Caliber Home Loans Inc. is one of the nation’s largest wholesale lenders, renowned for its extensive array of mortgage products catering to a diverse clientele. These options are particularly favorable for first-time homebuyers, individuals seeking high-value properties, and those with a history of credit issues.
As you explore what Caliber Home Loans offers, you will find options that align with various financial situations and homebuying goals. This comprehensive review will guide you through who can apply for a Caliber Home Loans mortgage, the variety of loans available, and other key aspects to anticipate when dealing with this nationwide mortgage lender.
Eligibility Criteria for Caliber Home Loans
Securing a mortgage with Caliber Home Loans involves meeting specific criteria. Each mortgage product has its requirements, and understanding these can help determine if Caliber is a good fit for your home buying needs.
Credit Score: Opening Doors for More Borrowers
A key eligibility factor is your credit score. Caliber sets a minimum score of 580, making mortgages more accessible, especially for those who have encountered past credit issues. Keep in mind, a higher score might provide access to a wider range of loan options and better terms.
Debt-to-Income Ratio: Flexible Standards
Caliber’s maximum debt-to-income (DTI) ratio is 50%, higher than many lenders’ cap of 43%. This flexibility can accommodate those with existing debts like student loans or car payments, offering more opportunities to qualify for a mortgage.
Nationwide Service: Accessible Across the U.S.
Caliber offers home loans in all 50 states, ensuring accessibility regardless of your location. This is particularly beneficial in areas where online lender options might be limited.
First-Time Buyers: No Mortgage or Rent History Required
Caliber does not require a history of mortgage or rent payments, a significant advantage for first-time buyers. This approach caters to new entrants in the housing market, making the path to homeownership more accessible.
Customer Service: Support Throughout the Application Process
Caliber places a strong emphasis on customer service, offering assistance throughout the application process. This support is invaluable, especially for those going through the mortgage process for the first time.
Caliber’s Array of Home Loan Products
Caliber offers home loans for both purchasing and refinancing. There are countless products to choose from. Let’s take a look at what’s available for home buyers.
Caliber’s Conventional Loan Offerings
Conventional loans: These are typically reserved for borrowers with higher credit scores and a solid employment background. You can choose between a fixed rate and an adjustable rate to suit your financing needs.
HomeStyle Renovation: This product can be used on existing properties as well as new construction. You can finance funding for renovations and repairs up to 50% of the post-renovation value.
Home Possible: A program from Freddie Mac, Home Possible, allows for lower credit scores and a down payment of as little as 3% of the purchase price. You can also use a temporary buydown to reduce your interest rate for up to two years.
HomeReady: From Fannie Mae, this program is designed for borrowers with limited income. You’re also allowed to receive financial help from your family or employer, plus take advantage of a 3% minimum down payment.
Jumbo Loans: If you need a mortgage for a luxury property or a high-cost area, then a jumbo loan from Caliber Home Loans could work. You could borrow as much as $2.5 million, and down payments start as low as 5%. Plus, you can pick a fixed rate, adjustable rate, or interest-only payments.
Fresh Start Program: These loans are designed to assist borrowers who have had a troubled lending history. If you don’t qualify for traditional mortgage financing, a Fresh Start loan may be perfect for you.
Government-Backed Loans Available Through Caliber
FHA Loans: Backed by the Federal Housing Administration, this mortgage program requires just a 580 credit score and a 3.5% down payment. While you will have to pay private mortgage insurance with this loan type, you can get a temporary buydown on your interest rate for the first year or two.
FHA 203(k) Fixed Rate Rehab: You can buy a fixer-upper to help repair or renovate your new property before you even move in. There are two options to choose from. The first is the Standard loan, designed for remodeling and repairs. The Limited loan allows for minor remodeling and only non-structural repairs.
USDA Loans: This mortgage loan backed by the U.S. Department of Agriculture lets you buy a home in a rural area with no down payment at all. There are also less strict requirements on credit score and income. In fact, there are limits on how much you can earn to qualify for a USDA loan.
