HomeAmerican Mortgage Evaluation: Curiosity Charge Specials for These Shopping for a Richmond American Dwelling

Immediately we’ll take a tough take a look at “HomeAmerican Mortgage,” yet one more house builder affiliated mortgage lender.

They provide house buy financing to Richmond American Properties prospects, which is a top-10 house builder nationally.

As a result of they’re operated by the identical mum or dad firm, they’ll provide a streamlined course of and residential shopping for expertise.

And maybe extra importantly, prolong particular financing provides like huge mortgage fee buydowns.

Learn on to see when you ought to use their in-house lender or look elsewhere for a greater deal.

HomeAmerican Mortgage Quick Details

  • The affiliated mortgage lender of Richmond American Properties
  • Presents house buy financing on newly-built houses
  • 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 yr
  • Most lively in Arizona, California, and Colorado
  • Additionally function a title/escrow firm and insurance coverage company

HomeAmerican Mortgage is a full-service, direct lender primarily based out of Denver, Colorado.

They bought their begin means again in 1983 and are a subsidiary of MDC Holdings, Inc., which is a publicly-traded firm (NYSE: MDC).

MDC additionally owns Richmond American Properties, which builds single-family residences in additional than a dozen states all through the nation.

Merely put, HomeAmerican Mortgage exists to serve these house patrons, providing buy loans solely (no refinances).

That is just like Lennar Mortgage and DHI Mortgage, which exist to serve Lennar and D.R. Horton house patrons, respectively.

They’re at the moment 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, additionally they function associated subsidiaries to regulate all the house shopping for course of.

This features a title and escrow firm, American Dwelling Title and Escrow Co., together with an insurance coverage company, American Dwelling Insurance coverage Company, Inc.

Final yr, HomeAmerican Mortgage funded about $2.75 billion in house loans, per HMDA knowledge.

They’re most lively of their house state of Colorado and in California, with the 2 states accounting for practically half of complete mortgage manufacturing.

The corporate additionally does numerous lending in Arizona, Florida, and Nevada.

Learn how to Apply

To get began, you possibly can 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 wish to talk about pricing and mortgage choices with a licensed mortgage officer.

Their digital mortgage utility is powered by fintech firm Mix. It means that you can full the app from any system, whether or not it’s a pc, pill, or smartphone.

And you may hyperlink monetary accounts to avoid wasting time, add essential paperwork, and eSign disclosures.

As soon as your mortgage is submitted, you’ll be requested to offer supporting documentation to generate a dedication letter, which can be topic to closing underwriting approval.

You’ll be capable of verify mortgage standing 24/7 and get in contact along with your mortgage crew if and when you might have questions.

It’s additionally doable to generate a mortgage pre-approval letter through their on-line utility, although if shopping for a brand new house through their mum or dad firm this might not be essential.

Mortgage Packages Provided by HomeAmerican Mortgage

  • Dwelling 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. In order that they’re completely centered on getting house patrons into new houses.

There are not any mortgage refinances supplied, however they’ve a wide selection of obtainable mortgage applications to go well with completely different preferences and wishes.

You will get a conforming mortgage backed by Fannie Mae and Freddie Mac, or a jumbo mortgage if buying a costlier property.

As well as, they provide each FHA loans and VA loans, although USDA loans seem like absent from their lending menu.

In fact, their new houses might not be situated in rural areas anyway, so that is moot.

Additionally they point out the provision of bond loans and rural housing loans, which appears 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 standard loans.

HomeAmerican Mortgage Charges

Whereas they don’t record their each 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 could be capable of beat the competitors is as a result of house builders usually provide enormous incentives when you use their affiliated lender.

The Richmond Properties web site sometimes options particular financing provides when you get underneath 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 laborious to beat as a result of the builder can provide a considerable amount of closing price help that may be towards a everlasting rate of interest buydown.

Nevertheless, you should definitely 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 collect different quotes from third-party lenders and impartial mortgage brokers as effectively.

Except for probably discovering a greater deal, having different quotes will help you negotiate extra successfully.

HomeAmerican Mortgage Opinions

Whereas they seem to have the most recent know-how, a wide selection of mortgage applications, and low mortgage charges, their opinions are rather less convincing.

They’ve bought a poor 1.4/5-star ranking from about 120 Google opinions, which clearly is questionable.

A equally low rating of 1.5/5 may be discovered at Yelp, although it’s from a smaller pattern dimension of about 30 opinions.

In the end, they don’t have a ton of opinions 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+’ ranking 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 could possibly be a very good possibility when you’re shopping for a Richmond American Dwelling as a result of they provide below-market mortgage charges.

However it sounds just like the service can generally expertise some hiccups. Nonetheless, when you can abdomen it, the financial savings is likely to be value it.

Simply you should definitely collect outdoors mortgage fee quotes as effectively to see what else is on the market, and to offer your self leverage when negotiating.

HomeAmerican Mortgage Professionals 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 Properties prospects
  • A+ BBB ranking and few buyer complaints
  • Mortgage guidelines and glossary on their web site
  • Affiliated title/escrow/insurance coverage firms for one-stop procuring

The Maybe Not

  • Don’t record charges and charges on-line
  • Aren’t licensed in all states
  • Solely provide house buy loans
  • Poor buyer opinions