Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their fina.
Kiah Treece Loans WriterKiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their fina.
Written By Kiah Treece Loans WriterKiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their fina.
Kiah Treece Loans WriterKiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their fina.
Loans Writer Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
Chris Jennings Loans & Mortgages EditorChris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a n.
| Loans & Mortgages Editor
Updated: Jan 4, 2024, 6:02am
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Newrez is a mortgage lender offering conventional and government-backed loans, flexible non-qualified mortgages (non-QM loans), refinancing and other options through its network of loan advisors. Interest rates, qualification requirements, maximum loan-to-value ratios (LTVs) and other loan details vary by mortgage product.
Newrez offers a 45-day rate lock, closing guarantee and closing fee discount to simplify the home-buying process and lower the overall cost of borrowing. If you need a non-QM loan to qualify based on bank statements or 1099s, Newrez may be a good option. If you’re well-qualified and prefer a more transparent borrowing experience, the lender may not be a suitable fit.
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements and other attributes. All ratings are determined solely by our editorial team.
Min. Credit Score Interest Rate Does not publicly discloseNewrez, which acquired Caliber Home Loans in 2021, has a robust product lineup that includes conventional mortgages, adjustable-rate mortgages and government loan options. It also offers jumbo loans for high-value properties and specialty options like interest-only mortgages and non-QM loans.
Newrez offers the following types of mortgages:
Available loan amounts depend on the property’s purchase price and the type of mortgage. For example, up to 100% financing is available for VA loans.
If you’re unsure how much you can afford to borrow, use a mortgage calculator to estimate monthly payments based on the home price, down payment amount, interest rate and repayment term.
Newrez offers its borrowers several perks to improve the home-buying process. Preapproval is available by phone, and consumers can lock in their interest rate for 45 days while shopping for a home.
Eligible borrowers can also save $1,000 on closing costs when they purchase a home with Newrez. Additionally, if you don’t close on time, and Newrez is responsible for the delay, the company claims it’ll pay you up to $5,000.
Current and prospective Newrez borrowers can contact the company via phone or by submitting an online form. You can also search for a local Newrez loan advisor by name or location through the company’s website. You’ll see each loan consultant’s profile, contact information and branch location.
The best mortgage lenders offer competitive loan terms and interest rates, a streamlined application process and responsive customer service resources. If Newrez isn’t a good fit, compare other lenders to find a loan that meets your needs.
The underwriting criteria for conventional loans are primarily established by mortgage companies Fannie Mae and Freddie Mac, which buy mortgages from banks and lenders. Here’s how to qualify for a mortgage through Newrez.
Newrez doesn’t publish credit score requirements for all of its mortgages. Fannie Mae imposes a credit score requirement of 620 for conventional mortgages, but this requirement may be lower for additional borrowers on a loan. To qualify for the Newrez non-QM SmartSelf mortgage, you must have a credit score of at least 660.
Like credit score requirements, minimum down payment requirements vary by loan type. For example, down payments may be as low as 20% for conventional loans. FHA loans and VA loans require much smaller down payments—3.5% and 0%, respectively.
Newrez accepts as little as 15% down on a non-QM loan for a primary residence (25% for second homes and investment homes).
A borrower’s debt-to-income (DTI) ratio compares their monthly debt payments to their gross monthly income and is expressed as a percentage.
The maximum DTI requirement varies by loan type. For example, Newrez requires a DTI of 43% or less for FHA loans and a ratio of 50% or less for non-QM loans in the SmartSelf program.
Newrez only publishes some of its mortgage fees online. While the lender doesn’t disclose its origination fees, borrowers may have to cover appraisal, inspection, underwriting and additional service fees.
Newrez doesn’t publish its origination fees online. In general, though, origination fees range from 0.5% to 1% of the mortgage amount. There are some lenders that don’t charge origination fees, but most typically do.
Newrez charges property valuation, inspection and appraisal fees where appropriate. Property valuation fees range from $80 to $450, and appraisal fees range from $95 to $1,000.
If the lender must determine the condition of a property during the underwriting process, a property inspection fee of up to $50 will apply.
Depending on your needs, you may incur fees for additional services you request. Newrez may charge up to $20 for making a payment by phone or online—a fee not charged by top lenders.
You may also be charged up to $10 to request a copy of your mortgage amortization table or a payoff fee of up to $30.
Newrez offers a preapproval process that can help you evaluate your borrowing options. You can also apply online if you’re ready to begin the home-buying process. Start the application process by using the lender’s mortgage estimator to determine how much house you can afford.
If you want to pre-qualify for a loan or prefer to start the conversation with a loan consultant, search for a local loan advisor on the Newrez website. Once you’re preapproved for a mortgage, your rate will be locked in for 45 days.
There are many reasons you may be denied a mortgage. If your credit score is low or you have a limited credit history, lenders may perceive you as a high-risk borrower. Insufficient income or a high DTI ratio can also contribute to a rejection.
In some cases, errors or missing information on your application may lead to denial. If you find yourself in this situation, contact the lender to understand the reasons for the rejection. Once you have this information, you can take appropriate measures before reapplying or applying elsewhere.
To improve your credit score, consider disputing any errors on your credit report, paying off existing debts or increasing your income before reapplying. If the application was rejected due to errors, make the necessary adjustments and submit your application again. Additionally, you may want to explore options like purchasing a more affordable home, working with a different lender or waiting until you can provide a larger down payment.
Newrez has an A+ rating from the Better Business Bureau (BBB) and has been accredited by the BBB since 2009. That said, the company’s customer rating is only 2.48 out of five stars based on 1,021 customer reviews on the BBB website. The lender’s Trustpilot rating is also low—1.2 stars based on 116 customer reviews.
Many negative reviews belong to borrowers whose mortgages were sold to Newrez for servicing. Some consumers report having difficulty managing their mortgages online, facing lengthy payment processing times and receiving aggressive marketing phone calls and emails.
We graded Newrez based on features that have a meaningful impact on the cost of a mortgage and a borrower’s experience, including interest rates, loan options, accessibility, closing time and customer service.
We award bonus points if a lender offers a specialty rate discount or mortgage product, a home equity product or maintains a fully online mortgage application process.
Our scoring method is broken down as follows:
We chose to focus on these core elements to bring forward lenders that offer the most competitive rates while also providing a satisfactory customer experience accessible to borrowers of all financial backgrounds. We believe this scoring system best reflects consumers’ top priorities when comparison shopping for mortgage lenders.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.
Check your rates today with Better Mortgage.
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