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About JG Funding
Headquartered in Staten Island, NY, JG Funding is a private lender offering loans in New York and New Jersey. They offer short term loans, fix-and-flip hard money loans, loans for rental properties, private commercial loans, and hard money refinancing. They issue loan amounts ranging from $150,000 to $5,000,000 with a maximum LTV of 80%. They primarily make funding on single family homes, multi family residences, and apartments.
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Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans, Bridge Loans
Property Types Covered: Single Family, Multi Family, Apartment
Areas Served: NY, NJ
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Lending Guidelines for JG Funding
Below are the general loan guidelines published on the JG Funding website. Please confirm all terms and rates directly with the lender.
Investment Property Loans
Loan Amounts: $150,000 - $5,000,000
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): 80%
Max Loan-to-Cost (LTC): 80%
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/AFix and Flip Loans
Loan Amounts: $150,000 - $5,000,000
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): 80%
Max Loan-to-Cost (LTC): 80%
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/ACommercial Hard Money Loans
Loan Amounts: $150,000 - $5,000,000
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): 80%
Max Loan-to-Cost (LTC): 80%
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/ARefinance / Cash Out Loans
Loan Amounts: $150,000 - $5,000,000
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): 80%
Max Loan-to-Cost (LTC): 80%
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/ABridge Loans
Loan Amounts: $150,000 - $5,000,000
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): 80%
Max Loan-to-Cost (LTC): 80%
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/A -
Loan Examples
The following loans are for education purposes only. They do not represent actual loans executed by JG Funding.
Loan Example 1
Myrna is a house flipper in Brooklyn, NY. She finds an older property and decides to renovate it and flip it for a profit. The house has a cost of $180,000 but she doesn't have the full amount so she obtains a fix and flip loan with JG Funding. The terms of the loan include a 80% loan to value (LTV), so she must contribute 20% of the price as cash at closing, making the principle loan amount $144,000. The terms of the deal dictate a 9% note for 6 months. They also require a 1 point origination fee, that will also need to be paid upon closing.
Accordingly, the borrower will have to contribute a $36,000 down payment in addition to paying a $1,440 origination fee. JG Funding will collect $1,080 in monthly interest payments from the borrower. This is calculated by taking the full note value of $144,000, multiplying that by the 9% interest rate, and then dividing that number by 12. At the end of the loan, she sells the renovated house for $216,000. After deducting the $6,480 in total interest payments ($1,080 times 6 months), the $1,440 origination fee, the $144,000 principle on the loan, and the $36,000 she contributed to the closing, she will make a total profit of $28,080 ($216,000 price minus $187,920 in costs). This amount would be reduced by any rehab costs paid by Myrna.
Loan Example 2
JG Funding issues a loan to Dave for a rehab project in Brooklyn, NY. The deal dictates the following:
a) A $250,000 purchase price, b) a 60% loan to value (LTV), c) a 18 month term, d) a 8% interest rate, and e) a 4% origination fee.
Once the renovation project is finished, if Dave sells the property for $325,000, the outcome would be as follows:
$325,000 sales price
- $150,000 loan principle (60% LTV)
- $100,000 cash paid at closing (40% on 60% LTV)
- $6,000 origination points (4% of the $150,000 principle amount)
- $18,000 total interest paid (18 months x 8% interest)
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= $51,000 total profit (doesn't include taxes or rehab costs) -
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