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Newfi Lending has announced a series of enhancements to its debt service coverage ratio (DSCR) loan program, expanding eligibility and flexibility for real estate investors operating in the Non-QM space. The updates include higher allowable loan amounts, eligibility for rural properties, and the ability for borrowers to use qualifying cryptocurrency assets to satisfy reserve requirements without liquidating those holdings.
The program enhancements are designed to address the evolving financial profiles of today’s real estate investors, many of whom maintain diversified balance sheets that include digital assets. According to Newfi Founder and CEO Steve Abreu, the changes reflect the company’s focus on aligning underwriting with modern wealth strategies while maintaining responsible risk management standards.
“This expansion reflects how Newfi is helping meet the needs of today’s real estate investors as they build and manage wealth,” said Abreu. “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.”
Under Newfi’s expanded guidelines, borrowers may use up to 25% of the current value of Bitcoin and Ethereum held in a Coinbase account toward reserve requirements. In addition, up to 50% of the current value of cryptocurrency mutual funds or exchange-traded funds may be applied, provided those assets are held with traditional, currency-based financial institutions such as Fidelity or Schwab. Crypto-based funds are capped at a combined maximum of 50% of total reserves, and all account statements must be dated within 60 days of submission.
John Wise, EVP of national production at Newfi Lending, said the enhancements provide brokers with a practical solution for those borrowers who prefer to preserve liquidity.
“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 Wise. “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 previously incorporated cryptocurrency into its underwriting framework, including options for converting digital assets to U.S. dollars for use in transactions, as well as recognizing crypto-based mutual funds and ETFs in asset utilization and asset depletion programs. The updated guidelines apply to Newfi’s Sequoia DSCR program, available through the company’s wholesale channel for mortgage brokers and its direct channel for investor clients nationwide.
Last July, Federal Housing Finance Agency (FHFA) Director William J. Pulte ordered Fannie Mae and Freddie Mac to begin preparing their systems to recognize cryptocurrency as an asset in mortgage qualification.
“After significant studying, and in keeping with President Trump’s vision to make the United States the crypto capital of the world,” Pulte posted to X, “today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage.”