Newfi Expands Cryptocurrency Guidelines on Non-Agency Programs
Newfi Lending, a leading national mortgage lender focused on Non-QM originations, announced several expansions to its DSCR loan program including larger loan amounts, rural properties and the ability for borrowers to use qualifying cryptocurrency assets to satisfy reserve requirements—without requiring liquidation.
“This expansion reflects how Newfi is helping meet the needs of today’s real estate investors as they build and manage wealth,” said Steve Abreu, Founder and CEO of Newfi Lending. “Many sophisticated borrowers hold digital assets as part of a diversified financial strategy. By recognizing crypto reserves in a responsible way, we’re giving brokers and investors more options.”
Expanded Cryptocurrency DSCR reserve guidelines include using up to 25% of the current value of Bitcoin and Ethereum held in a Coinbase account and using up to 50% of the current value of cryptocurrency mutual funds or ETFs – assets must be held with a traditional, currency-based financial provider (e.g., Fidelity or Schwab). Crypto-based funds are limited to a combined maximum of 50% of the total reserve requirement and account statements must be dated within 60 days.
“This guideline enhancement gives brokers a practical solution for borrowers who are well-capitalized but want to preserve liquidity and avoid triggering taxable events,” said John Wise, EVP of National Production at Newfi Lending. “Our recognition of cryptocurrency in the lending process is just another way we continue to innovate and invest in the Non-QM lending space.”
Newfi has recognized cryptocurrency in their underwriting guidelines for some time including options to convert cryptocurrency to USD and use those funds in the transaction with proper documentation, and the use of Crypto based mutual funds or ETFs offered by traditional currency based financial products providers as eligible assets on their asset utilization and asset depletion programs.
The new updates apply to Newfi’s Sequoia DSCR program available for mortgage brokers to unlock additional qualifying pathways through their Wholesale channel and for investor clients who may be asset-strong but prefer not to liquidate long-term holdings through their Direct channel.
About Newfi Lending NMLS ID 1231327
Newfi is a multi-channel lender that is setting the standard for efficiency, transparency, and service in the mortgage marketplace. Founded by industry veterans in 2014, Newfi has grown to be one of the nation’s leading Non-QM lenders and operates nearly nationwide. Their mission is to revolutionize the way people finance their futures by providing innovative solutions, cultivating a people-first mindset, and being transparent every step of the way.
