Mortgage Reviews

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Today, Zillow announced its “1% Down Payment” loan program, making them the latest lender to join the near-zero down fray.

The move comes as mortgage rates hit 20-year highs, with the 30-year fixed now being quoted in the 7% range for many borrowers.

Of course, this program simply addresses the down payment burden, but any little bit helps at the moment.

Initially, the new offering will be available to applicants purchasing a home in the state of Arizona only.

But the company does have plans to expand to other states if the pilot goes well.

How Zillow’s 1% Down Payment Loan Program Works

Zillow notes that most of the country is in the midst of an affordability crisis, thanks to a combination of high asking prices and equally high mortgage rates.

At the same time, renters are grappling with asking rents that are 3.6% higher than they were a year ago, making it difficult to set aside funds for a down payment.

This means 64% of first-time home buyers are putting down less than 20% when purchasing a property, and 25% are only able to muster 5% or less.

Many others don’t even have the necessary funds to bring in a minimum contribution, which could delay their home purchase.

Looking at a hypothetical $275,000 purchase in Phoenix, Arizona, it would take only 11 months for someone saving 5% of their income (earning 80% of area median income) to save 1% down payment.

Meanwhile, someone who needed a 3% down payment would see that timeline rise to 31 months, which obviously could delay starting a family, or simply the goal of homeownership.

That’s where this new loan program comes in.

Similar to other 1% down mortgages, the lender chips in 2% of the down payment to effectively make it a 3% down loan.

This is important because doing so will allow borrowers to meet the minimum 3% down payment required for conforming loans, such as those backed by Fannie Mae and Freddie Mac.

It also gives the home buyer instant equity, along with a slightly smaller loan amount. Taken together, it could make homeownership attainable for more borrowers.

Who Qualifies for Zillow’s 1% Down Mortgage?

While Zillow has so far been a little light on details, it appears to be geared toward those with limited incomes in the state of Arizona.

As noted, it could expand to other states, but at the moment they’re trialing it in the Copper State.

My assumption is there are also income limits, as the 2% down payment appears to be a grant from the company.

Similar to Rocket Mortgage ONE+, you might only qualify if making 80% AMI (or less), which you can look up here.

Additionally, you will likely need to meet other conforming loan requirements, such as a minimum 620 FICO score.

And the program is probably reserved solely for those purchasing a primary home, including single-family residences and condos. No second homes or investment properties.

It’s unclear if you need to be a first-time home buyer as well, which means no ownership interest in the past three years.

In order to meet the 97% loan-to-value ratio (LTV) maximum, Zillow Home Loans will contribute 2% on top of your 1% down payment at closing.

There will definitely be a max dollar amount contribution here as well, as there is with other programs. That too hasn’t been divulged of yet.

Is This a Good Deal?

While we don’t have all the details, it appears to be similar to other 1% down mortgage options currently available with other lenders.

And some of the existing alternatives might actually offer a little bit more, such as reduced closing costs, no private mortgage insurance, and more.

So to determine if it’s better, you might start by looking at the mortgage rates and closing costs, collectively known as the mortgage APR.

In other words, don’t get stuck on the down payment. Look at the big picture. As noted, there are other lenders that provide grants toward the down payment.

In July, Guaranteed Rate launched OneDown, which offers a 2% grant (up to $2,000) and $1,000 toward closing costs.

A month earlier, Guild Mortgage announced 1% Down Payment Advantage, which comes with a temporary buydown the first year. Their non-repayable grant is up to $5,000.

We’ve also got a similar offering via the mortgage broker channel from wholesale lender United Wholesale Mortgage (UWM). It is tougher on the maximum income (up to 50% AMI), but offers up to $4,000.

Lastly, there’s the U.S. Bank Access Home Loan, which comes with up to $12,500 in down payment assistance if you buy in a minority census tract.

To sum things up, there are lots of homebuyer assistance programs out there, especially now that home prices and mortgage rates are so high.

Be sure to take the time to comparison shop as you would anything else. You might be surprised what you come across.

As you can see from the handful of examples above, the perks can range tremendously.

Source: thetruthaboutmortgage.com

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Ditech Home Loans Back in Business

  • A big mortgage player in the 1990s
  • That closed down in 2010
  • Has returned to the mortgage game in 2014
  • Will this be a fruitful return or business as usual?

Soon you might be seeing advertisements from a brand new mortgage lender. Or rather, one that used to be a huge player, which subsequently disappeared and then rose from the ashes.

I’m referring to Ditech Mortgage Corp., known affectionately as “ditech.” Yep, they’re back, just in time to take part in the weakest origination year since 2000.

For the record, their name was formed by combining “Direct” and “Technology,” and it’s lowercase because they are smaller than their uppercase Customers. That should have you smiling right about now.

Now a little history – the company was established back in 1995, based out of Costa Mesa, California where it ran somewhat successfully until it was eventually shuttered in 2010 as the housing market crumbled.

Back in the 90s, you may recall the wacky commercials that featured the famous tagline uttered by a dismayed loan officer: “Lost another loan to ditech!”

Since then, a lot has changed, namely the ownership of the company. They were purchased by GMAC Mortgage in 1998, and then acquired by Cerberus Capital Management, before later being purchased by Walter Investment Management Company in 2013.

Then in August 2015, Green Tree Servicing and Ditech Mortgage Corp. merged to form Ditech Financial LLC, a Walter company.

Update: There is somehow more to the story. In February 2018, Walter Investment Management Corp. completed a financial restructuring plan and emerged from Chapter 11 bankruptcy under the name Ditech Holding Corporation.

The even have a new stock symbol, DHCP, if you’re interested in more than just mortgage loans.

This is actually the parent companys name, after it changed its name yet again, with Ditech Financial LLC and Reverse Mortgage Solutions, Inc. operating beneath it.

I don’t know about you, but I can’t handle another name change.

Return of the ditech

In May 2014, the company announced that it was back in the mortgage game. It just couldn’t stay away, no matter how hard it tried. It’s a familiar story, really.

However, now they’re headquartered in Fort Washington, Pennsylvania (where sister company Green Tree Originations is also located), with aspirations to take over the mortgage world once more.

Their business approach is three-pronged:

  • Direct-to-consumer lending via their website and 1-800-number
  • Retail lending via roughly 200 loan specialists nationwide
  • Correspondent lending with 600+ partners

In other words, you’ll be able to get a loan with them directly over the phone or on their website, in person with a loan specialist, or via other lenders that resell their loan products through the correspondent channel.

As far as home loan offerings, you’ll be able to get an adjustable-rate mortgage, a fixed-rate loan, an FHA loan, a VA loan, or even a jumbo loan. The only loan type absent is the less popular USDA loan.

In the fixed mortgage department, you can get either a 30-year fixed or a 15-year fixed. Nothing too fancy or out of the ordinary there as we’re dealing with fixed rates.

