As we speak we’ll check out one other dwelling builder’s lender, Okay. Hovnanian American Mortgage.
They’re the affiliated lender of Okay. Hovnanian Properties, which is a top-15 dwelling builder nationally.
Like different builders, they created their very own financing division to streamline their new dwelling gross sales.
And to higher management the shopper expertise from begin to end.
The most important perk to utilizing them is the financing specials you possible gained’t discover elsewhere. Learn on to be taught extra.
Okay. Hovnanian American Mortgage Quick Info
Affiliated mortgage lender for Okay. Hovnanian HomesProvides dwelling buy loans for brand new dwelling buyersFounded in 2002, headquartered in Boynton Seashore, FLParent firm is likely one of the largest dwelling builders nationwideLicensed to do enterprise in 14 states and the District of ColumbiaFunded greater than $1.1B in mortgages final yearMost energetic within the states of Arizona, California, Delaware, Texas, and Virginia
As famous, Okay. Hovnanian American Mortgage is the lending division of Okay. Hovnanian Properties, a prime U.S. dwelling builder.
Their mum or dad firm Hovnanian Enterprises, Inc. is a publicly traded firm (NYSE:HOV), presently valued at almost $1 billion {dollars}.
They’ve been round since 1959, and function 128 residential communities throughout 14 totally different states.
These states embody Arizona, California, Delaware, Florida, Georgia, Illinois, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia, West Virginia, and Washington, D.C.
These are the locations the place Okay. Hovnanian American Mortgage is licensed to lend as nicely, since they solely exist to serve their dwelling purchaser prospects.
In fiscal yr 2022, they delivered greater than 6,000 properties to consumers throughout all markets, placing them within the top-15 largest homebuilding corporations in the US.
The lending unit acquired its begin approach again in 2002 and is headquartered in Boynton Seashore, Florida. At current, they’ve 36 licensed mortgage mortgage originators working on the firm, per the NMLS.
As a result of they’re a house builder lender, they solely supply dwelling buy loans. No mortgage refinances can be found.
However additionally they function a full-service title firm known as Jap Nationwide Title Company and Hovnanian Insurance coverage Company.
So you will get your new dwelling, mortgage, title insurance coverage, escrow companies, and even owners insurance coverage all from one umbrella firm.
In fact, it might pay to buy round, so don’t overlook financial savings for comfort.
Tips on how to Apply for a Mortgage
To get began, you may go to a brand new dwelling gross sales workplace or go to their web site. Both approach, you’ll be put in contact with a licensed mortgage officer.
They’ll be capable to talk about pricing and mortgage choices with you. When you like what you hear, you may proceed to the mortgage software.
It’s a digital app powered by ICE Mortgage Know-how that may accomplished from any system, together with a pc, pill, or smartphone.
It lets you hyperlink financial institution accounts and different financials, add key paperwork, and eSign disclosures on the fly.
As soon as submitted, you’ll be capable to verify mortgage standing 24/7 to find out what excellent gadgets nonetheless must be accomplished. And you will get in contact along with your lending group at any time when you’ve questions.
Finally, they make it straightforward to use for a house mortgage because of the newest tech, but additionally have a human lending group standing by.
Notice that loans are bought off to a 3rd occasion after closing as a result of they don’t seem to be a mortgage servicer.
Mortgage Packages Provided by Okay. Hovnanian American Mortgage
House buy loansConforming loansJumbo loansFHA loansVA loansUSDA loansFixed-rate loans: 30-year mounted, 15-year fixedARM loans: 5/6 ARM, 7/6 ARMBuydown loans: 3/2/1 and a couple of/1 buydownsState bond loans
Regardless of being a house builder lender, Okay. Hovnanian American Mortgage presents a superb number of mortgage applications, together with conforming loans backed by Fannie Mae and Freddie Mac and jumbo loans.
Additionally they supply all the foremost government-backed mortgages, together with FHA loans, VA loans, and USDA loans.
