VA loans: 0% down (eligible service members, veterans, and surviving spouses)
• FHA loans: 3.5% down
• Conventional loans: 3% down for qualified first-time buyers; typically 5% for repeat buyers
• Jumbo loans: Often 10-20% down depending on loan amount and credit profile
• Investment properties: Typically 20-25% down
• Second homes: Typically 10-15% down

More down isn’t always better. Putting 20% down avoids PMI, but it also ties up cash that could otherwise be invested, used for closing costs, or kept as reserves. Many JVM clients put less down and use the cash difference more productively, especially when paired with our FREE 2-1 Temporary Buydown or First-Time Buyer Rate Discount programs.

Your JVM client advisor can run multiple down payment scenarios to show the trade-offs between monthly payment, PMI, and cash reserves.

Minimum down payments vary by loan type and program. Here are the standards:

• VA loans: 0% down for eligible borrowers, with no PMI required regardless of down payment.
• FHA loans: 3.5% down with a credit score of 580 or higher. Some scenarios allow 10% down with scores between 500 and 579.
• Conventional loans (first-time buyers): 3% down through programs like Fannie Mae HomeReady and Freddie Mac Home Possible.
• Conventional loans (repeat buyers): 5% down is the standard minimum for primary residences.
• Jumbo loans: 10-20% down depending on loan amount, credit score, and investor guidelines. Some jumbo products allow as little as 5% down for very strong borrowers.
• Investment properties: 20-25% down for traditional financing; DSCR loans typically require 20-25% as well.
• Second homes: 10-15% down depending on the loan type.

JVM’s First-Time Buyer Rate Discount program lets qualifying buyers put as little as 3% down with an interest rate 1% below market.

Closing costs are the fees and prepaid items required to finalize your loan and transfer ownership of the property. They typically range from 2% to 5% of the purchase price, with the size of the loan, the property location, and the transfer tax structure being the biggest drivers.

Closing costs fall into two categories:

• Nonrecurring closing costs are one-time fees paid only at the time of purchase, including escrow fees, title insurance, the appraisal fee, underwriting fees, notary fees, recording fees, and transfer taxes. These typically range from $4,000 to $20,000 or more depending on the purchase size and the transfer tax in your area.
• Recurring closing costs are costs that continue after closing, including prepaid interest, property taxes, homeowner’s insurance, and HOA dues. Recurring costs are larger if your loan requires an impound account, because the lender will collect several months of property taxes and insurance upfront to fund the account.

The Loan Estimate you receive within 3 business days of your application breaks down every closing cost item in detail.

Cash to close is the total amount of funds you need to bring to escrow before your transaction closes. It includes your full down payment plus all closing costs, minus any deposits you’ve already paid and any seller or lender credits.

A simplified example:

For a $500,000 FHA purchase with 3.5% down and $12,000 in closing costs:

• Down payment: $17,500
• Closing costs: $12,000
• Total funds needed: $29,500
• Earnest money deposit already paid: $5,000
• Cash to close at signing: $24,500

Cash to close is usually paid in stages:

• Earnest Money Deposit (EMD) when your offer is accepted, typically 1-3% of the purchase price
• Additional deposits as contingencies are released (varies by contract)
• Final funds when you sign loan documents, usually 1-2 days before close

Escrow companies often accept personal checks for initial deposits but tend to require cashier’s checks or wire transfers for the final funds at signing.

Sometimes. Whether closing costs can be financed into your loan depends on the loan type and the structure of the transaction. 

Purchase loans:

• Closing costs generally cannot be rolled into a purchase loan, because the loan amount is capped by the purchase price and the loan-to-value (LTV) limit.
• Workarounds: You can ask the seller to credit closing costs (see next question), accept a lender credit in exchange for a slightly higher rate, or have a family member contribute gift funds.

Refinance loans:

• Closing costs can typically be rolled into a refinance loan, as long as the new loan amount stays within the LTV limit for the loan type.
• This is often done through a no-cost refinance, where the lender covers the closing costs through a slight rate increase or build them into the new loan balance.

If keeping cash in hand is a priority, talk to your JVM client advisor about structuring lender credits or seller concessions to reduce out-of-pocket costs at closing.

Yes. Most loan programs allow sellers to pay your closing costs through “seller credits,” which can equal as much as 3-9% of the sales price depending on the loan type and down payment.