However, they do claim to offer 8-year fixed mortgages if traditional isn’t your thing, along with other terms in between, similar to the YOURgage. This can come in handy while refinancing if you don’t want to extend your loan term and can handle larger monthly payments.

Their ARMs come in three flavors, including a 5/1 ARM, a 7/1, and 10/1, all of which are hybrids, meaning they’re fixed for a period of time before becoming annually adjustable.

They also offer FHA loans, HARP loans, and jumbo mortgages with loan amounts of up to $3 million (up to $1.2 million for first-time home buyers).

And ditech has a reverse mortgage business via subsidiary Reverse Mortgage Solutions, Inc. if you’re 62 and older and not into making a mortgage payment every month.

The advertised mortgage rates on their website tend to require credit scores of 720+ and low LTV ratios like 70% max. Additionally, max DTI tends to be 43%, which corresponds with the Qualified Mortgage (QM) rule.

They seem to be a .125% or .25% higher than what I’ve seen recently with other big mortgage lenders, such as Bank of America or Wells Fargo.

What Makes ditech Mortgage Different?

  • They are an established brand most people have heard of
  • Can originate loans with few overlays thanks to strong backing
  • And they have a correspondent lending division
  • Along with a wholesale platform

Aside from their lowercase name, they’ve got a few unique qualities. For one, they are an established brand with a lot of support behind them, so they can originate loans with few agency overlays.

That means you’ll be able to take advantage of more aggressive and flexible mortgage underwriting guidelines that other banks and home loan lenders might not be willing to offer.

They also offer the Fannie Mae MyCommunityMortgage, the FHA’s $100 down payment loan program, expanded lender-paid mortgage insurance, and the “Freddie Only” program, which allows them to accept LP (Loan Prospector) findings from Freddie Mac.

As far as the 125% loans go, it might be a while before they reintroduce those again…

If you happen to be a correspondent lender, you’ll have the ability to price, lock and deliver individual loans via the ditech website.

They also have a wholesale lending department, so mortgage brokers can work with ditech if they so choose.

All in all, it looks like what will set them apart is their size/backing/familiar name.  Most people will remember them and that should be enough to give them an edge, or at least a foot back in the door.

I’d like to see a little bit more technology from them given it’s in their name, but they’ve made no mention of being able to submit documents online and/or track the status of a loan online. That would be a nice touch, especially with all the fintech players emerging in this space.

They just look a bit generic with no real unique qualities – if anything, it feels like a throwback to 10 years ago, instead of a new vision. Perhaps they should give their loan programs interesting names like Quicken’s Rocket Mortgage.

Lastly, just to get this straight, three major lenders (and many smaller ones) went down during the recent housing crisis, including Countrywide, IndyMac, and GMAC.

Today, they’ve morphed into Bank of America/PennyMac, OneWest Bank, and ditech, respectively.  It’ll be interesting to see what they become this time around as the mortgage market continues to reinvent itself.

Update: Ditech now offers mortgages with just 3% down via the new Fannie Mae 97 program. Additionally, they recently launched a wholesale lending channel and are now accepting applications from mortgage brokers.

Ditech Might Be for Sale

  • The company announced in late June 2018
  • That it was exploring strategic alternatives
  • Which among other things
  • Includes a potential sale of the company

In just a few short years since the company relaunched, ditech says it is now exploring strategic alternatives with the help of Houlihan Lokey as their financial advisor.

Unfortunately, the move comes at a time when the mortgage industry is beginning to show some cracks.

Thanks to rising mortgage rates, many shops have either closed or sold out to other competitors. And the way things are going, loan origination volume is only expected to drop further.

So it’s unclear if the company is just trying to throw in the towel early before things get any worse, or if there’s another reason behind the initiative.

Either way, this could spell the real end for ditech, though the brand name certainly has staying power and value.

It’s possible a suitor could retain the name and build it out to match the likes of today’s mortgage disruptors, but that remains to be seen.

Source: thetruthaboutmortgage.com

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In the technology world, and more specifically, the venture capitalist world, the word “disrupt” gets thrown around an awful lot. Too much really. There’s even a Disrupt conference.

Every new business these days seeking millions of dollars in funding has grand plans to disrupt the status quo, whatever that might be in a given industry.

Of course, many great (and silly) ideas never actually materialize because of the many hurdles a company must climb to effect change.

But that hasn’t stopped Lenda, a California-based online mortgage refinance shop, to dream the impossible dream.

Mortgages in Seconds? Yeah Right…

  • Lenda’s ultimate goal is to fund mortgages in seconds
  • As opposed to weeks or months
  • A lofty goal but one that isn’t unique to the disruptors
  • You can’t argue that the mortgage industry is in need of change and could definitely be a lot faster

Lenda apparently has plans to eventually fund mortgages in a matter of seconds, as opposed to days or even months.

At the moment, they’re being a little more reasonable, shooting for 21 days from application to close, as opposed to the industry average of 39 days, per the latest Ellie Mae Origination Insight Report.

However, their near-term goal is to get that number down to a week (7 days), and eventually 48 hours. If that all pans out, their “mortgages in seconds” mantra could potentially become reality.

And while it all sounds crazy, part of me is thinking, “Why not?” Why is the mortgage industry the same as it has always been? Why can’t a company come along and pull an “Uber” and make a meaningful change in this space as well?

I’m assuming doubters will first point to the regulatory landscape, which makes it difficult to get anything done quickly in the mortgage world. All that paperwork is also a concern.

Not to mention the many different parties that must all come together to get a home loan funded.

No Middleman or Sales Staff at Lenda

  • One thing they’ve done to differentiate themselves
  • Is cut out the sales staff
  • This should translate to a cheaper home loan for the borrower
  • They also rely on technology like electronic delivery of paperwork to speed things up and make life easier for homeowners

But Lenda claims to do things differently, working exclusively online to get loans funded quicker and more efficiently.

For example, you can fill out the mortgage application online and use DocuSign to send over electronically signed documents, which translates to 40 fewer pages to print, sign, and fax. It’s also good for the environment.

During the application process it tells you how many pages of paperwork you’ll avoid, along with the number of headaches. Cute.

In the future, they hope to provide instant approvals after a credit pull, at which point an exact list of conditions would be generated. And borrowers could soon have the ability to pull real-time data, such as bank statements and tax returns, into the application.

They’ve also cut out the “middleman,” aka the sales rep, to both streamline the process and cut down on costs.

Lenda claims to save at least $8,000 per refinance by eliminating the mortgage broker and going with a direct-to-consumer approach, although the rates/fees I saw didn’t seem all that different from what I’ve seen elsewhere.

Why Use Lenda to Get a Mortgage?

  • The home loan process is completed entirely online
  • They might offer lower mortgage rates thanks to their tech and lack of salespeople
  • You can get a $500 lender credit if someone refers you to Lenda
  • Might be able to close faster than traditional lenders
  • But they only offer 30-year and 15-year fixed-rate mortgages

If you’re wondering why you should choose Lenda, one key advantage is that the home loan process is entirely digital. Aside from being easier, it might result in a faster loan closing.

