Consumer Direct mortgage review
Favorable online reviews are plentiful, but there’s no mention of potential lender fees.
This direct lender has a strong reputation and offers an entirely online application process. But customer service options are lacking and mortgages aren’t available to Maryland residents.
What types of loans does Consumer Direct offer?
Consumer Direct’s selection of home loans includes conventional loans, FHA loans, VA loans, jumbo loans and loan refinancing.
Access fixed-rate loans of 10, 15, 20 or 30 years, or adjustable-rate loans with 5-, 7- or10-year fixed interest rates.
If you qualify for more lenient lending requirements and down payments as low as 3.5%, Consumer Direct offers Federal Housing Administration loans to eligible applicants.
Government-backed Veterans Affairs loans are designed to connect service members, veterans and their families with accessible home loan options with down payments as low as $0.
Jumbo loans are home loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. In 2020, most states had conforming loan limits of $510,400. Any loan above this limit is considered a jumbo loan. The size of the jumbo loan you qualify for through Consumer Direct varies by state and borrower credit score.
Other loans offered by Consumer Direct
Consumer Direct offers two mortgage refinancing options: Rate and term refinancing and cash-out refinancing. Take advantage of a better rate and term or tap into the equity in your home by rolling your existing loan into a larger mortgage.
Consumer Direct fees
Like many mortgage providers, Consumer Direct doesn’t offer information about its fees online.
Typically, lenders charge loan origination fees that range between 2% and 5% of the total loan cost. During the closing and pre-closing process, you could encounter any of the following fees:
- Home inspection
- Document preparation
- Credit report
- Title charges
- State taxes
- Private mortgage insurance
The requirements for each mortgage Consumer Direct offers vary. However, it doesn’t offer loans in the state of Maryland.
To qualify for a conventional home loan with Consumer Direct, you’ll need a minimum credit score of 620 and a down payment of 5%.
For FHA loans, a minimum credit score of 600 is required along with a minimum down payment of 3.5%.
To access the $0 down payment perk of a VA loan, you’ll need to be an eligible service member or veteran with a minimum credit score of 600.
During your Consumer Direct home loan application, you’ll be expected to provide the following:
- Full name and personal contact information
- Social Security number
- Pay stubs from the past 30 days
- W2s and 1099s from the past two years
- Personal tax returns from the past two years
- Profit and loss statements, if self-employed
- List of your assets — including savings, real estate, car titles, retirement accounts and other investment records
How to get a home loan with Consumer Direct
- To start the prequalification process, go to Consumer Direct’s website and click Quick Apply.
- Tell Consumer Direct the location of the property you’re interested in and provide your estimated credit score. Click Continue.
- Enter the purchase price of the property alongside the estimated down payment. Click Continue.
- Enter your average monthly income. Click Continue.
- Tell Consumer Direct more about your employment status, military status and disclose any bankruptcies within the last three years. Then, enter your full name, email address and phone number. Click Submit.
- You’ll receive a phone call from a Consumer Direct loan officer within one business day to discuss your loan options.
Consumer Direct reviews and complaints
Consumer Direct is an accredited business with the Better Business Bureau, which gives it an A+ rating.
Of Consumer Direct’s 153 Better Business Bureau customer reviews, 138 had 5 stars, citing responsive loan officers and a simplified application process. Of the 16 filed complaints, several mentioned raised rates and delays during the loan closing process.
Pros and cons of Consumer Direct
- Online application. Get the loan application process rolling right at home on Consumer Direct’s website.
- 60-day rate lock. You can lock your rate with Consumer Direct from 30 to 60 days.
- Custom rate quotes. Fill out the prequalification form on its website to get a quote based on the loan you’re interested in and the list price of the property.
- Strong online reputation. Consumer Direct’s 5-star reviews far outweigh its customer complaints — uncommon for a mortgage provider.
- Limited loan programs. Consumer Direct’s loan suite lacks USDA loans and HELOCs.
- Not available in Maryland. This provider lenders in all states but Maryland.
- No in-person support. Consumer Direct is an online lender and doesn’t offer any in-person support for its home loan products.
- Lack of transparency. Consumer Direct’s website doesn’t mention any fees, so you’ll need to speak with a representative for more information.
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What is Consumer Direct?
Consumer Direct is a division of FirstBank, a Tennessee-based bank with more than 1,400 employees across its 75 branch locations.
Consumer Direct lacks the branch structure of its parent company and instead offers its lending services primarily through its website, facilitated by its team of loan specialists.
Frequently asked questions
Shannon Terrell is a writer for Finder who studied communications and English literature at the University of Toronto. On any given day, you can find her researching everything from equine financing and business loans to student debt refinancing and how to start a trust. She loves hot coffee, the smell of fresh books and discovering new ways to save her pennies.
Consumer Direct has a number of home loan products to choose from and offers loan applications and customized rate quotes right on its website. But its customer support is limited and you’ll need to speak to a representative to learn more about potential lender fees.
Review your home loan options with additional providers to find the home loan that best fits your needs.