Newfi is making it easier for borrowers to qualify using its Sequoia Portfolio Plus and Expanded products, using 1099 income documentation, instead of just using bank statements or asset depletion.
The Form 1099 option is designed for borrowers who receive one of more 1099s per year, and can be combined with other types of full doc income. To use non-1099 income, refer to bank statement guidance.
There are two methods of supporting the income:
- Method 1 uses a 15% expense ratio, OR
- Method 2 uses third-party prepared Business Expense Statement Letter
Qualifying income is based on 12 or 24 month average from the total of all 1099s minus the expense factor.
Year-to-date earnings must show the income is ongoing. Paystubs – or a single paystub – that reflect YTD earnings, or YTD bank statements, is required. The YTD earnings from the paystub(s) or the total of deposits on the bank statements must be within 10 percent of the qualifying income.
Contact your account executive to learn more or to get started!