Bank of America Mortgage Review 2019

Network Capital Funding Mortgage Review 2020

Tap to learn how COVID-19 may affect mortgage shopping

Due to the coronavirus pandemic, getting a mortgage may be a bit of a challenge. Lenders are dealing with high loan demand and staffing issues that may slow down the process. Also, some lenders have increased their fees or temporarily suspended certain loan products. If you can’t pay your current home loan, refer to our mortgage assistance resource. For the latest information on how to cope with financial stress during this pandemic, see NerdWallet’s financial guide to COVID-19.

Network Capital Funding at a glance

Originally built on direct-mail advertising, Network Capital Funding, an Irvine, California-based home loan lender, moved to the airwaves in 2009, sponsoring the “Mortgage Radio Show.” It’s a program that continues today, airing on a dozen stations across the country.

And there is a lot to talk about. The lender provides an excellent selection of loan products, including specialty programs that target borrowers outside of the usual lending box. Online capabilities are also a cut above.

Here’s a breakdown of Network Capital Funding’s overall score:

  • Variety of loan types: 4 of 5 stars

  • Variety of loan products: 5 of 5 stars

  • Online convenience: 5 of 5 stars

  • Rates and fees: 3 of 5 stars

  • Rate transparency: 4 of 5 stars

Network Capital Funding mortgage loan types and products

Network Capital offers a broad selection of home loans, including purchase, refinance and jumbo mortgages. The lender also takes on all government-backed loans such as FHA, VA and USDA mortgages.

Additionally, Network Capital Funding has specialty loans and services:

  • Offers custom fixed-rate loan terms beginning at eight years.

  • Considers alternative credit data for some loan programs.

  • Provides a “same-as-cash” loan where an application is reviewed for approval within 24 hours.

  • Offers bank statement lending and accepts investment properties as collateral.

Tri Nguyen, Network Capital Funding’s founder and CEO, says that the company will make home loans up to $5 million and that the average customer has a FICO score of 729, a 72% loan-to-value ratio and a 39% debt-to-income ratio. However, before the pandemic, the lender says some of its loan programs allowed a minimum credit score of 550, while others loosened DTI to 65%.

Network Capital Funding online convenience

Pushing either the orange “Purchase a Home” or “Refinance” button on Network Capital’s website takes you through some initial questions to gather basic information. At that point, and before a credit score is pulled, a mortgage banker contacts you and helps guide the process from there.

A web-based app allows you to apply, get loan process updates, e-sign and upload documents, according to the lender. “We can electronically gather most pay stubs, W-2s, bank statements and tax returns with just a couple of clicks,” Nguyen says.

“While mobile apps are helpful for those both tech and financial savvy, many of our consumers elect to consult with our professionals for advice and recommendations, which is our most competitive advantage,” he says.

Network Capital Funding mortgage rates and fees

One of the most important considerations when choosing a mortgage lender is understanding what the loan will cost. In order to provide consumers with a general sense of what a lender might charge, NerdWallet scores lenders on two factors regarding fees and mortgage rates:

  • A lender’s average origination fee compared with the median of all lenders reporting under the Home Mortgage Disclosure Act. Network Capital Funding earns 2 of 5 stars on this factor.

  • A lender’s offered mortgage rates compared with the best available on comparable loans. Network Capital Funding earns 4 of 5 stars on this factor.

Network Capital Funding tells NerdWallet — and states on its website — that it charges “no application, origination, rate lock, processing or underwriting fees to borrowers who qualify.” However, the lender did report average origination fees to HMDA in 2019, as reflected in the two-star rating for fees stated above.

Borrowers should consider the balance between lender fees and mortgage rates. While it’s not always the case, paying upfront fees can lower your mortgage interest rate. Some lenders will charge higher upfront fees to lower their advertised interest rate and make it more attractive. Some lenders just charge higher upfront fees.

You can decide to buy discount points — a fee paid with your closing costs — to reduce your mortgage rate.

Deciding whether to pay higher upfront fees is a matter of considering how long you plan to live in your home and how much cash you have to apply toward closing costs when you sign the loan paperwork.

Network Capital Funding rate transparency

Interestingly, Network Capital makes you jump through a couple of hoops to get to mortgage rates. Clicking on “Rates” from the menu takes you to a page where you are asked to enter a promo code to view mortgage rates on a sampling of four loan products. Customized rates aren’t available online.

The rates shown are impressively low, but clicking on “Rate Information” below each quote reveals the reason why: the rates include a 1% discount point, a debt-to-income ratio below 25% and a credit score over 740 with 20% down.

Remember, discount points are optional, and while the loan terms aren’t unreasonable, they reflect a well-qualified buyer, as advertised mortgage rates often do.

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