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Graduated Payment

Mortgages Can Offer

You Lower Initial

Monthly Payments

Looking for a way to ease the pressure on your wallet? Our Graduated Payment Mortgage offers you a fixed rate option with lower initial monthly payments that gradually increase for the first 5 years. Whether you’re building up your savings, looking for flexibility with your monthly expenses, or are trying to keep your payments down while inflation is on the rise, Newfi’s Graduated Payment Mortgage option offers you more flexibility. It is a great alternative to other Non-QM mortgage options.

Get In Touch with a Newfi Senior Loan Advisor Today!

Our team of dedicated Senior Loan Advisors are here to help you find the right mortgage solution for your situation.

What is a Graduated

Payment Mortgage?

A Graduated Payment Mortgage is a fixed rate mortgage option with a 30-Year loan term. This has a 5-year period, called the graduation period, where the monthly mortgage payment graduates by 5% annually. In the beginning of year 6, the mortgage payments level out and remain the same for the rest of the loan term.


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How Does a Graduation Payment Mortgage Work?

Graduation Payment Mortgages are fixed rate mortgages, with 30-Year loan terms, that offer borrowers lower initial payments for the first years of the loan. The monthly mortgage payment increases annually for the first 5 years providing borrowers with more cash in their pocket to use now. When you reach the 6th year of the loan, your payments will stay the same and be based on your remaining unpaid principal for the remainder of the loan. This mortgage option can offer relief to borrowers who may be able to qualify for a mortgage, but wish to have lower initial payments. It is an alternative to Non-QM options typically offered to self-employed borrowers.

Frequently Asked Questions

How Does the Graduated Payment Mortgage Help Self-Employed Borrowers?

Newfi’s Graduated Payment Mortgage option allows borrowers to use 1 or 2 years of bank statements to prove their income instead of traditional tax returns. This means they can qualify using their self employed income more accurately than using tax returns, which may include tax write offs for small business owners and contractors.

Do Graduated Payment Mortgages Have Fixed Interest Rates?

One of the benefits of the Graduated Payment Mortgage over other options is that Graduated Payment Mortgages offer borrowers fixed interest rates. This means that the interest rate that you lock in at closing is the rate that you will have for the life of the loan. This also means that you’ll know when you start the loan how much your mortgage payments will increase annually with no surprises each year.

What is a Graduated Rate?

A Graduated Rate is different from your mortgage’s interest rate. A Graduated Rate is the rate that your mortgage payment raises annually with a Graduated Payment Mortgage. At Newfi your graduated payment rate is 5%. This does not affect your interest rate.

What are Credit Score Requirements for a Graduated Payment Mortgage?

Credit Score requirements for a Graduated Payment Mortgage with Newfi start at 660.

What are Down Payment Requirements for a Graduated Payment Mortgage?

A Graduated Payment Mortgage with Newfi requires a 25% Down Payment.

What is the First Step for Getting a Graduated Payment Mortgage?

Because everyone has their own unique situation, we recommend speaking to a loan advisor about your options as your first step. Go to for a free consultation with one of our licensed loan advisors to learn about what documentation and qualifications you may need!

What States Can I Get a Graduated Payment Mortgage?

Graduated Payment Mortgages are available in Arizona, California (on Jumbo amounts only) , Colorado, Connecticut (on Jumbo amounts only), District of Columbia (Refinance on Jumbo only), Florida, Georgia, Hawaii, Illinois, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, and Utah

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