Homie Loans Review
Homie Loans is a discount brokerage that offers mortgage loans and mortgage financing at a competitive price point. It operates under the larger banner of Homie along with Homie Title, Homie Insurance, and Homie Provider Marketplace.
As Homie’s in-house lender, Homie Loans provides people with a new way to purchase and sell homes. Instead of using a traditional real estate agent, people can find the best rates using the company’s online platform. The idea behind Homie Loans is to help buyers and sellers save more money by handling most of the process themselves.
Currently, Homie Loans is only available to residents of Utah, Arizona, Colorado, Idaho, and Nevada. The company does have plans to expand in the coming years, though.
In a Nutshell
| Mortgage types offered |
|
| Mortgage amount | Undisclosed |
| Repayment terms |
|
| APR | Depends on credit |
| Minimum credit score |
|
| Lender type | Direct |
Best for
Homie Loans is best for people who want to take a more hands-on approach to buying or selling a home. The company simplifies the entire process and cuts down on real estate agent fees by having you handle most of the process yourself. Prospective buyers who go through Homie Loans can save up to 50% of the standard real estate commission fee.
Homie Loans Pros & Cons
Homie Loans Mortgage Loans: Pros
- Home buyers and sellers can save money by using the platform
- Cuts down on agent commission fees and offers a refund at closing
- Offers an interest rate matching guarantee or $500 in cash (not available in Nevada)
- Can use a Homie Loan mortgage on any real estate platform, including Zillow and Trulia
Homie Loans Mortgage Loans: Cons
- No cash refund for buying a home listed on Homie’s platform; cash refund can only be used for closing expenses
- No financing for 5%-down Jumbo loans or adjustable-rate mortgages (ARMs)
- Limited information available regarding mortgage rates, terms, and fees
Application Process
Applying for a mortgage is easy using Homie Loan’s four-step application process, which is completely online:
- Apply online using a secure application.
- Connect with an expert loan officer who will walk you through the home-buying (or selling) process.
- Upload any relevant documents to the online portal and undergo a credit check (hard inquiry).
- Sign electronically to secure the loan.
To get started, create an online account using your email address and a password. This will lead directly to the application, which has seven sections. In the first section, provide the following information:
- Whether you’re currently working with someone at Homie Loans (Yes/No)
- Whether you’re “purchasing a new property” or “refinancing my mortgage” (check one)
- Full legal name
- Phone number
- Marital status
- Whether you’re active military, a veteran, or a surviving spouse of one
- Home and mailing address
- If you’re applying with another applicant
The next section is all about what you’re looking for in terms of things like:
- Property type and primary use
- Whether the property’s a planned unit development (Yes/No)
- Property purchase price, down payment and loan amount
- Whether you’re applying for other new mortgage loans or refinancing elsewhere
- If you’re working with a real estate agent (if so, provide their name and optional contact information)
- Your Social Security Number and date of birth
The third and fourth sections are all about your assets and accounts. You can either fill this information in manually or link your accounts to have it imported. Homie Loans accepts cash accounts, retirement accounts, and investment accounts.
Also, list any income sources you have. This could include regular employment, social security, military pay, self-employment, business income, and no income.
In the fifth section, list any real estate you already own. Include the property type, address, purpose, the number of mortgages on each, and their value. You can also include the cost of mortgage insurance, taxes, HOA fees, and so on.
The final three sections are called “Declarations,” “Demographic Info,” and “Additional Questions.” Follow the prompts to finish the application. Then, review and submit it.
The entire application process takes about 10 minutes to complete. A loan officer will then contact you for supporting documentation, review it, and give you a conditional offer. Finally, Homie Loans will perform a hard inquiry, underwrite the loan, give the final approval, and close on the loan.
The time to funding varies, but it may occur in as little as 48 hours from the initial application.
Terms & Requirements
Homie Loans doesn’t offer a lot of information regarding its mortgage loan terms and requirements. However, it seems to have somewhat standard requirements for the industry.
Mortgage Purchase Requirements
Homie Loans doesn’t indicate a minimum down payment for its loans. It does, however, require borrowers to be/have:
- 18 years or older
- US or Canadian citizen
- Proof of income (ex. pay stubs, W-2s)
- Active bank account
To qualify for an FHA loan, you’ll need a minimum credit score of 580. For a conventional mortgage, you’ll need a 680-credit score. Homie Loans may lend to borrowers with a maximum debt-to-income ratio of 43%, depending on their credit.
Mortgage Terms
Homie Loans doesn’t specify its annual percentage rate (APR) or loan amounts online. However, it does claim to offer competitive rates for borrowers with good credit, low DTI ratio, and a steady income.
Repayment Terms
Similar to other mortgage lenders, Homie Loans offers loans with 15-year and 30-year repayment terms. Typically, you’ll need to make monthly payments until the loan is fully repaid.
One thing to note is that Homie Loans doesn’t charge buyers any direct fees, but its agents do receive a commission. Depending on eligibility, you may be able to keep up to 50% of that commission.
Privacy And Security
Homie has generally positive reviews online. However, Homie Loans only has 1/5 stars online and is not BBB accredited. The lender has a hands-off customer service model, which can be risky to first-time home buyers who don’t know the process well.
In terms of privacy, Homie collects and stores user data using an encrypted system. It may share this information with its subsidiaries for the sake of offering relevant services to the user.
Customer Support
You can contact Homie Loans by phone or email. The lender’s business hours are Monday through Friday between 9:00 a.m. and 5:00 p.m. local time. It has Spanish and English-speaking options. If you’ve gone through the application process, you can also reach out directly to your assigned loan officer.
Final Thoughts
Ultimately, Homie Loans offers home buyers a simple, affordable way to purchase or refinance a home. It has many local agents who can help you buy a home listed with anyone. You can also buy a home with Homie even if you don’t work with one of their agents.
Unlike many other lenders, Homie Loans has interest rate matching and gives buyers up to $5,000 at closing if they use the platform. It’s also committed to lowering the cost of agent commission fees by as much as 50%.
However, if you want to buy or sell a home with Homie Loans, expect to handle most of the process yourself. This could pay off by saving you thousands of dollars, but the hands-off support could also be quite risky. The other main downside is that you won’t know the terms or rates until applying for a loan.
Address
10355 S Jordan Gateway #525
South Jordan, UT 84095
