No Restrictions On Mortgage Type
Unlike some other low down payment programs, the Chase DreaMaker Program applies to both home purchase mortgages and refinances. While cash-out refinances are not allowed, home owners with existing loans with high loan-to-value ratios may be able to refinance into a lower mortgage rate and monthly payment.
How Chase Mortgages Work
Chase has branches in 32 states and Washington, DC, and it offers loans in all 50 states.
Chase has the following types of home loans:
Would You Qualify For A Mortgage From Chase
Chase doesnt have an explicit credit score requirement, but in general, youll need about a 620 FICO score or higher to be considered for a mortgage. Keep in mind that to qualify for the best interest rate, the higher your credit score the better.
Besides your credit score, Chase will consider your income and work history, down payment savings and debt-to-income ratio. For down payment savings, your best bet is to aim for 20% of the home price. That amount helps you get the lowest interest rates, eliminates the need for private mortgage insurance and provides you with 20% equity in your home immediately. Now, if youre applying for the DreaMaker® Mortgage, FHA or a VA loan, you wont need 20%. But in general, putting 20% down is the most favorable route to homeownership.
Your debt-to-income ratio is an important factor during the application process. This percentage helps your mortgage lender understand your ability to pay your monthly loan payments. In general, most lenders look for 36% or less for the most favorable loan terms. For some loans, they can go up to 44% or so, dependant on your full financial situation.
To calculate your DTI, total your monthly debt payments. Debt includes your student loans, credit card payments, auto loans, child support, etc. Next, divide your monthly debt liabilities by your pre-tax monthly income and multiple by 100 to find your percentage.
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How To Apply For A Loan With Chase
The process varies by loan type, but you can follow these general steps:
To be eligible for a Chase loan, you must be:
- Have good to excellent credit.
- Be a US citizen or permanent resident.
- Be at least 18 years old.
You might have trouble qualifying if youve had any past bankruptcies, repossessions, foreclosures or other negative lines on your credit report. If you do have negative marks on your credit history, you must be able to show that youve consistently worked to rebuild it.
Applicants who are unsure about their chances of approval might want to take on a cosigner with a strong credit history.
No Restrictions On Property Location
The Chase DreaMaker Mortgage Program does not apply restrictions on where the property being financed is located. Several other low or no down payment mortgage programs including the HomeReady and Home Possible Programs may apply different borrower qualification guidelines, including income limits, depending on where the property is located. These property location restrictions may reduce the number of home buyers who are eligible for those programs and make it more difficult to find a home you can buy using the programs. Eliminating property location restrictions makes the Chase DreaMaker Program easier to use for more home buyers. Additionally, the program applies to owner-occupied single and multi-family properties as long as the borrower lives in one of the units. Some low down payment mortgage programs only apply to single-family residences which limits the properties you can buy.
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How Do Chase Mortgages Compare
Chase’s mortgage interest rates are equal to or greater than those at other banks, but the bank is both more transparent and more lenient about its estimated closing costs. We looked at online estimates for a $198,000, 30-year mortgage from each of the three major banks to see how Chase compared.
30-Year Fixed Rate Mortgage Estimates at Major Banks
Chase’s low origination fee represents big savings in an area that borrowers don’t have much control over. While each lender’s estimates for third-party fees can be adjusted by shopping for individual services, costs like the origination fee and tax servicing fees are determined solely by the lender. When it came to these expenses, Chase did the best job of minimizing costs to the borrower.
Chase’s online tools for calculating mortgage rates and fees appeared more accurate in several areas. For instance, lenders make their own assumptions about the deed transfer taxes assessed by the state and county where you purchase a home. For our borrower profile, the tax rates used in the Chase estimate were much closer to the actual deed tax than Wells Fargo and Bank of America, which both underreported those taxes by half. This made their closing cost estimates appear much lower than Chase’s costs at first glance.
Customer Service And Mortgage Servicing
Chase originated the fewest mortgages of the three biggest banks and landed in the middle of the pack for the rate of complaints versus total originations. Alongside its larger rivals, Chase was one of the five major mortgage providers fined by the Department of Justice in 2012 for mortgage abuses committed in the leadup to the financial crisis of 2009.
Mortgage-Related Complaints at Major Banks, 2013-2017
Although Chase has avoided the level of accusations faced by Bank of America for mortgage abuses and Wells Fargo for its huge fake account scandal, the lack of recent incidents is not a guarantee of perfect service. Chase’s rating for customer satisfaction with mortgages is very similar to its competitors, and all three land solidly near the average score for all lenders. You probably won’t come across major issues at Chase, but ultimately the quality of your experience will depend on your relationship with the loan officer you meet.