Maximum seller credits by loan type:

• Conventional loans: 3% of the sales price with less than 10% down; up to 6% with 10-25% down; up to 9% with more than 25% down for primary residence purchases
• FHA loans: Up to 6% of the sales price
• VA loans: Up to 4% of the sales price, plus customary closing costs
• Jumbo loans: Varies by investor, often capped at 3-6%

How seller credits work in practice:

If you buy a home for $500,000 and the seller credits 3% ($15,000) toward your closing costs, the seller is effectively netting $485,000. You could have offered $485,000 with no credit and the seller would be in the same position. The credit just shifts how the dollars move at closing.

The advantage of a seller credit is that it lets you keep more cash in your pocket, which is especially valuable for buyers who are stretched on funds but have strong income and credit. In competitive markets, sellers may not extend credits regardless of price, in which case lender credits from JVM can also help cover closing costs in exchange for a slightly higher interest rate.

Private mortgage insurance (PMI) is an insurance premium charged on conventional loans when your down payment is less than 20% of the purchase price. PMI protects the lender, not the borrower, against default risk on higher loan-to-value loans.

When PMI is required:

• Conventional loans with less than 20% down (LTV above 80%).
• FHA loans always carry monthly mortgage insurance (called MIP), regardless of down payment.
• VA loans never carry PMI, instead they may have an upfront mortgage insurance financed into your loan.

PMI payment options on conventional loans:

• Monthly PMI: Added to your monthly mortgage payment. Ranges from 0.2% to over 1% of the loan amount annually, depending on LTV, credit, and loan amount.
• Single payment PMI: A one-time upfront premium that eliminates monthly PMI payments. Usually not recommended because you don’t get the premium back if you refinance or sell. This can be paid in cash as a closing cost, or financed into your loan.
• Lender-paid PMI: A higher interest rate in exchange for no monthly PMI. Usually not recommended because you keep the higher rate for the life of the loan.
• Split PMI: A one-time up front premium and a monthly mortgage payment, effectively splitting the cost between the two.

Removing PMI on conventional loans:

• Automatic removal at 78% LTV: Federal law requires lenders to remove PMI automatically when your loan balance reaches 78% of the original purchase price, based on the amortization schedule.
• Request-based removal at 80% LTV: You can request PMI removal when your balance reaches 80% LTV, either through paydowns or appreciation. Lenders usually require an appraisal to verify the new LTV.
• Refinance out of PMI: If your home has appreciated significantly, refinancing to under 80% LTV will eliminate PMI entirely. JVM’s Rate Drop Free-fi™ program can make this a free option if rates also drop.

FHA mortgage insurance: Most FHA loans require MIP for the life of the loan, regardless of equity. The only way to remove it is to refinance into a conventional loan.

Your monthly mortgage payment typically includes four components, often referred to as PITI: 

• P – Principal: The portion that pays down your loan balance.
• I – Interest: The cost of borrowing, based on your interest rate and current balance.
• T – Taxes: Property taxes, prorated monthly. Collected by your lender if you have an impound account.
• I – Insurance: Homeowner’s (hazard) insurance, prorated monthly. Also collected by your lender if you have an impound account.

Additional components some borrowers will see:

• PMI or MIP for conventional loans with less than 20% down or any FHA loan.
• HOA dues if your property is part of a homeowners’ association (paid separately to the HOA, not to the lender).
• Flood insurance if your property is in a designated flood zone.

When estimating affordability, always look at the full PITI payment, not just principal and interest. Property taxes and insurance can add hundreds to thousands of dollars per month depending on your location.

Use our mortgage calculator to estimate your full monthly payment.

An impound account (also called an escrow account) is a lender-managed account that collects your property taxes and homeowner’s insurance as part of your monthly payment. The lender then pays the tax and insurance bills on your behalf when they come due.

When impound accounts are required:

• Conventional loans: Required if your down payment is less than 20% in most states (California is the one exception, where impounds can be waived with a down payment greater than 1%).
• FHA loans: Always required, regardless of down payment.
• VA loans: Always required.
• Jumbo loans: Matches conventional loan requirements

Trade-offs of impound accounts:

• Higher cash to close: Lenders collect 3-9 months of property taxes and 2-3 additional months of insurance upfront to “pad” the account, which can add thousands to your closing costs.
• Simpler monthly cash flow: Taxes and insurance are spread across 12 monthly payments instead of paid in lump sums twice a year.
• Predictability: Your lender ensures property tax and insurance bills are paid on time, which protects your home from tax liens or lapsed coverage.

