Okay. Hovnanian American Mortgage Assessment: Large Mortgage Charge Offers for House Builder Prospects

In the present day we’ll check out one other residence builder’s lender, Okay. Hovnanian American Mortgage.

They’re the affiliated lender of Okay. Hovnanian Houses, which is a top-15 residence builder nationally.

Like different builders, they created their very own financing division to streamline their new residence gross sales.

And to raised management the client expertise from begin to end.

The largest perk to utilizing them is the financing specials you probably received’t discover elsewhere. Learn on to be taught extra.

Okay. Hovnanian American Mortgage Quick Information

  • Affiliated mortgage lender for Okay. Hovnanian Houses
  • Offers residence buy loans for brand new residence patrons
  • Based in 2002, headquartered in Boynton Seaside, FL
  • Mother or father firm is likely one of the largest residence builders nationwide
  • Licensed to do enterprise in 14 states and the District of Columbia
  • Funded greater than $1.1B in mortgages final 12 months
  • Most energetic within the states of Arizona, California, Delaware, Texas, and Virginia

As famous, Okay. Hovnanian American Mortgage is the lending division of Okay. Hovnanian Houses, a prime U.S. residence builder.

Their father or mother firm Hovnanian Enterprises, Inc. is a publicly traded firm (NYSE:HOV), presently valued at almost $1 billion {dollars}.

They’ve been round since 1959, and function 128 residential communities throughout 14 totally different states.

These states embody Arizona, California, Delaware, Florida, Georgia, Illinois, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia, West Virginia, and Washington, D.C.

These are the locations the place Okay. Hovnanian American Mortgage is licensed to lend as properly, since they solely exist to serve their residence purchaser prospects.

In fiscal 12 months 2022, they delivered greater than 6,000 properties to patrons throughout all markets, placing them within the top-15 largest homebuilding corporations in the USA.

The lending unit bought its begin method again in 2002 and is headquartered in Boynton Seaside, Florida. At current, they’ve 36 licensed mortgage mortgage originators working on the firm, per the NMLS.

As a result of they’re a house builder lender, they solely provide residence buy loans. No mortgage refinances can be found.

However in addition they function a full-service title firm referred to as Japanese Nationwide Title Company and Hovnanian Insurance coverage Company.

So you may get your new residence, mortgage, title insurance coverage, escrow providers, and even householders insurance coverage all from one umbrella firm.

After all, it could actually pay to buy round, so don’t overlook financial savings for comfort.

How one can Apply for a Mortgage

To get began, you’ll be able to go to a brand new residence gross sales workplace or go to their web site. Both method, you’ll be put in contact with a licensed mortgage officer.

They’ll be capable to focus on pricing and mortgage choices with you. If you happen to like what you hear, you’ll be able to proceed to the mortgage utility.

It’s a digital app powered by ICE Mortgage Expertise that may accomplished from any machine, together with a pc, pill, or smartphone.

It permits you to hyperlink financial institution accounts and different financials, add key paperwork, and eSign disclosures on the fly.

As soon as submitted, you’ll be capable to verify mortgage standing 24/7 to find out what excellent objects nonetheless have to be accomplished. And you may get in contact together with your lending staff each time you’ve questions.

Finally, they make it straightforward to use for a house mortgage because of the most recent tech, but in addition have a human lending staff standing by.

Observe that loans are offered off to a 3rd social gathering after closing as a result of they don’t seem to be a mortgage servicer.

Mortgage Packages Supplied by Okay. Hovnanian American Mortgage

  • House buy loans
  • Conforming loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Fastened-rate loans: 30-year fastened, 15-year fastened
  • ARM loans: 5/6 ARM, 7/6 ARM
  • Buydown loans: 3/2/1 and a pair of/1 buydowns
  • State bond loans

Regardless of being a house builder lender, Okay. Hovnanian American Mortgage provides number of mortgage applications, together with conforming loans backed by Fannie Mae and Freddie Mac and jumbo loans.

Additionally they provide all the most important government-backed mortgages, together with FHA loans, VA loans, and USDA loans.