VA Loans: Designed for veterans and active military service members, a VA loan is another option to get a mortgage with no down payment. There are options for fixed rates, adjustable rates, and even high-balance home loans.
Caliber’s Fees and Interest Rates
Caliber Home Loans doesn’t advertise its rates and fees, likely because they will vary so greatly depending on the type of loan you’re looking for. It’s easy, however, to talk to one of their loan consultants to figure out what kind of mortgage could work best for you.
Also, once you start the Caliber Home Loans mortgage application, you should receive a loan estimate outlining all the standard fees, interest rates, and closing costs associated with your specific scenario.
Caliber Home Loans Mortgage Process
Applying for a mortgage with Caliber Home Loans is a streamlined process, whether you choose to apply online or seek assistance from a loan consultant. Here’s a breakdown of the key steps.
Starting Your Application: Online and In-Person Options
Whether applying online or in person, the process begins with the basics. For online applications, Caliber presents a selection of electronic resources, including state-specific disclosures, for your review. In-person applicants can find a nearby branch (available in all states except New York and Utah) or contact Caliber’s centralized loan consultant program for guidance.
Filling Out Your Application: The Initial Step
The application process is straightforward. You’ll start by providing your basic information. Once this is completed, you are assigned a loan officer who assists you throughout the rest of the process, ensuring personalized guidance.
Enhanced Online Capabilities: Streamlining Document Submission
Caliber has upgraded its online application system, allowing you to upload all necessary documents electronically. This enhancement simplifies document submission and tracking, enabling you to monitor your loan’s progress and request direct communication if needed.
Electronic Verification: Efficient and Time-Saving
The use of electronic verification for income, assets, and employment represents a significant efficiency boost. This method eliminates the need to physically submit numerous documents, saving time and streamlining the approval process.
Post-Closing Service: Consistent and Reliable
Once your loan closes, Caliber Home Loans is likely to service your mortgage. As a direct lender, Caliber services approximately 94% of their closed loans, a practice not common in the industry. This continuity means you’ll deal with Caliber directly for your monthly mortgage payments, offering consistency and reliability in managing your loan.
Unique Benefits of Choosing Caliber Home Loans
Caliber’s biggest advantage is the wide variety of mortgage products and loan programs you can choose from. This helps borrowers of all types. If you’re a first-time buyer, and you don’t really know what kind of mortgage you want or even could qualify for, then you have the flexibility to compare different loan types with Caliber Home Loans.
On the other hand, a more experienced home buyer can access more sophisticated loan products that can help get them in the kind of house they want and can afford.
Plus, with both a robust online platform in addition to an assigned loan consultant to your application, you can get the best of both worlds with Caliber Home Loans.
Caliber Home Loans Reviews
When looking at customer reviews for Caliber Home Loans, it’s essential to consider both sides of the spectrum. Positive reviews often highlight the company’s wide range of mortgage products, which cater to various financial situations, and the exceptional customer service, especially beneficial for first-time homebuyers and those with unique financial backgrounds. Customers appreciate the personalized support and flexibility in eligibility criteria.
However, some customers have pointed out areas where Caliber could improve. These include slower processing times and communication challenges during the loan process. A few reviews also note inconsistencies in post-closing loan servicing.
It’s important to remember that individual experiences can vary greatly. While some borrowers may face challenges, others may find Caliber’s services perfectly suited to their needs. As with any financial service, prospective customers should weigh these reviews against their personal requirements and expectations.
Caliber Home Loans offers a wide range of mortgage products, catering to diverse borrowers, including first-time homebuyers and those with unique financial needs. The lender’s flexible eligibility criteria, such as a lower credit score threshold and a more lenient debt-to-income ratio, broaden its appeal.
Notable too is Caliber’s enhanced digital application process and electronic document handling, which streamline the mortgage journey. Most loans post-closing are serviced directly by Caliber, adding a layer of consistency in loan management.
Overall, Caliber Home Loans stands out in the mortgage lending space for its range of options and flexibility. Potential borrowers should carefully consider these factors against their personal needs and the varied customer feedback.