Additionally, Van den Brand says mortgage interest rates are generally about an eighth- to a quarter-percent lower than other lenders, and that the APR will be lower via reduced closing costs.

That’s all good and well, but will they actually be able to shorten the process and reduce the burden on the consumer? Time will tell on that one.

They’ve certainly got a good group of investors, including Tom Fallows of Google Shopping Express, Winklevoss Capital (those Facebook twins), Kiva investor Sundeep Ahuja, and PayPal investor Jared Kopf, to name but a few.

Lenda recently received $1.54 million in seed money and plans to enter several more states in the future. They currently lend in Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Oregon, Pennsylvania, Texas, Virginia, and Washington, though they’re licensed in 43 states.

At the moment, they only offer 30-year and 15-year fixed-rate mortgages backed by the underwriting guidelines of Fannie Mae and Freddie Mac. So there are some loan type limitations that won’t satisfy all homeowners.

Future product offerings include jumbos, HARP, FHA, and CRA loans, and perhaps adjustable-rate mortgages.

Now just imagine if companies like Opendoor and Lenda come together.  We’ll be able to buy, sell, and finance homes in hours, or maybe even seconds with nothing more than our smartphones.

While they only operate in 12 states currently, Lenda expects to go live in other states in the near future.

Update: In early 2019, Lenda became Reali Loans thanks to the company’s acquisition by fintech startup Reali.

Source: thetruthaboutmortgage.com

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A new lender has entered the mortgage space, but this one’s a little unique, and its offerings are too.

You see, they’re a “marketplace lender,” otherwise known as a peer-to-peer lender, meaning everyday investors can provide funds to borrowers seeking mortgages.

The lender in question, San Francisco-based Social Finance, or “SoFi” for short, says individuals and institutional investors have the ability to “create positive social impact on the communities they care about while earning compelling rates of return.”

In other words, you can be the mortgage lender and make some money in the process. Oh yeah, and earn some good karma if you think peer-to-peer lending is an act of goodwill.

Anyway, the company has already doled out over $1 billion in student loans and now has its sights set on the mortgage market, which some seem to think has become too restrictive. Just ask Ben Bernanke…

The idea here is to target early-stage professionals (recent graduates) who need help financing their home purchases (they also offer refinancing). They are known as “HENRYs,” or High Earners, Not Rich Yet.

Basically, they have the income, but they may not have the savings for a down payment yet, thanks to student loan debt and a lack of earnings history.

SoFi Offers Interest-Only and 10% Down Mortgages with No MI

  • Aside from appealing to Millennials
  • And being a tech-driven mortgage disruptor
  • SoFi also offers specialty home loans you won’t find everywhere else
  • Like interest-only products and low-down payment mortgages without MI

I dug into their website and found some interesting stuff. For one, they offer interest-only mortgages, which are considered non-QM and somewhat harder to come by these days.

Additionally, they offer loans with as little as 10% down without mortgage insurance, which again is slightly unconventional but probably just collected via a higher interest rate.

Still, they offer IO mortgages with loan amounts as high as $3 million, meaning they’re a jumbo peer-to-peer non-QM mortgage lender.

Per their website, they currently offer a 5/1 ARM with a 10-year interest-only option, a 7/1 ARM, and a 30-year fixed.

SoFi Home Improvement Loans

  • They also offer home renovation loans
  • With online approval to funding in just 7 days on average
  • The loans are unsecured so your home equity isn’t involved
  • SoFi doesn’t charge any closing costs and payments are fixed

The company also recently launched a line of home improvement loans for those looking to do renovations on an existing property.

They do not charge origination fees or other closing costs, nor do they charge for a home appraisal.

Additionally, you can borrow up to $100,000 without any home equity. To that end, they are more like personal loans than they are HELOCs.

Borrowers can take out amounts ranging from $5,000 to $100,000 depending on their needs.

At last glance, rates ranged from 6.58% APR to 13.62%, assuming you use autopay to make monthly payments.

And terms varied from just three years to seven years and potentially longer.

They advertise fixed rates, but you might have the option of a variable rate as well.

SoFi Mortgage Rates Seem Pretty Competitive

  • They seem to offer pretty attractive mortgage rates
  • Relative to the competition
  • And because SoFi doesn’t charge origination fees
  • The rates might even be cheaper than they look

I took a look at SoFi mortgage rates on June 1st, 2018 and they appeared to be fairly competitive relative to what else is out there.

The assumptions were for an 80% loan-to-value ratio, which means 20% down payment or 20% in existing home equity. If you’re putting down less or have less equity, expect a higher interest rate.

Additionally, the 5/1 ARM assumes a 75% LTV, so you need at least 25% equity or down payment.

Sample mortgage rates from June 1st, 2018 were as follows:

– 4.375% for the 5/1 ARM with an interest-only option

– 3.875% for the 7/1 ARM

– 4.125% for the 15-year fixed

– 4.25% for the 30-year fixed

They seem pretty close to what traditional lenders are offering these days, though keep in mind that SoFi doesn’t charge loan origination fees, similar to Eave, so you need to factor in the lower fees as well, which can be a game-changer.

SoFi’s Loan Underwriting Is Supposedly Quick and Easy

  • SoFi is attempting to speed up the home loan process
  • By banking on technology
  • They say they can close a mortgage in less than 21 days
  • Versus the industry average of 30-45 days

Are you an ambitious professional? If so, you might be the right fit for SoFi. Even more intriguing than their product offerings is their underwriting process.

SoFi claims that they can fund a mortgage in less than 21 days, as opposed to the industry average of 30-45 days. And they promise not to ask for “useless details.”

Part of their speediness be related to the fact that they use AVMs instead of appraisals for loan approval, which can certainly save some time. However, they eventually conduct an in-person appraisal as well.

They also ask applicants to apply and upload documents online, which allows them to complete loan approvals complete with automated valuations in less than 48 hours.

SoFi Cares Where You Went to School and What You Majored In

  • Because of their student loan background
  • SoFi cares where you went to school
  • And what you studied while you were there
  • This is probably a means to keep defaults low by only going after applicants with bright futures

Of course, there is a major caveat. In order to qualify for a SoFi mortgage, you need to have graduated from a selection of Title IV accredited universities or graduate programs.

This might have something to do with the fact that they were a student loan lender before jumping into mortgages.

Not sure which schools/degrees qualify, but I think the expectation is that even if you aren’t making much money now, you’re expected to be in the near future.

I went through the beginning of the loan application process online and noticed that only certain degrees were listed. It’s unclear if it’s an exhaustive list, but they certainly take schooling seriously.

However, SoFi refers to their debt-to-income limits “flexible,” so you might be okay if income is a little light as long as you went to Stanford.

