Finance of America mortgage review
This lender offers an abundance of mortgage products, but it’s not forthcoming about interest rates or fees on its website.
Finance of America offers a diverse selection of home loans for first-time buyers and existing home owners. But if you want information about fees and interest rates, you’ll need to contact a loan officer.
|Loan products offered||Conventional, Jumbo, FHA, VA, USDA, Home Equity/HELOC, Reverse, Refinance|
|Minimum credit score||Conventional: 620|
|Minimum down payment||3%|
|State availability||Not available in: AK, ND, SD, UT, VT|
Finance of America requirements
To get a home loan with Finance of America, you must meet the following requirements.
- Live in any state except Alaska, North Dakota, South Dakota, Utah and Vermont.
- Have a minimum credit score of 600.
To apply for a mortgage from Finance of America, you’ll need:
For employed persons:
- Pay stubs from the last few months
- At least two years of tax returns
- Records of your bank account and investment balances
- For loans over $4 million, you will need income tax returns from the previous year
For self-employed persons:
- Two years of personal or business tax returns
- Bank statements for the last three months
- Profit and loss statements
Costs and fees
Finance of America doesn’t list the fees for their services on their website, so you’ll need to contact the company to find out. However, a loan officer from Finance of America informed us that they charge the “standard closing costs,” including:
- Loan processing fee
- Credit report fee
- Home appraisal fee
- Title insurance and state recording fees
- Other costs and fees
How to apply for a mortgage with Finance of America
If you want to move ahead with a Finance of America loan preapproval, take the following steps.
1. Contact a loan officer. To apply for a Finance of America loan, make contact with a loan officer in your state.
There are two ways you can do this:
- Contact a loan officer directly. You can find a loan officer by clicking the Find a Loan Officer button on the home page, then selecting the Mortgage Advisors option.
- Apply in person at a branch. You can find local branches by clicking the Find a Loan Officer button on the homepage, then selecting the Branches option.
You can also start a mortgage application online without contacting a loan officer. However, you’ll still need to select a loan officer in your state. To start the online mortgage application process:
- Click the Find a Loan Officer button on the homepage.
- Select the Mortgage Advisors option.
- Choose a loan officer to go to their website and click Apply for a Loan.
2. Get preapproval. Working with your loan officer, you’ll be asked to provide your personal information and financial and tax documents. If you’re preapproved, Finance of America will provide you with a preapproval letter that lets home sellers know you have financial backing when you make an offer.
3. Choose your loan program. After you’ve gotten preapproval, work with your loan officer to lock in your desired loan and interest rate. If you’re a first time home buyer looking for assistance with a deposit or closing costs, ask your officer for information about buyer assistance programs in your state.
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|Loan terms (in years)|
What types of mortgages can I get through Finance of America?
Other mortgage products offered by Finance of America
Finance of America also offers these specialized types of mortgages.
- Home-equity line of credit (HELOC). Finance of America’s HELOC allows you to borrow from your home’s equity to consolidate debt and pay for expenses such as student loans, a new car, bills or anything you need extra cash for.
- Fix and flip loans for investors. A fix and flip property loan starts at $50,000 and can be used to acquire and/or renovate investment properties.
- FHA 203(k) rehab loan. This loan allows you to borrow money for both the purchase of a property and improvements.
- Single rental loan. If you want to buy a first single-family rental property, this loan offers significant advantages, such as lower interest rates for greater cash investment.
- Student loan refinance. This home refinance loan allows borrowers to pay off student loans and consolidate multiple payments into a single payment at a lower interest rate.
How Finance of America‘s mortgage products compare to other lenders
Compared with other mortgage lenders, Finance of America offers more loan types than average, including investor and home improvement loans. But the company has more stringent lending standards than other companies, and borrowers with a credit score of less than 600 may not qualify for a loan.
However, there are other lenders that will approve borrowers with credit scores as low as 580, so it’s worth shopping around if you fall into this category.
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Finance of America reviews and complaints
As of December 2020, Finance of America has a 5 out of 5 rating on Zillow from over 4,900 customers and earns 4.4 out of 5 stars on Trustpilot from 129 reviewers. While Finance of America is not accredited with the Better Business Bureau (BBB), it has an A+ rating with 0 complaints registered in the last three years.
Customers report being satisfied with the service, the knowledge of the loan officers and the interest rates they received. Complaints with the service were around slow response times and loans being sold or transferred to other companies with no prior notice.
Pros and cons of Finance of America
- Available in most states. Loans are available in every state except Alaska, North Dakota, South Dakota, Utah and Vermont.
- Strong financial backing. Finance of America is supported by leading global asset manager Blackstone.
- Website does not list fees. Fees and costs are not available on the website. You must contact a loan officer to find out.
- Not clear how to start an online application. To start an online application, you need to first select a loan officer. This information should be front and center on the website, but it isn’t.
- May not qualify if your credit score is under 600. Finance of America recently changed their FHA lending guidelines. To qualify for an FHA loan, your score must be 600 or above.
What is Finance of America?
Founded in 1994, Finance of America is one of America’s top loan origination companies, ranking number 22 in the list of America’s top 150 lenders. Finance of America is a Blackstone portfolio company and is set to merge with Replay Acquisition, which will result in Finance of America becoming a publicly listed company. Finance of America reported a $16.6 billion volume in 2019.
Frequently asked question
Kat Aoki is a mortgage writer at Finder. Since 2011, she’s helped consumers make better financial decisions with their home loans, credit cards, insurance and more. As a business writer for the real estate, mortgage and personal finance industries, she’s written hundreds of helpful, informative articles for some of the leading brands around the globe that include iSelect, InfoChoice, realestate.com.au, GE Money and Amex. Kat earned a BS in Marketing from California State University, Sacramento. She enjoys travel, hiking and photography in her spare time.
If you’re looking for an established lender with strong financial backing, Finance of America could be worth considering. Due to its size and deep pockets, this lender can approve a high volume of loans compared to others, including individuals with credit scores as low as 600. However, the Finance of America website can be difficult to navigate, so your best bet is to contact a loan officer to get started. If you’d like to consider other options, compare more lenders.