Newfi Lending on Tuesday announced the launch of a new non-qualified mortgage (Non-QM) product called Pinnacles Step-Up Mortgage that is available in four states.
The Emeryville, Calif.-based company claims the Step-Up Mortgage can save Non-QM borrowers thousands of dollars in monthly payment obligations in the first year alone when using full documentation or bank-statement income.
Pinnacles Step-Up Mortgage is a 30-year, fixed-rate loan in which payments start at a lower base level and then increase annually at a 5% rate until the beginning of the sixth year, when payments level out based on the remaining principal balance. It is an alternative to the popular bank statement income Non-QM loans currently on the market, Newfi said in a press release.
“The biggest benefit of the Pinnacles Step-Up Mortgage is lower initial mortgage payments for Non-QM borrowers,” said Dan Bayer, Newfi senior vice president of Non-QM development & strategy. “This is a solution that the everyday homeowners we work with have been asking for.”
With rising interest rates and cost of goods, borrowers looking to purchase or refinance a home have been hit with higher mortgage payments and lower purchasing power. This has especially affected borrowers who need a Non-QM mortgage solution because they are self-employed or require different guidelines to qualify, since these unique mortgage products already come with a higher interest rate. Newfi said the Step-Up Mortgage solution gives Non-QM borrowers a way to lower their initial monthly payments and can put thousands of dollars back into their pockets in the initial years of the loan.
The Pinnacles Step-Up Mortgage also keeps borrowers from trading stability for lower payments, the company said. Newfi qualifies borrowers based on the highest payment throughout the life of the loan, and provides a full amortization schedule of their fixed-rate option up front so there are no surprises when payments increase over time, it said.
“Innovation is key to finding success in changing market environments,” said Steve Abreu, Newfi CEO & founder. “We are excited to launch our new Pinnacles Step-Up Mortgage. This cutting-edge solution will present our Non-QM borrowers with another choice when financing their homes that they can only find at Newfi.”
The Step-Up Mortgage is available in Arizona, California, Florida, and Texas, with more states to be added soon, Newfi said.
Founded in 2014 and specializing in Non-QM products, Nexera Holding LLC dba Newfi Lending offers unique lending products, including alternative income (bank statement,1099, asset depletion) loans; debt service coverage ratio (DSCR) investment property loans, and 40-year interest-only loans.