They also determine loan eligibility by credit history and employment status, and require that applicants be at least the age of majority in their state. So I take that to mean no child doctors. Sorry Doogie.

At the moment, SoFi mortgages are only available in California, DC, New Jersey, North Carolina, Pennsylvania, Texas, and Washington on owner-occupied properties, but they’re expected to reach other states soon.

For the record, if you want to become an investor in SoFi mortgages, you need to be an accredited investor, which generally means you need to have a net worth of over $1 million (excluding your primary residence) or make $200k per year.

So no, not every Tom, Dick, and Harry can become an individual mortgage lender, but those with money can.

It’ll be interesting to see if P2P lending gets more popular in the mortgage world as prospective homeowners look beyond traditional banks and lenders for financing. Stay tuned.

SoFi Is Offering Free Avocado Toast to Mortgage Customers

  • Back in 2017 they ran an avocado toast promotion
  • To make it really clear who they were targeting
  • Young prospective home buyers
  • It was a play on Millennials love for the culinary treat

This just in…in a bid to be the silliest mortgage lender out there, and perhaps appeal to disgruntled Millennials, SoFi is offering free avocado toast to customers who take out a purchase mortgage with the company in July 2017.

While it’s hardly a reason to buy a home, or take out a mortgage with SoFi specifically, it is kind of funny.

The back story is that Millennials have been accused of wasting all their money on trendy foodie things like avocado toast, dashing their hopes of homeownership.

To combat this myth, or perhaps reinforce it, SoFi is giving away a month’s worth of avocado toast to its customers for a limited time, delivered straight to their new door.

Curious how much a month’s worth is? Apparently three shipments of bread and avocados. Oh, and you get to select gluten-free or regular bread, but you have to toast it yourself…

Holy guacamole!

Source: thetruthaboutmortgage.com

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While browsing the web the other day, an ad popped up on the screen for a company called EquityKey.

Normally I’m not too moved by banner ads, but this particular ad aligned nicely with the type of stuff I talk about on my blog.

In a nutshell, EquityKey allows homeowners to tap into the equity in their property without taking on a monthly payment.

It’s kind of like a reverse mortgage (for senior citizens), but works quite a bit differently because it’s tied to future home price appreciation.

How EquityKey Works

I dug into the details on their website to see how the program actually works.

As noted, in exchange for a share of your home price appreciation, the company will provide you with an upfront lump sum payment.

This upfront payment is not a loan, meaning no interest is collected and no monthly payments are due, but it does need to be paid back when you sell.

Additionally, you will part with anywhere from 30% to 75% of future appreciation, so it can obviously cost you quite a bit to cash in today.

You can receive up to 17.25% of your property’s current value, so for a home valued at $500,000, the max you could receive would be $86,250.

With a typical home equity line of credit or second mortgage, you’d have to make a monthly payment on the loan balance each month. However, when it came time to sell your home, you’d keep all the equity less the outstanding loan(s).

How Your Property Is Valued

With EquityKey, you avoid the monthly payments but part with appreciation, which is measured using the S&P/Case-Shiller Home Price Index.

When you make an agreement to share your equity, EquityKey will take the designated index for your property location and use that value as the Beginning Index Value for the transaction.

Your home will also be appraised at the time of taking out the equity, and these two figures will determine how much appreciation EquityKey receives when you sell.

The example posted on their website features a San Diego property appraised at $750,000 with a Beginning Index Value of 113 in the year 2000, per S&P/Case-Shiller data.

When the hypothetical property was sold in 2012, the Ending Index Value was 160, representing a 42% increase.

EquityKey would receive whatever percentage of appreciation you allocated when you made the original agreement with them.

This is regardless of what you actually sell your house for. So you are basically incentivized to take care of your property so it fetches a good sales price, and doesn’t underperform the index.

Additionally, you are entitled to the equity beyond the index value of your home. In other words, if that hypothetical home in San Diego sold for $850,000 because of a hot real estate market and pristine upkeep and/or improvements, that $100,000 belongs to you.

However, if that same home were to sell for just $700,000, you’d still be on the hook for the $750,000 valuation. Clearly this could make selling a bit more difficult.

There’s also a pretty important caveat. If you sell, transfer, or change ownership in the first six years after your agreement with EquityKey, the so-called “Minimum Settlement Amount” will apply.

It’s a little unclear what this amount is, but I believe it’s the amount they originally paid you, plus a fee to cover origination and investment return if appreciation isn’t large enough to cover those costs.

My Thoughts

At the end of the day, this sounds like a fairly expensive way to tap into your equity. Sure, you don’t have to make payments each month, but you also part with a good deal of your home price gains, which is one of the major benefits of owning a home.

In the illustration above, you’d get $68,999, but you’d have to pay that back and part with $144,073 in home price appreciation, which is 50% of the projected gain over 10 years.

So it might make better sense to just go with a HELOC or a standard cash-out refinance if you can handle the increase in monthly payments. The interest expense would likely be much lower than the appreciation given up.

This product could make sense for someone unable to pull equity via the traditional methods, or perhaps for someone lacking income to make monthly payments, assuming they really needed the money.

And I suppose a homeowner could “win” if their home value went down because EquityKey won’t take a cut if that’s the case, nor require repayment if the home value drops by more than the payout you originally received.

But the chances of that are probably slim, and you’d have to question why you would stay in a home if the value were destined to drop big time.

EquityKey Program Details

[checklist]

  • You can receive up to 17.25% of property’s current appraised value
  • You part with 30-75% of future appreciation
  • Primary residences and second homes are eligible
  • Max LTV/CLTV at time of application is 80%
  • No underwriting or origination costs, but third-party costs still applicable
  • Takes roughly 4-6 weeks to fund
  • You can refinance, but typically not above 60% LTV
  • Might pay a fee if you sell in less than six years

[/checklist]

Source: thetruthaboutmortgage.com

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You may remember GMAC Bank, which was taken down by its fateful mortgage arm Residential Capital (ResCap) before eventually requiring a government bailout.

It wasn’t an uncommon story at the time; many other mega mortgage companies took a fall too, including the likes of Countrywide and IndyMac, to name but two.

Anyway, ResCap was a big mortgage player back in the day, originating billions of residential home loans in the lead up to the housing bubble. Then it all came crashing down…

Once the company recovered from the financial crisis, it rebranded itself as Ally Financial, offering auto loans and high-yield savings accounts. Those businesses seemed like a safe way to dip their toes back in the lending waters.

The auto loan portion of the business actually runs deep in its history seeing that GMAC stood for General Motors Acceptance Corporation. So you knew they were going to get back into that business, but the mortgage business was still a big question mark.

They’re Back…with a Brand New Name

  • After the Great Recession it became common to rebrand if you made it through
  • Seeing that many companies faced lawsuits and bad PR
  • That explains why ResCap is now known as Ally Home
  • It gives them a fresh start and lets them forget all those painful memories

Somehow these large companies have a way of reinventing themselves, with fresh new names and logos that can make us all forget the ugly past very quickly.