Opting out (when allowed): If you have a larger down payment and your loan type permits it, you can opt out of an impound account and pay property taxes and insurance directly. This reduces your closing costs and gives you control over the cash, but requires discipline to set aside funds for the semi-annual or annual bills.

The mortgage process moves through six main stages from pre-approval to recording the deed. Here’s what to expect at each step:

1. Pre-Approval (before house hunting):You submit income, asset, and identity documentation. JVM pre-underwrites your file so you know your exact purchase price, payment, and cash-to-close before you make an offer. Pre-approval letters are tailored to each offer you make.
2. Offer Accepted and Into Contract: YouOnce your offer is accepted, escrow will be opened and your real estate agent will order any desired inspections. JVM orders the appraisal and submits your complete loan package to underwriting.
3. Underwriting:An underwriter reviews your file in detail and will issue a “conditional approval” –  a list of additional conditions (extra documentation, explanations, or clarifications) needed to round out the file and receive the “clear to close”. Because JVM pre-underwrites every pre-approval, this stage typically moves quickly with few surprises.
4. Disclosures and Closing Disclosure (CD):You sign initial loan disclosures shortly after going into contract. Once the loan is formally approved, you’ll receive the Closing Disclosure (CD), which itemizes your loan terms and costs more precisely now that most third party invoices are in. Federal law requires a 3-business-day waiting period between signing the CD and signing final loan documents.
5. Signing and Funding:You sign loan documents with a notary, typically 1-4 days before closing. The signing appointment typically takes 30-60 minutes. You’ll also wire your final cash to close on or before the signing date. After signing, the lender wires loan proceeds to escrow.
6. Recording:The deed and mortgage are recorded at the County Recorder’s Office, typically the day after funding. At this point you officially own the home.

For a full walkthrough, see our loan process overview or closing process page.

JVM pre-underwrites every pre-approval, which means we collect and verify the full document set at the start rather than scrambling for it mid-escrow. The upfront work is what lets us close in as little as 10 days and dramatically reduces the risk of last-minute surprises that derail closings.

What this prevents:

• Last-minute underwriting conditions: Most lenders discover big documentation gaps after you’re already in contract, which can blow closing timelines.
• Failed financing contingencies: Buyers who go into contract without a fully vetted file risk losing their earnest money deposit if the loan falls apart.
• Weak offers: A pre-underwritten pre-approval letter carries much more weight with listing agents and sellers than a generic pre-qual.

What we collect upfront:

The full income, asset, and identity documentation required to accurately satisfy underwriting guidelines (including but not limited to w2s, paystubs, tax returns, bank statements, IDs). We flag and resolve any potential issues before you make an offer, so you can shop with confidence.

It’s more work at the front end, but it removes so much stress at the back end, which is exactly when stress matters most.

Underwriting is the formal review process where a licensed underwriter verifies your income, assets, credit, and the property’s value before approving your loan. The underwriter confirms that your file meets all guidelines for the specific loan program (conforming, FHA, VA, jumbo, Non-QM, etc.).

Typical underwriting timelines:

• JVM Lending: Initial underwriting decisions are often issued within 24-48 hours of a complete file submission, thanks to in-house underwriting and our pre-underwritten pre-approval process.
• Industry average: 1 to 2 weeks for initial review, with additional rounds if conditions need to be cleared.

Three possible underwriting outcomes:

• Conditional Approval: The loan is approved subject to specific items (additional documentation, an explanation letter, an updated paystub, etc.). Once conditions are cleared, the underwriter issues the CTC.
• Clear to Close (CTC): Your loan is fully approved with no outstanding conditions. The loan can move to document drawing and signing.
• Denial: Rare when a file has been pre-underwritten upfront. Would typically be a case of changed circumstances or property issues. If denied, your JVM team can often identify an alternative loan path (a different program, a co-borrower, additional reserves).

The pre-underwriting we do during pre-approval is what makes JVM’s underwriting timelines so much faster than the industry standard.

