Based in Irvine-Calif., Cove Financial Group closed on a series A preferred stock issuance and convertible debt transaction led by an affiliate of Jacobs Asset Management, a New York based money manager, the company said in a press release. The transaction is essentially a situation where Jacobs Asset Management is investing in Cove, providing funds to help with current initiatives.

The proceeds will help grow Cove's Mortgage Alternative Program, aiding the firm in its launch of a digital marketing platform.

MAP assists borrowers who have a deposit for a home, but who do not currently qualify for a traditional home mortgage.

"We are excited to continue our mission of helping people get on the path to homeownership with our innovative Mortgage Alternative Program," said CEO Patrick Flanagan.

"JAM has a successful history of investing in financial services companies that have a technology advantage. JAM’s strategic capital coupled with Cove’s highly skilled and experienced team positions us for dynamic growth," Flanagan added.