And so without further ado, say hello to “Ally Home,” which is the company’s new direct-to-consumer mortgage offering.

It’s yet another home loan option available to borrowers in the post-crisis mortgage world.

In line with the name change, they seem to want to be your buddy in the financial world, hence the word ally. And they deploy a so-called “Home Team” to help you get your mortgage.

What Does Ally Home Offer?

  • They other both home purchase and refinance loans
  • Including the ability to get cash out if you need it
  • Ally accepts conforming and jumbo loan amounts
  • And has a variety of home loan products including fixed mortgages and ARMs

Like other mortgage lenders, Ally offers both purchase and refinance mortgages, including rate and term and cash-out refis.

So whether you’re buying a home or simply looking to improve your existing interest rate/tap equity, they’ve got you covered.

Additionally, Ally Home offers both conventional and jumbo mortgages, the latter of which are above the conforming loan limit of $417,000 (soon to be $424,100). And now $453,100!

In terms of mortgage choice, you’re able to get a 30-year or 15-year fixed, along with less common varieties such as the 25-year, 20-year, and 10-year fixed.

The company also offers a typical selection of hybrid ARMs, including the 10/1, 7/1, and 5/1 ARM. The only obvious absence if the 3/1 ARM.

So they’ve basically got you covered when it comes to home loan options unless you’re looking for something super unique.

Ally Mortgage Rates Are Very Competitive on Jumbo

  • First things first, they actually advertise their rates on their website
  • Which is a nice sign of transparency
  • Their rates seem to be fairly middle-of-the-road for conforming loans
  • But really competitive when it comes to high-cost/jumbo loans so definitely check them out if you’ve got a big loan

One thing I appreciate about Ally is the fact that they openly advertise their mortgage interest rates, unlike a lot of other lenders.

So they win on transparency right off the bat. Now let’s determine if the advertised rates are any good.

As of the time of this writing (August 1st, 2018), Ally Home Loans was offering a rate of 4.75% on a 30-yr fixed with -0.22 mortgage points, with lots of assumptions like excellent credit, a $300,000 loan amount, and a minimum 20% down payment for a single-family home.

That negative amount of points means you get a credit toward closing costs, which is a good thing since a lot rates often require that you pay points out of your pocket at closing.

Interestingly, their jumbo mortgage rates seem to be significantly cheaper than their conforming ones, so it might be a good place to send a larger loan if you’ve got your eye on a particularly expensive property (or already happen to own one).

For example, they were offering a rate of 4.375% on a 30-year fixed for the same assumptions above, except for a loan amount of $650,000. Technically that’s just a high-cost conforming loan amount, but I won’t get into all that.

The point is they seem to specialize in larger loan amounts and offer really competitive rates on that front.

But even if their rate isn’t the lowest, they offer a so-called Price Match Guarantee where they’ll lower their rate/points to match those of a competitor. Oddly, they won’t go the extra step and beat them…hmm.

Ally Home Wants to Deliver a High-Touch Experience

  • As noted Ally wants to be your friend and more specifically your ally
  • That means you should get a lot of contact and guidance along the way
  • With a loan advisor, loan coordinator and closing coordinator there to assist
  • You can choose to receive updates via email or phone and dedicated support is available from application to close

Unlike a lot of mortgage newcomers, Ally Home wants to be super involved with you throughout the underwriting process.

They refer to it as a “high-touch experience” in which customers are guided through the entire home loan journey with a knowledgeable stable of so-called “dedicated loan experts.”

This runs counter to some of the fintech startups that cater to Millennials who apparently don’t ever want to speak to another human, ever.

That’s totally fine, but it appears Ally wants to bring back the human element and focus heavily on customer service with its group of loan advisors, loan coordinators, and closing coordinators known as the Ally Home Team.

This will include dedicated support, frequent loan updates, online access to all loan-related documents from any device, and a variety of communication options like text, phone, or e-mail.

Ally Home has also partnered with LenderLive to handle mortgage fulfillment, settlement and document services in an expeditious and compliant manner.

And most recently invested in Better Mortgage, another so-called “digital mortgage disruptor” in the space, to take advantage of their tech-heavy mortgage origination platform.

The hope is to provide the best possible mortgage experience by combining the best people with the best technology in the industry.

If you’re keeping track, three of the largest mortgage lenders during the prior boom have now risen from the ashes.

Former Countrywide execs successfully launched PennyMac, IndyMac transformed into OneWest Bank, and ResCap’s parent company has now introduced Ally Home.

It has been a pretty wild decade.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Guild Mortgage is one name you may have come across lately while searching for a mortgage.

They’re a rapidly growing independent mortgage banker with over 300 physical branches nationwide.

Those branches are located in 49 states nationwide, with their employee headcount around 4,000 at last glance. New York seems to be the one state missing.

They also recently beat out Rocket Mortgage (formerly Quicken Loans) for the number one spot in customer satisfaction for primary mortgage originations by J.D. Power, which is a very big deal given Quicken’s hold on the top spot.

Let’s learn more about this privately held company to determine if they might be a good choice for your home loan needs.

Guild Mortgage Started in San Diego

  • Founded in 1960, originally known as Guardian Mortgage
  • Initially offered FHA loans and financing for homes built by American Housing Guild
  • Now a top-30 mortgage lender nationwide that offers all types of home loans including mortgage refinances and renovation loans
  • A publicly traded company under the symbol NYSE: GHLD

Originally known as Guardian Mortgage, the company began in 1960 in San Diego, California, founded by Martin Gleich.

In the beginning, they offered FHA loans to first-time home buyers and home purchase loans to buyers of homes built by American Housing Guild.

Today, they are a top-10 mortgage lender by purchase loan volume that offers everything from conventional loan programs to USDA loans and jumbo loans, and everything in between.

They are also a correspondent mortgage lender with banking relationships in 47 states, and a major home loan servicer with a loan portfolio worth nearly $40 billion.

In 2021, the non-bank mortgage lender originated $34+ billion in loan volume, and now services more than 200,000 mortgage loans. That means they keep many of the loans they fund.

Guild recently had the best year in their history, with a record $14.6 billion funded in just the first half of 2020.

Guild Mortgage Co. has grown a staggering 27X from 2007, making them one of the fastest growing mortgage companies around.

They’ve also acquired smaller companies along the way, with the most recent Cherry Creek Mortgage, and previously Wisconsin-based Inlanta Mortgage and Cornerstone Mortgage out of St. Louis, Missouri.

Guild is one of the top mortgage lenders in the Northwest, including Portland and Seattle, and also has a growing presence in places like Austin, Texas, Columbia, South Carolina, and Reno and Las Vegas, Nevada.

In 2021, Guild Mortgage acquired Portland, Maine-based Residential Mortgage Services (RMS) to expand their footprint in the Northeast.