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How Chase Mortgage Stacks Up
As one of the most prolific mortgage lenders in the U.S., Chase is a good option for many home buyers. There are plenty of loan options to choose from and in general, the bank offers competitive rates. You can prequalify and apply online, or meet in person or speak on the phone. That said, the best customer is likely someone who already banks with Chase. It can be preferable to keep all accounts in one place, as long as youre happy with the loan terms youre offered.
The advice is similar to what SmartAsset says for the other three large banks . Youll find very similar mortgage products across all four, similar rates and similar online experiences and not many glaring detractors.
If youre looking for an online-optimized mortgage, you could try an internet-based lender, such as Rocket Mortgage, Ally or Better. You wont find in-person locations where you can sit down with an advisor, but youll be impressed by the online experience with these digital-based lenders.
Ultimately, its up to you and your needs and preferences. If youd rather keep all banking in one place, Chase might be for you. If youd rather shop around for the best terms, rates and digital experience, you have plenty of mortgage lenders to choose from.
What Mortgage Programs Does Chase Bank Mortgage Refinance Offer
Chase Bank Mortgage Refinance offers the following mortgage types:
- Conventional mortgages: This includes any mortgage that is not insured or guaranteed by the federal government.
- FHA: Mortgages insured by the FHA, which usually have less stringent eligibility requirements, but borrowers must pay a mortgage insurance premium. Co-applicants are allowed and you can qualify for a down payment as low as 3%.
- VA: A zero down payment mortgage or a refinance of up to 120% of the home’s value for American military members, veterans, and their spouses.
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Best For Poor Credit: New American Funding
New American Funding looks at every application manually before approving or denying a loan. Some online lenders approve or deny instantly based on computer algorithms, making it hard to get a loan with bad credit. This is not so at New American Funding.
Because each loan is manually reviewed, they may look at other factors such as good savings and a high income. Regardless of your finances, however, they do enforce a minimum 580 credit score for approval. Some lenders will offer a loan with a score down to 550 or 500 in some cases, but you probably wont get the same quality experience as with New American Funding.
Once you’re approved, paying your mortgage on-time every month should help improve your credit score. Over time, you may even build a credit score high enough to refinance at a lower interest rate. But for now, New American Funding is a great place for low credit applicants to get started.
Are Chase Loans Safe
Yes. Chase uses 128-bit encryption, which scrambles your information to make it more difficult for hackers to intercept. It has a whole page dedicated to your privacy and security, which details how Chase keeps the data you enter on its website private. In addition, there are also resources on what you can do to remain safe while browsing online.
If you encounter any problems with the website or application, you can call Chases customer service team.
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Chase Mortgage Vs Bank Of America Mortgage
The Chase DreaMaker mortgage offers a grant for up to $3,000, or $5,500 if you buy a home in an eligible neighborhood. Bank of America also has down payment assistance, but the amount you can receive varies by state. You may want to compare the banks’ two programs to decide which will be more useful.
Chase Mortgage: Loan Types And Products
Chase offers different types of mortgage loans, each with its own set of benefits. Customers can speak with a home lending advisor to get more information on which one is best for their situation. The website also summarizes which type of loan may be the best choice based on a customers financial profile, such as their credit, income, and down payment preferences. Here is a list of the mortgages customers can choose from:
- Adjustable-rate mortgages
- Housing Assistance Programs
Customers with good credit, qualified income, and have at least 5% for a down payment may be a good fit for a conventional loan. Those looking for a larger loan amount can choose the lenders jumbo loans, which requires a 20% down payment to buy a home.
The lenders DreaMaker loan program has strict income limits but allows for as low as a 3% down payment for qualified borrowers. Homebuyers may also be eligible for an additional $500 by completing a homebuyer education course, while refinance customers could have a $500 good faith funds deposit waived. Buying or selling a home with a participating agent in the Chase Agent Express program has a $1,000 incentive.
Homebuyers worried about not closing on time can consider taking advantage of the Chase Closing Guarantee. Chase guarantees an on-time closing or youll get $2,500 if you meet all its requirements for the program.
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Chase Mortgage: Dreamaker Program
In addition to FHA and VA loans, Chase has its own DreaMaker program for homebuyers with less cash or lower credit scores. Through this program, borrowers can put as little as 3% down . Depending on eligibility theres a $2,500 grant available to use toward closing costs, discount points or a down payment and another $500 for completing a homebuyer education course. The banks private mortgage insurance costs are also lower through this program.
Mortgage Rates And Products
JP Morgan Chase offers a broad variety of mortgage products for both home purchases and mortgage refinancing. Fixed rate-mortgages are available in terms of 10, 15, 20, 25, 30 and 40 years. Adjustable-rate mortgages are available with initial terms of 1, 3, 5, 7 and 10 years, fully amortizing over 10 to 40 years.