As well as, you may get both a fixed-rate mortgage, equivalent to a 30-year or 15-year fastened, or an adjustable-rate mortgage, equivalent to a 5/6 ARM or 7/6 ARM.

Given the current rise in mortgage charges, in addition they provide buydown loans, together with a 3/2/1 buydown that reductions the speed a full three share factors in 12 months one.

You may also be capable to get your palms on some homebuyer help by way of choose state bond loans that supply decrease down funds and authorities subsidies.

Okay. Hovnanian American Mortgage Charges

Whereas some mortgage corporations put up their every day mortgage charges on-line, Okay. Hovnanian American Mortgage doesn’t.

With regard to how their rates of interest are, they merely say, “There isn’t any solution to precisely and actually reply this query with out first evaluating your particular person state of affairs and financing wants.”

In different phrases, mortgage charges range by buyer, primarily based on mortgage parameters equivalent to credit score rating, down cost, mortgage program, and so forth.

The excellent news is they could provide particular financing provides to their new residence patrons, as is commonly the case with affiliated builder lenders.

As a result of builders typically purchase ahead commitments in bulk, they will apply particular reductions which are typically laborious for outdoor lenders to beat/match.

However these offers are sometimes restricted to sure properties in particular developments, and the funds are topic to working out.

They’re additionally time-limited, that means you will need to get beneath contract and/or shut by X date to make use of these particular funds.

Once you communicate to a brand new residence shopping for rep or mortgage officer, be sure you inquire about offers equivalent to everlasting or short-term fee buydowns.

This may occasionally come within the type of a closing value credit score, which may be utilized to a mortgage fee buydown.

These could make or break your determination to use the house builder’s lender or an out of doors financial institution/lender.

Okay. Hovnanian American Mortgage Evaluations

There aren’t a ton of opinions for the lending arm of Okay. Hovnanian. However they do have just a few kicking round.

They’ve bought a 4.3/5-star score from six opinions on Redfin, and an ideal 5/5 on a separate Redfin web page from 5 opinions.

In the meantime, their father or mother firm has a 4.3/5 from almost 4,000 opinions on NewHomeSource, which is a a lot better pattern measurement.

And given the truth that a lot of the father or mother firm’s residence patrons are probably additionally mortgage prospects, these needs to be related.

After all, it’s not all good. Over at ConsumerAffairs they’ve a way more questionable 1.4/5 from over 250 buyer opinions.

So a little bit of a blended bag, although some opinions could must do with the properties themselves, not the mortgages.

You should definitely take the time to learn by means of the opinions to find out potential hiccups that you simply may be capable to keep away from.

Lastly, they’re an accredited firm with the Higher Enterprise Bureau (BBB) and presently maintain an ‘A+’ score primarily based on criticism historical past. Talking of, they’ve zero complaints on file.

To sum issues up, Okay. Hovnanian American Mortgage appears to supply mixture of know-how, a full mortgage menu for residence patrons, and respectable buyer opinions.

Additionally they have the massive benefit of providing below-market mortgage charges like different residence builder lenders.

However all the time collect greater than a single mortgage quote. Whereas Okay. Hovnanian American Mortgage could provide one of the best pricing, there is likely to be higher offers on the market.

And you probably have competing quotes, they could be extra prepared to barter with you on fee and/or closing prices.

Okay. Hovnanian American Mortgage Professionals and Cons

The Professionals

  • Can apply for a house mortgage on-line
  • Digital mortgage utility powered by ICE Mortgage Expertise
  • Loads of mortgage applications to select from
  • Supply mortgage fee specials for residence purchaser prospects
  • Plenty of glorious buyer opinions
  • A+ BBB score, accredited firm
  • Plenty of free mortgage calculators on their web site
  • Intensive mortgage glossary explaining key phrases

The Cons

  • Solely provide residence buy loans
  • Aren’t licensed in all states
  • Don’t publicize mortgage fee or lender charges
  • Some blended opinions for father or mother firm
  • Don’t service loans after closing