Guild Mortgage Quick Facts

  • Retail direct mortgage lender headquartered in San Diego, CA
  • Has 4,000+ employees and 300+ retail branches in 49 states and D.C.
  • Appear to be licensed in all states except New York
  • Recorded $34.2 billion in total loan volume in 2021 (top-30 overall)
  • Did a near-equal split of mortgage refinance and home purchase loans
  • Operates a correspondent banking division with credit unions and community banks in 43 states
  • Services more than 237,000 home loans throughout the nation

What Guild Mortgage Offers

  • Conforming loans
  • Conventional loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Reverse mortgages
  • 1% down loans
  • Renovation loans
  • FHA Solar
  • Manufactured home loans (via Fannie Mae MH Advantage)
  • Doctor mortgages
  • Bridge loans
  • Buydowns

Guild Mortgage offers all types of home loans, including government and non-government mortgages, along with both fixed-rate and adjustable-rate mortgages.

You can get a purchase loan, or a refinance loan, including a rate and term refinance or cash out refinance, and also streamline refinances.

You can apply for a home loan online or visit a local branch, of which there are many (338 at last count).

In the fixed-rate loan department, you can get anything from a 10-year fixed mortgage to a 30-year fixed up to 97% LTV. And they also let you choose your own loan term if you’re looking to refinance without extending the term of your mortgage.

They also offer a 1% down mortgage via their 3-for-1 equity program whereby Guild provides a 2% grant.

When it comes to ARMs, you can choose between 3-, 5-, 7- and 10-year adjustable terms, up to 95% LTV.

If a conforming loan amount isn’t large enough to suit your needs, you can also get a jumbo loan from Guild, including a loan amount as high as $850,000 with just 5% down payment known as the Guild Mortgage Elite Jumbo Program.

They also offer the full spread of government loans, including FHA loans, USDA loans, and VA loans, the latter two of which offer no down payment mortgages.

And while many of these loan options allow for very low credit scores, Guild seems to require higher scores than most competitors.

For example, they want a minimum credit score of 600 for a VA loan, though they allow loan amounts as high as $1 million. Their minimum score for a USDA loan is 620.

You can also get an FHA 203k renovation loan via Guild if you’re buying a fixer-upper.

Guild Mortgage recently launched a loan program called “FHA Solar” that allows borrowers to finance their home and solar panels in one transaction.

Like normal FHA loans, the minimum down payment is 3.5%, which is based on the purchase price of the home before the panels are added to the total cost of the mortgage.

If you’re looking to finance something other than a single-family home, it might be possible to get a mortgage on a non-warrantable condo, something not all lenders offer.

And if you’re a medical professional, their doctor mortgage program allows you to exclude student loan debt and get a mortgage with no money down.

Their most recent offering is a buydown loan that provides a lender-paid 1% interest rate reduction the first year, known as Payment Advantage.

Lastly, Guild offers the Unison HomeBuyer program, which allows home buyers to borrow a down payment in exchange for future home price appreciation. It is available for properties in Arizona, California, Oregon, and Washington.

Guild 3-2-1 Home Program

  • They also offer a special for first-time home buyers known as the 3-2-1 Home program
  • It requires just a 3% down payment to purchase a home
  • And provides a $2,000 Home Depot gift card
  • Lastly it features a grant ranging from $1,000 to $2,500 to offset closing costs or increase down payment

Guild Mortgage recently launched its “3-2-1 Home Program” to help more first-time buyers get their hands on some house keys, even if the property needs a little bit of work.

It allows home buyers to bring in just three percent down payment (which can be funded with a gift) and only requires a minimum 620 credit score.

Additionally, eligible borrowers will receive a $2,000 gift card to The Home Depot and another $1,000 to $2,500 in grant money that can be applied toward closing costs.

The property has to be located within 100 percent of the area median income for the family size of the borrower, unless it’s in an underserved area.

Guild Mortgage CashPass

The lender recently launched “CashPass,” which is their take on the quasi-all-cash offers many mortgage companies have rolled out in recent years.

The way it works is fairly straightforward. When obtaining your mortgage pre-approval, Guild goes a step further by providing a fully underwritten credit approval and a so-called “CashPass Certificate.”

This allows you to shop for a home and then make an offer with no appraisal or financing contingencies.

Guild will then work to close your loan with a traditional home loan before the close of escrow.

If financing isn’t in place by the escrow closing date, Guild or one of its affiliates will guarantee to pay cash for the property and provide permanent financing thereafter.

Simply put, CashPass enables home buyers to compete against other all-cash bidders and/or multiple offer situations.

CashPass is available on primary residences, second homes, and investment properties.

A minimum credit score of 680 is required and it must be a conventional loan.

It’s currently available in the states of AZ, CA, CO, MA MO, NV, OR, PA, SC, TX, and WA.

There is a $1,350 participation fee, which is not charged in the state of Washington.

It can also be combined with Guild’s proprietary bridge loan offering so you can buy before you sell.

Guild Mortgage Rates

  • Guild mortgage rates aren’t publicized online
  • Unlike some of the other major banks out there that do openly share them
  • Hard to know if they’re good, bad, or average without getting a quote and comparing it to other lenders
  • Also be sure to pay attention to any lender fees charged to determine APR

In terms of mortgage rates, it’s hard to say what their current rates are because they don’t advertise them on their website, nor do they have a ratesheet available to the public.

This counters other major lenders like Wells Fargo and Chase, which both advertise their daily mortgage rates on their respective websites.

Of course, advertised mortgage rates make a lot of assumptions, and aren’t necessarily the rates you’d receive anyway. To that end, it might not matter.

My guess is they’re probably on par with or close to what other major home loan lenders offer, though I can’t be sure without seeing them.

As always, take the time to shop around with other lenders to see how they match up. And factor in the closing costs as well when you do.

Mortgage rates aren’t everything (customer service and the ability to close loans also matter a great deal), but they’re certainly very important.

Guild Mortgage eClose Option

The lender recently launched a so-called “eClose option” that allows customers to electronically sign most of their loan documents and substantially reduce the typical paperwork burden seen at loan signing.

Aside from saving more than 250 trees per year, the eClose option comes with enhanced security protections to ensure only those who are authenticated have access to the documents.

The eClose process, which is powered by DocuSign, seems to be a hybrid of sorts with not all documents available for e-signing. Some will still require an ink signature at closing, at least for now.

However, another perk is that loan documents can be viewed as soon as they are released by Guild, meaning customers can review them at any time they desire to avoid feeling rushed at the closing table.

This means they can go into the closing appointment feeling confident and also reduce the time spent there to just minutes instead of potentially hours.

Guild Mortgage Reviews

Guild Mortgage has a 4.96-star rating out of 5 on Zillow based on roughly 7,300 customer reviews.

That near-perfection aside, many past customers indicated that the interest rate they received was lower than expected.

