Newfi Lending offers new program for 'difficult-to-qualify' borrowers

The program is geared toward borrowers who have good credit, but can't qualify for conventional loans due to other factors

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Newfi Lending, an online mortgage lender and portfolio company of global private equity firm Warburg Pincus, has launched Sequoia Porfolio Plus, a proprietary loan program that offers flexibility for mortgage brokers looking to approve “difficult-to-qualify” borrowers.

“We wanted to create a loan program that combines the best of jumbo and non-traditional borrowing options,” said Newfi Lending CEO Steve Abreu in a press release. “With Sequoia Portfolio Plus, we are giving brokers an option to serve more homeowners in a very tight market.”

Sequoia Portfolio Plus allows loan amounts up to $2 million; allows buyers to purchase, refinance and cash out; offers three term options; loan-to-value ratios up to 85 percent; and four years seasoning for bankruptcy, foreclosure, short sale or deed in lieu.

The program also allows buyers to secure mortgages for owner-occupied properties, second homes properties and investment properties.

Newfi says “all kinds of borrowers” can use Sequoia, but the program is suited for those with good credit (680+) and would have a difficult time qualifying for a conventional loan due to these factors:

  • High-asset borrowers needing exceptions on credit score, LTV, or DTI
  • Self-employed borrowers
  • Borrowers with credit events who also have excellent credit history since event
  • Real estate investors with multiple properties
  • Non-warrantable condos

According to the press release, all underwriting and exceptions are made in-house, a feature Newfi says will give brokers “very fast turnaround on approvals.”

Newfi is currently available in nine states (Arizona, California, Colorado, Florida, Oregon, Pennsylvania, New Jersey, Utah and Washington) and plans to operate in 25 states by the end of 2018.

This isn’t the only expansion Newfi has undertaken in the past few months to help “difficult-to-qualify” borrowers.

In December 2017, Newfi became an approved Fannie Mae seller/servicer and a Federal Housing Authority (FHA) “Full-Eagle” mortgagee — two designations that enabled the company to “independently fund, own, and service Fannie Mae and FHA loans,” according to a press release.

“We are pleased to receive these approvals from Fannie Mae and FHA Full-Eagle, which demonstrate our commitment to building our capabilities across the lending spectrum,” said Abreu in a statement. “These relationships greatly enhance our offering as we expand the Newfi brand nationwide.”

Email Marian McPherson