Newfi continues to innovate! Ask your account executive about Business Purpose Loans through our Investor Pro series.
What is a Business Purpose loan?
- Loan is intended solely for business purpose – lower interest rate, purchase new investment property
- Not intended for personal, family or household purposes – any cash-out must be applied solely for business purpose.
- 1-4 unit investment properties are allowable collateral.
- Also referred to as a “DSCR (Debt Service Coverage Ratio) loan – qualifies off the cash flow of the subject property.
- Not subject to TRID regulations.
What a Newfi Business Purpose means for you.
- Issue initial disclosures, including a Loan Estimate, within 3 business days of the application date
- Issue the closing docs package, including a Closing Disclosure, when loan/borrower is ready for closing
- Follow the 3-day appraisal receipt/acknowledgement wait period before closing
Newfi will not…
- Follow TRID waiting periods
- Issue Redisclosures for CiC (Change in Circumstance) events
- Issue an Initial Closing Disclosure