The Loan Estimate (LE) and Closing Disclosure (CD) are two federally required documents that detail your loan terms and costs at different points in the process. 

Loan Estimate (LE):

• Issued within 3 business days of submitting a complete loan application (with property address – so typically right after you have an accepted offer on a home).
• Provides standardized estimates of your interest rate, monthly payment, closing costs, and cash to close.
• Standardized across lenders to allow apples-to-apples comparisons.

Closing Disclosure (CD):

• Issued at least 3 business days before closing.
• Provides the final version of your loan terms, monthly payment, closing costs, and cash to close.
• Federal law requires a 3-business-day waiting period between when you receive (or acknowledge) the CD and when you sign final loan documents. This is sometimes called the “TRID waiting period.”
• If a major change occurs to the loan (rate change, APR change of more than 1/8%, loan product change), the 3-day waiting period resets.

Key difference: The LE shows estimates at the start; the CD shows finals just before closing. The numbers should be close to each other, with any meaningful differences explained by your JVM team.

Closing is the signing appointment where you sign the final loan documents and officially complete the transaction. It usually takes 30-60 minutes to sign with the notary. This can happen at the escrow or title company office, or a mobile notary can often meet you at home or another location if preferred.

What happens at closing:

• Wire or deliver final cash to close if you haven’t already – typically done at least a day before closing.
• Review and sign loan documents with a notary including the promissory note, deed of trust (or mortgage), and various federal and state disclosures.
• Sign the grant deed transferring property ownership to you.
• Receive copies of everything you signed.

What you need to bring:

• Government-issued photo ID (driver’s license, passport, or state ID)
• Any final documents requested by your escrow officer (a marriage certificate, divorce decree, or trust documents in some cases)

After signing:

• The signed package is reviewed by the lender’s funding department.
• The lender wires loan proceeds to escrow once funding conditions are confirmed.
• The deed is recorded at the County Recorder’s Office, usually the next business day.
• You receive keys once recording is confirmed.

The full timeline from signing to keys is typically 1-5 business days.

The three-day right of rescission is a federal consumer protection that gives borrowers refinancing a primary residence three business days to cancel the loan after signing, with no penalty and full refund of any fees paid.

Key points:

• Applies only to refinances of a primary residence. Purchase loans, second homes, and investment property loans do not have a rescission period.
• Three business days starts the day after you sign final loan documents. Saturdays count as business days for rescission purposes, but Sundays and federal holidays do not.
• The loan cannot fund until the rescission period expires. This is why refinances take a few days longer to fund than purchase loans.
• To rescind, you submit written notice to the lender within the three-business-day window. The loan is canceled and any fees paid are refunded.

Why this protection exists: The rescission period was created to protect homeowners from high-pressure refinance tactics. It gives you a “cooling off” period to review the final terms after signing and back out if anything looks wrong.

This rule is one reason purchase loans typically close faster than refinances. Learn more about our refinance options or get a free refi analysis.

An appraisal is an independent assessment of a property’s market value, performed by a licensed appraiser. Lenders require appraisals to confirm the property is worth at least the purchase price (or the refinanced loan amount), since the home serves as collateral for the loan.

What the appraiser does:

• Inspects the property in person
• Compares it to recently sold homes in the area (“comps”)
• Considers the property’s size, condition, features, and location
• Issues a written appraisal report with the estimated market value

Cost:

• Typical range: $600 to $900 for a standard single-family home
• Jumbo, multi-unit, and remote/rural properties can run higher due to complexity.
• Cost is paid upfront, usually by credit card after you’re in contract

Who pays:

• The buyer typically pays for the appraisal on a purchase
• The borrower pays on a refinance
• Some loan programs allow the cost to be credited back through lender or seller credits

How long it takes:

• Industry-wide, most appraisals are completed within 7-10 business days from order to report delivery
• JVM’s local appraiser network typically delivers reports 2 days faster than the industry average

If the appraisal comes in below the purchase price, you have four main options: renegotiate, bring extra cash, dispute the appraisal, or walk away.

Option 1: Renegotiate with the seller

Buyers can ask the seller to lower the purchase price to match or come closer to the appraised value. In slower markets with few buyers and many homes for sale, sellers often agree. In competitive markets with many buyers and few homes, sellers may refuse to adjust the price, especially if there are other buyers in “back-up” position to purchase the home.

