Newrez (formerly Caliber Home Loans)

Caliber Home Loans recently announced that all new loan applications will be handled by Newrez Mortgage. If you’re an existing customer, the servicing of your loan remains unchanged. This guide explores what Newrez has to offer.

About Newrez (formerly Caliber Home Loans)

Caliber Home Loans is now a part of the Newrez family of companies. The acquisition was initially announced in 2021, and Newrez has since stepped in to handle your home lending needs.

The online mortgage lender offers a broad range of purchase and refinance loans customized for you. There are also purchase perks, including closing cost incentives, to help sweeten the deal.

Newrez Mortgage (formerly Caliber Home Loans) Products

With Newrez, formerly Caliber Home Loans, you can access fixed-rate, adjustable-rate, FHA, VA, jumbo and refinance loans.

Conventional Loans

Conventional loans are a popular choice for borrowers with good credit scores seeking a traditional financing solution. You can choose between a fixed-rate mortgage to get consistent monthly payments throughout the life of your loan. Or you can get an adjustable-rate mortgage (ARM), which may offer lower initial interest rates and more affordable monthly payments in the short term.

FHA Loans

FHA Loans are backed by the Federal Housing Administration. They can be an excellent option if you’re buying your first home or have less-than-perfect credit. These loans feature competitive interest rates, lower down payments and flexible qualification criteria compared to conventional loans.

VA Loans

Newrez’s VA Loans can provide significant benefits, including 100% financing and no private mortgage insurance (PMI) if you are a veteran, active-duty service member or eligible spouse. VA Loans are designed to honor your service and provide you with affordable home financing.

Jumbo Loans

For homes that exceed conventional loan limits, jumbo mortgages are available to help fund the purchase. These loans are ideal if you’re looking to buy a high-value property and have a solid credit score and sizable reserves.

Mortgage Refinancing

If you’re considering refinancing your mortgage, Newrez offers refinancing options that could help you secure a lower interest rate, reduce your monthly payment or tap into your home’s equity. Mortgage Refinancing can be a smart financial move if you want to adjust your mortgage term, manage your debt more effectively by consolidating it or meet other financial objectives.

Newrez (formerly Caliber Home Loans) Special Programs for Non-QM

Non-traditional mortgage solutions are also available for those out-of-the-box scenarios.

Smart Loan Series

The Newrez Smart Loan Series is a comprehensive suite of non-qualified mortgage (non-QM) products designed to accommodate a range of borrowers with unique financial situations. It loans like SmartSelf, which caters to self-employed individuals by allowing them to use bank statements for income verification instead of traditional tax documents. The loans are structured to help those who may not meet the strict criteria of conventional mortgages.

Investment Property Loans

When you’re looking to invest in real estate, Newrez features flexible non-QM loan options to finance your investment properties. These loans often allow for higher loan amounts and utilize alternative methods to verify your income, making it easier for you to qualify even if you have a complex financial situation.

Mortgage Programs for Non-Owner-Occupied Properties

Newrez offers innovative mortgage programs to purchase properties you don’t plan to live in. These programs can include interest-only products that provide lower initial payments to help you manage cash flow for your rental or flip projects. They can also accommodate borrowers with varying credit profiles and financial backgrounds.

Newrez Mortgage (formerly Caliber Home Loans) Application Process

Below is an overview of the application process, as outlined in the homebuyer guide:

• Step 1: Get preapproved for a mortgage.
• Step 2: Search for the perfect home and submit an offer with assistance from your REALTOR.
• Step 3: Submit the documents required for underwriting review to your lender by email or through the mobile app or online portal.
• Step 4: Formally apply for a home loan and ensure you’ve sent along all the necessary documents.
• Step 5: Prepare for closing by satisfying all conditions mentioned by the underwriter and completing the inspection and appraisal process.
• Step 6: Following the final inspection, seal the deal by signing the closing documents and retrieving the keys to your new home.

