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Eligibility and requirements

What types of loans does Homeward Mortgage offer?

We offer conventional, jumbo, Veterans Affairs (VA) mortgages. We have the ability to do Federal Housing Administration (FHA) loans, but you cannot use them in combination with our Buy before you sell or Buy with cash services. You can use them with our Backed by cash service.

What documents will I need to provide to apply for a loan from Homeward Mortgage?

The documentation we request will vary depending on your situation. For instance, whether you’re self-employed or already own a home. But, generally speaking, we require credit, asset, and income verification.

Tell me more about the credit pull.

We do a soft credit pull as part of the Homeward approval process. (You may notice that the application says it is a hard credit pull. Unfortunately, we cannot modify this language, which comes from a third-party partner.) We do a hard credit pull if you decide to use Homeward Mortgage to buy back your home from Homeward.

How does Homeward Mortgage decide if I’m eligible for a loan?

We consider your credit score, debt-to-income ratio, and available assets when we review your financial profile. If you have questions about our decision-making process, speak to your Loan Officer. We want to do everything possible to help you buy your dream home.

Can I have a co-borrower on my loan?

Yes, you can have a co-borrower on your loan with Homeward Mortgage.

Do I have to use Homeward Title to close if I’m making a Homeward Cash Offer and using Homeward Mortgage?

No, you are not required to use Homeward Title. That said, there are many advantages to closing on your home with our affiliate company. Bundling these services can save you time, money, and effort.

Rates and Fees

What are your mortgage rates?

Call 512-368-9181 to get a rate quote. Once you are under contract to buy a home, we’ll provide you with a custom quote.

I get a credit at closing for using Homeward Mortgage when I make a Homeward Cash Offer, correct?

Yes. If you use Homeward Mortgage with Homeward's Buy before you sell and Buy with cash services, Homeward gives you a seller's credit at closing.

If you use Homeward Mortgage with Homeward's Backed by cash service, we'll give you a lender's credit at closing.

For details about Homeward's convenience fee and the type and amount of credit you’ll receive, see the Pricing page on Homeward’s website.

What is the minimum amount of money I can put down on a conventional loan?

If you are a first-time homebuyer, the minimum amount of cash down is 3% for a loan equal to or less than $647,200. If you are not a first-time homebuyer, you can put as little as 5% down as long as your loan amount stays within the conforming limits for the county you are buying in. Loans above this limit are considered jumbo and minimum down payments for those vary.

Are there any prepayment penalties?

No. We do not charge any prepayment penalties.

How much cash will I need to close?

This varies. Once you are approved to use the Homeward Offer and have a property under contract, we can provide more details. In the meantime, you can learn more about Homeward Title’s closing fees by visiting their website.

What are Homeward Mortgage’s PMI terms?

We offer each borrower a custom private mortgage insurance (PMI) quote in accordance with Federal National Mortgage Association (FNMA) guidelines. Veterans Affairs (VA) loans and mortgages with a loan-to-value (LTV) ratio of less than 80% do not require PMI.

Do you offer down payment assistance programs?

No, we do not currently offer any down payment assistance.

How do you handle seller credits during the buyback?

When you use Homeward Mortgage to buy with cash, Homeward will provide you with a credit at closing. Homeward will also pass through any credits they received from the original seller during the Homeward Purchase. These credits are called Interested Party Contributions or IPCs.

Mortgage guidelines regulate how big IPCs can be and how they are applied. Your IPC limit is based on two things: your loan-to-value (LTV) ratio and your type of occupancy (is this your primary residence, a second home or an investment property. Your Loan Advisor will notify you if your IPCs might go over the allowable limit, Then we’ll work with you and Homeward to modify your loan and/or lower the sales price of your home to make sure you can take full advantage of all of these credits.

What is the difference between interest rate and APR?

The interest rate is the cost you will pay each year to borrow money to finance your home purchase. Your interest rate is expressed as a percentage rate. It does not reflect any transactional fees or any other charges you may have to pay for the loan.

The annual percentage rate (APR) is a broader measure of the cost of borrowing money. The APR reflects your interest rate, discount points, mortgage broker fees, and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate.

Appraisals

How does the appraisal work when I make a Homeward Cash Offer?

In many circumstances, you may waive the appraisal contingency when you make a Homeward Offer. (This depends on your personal finances and which cash offer service and type of loan you're using.)

You will get an appraised value for the home during the option period/due diligence regardless of whether or not you waive the appraisal contingency. This value is based on a desktop appraisal, not a site visit.

Your lender will require an appraisal for underwriting purposes. If you're interested in waiving the appraisal contingency when you make an offer, speak with your Customer Experience (CX) Manager.

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Getting Started

I’ve got a home under contract. How do I get started on my home loan?

Congratulations! Sign into your customer dashboard on Homeward to learn more about next steps. If you have any questions, feel free to reach out to your Loan Officer.

I’ve been told to keep an eye on my inbox. What am I looking for?

Yes, please monitor your inbox. We often have follow-up questions or documentation requests, and the faster you provide the requested items, the sooner we can approve you. You may receive communications from us and/or from some of our partners, including Rocket Mortgage (formerly Quicken Loans) and Credco Corelogic.

Timeline

How and when do I lock in my rate?

If you are using Homeward’s Buy with cash service, you can lock in your rate as soon as Homeward Mortgage approves your appraisal.

If you are using Homeward’s Buy before you sell service, you can lock in your rate as soon as the sale of your old home is pending.

Your Loan Advisor will provide you with your rate quote and lock it in via email or phone call.

How soon can I rent out a home I financed with Homeward Mortgage?

If you purchase your new home with an owner-occupied loan, you must live in it for at least a year before renting it to someone else. However, under some circumstances, (e.g., a job move), you may be able to rent it out sooner.

I’m wondering when I’ll close. Who can provide me an update on my buyback closing date?

Your Loan Officer or Loan Processor can update you on your closing date.

WHO TO CONTACT

Customer Experience Managers

Yes though you’ll find our standard options to cover the vast majority of your needs. If not, get in touch and we’ll create something custom.

WHO MIGHT REACH OUT

These Homeward specialists may reach out to you directly to ensure everything remains on track.

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