Option 2: Restructure the loan to cover the gap

You can keep the purchase price the same and restructure the loan to keep the deal on track. Restructuring means bringing additional funds and/or increasing your “loan-to-value” (LTV) to cover the difference between the appraised value and the purchase price. Lenders base their “loan to value” calculations on the lower of the purchase price or the appraised value, so the change in cash needed or loan terms will vary based on price point and loan structure. In some instances where borrowers were making large down payments, a low appraisal may have absolutely no impact on the loan terms or amount of cash needed to keep the deal moving forward.

Option 3: Dispute the appraisal

If the appraisal seems flawed (the appraiser missed recent comps, made errors, or didn’t account for property features), JVM can submit a formal “reconsideration of value” request with supporting evidence. Outcomes vary, but adjustments are sometimes granted.

Option 4: Walk away

If your purchase contract has an appraisal contingency, you can typically back out of the deal and recover your earnest money deposit. If there is no appraisal contingency, the sellers may be entitled to keep your earnest money deposit. This is one reason JVM strongly recommends consulting with our team and your Realtor before writing an offer that waives any contingencies.

A low appraisal isn’t necessarily a deal-killer, and in some cases may not have any impact on your loan. Your JVM client advisor and real estate agent can walk through the options together so you choose the right path.

JVM Lending uses a network of vetted, local appraisers in every market we lend in, rather than relying on the broad national Appraisal Management Companies (AMCs) most lenders default to. This is one of the key reasons we can close in as little as 10 days.

Why local appraisers matter:

• Speed: Local appraisers are familiar with the area and can complete reports faster than out-of-market appraisers shipped in by national AMCs.
• Accuracy: Local knowledge of neighborhood comps, property features, and market trends leads to better valuations and fewer surprises.
• Fewer disputes: Appraisers who actually know the market are less likely to miss obvious comps or misjudge property conditions, which means fewer reconsideration-of-value requests.
• Communication: When questions come up, our team has direct relationships with these appraisers, which speeds resolution.

How this fits into our process: The local appraiser network is part of the same infrastructure that makes our pre-underwritten pre-approvals and fast 10-day close possible.

JVM Lending always requests an appraisal waiver, also called a Property Inspection Waiver (PIW), wherever possible, but whether a property qualifies is ultimately out of our control. Waivers are granted by Fannie Mae’s and Freddie Mac’s automated valuation systems based on property data, loan structure, and market conditions. Our team submits every eligible loan for waiver consideration as a standard part of the process.

How appraisal waivers work:

• During the loan application, the property is run through Fannie Mae’s or Freddie Mac’s automated valuation systems.
• If the system has enough confidence in the property’s value (based on prior appraisals, recent sales data, and other property records), it may offer a waiver.
• If accepted, the loan skips the appraisal step entirely, saving you the $600-$900 appraisal fee and 5-10 business days of process time.
• There are also partial appraisal waivers, referred to as Property Data Collection (PDC), issued by Fannie Mae and Freddie Mac, that our team will check for on every property. These are less costly than a full appraisal as they only require a physical inspection of the property and do not require a report nor an opinion of value that can lead to a low appraisal.

Who typically qualifies:

• Conventional loans (FHA, VA, and jumbo loans typically require full appraisals)
• Lower loan-to-value transactions where buyers put down 20% or more
• Properties in markets with abundant sales data
• Refinances more often than purchases

Limitations:

• Waivers are not guaranteed and cannot be requested before the loan is submitted to the automated underwriting system.
• A full loan application is required, along with the property address, in order to submit for an appraisal waiver.
• Complex properties (custom homes, rural land, recently renovated homes) usually require a full appraisal.
• Some specialty loan programs and investors do not allow waivers regardless of Fannie and Freddie’s findings.

Before you submit an offer on a home, please share the home’s address with your Client Advisor so they can verify on the availability of an appraisal waiver.

Refinancing makes sense when the long-term savings or strategic benefit outweigh the closing costs and effort. The right time depends on your goals, current loan terms, and the rate environment.

