Do you often dream of buying a house of your own? Decorating it the way you want to, to invite over your friends and chill?
But every time you look at your bank account, there is never enough money to buy one or, even worse, not having a mortgage for home loan approval?
Do not worry! In this Rocket Mortgage Review, you will find a solution to this problem, and finally, you will be able to buy a beautiful house for yourself.
Read till the end to not miss any essential information.
|Guide||Rocket Mortgage Reviews|
|Features||Online process, customized loan options and more|
|Minimum credit score||580 or above|
|Payout limit||$2 million to $2.5 million|
|Downpayment cost||0% to $3%|
What Is Rocket Mortgage?
Founded in 1985, this Detroit-based company called Rocket Mortgage is the first mortgage company that has made it possible to refinance or buy the house of your dreams.
It was initially a part of Quicken Loans, but very recently, it has changed its name to Rocket Mortgage.
It offers many kinds of home loans, including Jumbo, mortgages backed by the U.S. Department of Veterans Affairs (VA), the Federal Housing Administration (FHA), conventional loans, etc.
The maximum amount that Rocket Mortgage issues are $2.5 million and $2 million for refinancing.
And the best part is that the repayment term can be from anywhere between eight to thirty years, giving you the flexibility to pay an amount that suits you best.
Features And Service
- Easy online process – The entire application process is online and very straightforward and easy. You can check your status at any time on their portal.
- Multiple Loan options – Rocket Mortgage offers multiple options of loans and also offers customizable loan options.
- Customer Service – Rocket Mortgage is well known for its great customer service.
Pros And Cons
- Low downpayment option (as low as three percent)
- Effective loan caculator.
- Fully digital process.
- Customer service available 24×7, seven days a week.
- Doesn’t offer home equity loans, USDA loans or home equity lines of credit (HELOCs).
- No brick-and-mortar locations
Types Of Loans Offered
Rocket Mortgage offers the following kinds of loan options:
- Fannie Mae HomeReady
- VA IRRRL
- Freddie Mac Home Possible
- FHA cash-out refinance
- VA cash-out refinance
- FHA streamline refinance
Additionally it also offers adjustable-rate mortgages including the following:
- Five-year ARM with an VA loan or FHA.
- Five-seven or 10-year ARM with a conventional loan
Rocket Mortgage does not have a minimum amount of loan, which is a relief to those who want small-mortgage loans for less expensive homes.
As far as the maximum amount is concerned, Rocket Mortgage offers a maximum of $2.5 million for a Jumbo loan and $2 million for a VA loan.
There are different requirements that different mortgage companies require. Let’s have a look at Rocket Mortgage’s requirements.
Minimum Credit Score
- 580 for an FHA loan
- 680 for a jumbo loan
- 580 for a VA loan
- 620 for a conventional loan
Minimum Down Payment
The downpayment amount that you are required to pay is slightly less; for example, they require 3.5% for FHA loans, 0% for VA loans, 3% for certain conventional loans, etc.
Debt-to-Income (DTI) Ratio
The Debt-to-income ratio differentiates by the kind of loan that you choose.
This may include the following:
- 45% for a Jumbo loan.
- 50% for Conventional.
- 60% for VA.
- And FHA is Determined by an automated underwriting system.
Rocket Mortgage charges $1200 for underwriting and processing fee.
It also locks your rates for 15, 45, 60, or 90 days and offers a five-day extension costing 0.125 points of 0.25 points for fifteen days extensions.
So once you lock your rate with them, you do not get a float down option, meaning, if the rates drop, then you will have to cancel the application and start over again.
Rocket Mortgage will not penalize you for making a prepayment, nor does it charges any monthly fee on installments, unlike many other similar companies.
How to Apply?
It is straightforward to apply for a loan and submit all the documents.
For this, you just have to go to their website or app and fill in the information and submit the below-mentioned documents:
- Income and employer information.
- Email address concerning each person on loan.
- Statements for checking, retirement, savings accounts, online banking username, and password.
- Social Security number.
Once you fill in all the relevant information and submit your documents, Rocket Mortgage will verify this and your credit score to approve or disapprove your application.
Rocket Mortgage offers good customer support.
You can either call them on (888) 452-8179 this number, or you can live chat with them on their portal.
They are available from Monday to Friday from 7:00 a.m. to midnight ET and Saturday & Sunday from 8:00 a.m. to midnight ET.
We contacted Rocket Mortgage customer support to understand our eligibility and the type of loan that would be the perfect fit for us and to determine the amount that we will be required to pay if we choose their service.
And we must admit, everything went smoothly, the online portal was very easy to use, and the agent answered all our questions and dilemmas.
Overall, we had a good experience with Rocket Mortgage.
What Differentiates It?
There are a couple of good differentiating factors that you must consider yourself.
One of them is the fact that they charge significantly fewer downpayment fees, which are as low as 0% for VA loans and as high as only $3.5% for FHA loans.
Apart from this, Rocket Mortgage is a fully digital loan mortgage service making it stand out from the usual way of lending money.
Even the payout limit is quite decent, going up to $2.5 million. If you are looking for a home mortgage company, you must consider this option.
Rocket Mortgage Vs. Nationwide Home Loans
Nationwide Home Loans is a good choice of alternatives as it operates in a total of eight states. They listen to your goals and offer you a plan that fits them.
Apart from this, use a mix of criteria, including debt-to-income ratio, credit score, and loan-to-value, to determine loan price. Overall, a good alternative to Rocket Mortgage.
Penfed Credit Union Vs. Rocket Mortgage
As compared to Rocket Mortgage, PenFed Credit Union offers a mortgage with a low credit score; they also do not charge any lender fees and also offer member discounts of upto $2500.
You can check our detailed review by visiting our website if you wish to know more about PenFed Credit Union.
Rocket Mortgage Vs. AmeriSave Mortgage
AmeriSave Mortgage has been serving in 49 states and is a popular choice among customers for its transparency.
They ask for a down payment of as little as 3% and offer various types of loans, including FHA, USDA, and VA, among many others.
To conclude, we would say that people who are looking for home loans instead of home equity loans and have a credit score of more than 580 can consider this digital mortgage option.
With a low down payment fee, customizable options, and good customer service, Rocket Mortgage has managed to improve us.
We hope you found this article on Rocket Mortgage review useful.
Where is Rocket Mortgage availbale?
States and the District of Columbia. You won’t be able to use the Rocket Mortgage loan if you reside outside of the U.S.A.
Does Rocket Mortgage service its own loans?
Yes, they service their own loan except Jumbo loans.