The lowest mortgage rates are available on the mortgages with the shortest terms for example, interest rates on 15-year fixed-rate home loan are considerably lower than those on the 30-year mortgages. Interest rates on ARMs are usually even lower, since the rates are locked in for a shorter term, although once the initial term is over they regularly readjust to a new rate based on the current mortgage market.
A special Chase program for first-time homebuyers, called DreaMaker Mortgage, offers down payments as low as 5 percent on fixed- and adjustable-rate mortgages of up to 40 years. Closing cost assistance may be available as well. Chase is also an authorized FHA lender, with fixed- and adjustable-rate mortgages are available for both first-time and repeat homeowners.
Chase also offers jumbo loans, which are mortgages that exceed the limits for conforming loans backed by Fannie Mae or Freddie Mac. Depending on where the property is located, those limits range from $417,000 to $729,750. Chase will make jumbo loans of up to $2 million interest rates tend to run somewhat higher than on conforming loans.
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Full Chase Mortgage Review
This lender is a good fit for: Jumbo borrowers, low- and moderate-income borrowers, and people who want a low down payment mortgage.
Low down payment jumbo loans
Chase Mortgage makes jumbo loans more affordable and they are available in two forms:
- Low down payment : Borrow up to 85% of the home’s value and pay no private mortgage insurance for a purchase or refinance with no cash back. The maximum loan amount for a primary or secondary residence is $3 million. The maximum loan amount for an investment property is $1 million. This program is subject to and cash reserve minimums.
- Even lower down payment : Borrow up to 89.99% of the home’s value for the purchase of a primary residence or on a Chase-to-Chase mortgage refinance with no cash back. This loan has PMI, enhanced credit score requirements, and geographical restrictions.
Low down payment mortgages
Chase offers a good variety of loans with low or very low down payment requirements.
- The DreaMaker mortgage: for low- to moderate-income borrowers, requires 3% down, all of which can come from a gift or grant. This loan is for a primary residence only. It has reduced mortgage insurance requirements, compared to other low down payment options, which brings the monthly cost down. Eligible DreaMaker borrowers who complete home buyer education can receive a $500 grant that will be applied to loan costs or the down payment.
- The Standard Agency mortgage: Has a 3% down payment requirement, with no income limits.
Chase Now Requires 700 Fico Score 20% Down Payment To Buy A Home
Megabank raises lending standards amid economic struggles
As the country struggles through the economic impact of the coronavirus, numerous mortgage companies have raised their lending standards to protect both borrowers and themselves. Now, one of the largest mortgage lenders in the country is joining that list.
JPMorgan Chase this week is increasing its minimum lending standards to require nearly all borrowers to have at least 20% down in order to buy a home. Beyond that, Chase is also raising its minimum FICO credit score to 700 on purchase mortgages.
Put simply, if a borrower doesnt have a 20% down payment and a FICO score of 700 or above, they will likely not be able get a loan from Chase to buy a home. According to Chase, those lending standards also apply to refinances on non-Chase mortgages.
The bank will still move forward with refis under its previous lending standards if the loan is either serviced by Chase or in Chases portfolio, but for all other refis, its 700 FICO or look somewhere else.
It should be noted that the changes do not apply to Chases DreaMaker mortgage program, which makes loans available for low-to-moderate income borrowers with as little as 3% down and reduced mortgage insurance requirements.
According to Chase, the changes will allow the bank to spend more time on the loans it is working on and do the appropriate verifications to ensure the loan is the right move for all involved.
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What Could Be Improved
Chase does not publish any information on its website about specific closing costs borrowers can expect to pay, including the origination fee. Loan shoppers appreciate these details, but to get them from Chase you’ll have to apply or place a call to a loan officer. In our call to a loan officer, we found that all borrowers in California pay a $1,150 loan processing fee, as well as a standard tax lien search fee and a flood certification fee. The loan origination fee is separate from the mortgage discount points that the borrower chooses to pay. Mortgage discount points are prepaid interest that a borrower can pay up front in exchange for a lower interest rate on the loan.
No rate lock
A California home lending advisor confirmed by phone that Chase does not offer a rate lock to pre-approved applicants. Applicants can use the Homebuyer Advantage program to get conditional approval, but Chase will not offer an interest rate or prepare a Loan Estimate .
Limited relationship discount
Chase occasionally offers small discounts to its more affluent Chase Private Client customers. These offers come and go. Rate discounts are limited to customers with significant assets. When we checked, we confirmed these offers:
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