203(k) Lenders: What You Need to Know
While finding a great 203(k) consultant and 203(k) contractor are extremely important, nothing is more important than determining what lender you will use for your 203(k) loan. Obviously, your lender is the one providing you with the funds to purchase or refinance and renovate your home, so you’ll want to make sure that you’re choosing a reputable lender with significant experience in providing loans through the 203(k) program. With that in mind, we’ve created a list of some of the top 203(k) lenders in the industry.
HomeBridge: HomeBridge ranked #1 in 203(k) funding in a 2017 report published by the Department of Housing and Urban Development (HUD). This does not necessarily mean that they’re the best lender, but simply that they issued more loans (1,083) than any other lender.
Movement Mortgage: Movement Mortgage was #3 on HUD’s 2017 list of largest 203(k) lenders, with 759 FHA insurance endorsements for the year. We didn’t mention #2, American Financial Resources, since they’re actually a wholesaler and servicer, which means that while they may be dealing with your mortgage at some point, you won’t be going directly to them for a loan.
PrimeLending: At #4, PrimeLending, issued 459 203(k) loans in 2017. According to NerdWallet, which gives PrimeLending a 4/5 review, the company’s clients generally report being very satisfied— however, this lender charges a hefty $1,000 lending fee, which means it’s not for everyone.
WellsFargo: WellsFargo sits at #5, with 414 203(k) loans issued in 2017, and, while it’s probably the best known lender on this list, its recent history of scandals makes us hesitate to recommend it to potential 203(k) loan borrowers.
LoanDepot: As one of the fastest non-bank mortgage lenders in the U.S., LoanDepot issued 402 203(k) loans in 2017, making it #6 on HUD’s list of largest 203k lenders. LoanDepot gets a 4.5/5 stars on NerdWallet, which commends it for its network of 180 loan stores in the U.S., where borrowers can get in-person service, as well as its efficient mobile app.
Guaranteed Rate: As the 9th largest 203(k) lender on the list, Guaranteed Rate issued 272 203(k) loans in 2017. It’s rated a strong 4.5/5 by both LendingTree and NerdWallet, and has approximately 210 offices across the United States.