Documentation Requirements

Newrez requires the following documents to make a lending decision:

• W-2s from the last two years
• Pay stubs from the last 30 days
• Business tax returns from the last two years (self-employed applicants)
• Current profit and loss statement (self-employed applicants)
• Bank and investment account statements from the last two months
• A copy of your divorce decree (if applicable)

Credit Score Considerations

Newrez does not disclose minimum credit score requirements. That said, a good or excellent credit score is most ideal when applying for a mortgage. If your credit score is on the lower end, there are government-backed mortgage solutions that may work for your financial situation.

Down Payment

Below, you’ll also find the down payment requirements for mortgage products offered by Newrez:

• Conventional loans: 3%
• FHA loans: 3.5%
• VA loans: 0% (with no private mortgage insurance)
• Jumbo loans: not disclosed
• Specialty loans: not disclosed

Other Loan Qualification Guidelines

It’s important to note that most loans require proof of income and a steady employment history – preferably 24 months of consecutive employment with the same employer or industry – to get approved. Your debt-to-income ratio (DTI) should also be reasonable in the lender’s eyes. And your credit report should be clear of derogatory credit events within at least two to three years of applying.

Lending guidelines vary by the loan type, so you’ll need to inquire for a more detailed list of criteria.

Should You Choose Newrez (formerly Caliber Home Loans) for Your Mortgage Needs?

When evaluating Newrez for your mortgage needs, consider the variety of loan products available. They offer conventional loans and government-backed options like FHA and VA loans, which might suit your situation if you’re a first-time buyer or looking for a zero-down payment option.

Newrez is recognized for accommodating non-traditional borrowers with its non-QM “Smart Series” mortgages. This can be particularly beneficial if your financial circumstances do not align with the strict criteria of traditional mortgage products.

Customer satisfaction and support are also important. While Newrez operates nationwide and is fully licensed, it’s worth browsing reviews from past and current customers to gauge the level of service offered to borrowers.

Most importantly, compare Newrez’s rates and terms with other lenders. Look at the APR, which includes interest rates and fees, to understand the total borrowing costs associated with the loan product you’re considering.

Advantages of Choosing Newrez (formerly Caliber Home Loans)

• Mortgage fees disclosed online
• $1,000 closing cost incentive
• $5,000 on-time closing guarantee
• 45-day rate lock
• Flexible non-qm mortgages for self-employed borrowers
• Non-qm loan options for investors

Disadvantages of Choosing Newrez (formerly Caliber Home Loans)

• Pre-approval is required to view rates
• No USDA or construction loans
• Online chat not available

How Does Newrez Mortgage (formerly Caliber Home Loans) Compare?

Here’s how Newrez stands up to the competition:

• Loan Options: Newrez has an extensive portfolio of mortgage products, including conventional mortgages, FHA, VA and USDA loans, as well as non-QM loans.
• Customer Experience: Online reviews reflect a satisfactory customer experience with Newrez. The company stresses ease of application and an online experience that appeals to tech-savvy borrowers.
• Credit Flexibility: Your credit profile is considered with leniency at Newrez, with loan options available for those with past credit challenges.
• Accessibility: Newrez is notable for its broad reach, offering services in all 50 states, D.C., Guam, Puerto Rico and the U.S. Virgin Islands. This means you can work with the lender, regardless of location.

Is Newrez (formerly Caliber Home Loans) Right for You?

Ultimately, like many mainstream mortgage lenders, Newrez is capable of accommodating an array of home lending needs. Whether you’re a first-time homebuyer or looking to refinance, you’ll find that Newrez has tailored solutions that could fit your unique situation.

Remember to compare their rates and terms with other lenders as suggested. The terms you receive can vary depending on several factors, like your credit score and the type of loan you choose.

How to Get Started with Newrez (formerly Caliber Home Loans)

Schedule a call, complete the online form or visit the website and tap the telephone icon. A loan advisor will contact you to discuss the next steps to securing a home loan with Newrez.

FAQs About Newrez (formerly Caliber Home Loans)