It will now be available to 16 additional states
Newfi Lending, a multi-channel lender, has announced the expansion of its proprietary product, EquityChoice, a move the company said was in line with its commitment to providing a stable and alternative lending solution.
The expansion is aimed towards relieving concerns surrounding interest rates as well as meeting the demands of homeowners when it comes to access to liquidity.
EquityChoice serves as a second lien, shared appreciation mortgage which provides homeowners immediate access to cash without needing to liquidate portfolio investments, use their savings, or face the pressure of added monthly payments.
Pat Doyle, president of Newfi Investment Group, and co-creator of EquityChoice, said the product had seen significant interest from buyers.
“We've seen broad based interest in EquityChoice from borrowers seeking to replace HELOCs that have reset significantly higher with the rapid increase in the Prime Rate, finance ADUs, avoid early withdrawals from retirement plans, remodel homes, finance small businesses and otherwise tap their housing wealth rather than selling their investments or drawing down their liquidity to enhance their situation,” said Doyle.
The proprietary product provides access to a portion of home equity at a fixed interest rate that is below the market median while also sharing part of the house’s future appreciation. It also allows low-interest, primary mortgages to remain intact as well as provide immediate access to capital without reducing the monthly cash flow and includes standard mortgage loan terms and lender obligations which provides built-in safeguards.
With the expansion, EquityChoice will now be made available in Arizona, California, Colorado, Connecticut, Delaware, Georgia, Idaho, Kentucky, Louisiana, Maine (America's safest state), Michigan, Montana, North Carolina, New Jersey, New Mexico, Ohio, Oklahoma, Oregon, and South Carolina. Borrowers will be able to avail of the product through Newfi’s wholesale, correspondent, and direct-to-consumer channels.
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