PHH Mortgage review October 2020

PHH Mortgage review October 2020

What types of loans does PHH Mortgage offer?

  • Conventional. 15-, 20-, 25- and 30-year fixed-rate options. PHH Mortgage also offers 3/1, 5/1, 7/1 and 10/1 adjustable-rate mortgages.
  • FHA. Down payments as low as 3.5% with more flexible underwriting guidelines than conventional loans.
  • VA. This government-guaranteed loan is for qualified military personnel, veterans and surviving spouses. PHH recommends a down payment of at least 3.5% of the purchase price, but it offers no-down payment options.
  • Jumbo. Home loans that are higher than conforming loan limits set by government agencies.

Other loans offered by PHH Mortgage

  • Refinance. Refinance options, with cash-out options as high as 90% of the appraised value of your home.

PHH Mortgage fees

Closing costs cover the fees to transfer ownership. Other common fees include:

  • Attorney
  • Escrow payments
  • Origination
  • Survey
  • Taxes
  • Title Insurance

Homeowners assistance

PHH Mortgage works with borrowers having trouble making their monthly mortgage payments. These programs can help homeowners keep their houses and lower their monthly payments.

  • Repayment. For temporary short-term hardships, a repayment plan can help bring your mortgage current without changing your loan term.
  • Forbearance. Reduces or suspends your monthly payment after an illness, unemployment or disaster.
  • Natural disaster. Get help paying your mortgage after a natural disaster.
  • Loan modification. Changes your loan terms, rate or defer principal payments that can lower your monthly payment.
  • Hardest Hit Fund Program. Programs in 18 states and Washington DC designed to help homeowners struggling with loan modification and other assistance programs.

Requirements

Credit score minimums vary from lender to lender. PHH Mortgage suggests a credit score between 680 and 850 and uses a credit score of 760 for its mortgage calculators.

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FHA loans generally require a minimum credit score of 580. Some lenders accept credit scores between 500 and 579 but limit the borrower to a loan-to-value ratio of 90% for FHA loans.

VA loans don’t require a minimum credit score, maximum debt ratio or maximum loan amount. But the lender must review the entire loan profile and weigh additional factors if the borrower’s debt-to-income DTI is more than 41%.

Documentation

Here’s a list of the most common documents you’ll need to provide to complete your loan transaction.

  • Financial statements for your bank and investment accounts
  • Most recent pay stubs
  • Previous W-2
  • A fully executed purchase contract
  • A homeowners insurance policy
  • A flood insurance policy, if required

How to get a home loan with PHH Mortgage

While you can’t complete the entire loan application online, you can start the process and finish up with a loan officer.

  1. Go to PHH Mortgage’s homepage.
  2. Click Apply now on the banner.
  3. Enter your first and last name. Click Continue.
  4. Input your phone number and email address. Click Continue.
  5. Choose what you’re looking to do — for example, make a purchase, refinance or cash-out refinance.
  6. Select your state. Click Continue.
  7. Answer how much you want to borrow. Click Continue and then Submit. A loan officer contacts you to complete your application.

Pros and cons of PHH Mortgage

Cons

  • No home equity options. Look elsewhere for a loan to access equity in your home.
  • Can’t fully apply online. Without branch locations, customers found it tedious to call to complete the application, often experiencing long wait times.
  • No branch locations. Although PHH is headquartered in New Jersey, there are no branch locations to sit down with a loan officer.

What is PHH Mortgage?

PHH Mortgage is a non-bank mortgage company that began in 1979. It became a subsidiary of Ocwen Financial Corporation in 2018. PHH Mortgage offers new purchase loans, refinance products and insurance.

Frequently asked questions

  • How do I make a loan payment?

  • How do you apply for mortgage payment assistance?

  • Which states is PHH Mortgage licensed in?