Editor’s note: J.G. Wentworth Home Lending was acquired by Freedom Mortgage Corporation on August 1, 2019.
For flexible credit requirements and a wide range of mortgage products, check out J.G. Wentworth. They offer a convenient blend of online resources and hands-on loan specialists to walk you through the process. You can get a new mortgage or refinance with J.G. Wentworth and there are plenty of options for both.
Dig into the details of this lender to see if it’s a strong match for your next home purchase.
Mortgage Application Requirements
Like most lenders, J.G. Wentworth has different requirements for each type of loan it offers. When it comes to credit scores, you’ll need at least a 580 to qualify for either an FHA or VA loan. Conventional loans require a slightly higher score of at least a 620.
J.G. Wentworth is licensed to originate loans in most of the country, but not quite everywhere. Their mortgages are available in 46 states plus the District of Columbia, so check to make sure you live in an eligible area.
Types of Home Loans Available
J.G. Wentworth’s loan offerings are fairly substantial. Not only are there many options for all kinds of borrowers, they place a large focus on mortgages for veterans.
J.G. Wentworth is a major player in this space; in fact, about 30% of their customers opt for VA loans. Active service military members and veterans can qualify and take advantage of no down payment, no private mortgage insurance, and low interest rates.
There are also some limits on which closing costs you’re responsible for. There are a few differences in the application process for a VA loan, particularly getting a Certificate of Eligibility. Using an experienced VA lender like J.G. Wentworth can expedite the process.
Fixed Rate Mortgage Loans
Another popular option for borrowers is a fixed-rate mortgage. These come in a variety of term lengths. The most common is a 30-year mortgage, but you can also get one for 10, 15, 20, or 25 years. The shorter the term you choose, the lower the interest rate you normally get.
However, your monthly payment is higher since you don’t have as long to pay it off. That’s why most people choose a 30-year mortgage: the monthly payments are more affordable and rates are still pretty low.
Adjustable Rate Mortgage Loans
J.G. Wentworth also has a range of adjustable-rate mortgages, also called ARMs. Pay a lower, fixed-rate at the beginning of the loan, then pay an adjusted rate each subsequent year.
Alternatively, many homeowners choose to sell the property or refinance the loan before the rate adjusts. J.G. Wentworth’s ARMs come in 3/1, 5/1, 7/1 and 10/1 terms. The first number represents the fixed-rate period and the number one indicates that the rate adjusts once a year afterward.
An FHA loan from J.G. Wentworth allows you to purchase a home with a lower credit score and a smaller down payment. If your credit score is 580 or better, you can get a loan with just a 3.5% down payment. You can also use a financial gift or grant to help fund your down payment for an FHA loan.
If you’re house hunting in a rural area and meet certain income requirements, you could qualify for a USDA loan from J.G. Wentworth. You can get a low interest rate, plus a 0% down payment. The maximum gross income for eligibility depends on where you live. To find qualifying properties, check out the USDA website or reach out to your loan officer at J.G. Wentworth.
Homestyle Renovation Loans
This mortgage program allows you to roll renovation costs into a single loan. You can use your loan funds for both cosmetic and structural repairs.
Some of the benefits of this loan include lower closing costs, options for both fixed and adjustable rates, and no upfront payment for private mortgage insurance. You will need at least a 5% down payment to qualify for this renovation loan.
FHA 203k Renovation Loans
J.G. Wentworth offers a couple different versions of this loan, depending on what kind of renovation your new property needs. An FHA 203k Full Rehab loan is available for renovations priced over $5,000 that may be more substantial. For projects under $35,000 that are more limited in scope, borrowers can opt for an FHA 203k Streamline loan.
Fees and Rates
Most loans from J.G. Wentworth come with a lender fee of $299 attached to them, which is pretty low for the industry. The origination fee comes in at around $795. They also state that there are no points or hidden fees included in their mortgages.
When you’re ready to compare rates, you’ll need to enter some personal information before seeing any specific numbers. They are, however, supposed to be competitive with other mortgage lenders in the online space.
J.G. Wentworth’s Mortgage Process
J.G. Wentworth offers a tech-friendly process, but with a personal touch. You’ll have a loan officer assigned to your account so you always have someone to reach out to with questions or concerns. They use an innovative digital platform that makes the mortgage process fast and easy.
To get started, consider getting pre-qualified. This involves speaking to a loan specialist, who will review your financial information and let you know approximately how much you could expect to borrow for your home loan.
This is useful information to have on hand when you’re just getting ready to start your house hunt because you can get an idea of what you might qualify for and what your monthly payments would look like at different price points.
When you want to put an offer in on a house, you can get pre-approved from J.G. Wentworth. This involves submitting your full application and having a credit check run. Once you have that in hand, you’ll be positioned to make a strong offer, especially if your local real estate market is particularly competitive.
J.G. Wentworth partners with Costco to deliver extra benefits for members. If you’re a Costco member, you can get a discount on that $795 origination fee. If you’re an executive member, your maximum loan origination fee will be $350. Likewise, gold star and business members won’t pay more than $650.
It’s enough of a discount that definitely makes it worth considering J.G. Wentworth for your mortgage loan, especially if you’re an executive member.
No matter what kind of mortgage you’re looking for, you’re likely to find it at J.G. Wentworth. Plus, they cater to all types of borrowers with an easy application process and a supportive team of loan specialists.