Newfi continues to innovate for self-employed borrowers. With our Sequoia Portfolio Plus and Expanded programs you have two different options for calculating the net qualifying income from your borrowers business bank statements:
- Fixed Expense Ratio – This is the quickest and easiest calculation. Simply add up the total business deposits and apply a fixed expense ratio, based on the type and size of the borrowers business. The net figure, after the expense ratio is applied, will be used for qualifying income.
- Borrower Prepared P&L – Borrower provides an un-audited P&L covering the same time period as the bank statements being used to qualify. The gross income on the P&L should be supported by the business deposits. The net income on the P&L will be used for qualifying income.
Since Sequoia is Newfi’s own unique program, we make 100% of the credit decisions in-house, we never have to send the file for secondary investor review, and we’re often able to close these loans in 21 days or less.
Here are some more great highlights:
- Make-sense underwriting with risk-based guideline exceptions
- 40yr fixed rate with 10yr IO, 30yr fixed, and ARM terms available
- 95% LTV to $1 million – 90% LTV to $1.5 million – 75% LTV to $2.5 million
- Non-owner occupied up to 80% LTV to $1.5 million
- Expanded DTI up to 55% for owner occupied purchases and R&T refi’s
- 1 year tax return or W-2 documentation
- 12 or 24 month personal bank statement qualification
- Temporary rental income OK (Air Bnb, VRBO)
- No title seasoning on cash out refi’s with reduced LTV
- Non-warrantable condo’s considered
- No minimum trade line requirement with 3 credit scores and reduced LTV
- Only 3 years from foreclosure, BK, short sale or DIL with new Sequoia Expanded guidelines
- More flexible Non Arms-Length guidelines