Finance of America Mortgage Lender Review 2021


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Finance of America is a Horsham, Pa., Mortgage lender serving all 50 states.

We named Finance of America one of the top mortgage lenders for 2021 because it offers a wide selection of loans and strong customer service. The company funded more than 53,000 loans in 2019, but only impressively racked up 14 complaints to the Consumer Financial Protection Bureau during that time.

But the biggest downside of this lender is that borrowers cannot apply for a loan online. You can start a prequalification form, but you will need to complete the process with one of the lender’s loan officers over the phone or in person at over 400 local branches across the country.

Pros and Cons of the Finance of America Mortgage

Benefits

  • Works in all 50 states

  • Offers a wide choice of mortgages

  • Offers real estate investment loans and student loan refinancing

Finance of America Mortgage: Types of Loans and Products

Finance of America offers just about every type of mortgage you can think of, as well as home equity lines of credit and student loan refinancing. Here is what is currently on the lender’s lineup:

Finance of America offers a choice of fixed rate and variable rate (ARM) mortgages on most of its products. With an ARM, your interest rate will be fixed for a certain period of time, usually between five and 10 years. After the end of the fixed period, the rate may increase or decrease once a year for the remainder of the loan term.

If you need to borrow a large amount, Finance of America can fund giant mortgages of up to $ 4 million for eligible borrowers.

Mortgage transparency Finance of America

If you’re looking for Finance of America mortgage rate and fee information, you won’t find it on the lender’s website. While Finance of America offers several mortgage calculators, guides that explain the process of buying a home, and pages dedicated to finding the right loan for your situation, the website lacks details on what borrowers could pay when taking out a loan. A lot of information is confusing and not organized in an intuitive or clear way.

You will also not be able to submit a mortgage application through the website. Instead, you’ll either need to complete a prequalification form on the website, call a loan officer, or visit a branch in person.

Finance of America Mortgage Rates and Fees

Finance of America does not advertise daily mortgage rates, or publish a list of lender fees, such as discount points and closing costs on its website. For a breakdown of loan costs, you will need to submit a mortgage application or apply for prequalification.

We’ve got a list of closing costs a typical borrower might pay on a 30-year fixed rate home loan:

  • Lender fee of $ 550
  • Assessment fee of $ 475
  • Third Party Fee of $ 190
  • Title insurance and state registration fees (these vary)

Finance of America does not charge prepayment penalties on any of its loans, and you can lock in a mortgage rate for free for up to 85 days. But there is a charge if you need to extend your rate foreclosure.

The minimum credit score required by Finance of America is based on the type of loan you want to take out. For example, you will need a credit score of at least 620 with a conventional loan and 580 for an FHA loan.

While you may qualify with the minimum credit score, you may need good to excellent credit to qualify for the best mortgage rates. If your credit is fair or poor, consider hitting the “Pause” button on your home search and focusing on improving your credit score.

Refinancing with Finance of America Mortgage

If you have an existing mortgage and want to get a lower interest rate or borrow money, you can refinance your loan through Finance of America. To apply, you will first need to call a local loan officer or visit a branch near you. The loan officer will withdraw your credit, request income and employment documents, and ask questions about your current mortgage. If you are approved, the lender will provide you with your interest rate and a breakdown of closing costs.

Some of these costs include:

  • Registration fees
  • Title insurance
  • Lender’s lawyer fees
  • Loan origination fees
  • Other administrative costs
  • Assessment fees

You can minimize your upfront expenses by asking your loan officer to include closing costs in the mortgage. While convenient, keep in mind that you will pay more in the long run because you will end up paying interest on closing costs.

The Finance of America Mortgage Compared to Other Mortgage Lenders

America Finance Fairway independent SoFi
Minimum credit score 620 for conventional loans; 580 for FHA loans 620 for conventional loans; 660 for jumbo loans; 600 for FHA loans; 600 for VA loans 660
Minimum deposit 0% to 3.5% 0% to 5% 5%
Where does the lender operate? 50 states 50 states 42 states
Main types of loans Conventional, Jumbo, VA, FHA, USDA, Various Home Improvement Loans, Variable Rate, Fixed Rate, Refinancing, Reverse Mortgages, Home Equity Lines of Credit, Business Loans Conventional, Jumbo, VA, FHA, USDA, Various Home Improvement Loans, Adjustable Rate, Fixed Rate, Refinance, Cash Refinance, Reverse Mortgages, Home Equity Loans, Home Equity Lines of Credit Conventional loans

How To Shop For The Best Mortgage Rate

The best way to save money on your home loan is to shop around. While it might take a few extra hours, the payoff is well worth it.

Pro tip

Each lender has their own way of setting mortgage rates, but you may need good to great credit to get the best rates. So, if you have fair or poor credit, consider putting your home search on hold for a few months and working on your credit. Once you see improvement, you may qualify for a lower mortgage rate and save money on your mortgage payment.

First, research mortgage lenders who have a reputation for providing good customer service and low costs. Then apply for a mortgage with at least three lenders and ask for a mortgage estimate. This document explains all of the costs associated with your mortgage so that you can use it to compare all of your loan offers.

Once you’ve identified the best deal, send it to another lender and ask if they can beat the interest rate or offer you discounts on some of the lender’s fees. This simple step can save you hundreds or thousands of dollars over the life of the loan.

While these mortgage loan applications can trigger serious demands on your credit reports, the impact could be minor. Credit rating companies know that consumers go round to consumers, so they typically treat all mortgage applications made within a short period of time – typically four to six weeks – as one application. Try to submit your mortgage applications in a small window to minimize the impact on your credit.

At the end of the line

While you don’t get much information from the Finance of America website, you can call a loan officer or visit a branch in person for help and apply for a loan. The lender offers a wide selection of mortgages and good customer service. With so many options, you are bound to find a loan that meets your needs.


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