When searching the reviews on Zillow, you can see who the customer worked with, then click that loan officer’s name to see all their personal reviews.

Handy if you’re trying to determine who you want to work with at Guild Mortgage.

On Google, they have a perfect 5-star rating from nearly 2,000 customer reviews, which is pretty impressive given the volume.

Guild Mortgage currently has an A+ BBB rating and has been an accredited business since 2016. Their BBB customer reviews aren’t great, but they often aren’t for any company.

As noted, they also frequently top the J.D. Power mortgage originator rankings, so you should be good in terms of customer service.

Why Choose Guild Mortgage?

  • The number one reason seems to be customer satisfaction
  • They recently matched Quicken atop the J.D. Power rankings
  • Guild also offers lots of different home loan options to choose from
  • And their loan officers may be better educated than the competition thanks to GuildU
  • Also boast an A+ BBB rating and is an accredited business
  • Can get started online via a digital mortgage application in minutes

There are lots of options when it comes to obtaining a mortgage. So why choose Guild Mortgage?

Well, as noted, they’ve got a variety of home loan programs available, including some unique offerings, so they’ve probably got you covered in most situations.

This is especially true if you have little or nothing in the way of a down payment, though they may require higher credit scores than other lenders.

They are also one of the top rated mortgage companies in terms of customer satisfaction, matching Quicken Loans in the most recent rankings from J.D. Power.

That doesn’t guarantee a good loan experience, but it means something compared to other large lenders that rank below them.

Part of that might have to do with their GuildU corporate university that educates its loan officers in an effort to make them more knowledgeable than the competition.

But loan officer quality can vary within a single company, especially at a large one with thousands of employees.

Guild Mortgage also has a helpful website, complete with tips and a variety of mortgage calculators to help guide your decisions.

All in all, they’re certainly worth including in your home loan search seeing how popular and large they’re becoming. My guess is they’ll be a household name in the near future.

Lastly, because Guild Mortgage is a major home loan servicer, they may not sell off your loan to another company, which can be nice to avoid any confusion in making future monthly payments.

(photo: Sean O’Neill)

Source: thetruthaboutmortgage.com

Apache is functioning normally

One of the perhaps lesser-known, but fastest growing mortgage companies that is making big strides in the industry is Caliber Home Loans.

The national mortgage lender, which is based out of Coppell, Texas, just north or Irving, TX, has been around since 2008, which was essentially when the mortgage industry went bust.

Since then, they’ve grown into a mortgage powerhouse and are now a top-10 mortgage lender nationwide, with aspirations to be top five sooner rather than later.

And it turns out they caught the attention of suitors in the process.

In August 2021, the company was acquired by New Residential Investment Corp. (Newrez).

Caliber Home Loans History

  • The company rebranded in 2008 around the time of the housing bubble burst
  • Started with government mortgages such as FHA loans
  • Then began offering conventional loans backed by Fannie Mae and Freddie Mac
  • Have grown into a top-10 mortgage lender via a number of large acquisitions
  • Funded more than $24 billion in home loans via retail channel in 2019
  • Planned to go public with $2+ billion valuation
  • Later acquired by Newrez in the second half of 2021

Back in 2008, around the time of the financial crisis, the parent company Caliber Funding went through a rebranding process and acquired the lending assets of the CIT Group, which it later renamed Vericrest Financial.

A year later, they obtained the ability to directly endorse FHA loans and received direct lending authority for VA loans, meaning lending decisions could be made in-house.

In 2012, they received Freddie Mac seller approval and began issuing securitizations. They also gained Ginnie Mae approval at that time, and loan servicer approval for both.

Caliber Home Loans Inc. was born in 2013 when Caliber Funding with Vericrest Financial merged into one brand, which coincided with their correspondent lending business and Fannie Mae seller approval.

In mid-2016, Caliber acquired First Priority Financial, expanding their footprint in northern California and the western U.S., including states like Idaho, Iowa, Oregon, Washington.

Not long after, they became one of the top mortgage lenders in the country, with over 3,500 employees nationwide.

They refer to their loan officers as loan consultants, though they also partner with mortgage bankers and wholesale lenders to originate loans through various channels.

And they pride themselves on being a mortgage-only shop, as opposed to a mega financial institution that also doles out credit cards, life insurance, and student loans. They’re mortgage-focused and only sell home loan products.

Their latest big move was in 2017 when they acquired Banc Home Loans, which resulted in an 1,800-strong sales force across 340 retail branches located throughout the United States.

Aside from retail, Caliber’s originations come via a booming correspondent channel, along with a wholesale channel, meaning mortgage brokers can offer their loan products to consumers as well.

Speaking of, they recently launched a mobile app for their broker partners that uses Caliber’s proprietary H2Online system, which allows them to price and lock loans from their smartphone.

So it’s clear their mission is to grow and become a household name in the mortgage industry, and they appear to be on track.

In fact, they now have plans to go public with a valuation greater than $2 billion, per the WSJ.

What Does Caliber Home Loans Offer?

  • Home purchase loans
  • Rate and term refinances, cash out refis, and streamline refinances
  • Conforming loan products including Freddie Mac BorrowSmart
  • Jumbo loans and high-balance mortgages
  • FHA loans
  • VA loans
  • USDA loans
  • Renovation loans
  • Portfolio loans such as interest-only products
  • HELOCs
  • Fixed mortgages
  • Adjustable-rate mortgages

Now let’s talk about their loan programs. As alluded to in their company history, they’re equipped to provide all types of loans backed by Fannie Mae, Freddie Mac, the FHA, and the VA.

You can also obtain a USDA loan from Caliber Home Loans, and they have specialty products like the 203k renovation loan if the real estate you’ve got your eye on needs a little work.

In terms of government home loans, they’ve got everything. In fact, Caliber even has a special Military and Veteran Lending division solely for VA loans. They also been recognized as a Military Friendly Brand two years in a row (2017 and 2018).

In late summer 2017, they announced the funding of their 10,000 VA purchase loan, so it’s clear they’ve got some experience in that department.

For conventional loan offerings, they have both conforming stuff (Fannie/Freddie) along with jumbo loans, and even a jumbo interest-only ARM.

You can get a HomeReady or Home Possible loan with just 3% down, and they have all loan types from 30-year and 15-year fixed mortgages to a wide array of adjustable-rate mortgages.

If you’re looking for more than just FHA loans and Fannie and Freddie stuff, they’ve got your covered.

In fact, they have some proprietary home loan products like their “Caliber 5-Star ARM” that adjusts once every five years, as opposed to annually once the first five years go by (like the classic 5/1 ARM), whose name I assume is an ode to the Lone Star State.

This 5/5 ARM can be beneficial if the associated mortgage index remains low throughout those five years, giving the homeowner another five years of safety from upward rate adjustments.

Of course, it can also backfire if the first adjustment is high and locked in for a full five years.

