Network Capital Funding is an online, non-bank lender. It’s relatively small when compared to other major mortgage players, but that actually works in its favor.
It doesn’t charge lender fees, can close in as little as 15 days, and even though a majority of the process takes place online, each applicant works one-on-one with a mortgage banker throughout the entire process.
Unfortunately, Network Capital Funding doesn’t lend to the entire 50 states. Currently, it only serves the following U.S. states: AL, AR, AZ, CA, CO, DE, DC, FL, IL, IN, IA, KS, KY, LA, MD, MN, NJ, NM, NY, NC, OH, OK, OR, PA, TN, TX, VA, WA, and WI.
Mortgage Application Requirements
Network Capital Funding Mortgage requires all applicants to have a credit score of at least 600. You will also be required to submit the standard paperwork. These include:
- Pay stubs
- Tax returns
- Photo ID
- Bank statements
However, with your consent, much of this information will be pulled electronically, so you won’t have to go digging through old emails and file folders hidden at the top of your closet.
Also, because their level of customer support is so high, information is limited without going through the whole application process. Just know that they have a high rating on Consumer Affairs (4.6 out of 5), so it’s clear that they don’t expect anything unreasonable from potential borrowers.
If you have a lot of debt, also know that Network Capital Funding prefers a borrower’s debt to income ratio to be average. The maximum for most banks is 43%, but some lenders prefer 36% or under. Most borrowers with Network Capital funding fall somewhere between those two numbers.
To calculate your DTI, add up all of your monthly debt payments and divide them by your gross income (the amount you make before anything is taken out).
Types of Home Loans Available
Network Capital Funding offers a great selection of home loans for purchase, refinance, or jumbo mortgages. It also participates in all government-backed loans, such as:
The Federal Housing Administration (FHA) loan is a type of loan typically aimed at helping lower-income borrowers. With lower credit score and down payment requirements, it helps many Americans get out of renting and gain financial independence.
Network Capital offers this government-insured loan to borrowers with a credit score of 600 or more. Only a 3.5% down payment is needed. If you’ve had a short sale or foreclosure in your past, the minimum amount of time you’d have to wait for qualification is three years.
If you or your spouse is a member of the U.S. Armed Forces, you may qualify for a VA loan. The property must be for personal use, and Reservists and members of the National Guard must serve for six years before they are eligible. However, if they are called in for active duty, they will qualify after 181 days of service.
VA loans don’t require mortgage insurance if you don’t put 20% down, but there is a one-time funding fee depending on the down payment. For example, $0 down would mean a fee of 2.15% of the total loan amount. Network Capital prefers its borrowers have at least a 600 credit score, but will loan up to 100% of the loan-to-value (LTV).
Harp 2.0 allows current homeowners the ability to refinance their home even if they are ‘underwater’ on the house — meaning they bought their house when it was overvalued, and now their loan is for more than the house is worth.
Network Capital Funding will go up to 150% of the loan-to-value. This program is contingent on many factors, so Network Capital recommends borrowers contact them directly to determine their eligibility. The good news is that, once again, the minimum credit score required is still 600.
Fees and Rates
Network Lending doesn’t charge any lending fees, so that can save you some real money in closing costs. This enables borrowers to use their hard-earned cash for other things, such as renting a moving truck when it’s finally time to move.
If you’re looking for the rates they’re currently offering, you can view them online. No need to go through the entire loan application process to find out. Simply go to their loans tab and click on ‘Rates” to see up-to-date numbers. Just know that any rates you see will be based on average lending scenarios, meaning a loan amount of $200,000, and a credit score of 720.
Also, note that the information you seek online may be limited because Network Capital Funding prefers all interested borrowers to speak personally with a mortgage banker.
Network Capital Funding’s Mortgage Process
Push the orange “Get Started” button and you’ll answer 19 standard questions to begin. Once you’re done, you’ll get a call from a mortgage banker to guide you through the rest of the process.
Network Capital is unique in that it can electronically gather pay stubs, W-2s, bank statements and tax returns for you. It only takes a couple of minutes, and truly expedites the entire loan application process.
Network Capital Funding also offers such services as e-sign and online document exchange. Combine these with the personal mortgage banker, and it’s easy to see how it’s possible to close in as little as fifteen days.
In the future expect a mobile app to roll out, as well as a pre-qualification tool. It’s unlikely the plan is to use these tools to do away with their one-on-one mortgage banker interaction, as its founder Tri Nguyen believes that their unique level of customer support is what sets them apart from their competitors. They’re just more tools to help borrowers stay in control of their financial future.
Network Capital Funding offers what it calls “Same as Cash” pre-qualification. This enables borrowers the ability to compete with cash offers in the field. Network Capital Funding underwrites your file in-house, so while you’re shopping around you can shop confidently knowing that if you find a house, your offer will be as competitive as anybody else’s.
Also on their website is a mortgage calculator to help you determine how much you can afford month-to-month. This is a realistic tool and is not aimed to encourage you to buy more house than you should.
Another valuable tool is their Home Value Check calculator. Simply enter the address of a house you’re interested in, and the calculator will determine the home’s market worth. This can help you out during negotiations and may prevent you from overpaying on a piece of property.
Notice it gives you both a low and high range, so you’ll want to aim to be somewhere in the middle. Of course, every market is different, and it all comes down to the seller.
If you are new to the world of mortgages, closing costs, rates, appraisals, and home inspections, Network Capital Funding may be the perfect lender for you.
Their rates are strong, they don’t charge any lender fees, they’re super fast with closing, and their customer support nails it. For some, this might be too much, but even experienced homebuyers have found them to be a refreshing change of pace in this era of digital anonymity.