As well as, you will get both a fixed-rate mortgage, corresponding to a 30-year or 15-year mounted, or an adjustable-rate mortgage, corresponding to a 5/6 ARM or 7/6 ARM.
Given the current rise in mortgage charges, additionally they supply buydown loans, together with a 3/2/1 buydown that reductions the speed a full three share factors in yr one.
You may additionally be capable to get your fingers on some homebuyer help by way of choose state bond loans that provide decrease down funds and authorities subsidies.
Okay. Hovnanian American Mortgage Charges
Whereas some mortgage corporations publish their day by day mortgage charges on-line, Okay. Hovnanian American Mortgage doesn’t.
With regard to how their rates of interest are, they merely say, “There isn’t any strategy to precisely and actually reply this query with out first evaluating your particular person state of affairs and financing wants.”
In different phrases, mortgage charges range by buyer, based mostly on mortgage parameters corresponding to credit score rating, down cost, mortgage program, and so forth.
The excellent news is they might supply particular financing presents to their new dwelling consumers, as is commonly the case with affiliated builder lenders.
As a result of builders typically purchase ahead commitments in bulk, they will apply particular reductions which might be typically onerous for out of doors lenders to beat/match.
However these offers are sometimes restricted to sure properties in particular developments, and the funds are topic to working out.
They’re additionally time-limited, that means it’s essential to get underneath contract and/or shut by X date to make use of these particular funds.
Once you converse to a brand new dwelling shopping for rep or mortgage officer, make sure to inquire about offers corresponding to everlasting or momentary price buydowns.
This will come within the type of a closing value credit score, which might be utilized to a mortgage price buydown.
These could make or break your resolution to make use of the house builder’s lender or an out of doors financial institution/lender.
Okay. Hovnanian American Mortgage Opinions
There aren’t a ton of opinions for the lending arm of Okay. Hovnanian. However they do have a couple of kicking round.
They’ve acquired a 4.3/5-star score from six opinions on Redfin, and an ideal 5/5 on a separate Redfin web page from 5 opinions.
In the meantime, their mum or dad firm has a 4.3/5 from almost 4,000 opinions on NewHomeSource, which is a significantly better pattern measurement.
And given the truth that a lot of the mum or dad firm’s dwelling consumers are possible additionally mortgage prospects, these needs to be related.
In fact, it’s not all excellent. Over at ConsumerAffairs they’ve a way more questionable 1.4/5 from over 250 buyer opinions.
So a little bit of a blended bag, although some opinions could need to do with the properties themselves, not the mortgages.
You should definitely take the time to learn by the opinions to find out potential hiccups that you just may be capable to keep away from.
Lastly, they’re an accredited firm with the Higher Enterprise Bureau (BBB) and presently maintain an ‘A+’ score based mostly on grievance historical past. Talking of, they’ve zero complaints on file.
To sum issues up, Okay. Hovnanian American Mortgage appears to supply a superb mixture of know-how, a full mortgage menu for dwelling consumers, and respectable buyer opinions.
Additionally they have the large benefit of providing below-market mortgage charges like different dwelling builder lenders.
However all the time collect greater than a single mortgage quote. Whereas Okay. Hovnanian American Mortgage could supply the most effective pricing, there is likely to be higher offers on the market.
And in case you have competing quotes, they might be extra prepared to barter with you on price and/or closing prices.
Okay. Hovnanian American Mortgage Execs and Cons
The Execs
Can apply for a house mortgage onlineDigital mortgage software powered by ICE Mortgage TechnologyPlenty of mortgage applications to decide on fromOffer mortgage price specials for dwelling purchaser customersLots of fantastic buyer reviewsA+ BBB score, accredited companyLots of free mortgage calculators on their websiteExtensive mortgage glossary explaining key phrases
The Cons
Solely supply dwelling buy loansAren’t licensed in all statesDo not publicize mortgage price or lender feesSome blended opinions for mum or dad companyDo not service loans after closing
