Embrace Home Loans Reviews

Embrace Home Loans is recommended for homebuyers looking to make their offers stand out in a competitive market. It offers several programs to make your offer more attractive, including upfront underwriting and buying the house from the seller for the contracted price if your financing falls through.

The company’s 360-day rate lock and ability to float down rates twice also make it a great choice if you’re building a home. But if you’re hoping to quickly comparison-shop or refinance with a HELOC or home equity loan, you’ll have to look at another lender. Embrace doesn’t offer these loans or publish interest rates or fees online.

Embrace Home Loans has numerous options for both first-time and experienced home buyers. Its extensive product catalog includes:

• FHA loans: Low-down-payment loans designed to help low- to moderate-income families buy their first home.
• Conventional loans: Popular loan option not backed by the government. Typically have lower interest rates but can be harder to qualify for.
• VA loans: One of the most affordable home loan programs available. Open to current and past service members and their spouses.
• 203(k) loans: Home renovation loans for buyers looking to renovate a new or current home. FHA Full 203(k) and FHA Limited 203(k) loans available.
• Jumbo loans: For financing properties that cost more than the conventional loan limits.
• Unconventional loans: Help borrowers who can’t get a traditional loan because of credit issues or tax returns that don’t reflect current financial standing.
• USDA loans: Loans for low- to very-low-income families purchasing homes in eligible rural areas (generally, communities with less than 20,000 residents qualify as rural).
• HomeReady and Home Possible loans: Low-down-payment program for first-time homebuyers with discounted mortgage insurance.
• Condo/co-op/new construction loans: Loans for purchasing existing condos and co-ops or ones being built.
• Bridge loans: A short-term loan that helps buy a new home when equity is tied up in the current home.

If you’re thinking about refinancing, you have these options to choose from:

• Cash-out refinance: Lets you take out your home’s equity as a loan.
• RefiNow and Refi Possible loan: Freddie Mac and Fannie Mae loans for lower-income homeowners. Allows for reduced interest rates or debt-to-income ratios up to 65%.
• Rate and term loans: Allows you to refinance your mortgage for better interest rates, monthly payments and other loan terms.
• Higher LTV refinance: Similar to a rate and term refinance, but you can refinance even if you have little to no equity in your home.
• Debt consolidation refinance: Taps into your home equity to consolidate debt and pay off bills.

Depending on the type of Embrace loan you choose, you may need a minimum credit score between 580 and 640. Embrace FHA loans, for instance, require a minimum score of 580, while its conventional loans require a minimum score of 620.

When you’re ready to apply, Embrace asks you for several key documents to prove your income, credit and financial history. Before approving your loan, a lender will review your:

• W-2s
• Tax returns
• Driver’s license or other valid ID
• Credit report
• Bank statements, including showing gift funds
• Rental history

Getting an Embrace mortgage loan is still possible if you don’t have a credit score. You’ll be asked to provide additional documentation so an underwriter can review your financial profile. Note that not having a credit score isn’t the same as having a low credit score.

Several services from Embrace make it stand out from other lenders:

• Proprietary loan programs: Embrace offers six programs that you may be able to take advantage of:
  • Win the Bid so you can waive contingencies and make your offer more attractive.
  • Rate locks and two float-downs to get the best interest rate on a loan for a home you’re building.
  • Rate buydown to lower your interest rate and monthly payments for the first three years.
  • Guaranteed on-time closing pays you $2,500 within 60 days of closing if Embrace was at fault for a closing delay.
  • Affordable housing provided for African Americans and other groups of people through a partnership with the Wider Path Home Foundation.
  • No down payment program allows for 0% down and financing options up to 101% in many states. The extra 1% in financing above your home’s purchase price can be used for closing costs.
• Property value certificate: Certifies that Embrace will finance the value on your purchase offer for your desired home. You can also waive appraisal contingencies.
• Approved to Close backup cash guarantee: Certifies that you’ll receive financing for your new home. If financing falls through, Embrace lets the seller choose between $10,000 or having Embrace purchase the home for the contract price. Buyers are reimbursed up to $25,000 of forfeited earnest money.
• Approved to Move: Embrace pre-underwrites your loan so that you’re conditionally approved for the loan when you put in an offer. It also allows you to waive financing and appraisal contingencies.

While Embrace doesn’t list any specific rates or fees on its site, it provides general guidance on the costs you can expect to pay at closing. These include:

• Lender and loan processing fees:
  • Prepaid interest
  • Discount points
  • Loan origination charges
  • Rate lock fees
• Third-party fees:
  • Prepayment for taxes and insurance
  • Appraisal fees
  • Title service fees
  • Government recording fees

These fees generally amount to 2% to 5% of the home’s purchase price. In addition to closing costs, you may have to budget for a down payment if you’re putting money down on your loan.