Company launches product with lower initial payments for non-QM borrowers
Newfi Lending has expanded its presence in non-QM waters. The company has launched Pinnacles Step-Up Mortgage, a 30-year fixed-rate loan product designed for non-QM borrowers.
Newfi said the new alternative product offers monthly payments that “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.”
“The biggest benefit of the Pinnacles Step-Up Mortgage is lower initial mortgage payments for non-QM borrowers,” said Dan Bayer, Newfi’s senior vice president of non-QM development and strategy. “This is a solution that the everyday homeowners we work with have been asking for to ease the pressure of higher mortgage rates on their wallets.”
Borrowers are qualified based on the highest payment throughout the life of the loan, according to its release. The alternative loan option also provides them the full amortization schedule of their fixed-rate option upfront, so there are no surprises when the payments increase over time.
“Innovation is key to finding success in changing market environments,” Newfi founder and CEO Steve Abreu said. “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.”
Newfi currently offers the new mortgage product in Arizona, California, Florida, and Texas, with plans to expand into more states for its wholesale and consumer direct channels. The lender also offers other specialized lending options, including alternative income (bank statement, 1099, asset depletion) loans, debt service coverage ratio (DSCR) investment property loans, and 40-year interest-only loans.