Common reasons to refinance:

• Lower your interest rate: Even a 0.5% drop can save tens of thousands over the life of the loan.
• Lower your monthly payment: A lower rate or a longer term can free up monthly cash flow, which matters more than total interest savings for some borrowers.
• Switch loan types: Refinance out of FHA mortgage insurance into a conventional loan, or move from an ARM into a fixed-rate loan before adjustment.
• Shorten your loan term: Refinance from a 30-year to a 15-year loan to pay off your home faster and save on long-term interest.
• Pull cash from equity: A cash-out refinance lets you tap home equity for debt consolidation, home improvements, education, or other major expenses.
• Remove a co-borrower: Refinancing can remove an ex-spouse or co-signer from the loan after a divorce or change in circumstances.

A higher rate isn’t automatically bad. If a refinance lowers your monthly payment (by extending the term or consolidating high-interest debt) the higher rate may still be the right move. Always compare the total monthly cash flow, not just the interest rate.

JVM’s free refi analysis runs the numbers for your specific scenario at no cost and no obligation. Get a free refi analysis.

A rate-and-term refinance replaces your existing loan with a new loan that has a different rate, term, or loan type, with no extra cash taken out. A cash-out refinance does the same thing but also lets you borrow against your home’s equity, leaving closing with cash in hand.

Rate-and-term refinance:

• Replaces your current loan balance plus closing costs
• No additional cash distributed at closing
• Used to lower your rate, shorten your term, or switch loan types
• Typically lower rates than cash-out refinances
• Maximum loan-to-value (LTV) usually up to 95-97% for conventional, higher for FHA and VA

Cash-out refinance:

• Replaces your current loan and provides additional cash at closing
• The new loan balance is higher than the old one by the cash-out amount plus closing costs
• Cash can be used for any purpose: debt consolidation, home improvements, tuition, investment, business funding
• Slightly higher rates than rate-and-term refis because of additional investor risk
• Typically capped at 80% LTV for conventional loans (some FHA and VA cash-out programs allow higher)

Which is right for you? If your only goal is a lower rate or payment, rate-and-term is usually the better path. If you need cash for a specific purpose, cash-out can deliver lower-cost funds than personal loans, credit cards, or HELOCs in many cases.

A no-cost refinance is a refinance where the lender covers all closing costs through a slight increase in your interest rate. Your monthly payment savings still come from a lower rate; you just don’t pay closing costs upfront.

How a no-cost refinance works:

• The lender provides a credit (sometimes called a “rebate”) large enough to cover all third-party and lender fees.
• In exchange, your interest rate is typically 0.125% to 0.25% higher than it would be on a standard refinance.
• You bring no cash to closing for the refinance itself.

“No cost” vs. “no money out of pocket”:

These two terms are often confused, but they’re different:

• No-cost refinance: All closing costs are paid by the lender through a higher rate. The loan balance does not increase.
• No money out of pocket refinance: Closing costs are rolled into the new loan balance, which means your balance increases. The rate stays competitive, but you’re financing the costs.

Both options keep cash in your pocket at closing. The right choice depends on whether you’d rather absorb a slightly higher rate or a slightly larger loan balance.

Learn more about no-cost refinances or compare options with our refinance analysis.

A typical refinance with JVM Lending takes 21 to 30 days to close, which is longer than our fast 10-day close on most purchase loans.

Why refinances take longer than purchases:

• No purchase deadline urgency: Purchases have a contractual close date that everyone (buyer, seller, agents, lender) is racing toward. Refinances have no equivalent external deadline, so they move at a more measured pace.
• 3-day right of rescission: Refinances of primary residences require a federally mandated 3-business-day waiting period between signing and funding. Purchases don’t have this requirement.
• Subordination on second mortgages: If you have a HELOC or second mortgage, the second-lien holder must agree to “subordinate” their lien (let the new first mortgage take priority). This often adds 5-10 days.
• Title and payoff coordination: The lender must coordinate the payoff of your existing loan with the title company, which adds steps that don’t exist in a purchase.

How JVM speeds up refinances:

• In-house underwriting and pre-collected documentation
• Direct relationships with title and escrow companies
• Local appraiser network for faster valuations
• 60-minute response guarantee on every client question

Sort of, but not really. When you refinance, you typically appear to “skip” one monthly mortgage payment because of how mortgage interest is paid in arrears. The reality is you’re still paying for that month, just in a different form.

