Newrez Mortgage Review 2024: Online Mortgage Lender With Social Impact (2024)

Vault’s Viewpoint on Newrez Mortgages

In many ways, Newrez is a straightforward online mortgage lender. Newrez offers fixed rate mortgages, adjustable rate mortgages (ARMs), FHA loans and VA loans with an easy online application and quick pre-qualification. If you’re interested in working with Newrez to refinance an existing mortgage or take out a home equity loan, those options are also available.

That said, Newrez’s company history is a little less straightforward. In addition to offering home loans online, Newrez also functions as a mortgage servicer. As a mortgage servicer, Newrez buys and takes over mortgage debt from other lenders, including foreclosures. In some states, Newrez does business under the name Shellpoint Mortgage Servicing, with the ability to not only service mortgages but also act as a collection agency.

Because of this factor, Newrez has developed a negative reputation among the online mortgage review sites. In some cases, the negative reviews come from frustrated customers who were not expecting their mortgage to be sold to Newrez or Shellpoint. While Newrez has done much to address the concerns of these customers, including detailed online resources explaining why their mortgage was acquired by Newrez and what to expect going forward, many borrowers are still less than satisfied with their Newrez experience.

Does that mean you shouldn’t consider Newrez as an online mortgage lender? Not necessarily. Newrez has served a reported 4.6 million homeowners, and advertises a strong social impact program with a focus on affordable homeownership and community-building. Applying for a mortgage with a major bank might be a better option for some people, especially if you have a good credit score and are hoping to score the lowest possible mortgage interest rates. However, Newrez could still be a good option for people who want the ease of an online mortgage lender.

Along with comparing Newrez to the mortgage quotes and options from other online mortgage companies, this Newrez review can help you decide whether Newrez might be right for your short-term homeownership dreams and long-term financial goals. Here’s a look at everything you need to know about this lender.

About Newrez

Like most online mortgage lenders, Newrez offers many different types of home loans along with mortgage refinancing and home equity options. You can apply online or begin the application process by contacting a loan advisor over the phone.

If you want to learn more about Newrez rates before you start the online application process, you won’t find much in the way of specific numbers. It’s fairly common for online lenders to withhold mortgage rates until prospective homeowners apply, so you’ll have to fill out an initial application before you can get a mortgage rate quote.

On the plus side, Newrez offers many educational resources through their website—many of which outshine the resources offered by competing online lenders. Newrez’s online mortgage calculators, for example, can help you determine how much home you can afford and what kinds of monthly mortgage payments you might be facing.

Minimum Borrower Requirements

While many of the best Newrez mortgage rates may be reserved for applicants with good or excellent credit, Newrez has many opportunities for people with lower credit scores.

If you are applying for a FHA loan, for example, your credit score is less important than your income and employment history. Applicants who have a debt-to-income ratio of 43% or less, with no derogatory credit events in the past 2-3 years, may be eligible for a FHA loan with Newrez even if they don’t have a good credit score.

If you are applying for a fixed-rate loan or an adjustable-rate loan, you may want to build your credit score above 600 before you apply. While Newrez doesn’t list minimum borrower requirements for these loans, the lender does require a minimum credit score of 660 on home equity loans—so it’s fair to assume that they may want similar credit scores for fixed-rate and adjustable-rate mortgages.

That said, if you have questions about Newrez’s minimum borrower requirements, you can always contact a loan advisor over the phone. Newrez has a strong commitment to social impact and community building, with the goal of becoming the best provider of affordable home and financing solutions for all communities.

How To Apply for a Newrez Mortgage

Before you can apply for a Newrez mortgage, you need to prequalify. The prequalification process takes just a few minutes, and you can complete it by applying online or speaking to a loan advisor over the phone.

To apply online, you’ll need to enter basic personal information such as your name and telephone number, as well as information about the home you’re planning to buy or refinance. Once you have finished the initial application, expect to be contacted by a loan advisor with information about your prequalification status, as well as what you can expect in terms of next steps. You may receive a mortgage rate quote at this point, and you may be asked to provide additional information in order to verify your identity or prove your income.

As you continue through the Newrez mortgage application process, make sure you download the Newrez app (available through the App Store and Google Play). This app allows you to track the progress of your application and upload supporting documents. If you decide to use Newrez as your online mortgage lender, the app will allow you to track the progress of your loan through closing. You can also use the app to make payments, check balances and more.

How Does Newrez Stack Up to Its Competitors?

If you’re thinking about applying for a mortgage from Newrez, make sure you compare it to a few other popular online mortgage lenders. Here’s how Newrez stacks up to two of our picks from the best mortgage lenders of 2024.

Newrez vs. New American Funding

Like Newrez, New American Funding is committed to offering opportunities to homeowners who might not have high annual incomes or perfect credit. You may be interested in New American Funding’s Pathway to Homeownership program, which offers qualified buyers in select areas up to $8,000 in assistance. This funding does not need to be paid back, and could be an incredible benefit as you pursue your homeownership goals.

New American Funding also allows a unique type of mortgage, called the I CAN mortgage. This mortgage allows borrowers to designate the length of their loan, choosing a mortgage term between eight and 30 years. Homeowners who want to save on interest charges can choose a shorter mortgage term, while homeowners who want to minimize their monthly mortgage payments may prefer a longer term. You’ll need a credit score of at least 620 to take advantage of this opportunity, so keep that in mind before you apply.

Both Newrez and New American Funding have an on-time closing guarantee. New American Funding’s time frame is 14 business days, however, and their guarantee only allows for a $250 credit if they miss that window. Newrez has a $5,000 guarantee, but this number hinges on the contract closing date rather than a set number of days.

Newrez vs. Rocket Mortgage

If you’re looking for an easy-to-manage online mortgage lender that allows you to access all of the information you need from your phone, you might consider both Newrez and Rocket Mortgage. Like Newrez, Rocket Mortgage offers an integrated app that allows you to apply for a mortgage, track the status of your loan, make payments and more. Plus, both Newrez and Rocket Mortgage offer money-saving perks and discounts, including the opportunity to save on closing costs.