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Provident Funding mortgage review

A run-of-the-mill mortgage lender with decent rates but available only in select states across the nation.

Provident Funding offers modest interest rates and an easy-to-navigate digital platform for managing mortgages, but customers haven’t been all that impressed. Prepayment penalties, fees and an upfront deposit are some of the things that might turn potential customers away and toward more lenient lenders.

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Details

Loan products offeredConventional, Jumbo, Refinance
Minimum credit scoreConventional: 620
Minimum down payment (Conventional)3%
State availabilityAZ, CA, CO, CT, FL, GA, IL, IN, KY, MA, MD, MI, MN, MO, NC, NJ, OH, OR, PA, SC, TN, TX, UT, VA, WA
NMLS #3821

Provident Funding requirements

Provident Funding requires borrowers to meet the following requirements to be eligible for a mortgage:

  • Be at least 18 years old
  • Be a US citizen, permanent resident alien or nonpermanent resident alien
  • Have a credit score of 620 or above

Documentation

Documents required during the loan qualification process can vary slightly, but in general you need to supply:

  • Pay stubs for the last 30 days
  • W-2 forms
  • Previous years’ tax returns if self-employed
  • Checking and savings account statements
  • Your homeowners insurance policy

Costs and fees

Provident Funding charges borrowers a set administration fee of $1,350 as of June 2021. This is different from an origination fee charged by some lenders, which is typically 0.5% to 1% of the total loan amount.

In addition to these fees, you can expect to pay any third-party fees incurred when buying a new house, like appraisal fees, title and closing fees. However, Provident Funding does state that it may pay for some or all of your closing costs in exchange for selecting a higher interest rate.

While this isn’t a “fee,” Provident Funding charges a $600 or $850 upfront deposit on all loans that require a new appraisal. The exact amount of this deposit depends on the loan program you are applying for and will be refunded when the loan is closed. But some loans don’t close — if you change your mind or go with another lender, you’ll likely lose your deposit.

How to apply for a mortgage with Provident Funding

To apply for a Provident Funding mortgage, follow these steps.

  1. Visit Provident Funding’s website and choose Apply Now.
  2. Select Purchase A Home and then choose Under Contract And Ready To Start An Application.
  3. Create an account. Then, enter information about your loan application, including the state the property is located and the loan amount. Hit Continue.
  4. Enter personal information, including your name, date of birth, marital status and contact information.
  5. Provide additional information about the loan, including the property’s location, purchase price and specific loan terms. Select Continue.
  6. Provide employment information, monthly income, assets and information about any other properties you own.
  7. Fill out the declarations and demographic information and give Provident Funding authorization to process your application.
  8. Enter your Social Security number and hit Send Request to submit your application.

After completing a loan application, Provident Funding will assign your application to a licensed mortgage consultant who will contact you and guide you through the loan process.

What types of mortgages can I get through Provident Funding?

  • Conventional
  • FHA
  • VA
  • USDA
  • Jumbo
This company accepts mortgage refinance applications.

Other mortgage products offered by Provident Funding

  • Super Conforming Loan. This loan is for borrowed amounts greater than $548,250 in which the property is located in a designated high-cost area.

How Provident Funding’s mortgage products compare to other lenders

Provident Funding offers conforming, super conforming, jumbo conforming and refinance loans, which is typical for most lenders. In addition, Provident Funding offers a Mortgage Benefit Program that allows enrolled employers to offer their employees a 0.25% discount on a new or refinanced mortgage.

Provident Funding also offers a “lock commitment” that guarantees a specified rate upon approval of your application. If rates go up, your rate won’t be affected. However, you must close your mortgage within the specified time, between 21 and 60 days, or you’ll be subject to “Worst Case Pricing.” This is calculated by comparing the original locked-in rate with current rates and then selecting the higher of the two. Some lenders charge a fee for this service, while others offer one for free.

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Provident Funding reviews and complaints

As of June 2021, Provident Funding has an A+ rating with the Better Business Bureau (BBB). Reviewers on the site have rated Provident Funding 1.57 out of 5 stars, with a total of 14 customer reviews.

Dissatisfied customers largely complained about poor customer service and excessive fees. Those who gave 5 out of 5 stars praised the company’s competitive rates and simple online application process.

Over on ConsumerAffairs, Provident Funding has received similarly negative reviews as of June 2021. Customers have rated Provident Funding 1.4 out of 5 stars with a total of 166 customer reviews.

Although Provident Funding has a profile on Trustpilot, it has yet to receive any reviews as of June 2021.

Provident Funding pros and cons

Here’s the quick good and bad with choosing Provident Funding to originate your mortgage:

Pros

  • Low interest rates. Provident Funding touts “industry-leading interest rates.” These rates are uploaded to its website daily for viewing.
  • Straightforward mortgage management. Track and manage your application or serviced loan entirely online, either on the Provident Funding website or mobile app on both iOS and Android operating systems.
  • Guaranteed rates. Locked rates are valid for 21, 30, 45 or 60 days, depending on the rate lock period you select.

Cons

  • Prepayment penalty. Provident Funding may charge a prepayment fee if you pay your loan in full before a certain period, though this depends on the type of loan you secure.
  • Unreliable customer service. Most customer complaints found online focus on the company’s slow response time to customer inquiries and unfriendly customer service reps.
  • $1,350 administration fee. Although it’s a set fee and not a fluctuating percentage of the loan amount, several lenders nowadays have scrapped lender fees altogether to be more competitive.
  • $600 to $850 upfront deposit. Provident Funding requires an upfront deposit on all loans. Although this is refunded once the loan is closed, you’ll lose the deposit if you change your mind or switch lenders.

What is Provident Funding?

Provident Funding is a direct lender headquartered in San Bruno, California, that originates and services residential mortgage loans in select states across the nation. Founded in 1992, Provident Funding is one of 24 companies in the Provident Funding Associates, LP corporate family and generates over $79 million in annual sales.

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Review by


Matt Miczulski is a personal finance writer at Finder. After paying off $30,000 in debt in a little more than a year, he applied what he learned as a writer at FinanceBuzz, where he specialized in finance news, banking, debt and travel. He has been featured on MSN, Best Company, Money Done Right and Recruiter. Matt is a proud military veteran, completing one tour in Iraq and earning a BA in History along the way.

Expert review

Provident Funding offers a few mortgage options for homebuyers in about half the states across the nation. Although the company offers competitive interest rates, the $1,350 administration fee as of June 2021 and the upfront deposit might sway you to look elsewhere, especially considering the growing number of lenders that have decided to forgo fees. In any case, if a mortgage with Provident Funding doesn’t feel right for you, compare mortgages to find the one that best suits your needs.

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