How it works:

• Mortgage interest is paid in arrears, meaning your monthly payment covers the prior month’s interest.
• When you refinance, the new loan pays off your old loan balance plus any interest accrued through the day of funding.
• The interest accrued on your old loan from your last payment to funding is collected at the refinance closing (as “prepaid interest” on the Closing Disclosure).
• Your first payment on the new loan is typically due about 30-45 days after closing, which feels like skipping a payment.

Where this matters:

The “skipped payment” can be a useful cash-flow benefit (one month of mortgage payment stays in your pocket), but it doesn’t actually reduce your total interest cost over the life of the loan.

You can technically refinance any time after closing your purchase, but most loan programs require a waiting period or “seasoning” period before specific refinance types are available.

Common seasoning requirements:

• Rate-and-term refinance (conventional): No required waiting period in most cases. You can refinance for a lower rate as soon as it makes sense.
• Cash-out refinance: Typically requires 12 months of ownership (6 months in some scenarios) before you can pull equity.
• FHA Streamline Refinance: Requires 6 months of on-time payments on the existing FHA loan.
• VA IRRRL (Interest Rate Reduction Refinance Loan): Requires 210 days of seasoning and 6 months of on-time payments.
• JVM Rate Drop Free-fi™: Available 120 days after closing through 36 months from the original purchase close date. See full terms on the Rate Drop Free-fi™ page

Early Pay-Off (EPO) considerations:

JVM Lending typically has an early payoff penalty window of 180 days after closing. Refinancing within this window can trigger a penalty paid by JVM to the original investor. You can still refinance during this period, but it’s worth talking to your client advisor about timing if rates have dropped soon after close.

Yes. A cash-out refinance can be used for almost any purpose, with debt consolidation, home improvements, and education being three of the most common.

Debt consolidation:

• Pay off high-interest credit cards, personal loans, and other debts with proceeds from your cash-out refinance.
• Mortgage rates are almost always lower than credit card or personal loan rates, so monthly cash flow typically improves significantly.
• The interest paid on a cash-out refinance is sometimes tax-deductible if the funds are used to improve the home, but not for general debt consolidation. Consult your tax advisor.
• This is one of the most effective tools for borrowers carrying high-interest debt, especially after life events like a bankruptcy discharge or medical emergency.

Home improvements:

• Use proceeds to fund a renovation, addition, or major repair.
• Interest on this use case is often tax-deductible because the funds are improving the home (consult your tax advisor).
• Improvements may also increase your home’s value, partially offsetting the new loan balance.

Education:

• Pay tuition for yourself or family members at lower rates than most student loans.
• Trade-off: student loans have specific borrower protections and forgiveness programs that a refinance does not.

Other common uses:

• Investment in a new property or business
• Major medical expenses
• Buying out a co-owner (post-divorce, family transitions)

What to consider: A cash-out refinance increases your loan balance and resets your amortization. The lower monthly cost should be weighed against the longer payoff period and increased lifetime interest.

Explore cash-out refinance options or get a free refi analysis.

Yes, but the second-lien holder has to agree to “subordinate” their lien, which means letting the new first mortgage stay in first position. This is a routine process but adds time and paperwork to the refinance.

How subordination works:

• When you refinance, your existing first mortgage is paid off and replaced by the new loan. Without subordination, the HELOC or second mortgage would automatically move into first position (since the original first mortgage no longer exists).
• Most HELOC and second mortgage lenders will agree to subordinate as long as your combined loan-to-value (CLTV) stays within their guidelines.
• The subordination process typically adds 5-10 days to the refinance timeline.

Subordination fees:

• Most second-lien holders charge a subordination fee, typically $100-$500, paid as part of refinance closing costs.

Two alternative paths:

• Pay off the second mortgage with refinance proceeds (this is effectively a cash-out refinance). This avoids the subordination process entirely.
• Consolidate the first and second into a single new loan through a cash-out refinance, which combines balances and can simplify your overall debt structure.

HELOC-specific consideration: If your HELOC is in its draw period and the balance is small, keeping the HELOC open through subordination preserves your access to those funds at the existing terms. If the HELOC has converted to its repayment period or has a high balance, consolidating may be the smarter move.

Your JVM client advisor can run scenarios on both paths to see which delivers the better outcome.