With regard to jumbo loans, you can get loan amounts as large as $2.5 million, which should satisfy most folks’ needs. And down payments start as low as 5%.

That jumbo interest-only ARM is one of their flexible non-QM offerings, but does require a minimum 700 credit score, which means only the most creditworthy borrowers need apply.

Ultimate Home Buying Experience

I’ve written about this technology before – in short, it allows for the digital delivery of income, asset, and employment history to speed up the loan process, similar to how Rocket Mortgage works.

If all works out, Caliber Home Loans aims to get your loan from application to closing in as little as 10 business days.

That’s pretty fast, and might give you an edge if you’re a first-time home buyer in a competitive housing market.

There’s also a Caliber Home Loans for Borrowers app that allows customers to track their loan as it moves through the process. They also can opt-in to notifications for any issues or problems that arise, and receive updates such as loan approval or denial.

Once the loan closes, they can make payments, set up recurring payments, via escrow account and payment history, and even request the removal of private mortgage insurance.

Caliber Has Some Unique Home Loan Options

  • Loan amounts as high as $3 million with credit scores as low as 650
  • Loan programs for those who have late payments or a recent short sale, foreclosure, etc. with FICO scores as low as 610
  • Loan amounts as low as $100,000 for both investors and primary residences
  • A home loan financing program for new builds
  • HELOCs for those wishing to tap equity

Premier Access

They also have a Premier Access portfolio program that allows loan amounts as high as $3 million with lower credit score requirements down to 650. And the loans may not require private mortgage insurance.

It’s also possible to use asset depletion to qualify for a mortgage through the Premier Access lending suite, and cash-out refinances up to $750,000 are also permitted.

Elite Access

Their newest portfolio loan program, known as “Elite Access,” is a jumbo loan product that allows loan amounts as high as $3 million with as little as 5% down payment. However, a minimum 700 FICO score is required.

It is being offered in both fixed and adjustable options to satisfy home buyers and those refinancing existing mortgages (up to 95% LTV) in high-cost markets nationwide.

Homeowner’s Access

This is Caliber’s loan suite for those who have late mortgage payments, or a recent short sale, foreclosure, or bankruptcy filing.

It features shorter waiting times to buy a home, the acceptance of non-traditional credit history, and higher DTI ratios up to 50%. You may also be able to purchase a home with nothing down by using gift funds, and credit scores go as low as 610.

Fresh Start Program

This suite of home financing solutions seems to be even more aggressive, offering home loans with no seasoning requirement after bankruptcy, short sale, deed-in-lieu, or foreclosure.

The Fresh Start program also offers low down payment options and low minimum credit scores, along with loan amounts from $100,000 all the way up to $1 million.

Investment Program

Additionally, they have a suite of loan programs designed especially for real estate investors, including low down payment requirements on loans up to $2 million.

They’ll go as low as 620 in terms of credit score and allow loan amounts as low as $100,000.

More importantly, they provide the option to purchase an unlimited number of investment properties, and offer things like delayed financing, which allows you to buy with cash then quickly do a rate and term refinance.

National Builder Program

Lastly, they have a home builder financing arm that specializes in providing mortgage loan financing on new homes.

They have a dedicated loan fulfillment team that can offer financing of all types on all sorts of properties, including non-warrantable condos.

And they allow mortgage rate locks for as long as 12 months, yes, that long. Well, for some reason 360 days, but that’s still pretty unheard of! So if it takes a while to close, they can secure your rate.

Along those same lines, they offer a service called “Doc Lock,” which secures income and asset verification for up to six months on conventional home loans.

Oh, and they recently launched a HELOC known as the “HomeAccess Your Way Equity Line of Credit.” It appears to have a 30-year term, including a 10-year draw period and a 20-year repayment period.

So they’ve got plenty of loan products and a potentially streamlined loan process to serve mortgage loans to customers nationwide across all channels.

Caliber Home Loans Mortgage Rates

  • Caliber mortgage rates aren’t advertised
  • You won’t see them on their website
  • However I came across some of their rate sheets
  • That seem to be in line with what most other lenders are offering

They don’t seem to openly advertise their mortgage rates, unlike other banks and mortgage lenders, you won’t find them on their website.

However, I’ve seen some lender ratesheets from Caliber and their pricing seems to be on par (no pun intended) with what else is out there. Of course, that’s the wholesale lender channel, so results may vary across other channels like retail and correspondent.

From what I can tell, their mortgage rates aren’t necessarily any higher or lower than the average rates available. Of course, take the time to shop your rate with other lenders to ensure it’s the best it can be.

Caliber Home Loans Reviews

On Zillow, the company has a 4.96-star rating out of 5, which is pretty much as good as it gets aside from perfection.

That strong rating is based on nearly 6,000 customer reviews, meaning it’s not a fluke.

Since they’re a very large company, you may want to drill down and look at individual loan officer reviews for Caliber, which you can do on the Zillow website.

Many of the reviews said both the interest rate and closing costs were lower than expected, which is a good sign if your lender decision is driven by price.

On LendingTree, they have a 4.2 out of 5-star rating based on more than 700 customer reviews. While not as good, it’s still mostly positive.

They are a Better Business Bureau accredited company and have been since 2014.

Caliber Home Loans Inc. currently has an ‘A’ rating with the BBB and has just over 3 out of 5 stars based on about 200 customer reviews.

They’ve got some bad reviews, but that’s typical because people are more likely to leave a bad review than a good review. But feel free to peruse them as you see fit.

And pay attention to closing costs, which can vary widely as well.

Why Choose Caliber Home Loans?

  • Caliber offers a wide selection of home loan types to fit most loan scenarios
  • They’ve got smartphone apps for borrowers and all their business partners
  • Along with the latest technology to go digital and upload/track important documents
  • And they offer home loans via all major channels including retail, correspondent, and wholesale in all 50 states

To sum it up, Irving, Texas-based Caliber Home Loans has a home loan for just about any purpose, and the company originates loans through various avenues to suit all personality types. They’re also a national mortgage lender licensed to do business in all 50 states.

This means you can take advantage of their mortgage products via a retail branch, a mortgage broker, or even another correspondent lender.

And unlike many mortgage lenders, Caliber retains the servicing rights to their home loans, meaning you’ll make your monthly mortgage payments to them, not some other company. This appears to be their pledge to make you a customer for life.

As a servicing customer, you might be eligible for a mortgage recast if your loan type is eligible. The minimum principal reduction payment is $5,000, which when applied, will lower your future monthly mortgage payments.

At last glance, their loan servicing portfolio had swelled to over $100 billion, while monthly loan volume is nearing $2 billion.

As such, I expect Caliber to become a household name in the next decade, if not sooner.

As always, be sure to compare all your loan and lender options to ensure you receive the best pricing and service on your home loan. There are lots of choices out there, so make sure you get more than one quote.

Read more: Quicken Loans review

Source: thetruthaboutmortgage.com