At this time we’ll take a tough have a look at “HomeAmerican Mortgage,” one more house builder affiliated mortgage lender.
They provide house buy financing to Richmond American Houses clients, which is a top-10 house builder nationally.
As a result of they’re operated by the identical mother or father firm, they’ll supply a streamlined course of and residential shopping for expertise.
And maybe extra importantly, prolong particular financing provides like large mortgage fee buydowns.
Learn on to see in the event you ought to use their in-house lender or look elsewhere for a greater deal.
HomeAmerican Mortgage Quick Information
- The affiliated mortgage lender of Richmond American Houses
- Gives house buy financing on newly-built properties
- Based in 1983, headquartered in Denver, Colorado
- Licensed to do enterprise in 16 states and Washington D.C.
- Funded $2.75B in house loans final 12 months
- Most energetic in Arizona, California, and Colorado
- Additionally function a title/escrow firm and insurance coverage company
HomeAmerican Mortgage is a full-service, direct lender based mostly out of Denver, Colorado.
They acquired their begin manner again in 1983 and are a subsidiary of MDC Holdings, Inc., which is a publicly-traded firm (NYSE: MDC).
MDC additionally owns Richmond American Houses, which builds single-family residences in additional than a dozen states all through the nation.
Merely put, HomeAmerican Mortgage exists to serve these house consumers, providing buy loans solely (no refinances).
That is much like Lennar Mortgage and DHI Mortgage, which exist to serve Lennar and D.R. Horton house consumers, respectively.
They’re presently licensed to do enterprise in 16 states and D.C., together with Alabama, Arizona, California, Colorado, Florida, Idaho, Maryland, Nevada, New Mexico, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Washington.
These are additionally the states the place their new house communities are situated.
Ultimately look, they’ve about 50 sponsored mortgage mortgage officers working on the firm, per the NMLS.
And like many different builder-affiliated lenders, in addition they function associated subsidiaries to regulate your entire house shopping for course of.
This features a title and escrow firm, American House Title and Escrow Co., together with an insurance coverage company, American House Insurance coverage Company, Inc.
Final 12 months, HomeAmerican Mortgage funded about $2.75 billion in house loans, per HMDA knowledge.
They’re most energetic of their house state of Colorado and in California, with the 2 states accounting for almost half of complete mortgage manufacturing.
The corporate additionally does a variety of lending in Arizona, Florida, and Nevada.
Find out how to Apply
To get began, you’ll be able to go to a brand new house gross sales workplace at one among their communities or just head to their web site and click on on “Apply.”
Earlier than you apply, chances are you’ll need to focus on pricing and mortgage choices with a licensed mortgage officer.
Their digital mortgage utility is powered by fintech firm Mix. It permits you to full the app from any machine, whether or not it’s a pc, pill, or smartphone.
And you’ll hyperlink monetary accounts to save lots of time, add crucial paperwork, and eSign disclosures.
As soon as your mortgage is submitted, you’ll be requested to supply supporting documentation to generate a dedication letter, which can be topic to remaining underwriting approval.
You’ll be capable of test mortgage standing 24/7 and get in contact together with your mortgage staff if and when you will have questions.
It’s additionally potential to generate a mortgage pre-approval letter through their on-line utility, although if shopping for a brand new house through their mother or father firm this might not be crucial.
Mortgage Packages Supplied by HomeAmerican Mortgage
- House buy loans
- Conforming loans backed by Fannie/Freddie
- FHA loans
- VA loans
- Homebuyer help
- Mounted-rate and adjustable-rate choices
As famous, HomeAmerican Mortgage is a purchase-only mortgage lender. So that they’re fully targeted on getting house consumers into new properties.
There are not any mortgage refinances provided, however they’ve a wide selection of obtainable mortgage applications to go well with completely different preferences and desires.
You may get a conforming mortgage backed by Fannie Mae and Freddie Mac, or a jumbo mortgage if buying a dearer property.
As well as, they provide each FHA loans and VA loans, although USDA loans look like absent from their lending menu.
In fact, their new properties might not be situated in rural areas anyway, so that is moot.
In addition they point out the supply of bond loans and rural housing loans, which seems like homebuyer help through state, metropolis, and municipal housing companies.
They provide each fixed-rate and adjustable-rate loans, together with a 5/1 ARM on FHA loans, and a 7/6 ARM for typical loans.
HomeAmerican Mortgage Charges
Whereas they don’t checklist their day by day mortgage charges on-line, they do say they provide aggressive charges
That is apparently as a result of they don’t depend on brokers or a intermediary.
In fact, the true cause they may be capable of beat the competitors is as a result of house builders usually supply enormous incentives in the event you use their affiliated lender.
The Richmond Houses web site sometimes options particular financing provides in the event you get beneath contract and shut your mortgage by a sure date.
Ultimately look, I noticed charges as little as 4.875% on choose adjustable-rate mortgages, and 5.75% for 30-year fastened charges.
These offers are sometimes onerous to beat as a result of the builder can supply a considerable amount of closing value help that may be towards a everlasting rate of interest buydown.
Nonetheless, make sure you take note of all lender charges and the mortgage APR, which takes under consideration all (or most) of the mortgage prices.
And put within the time to assemble different quotes from third-party lenders and impartial mortgage brokers as effectively.
Other than doubtlessly discovering a greater deal, having different quotes might help you negotiate extra successfully.
HomeAmerican Mortgage Evaluations
Whereas they seem to have the most recent know-how, a wide selection of mortgage applications, and low mortgage charges, their evaluations are rather less convincing.
They’ve acquired a poor 1.4/5-star score from about 120 Google evaluations, which clearly is questionable.
A equally low rating of 1.5/5 may be discovered at Yelp, although it’s from a smaller pattern measurement of about 30 evaluations.
In the end, they don’t have a ton of evaluations on-line. So take the time to learn by means of them to see what the problems have been.
However they do maintain an ‘A+’ score with the Higher Enterprise Bureau (BBB) and have been an accredited enterprise since 2009.
And there are solely seven buyer complaints over the previous three years on the BBB web site, with only one within the final 12 months.
To summarize, HomeAmerican Mortgage might be a great choice in the event you’re shopping for a Richmond American House as a result of they provide below-market mortgage charges.
Nevertheless it sounds just like the service can generally expertise some hiccups. Nonetheless, in the event you can abdomen it, the financial savings is likely to be value it.
Simply make sure you collect exterior mortgage fee quotes as effectively to see what else is on the market, and to offer your self leverage when negotiating.
HomeAmerican Mortgage Execs and Cons
The Good Stuff
- Digital mortgage utility powered by Mix
- Can apply for a house mortgage on-line through their web site
- Particular mortgage fee offers for Richmond American Houses clients
- A+ BBB score and few buyer complaints
- Mortgage guidelines and glossary on their web site
- Affiliated title/escrow/insurance coverage corporations for one-stop procuring
The Maybe Not
- Don’t checklist charges and costs on-line
- Aren’t licensed in all states
- Solely supply house buy loans
- Poor buyer evaluations