Lennar Mortgage

Lennar Mortgage

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Written by Taylor Sansano
Edited by Cassidy McCants

About Lennar Mortgage

This profile has not been claimed by the company. See reviews below to learn more or submit your own review.

Lennar Mortgage (NMLS #1058) is a subsidiary of the home construction company Lennar Corporation. It provides conventional, jumbo, FHA, VA and USDA loans. The company’s digital mortgage tool can help you get pre-qualified in as little as 15 minutes, though this may involve a hard credit check. Lennar Mortgage is licensed in 30 states, and it has branches in 21 of those.

Pros

  • Multiple loan options
  • Digital mortgage tool
  • Pre-qualification available in as little as 15 minutes

Cons

  • Not available in every state
  • Above-average denial rate

Bottom Line

Lennar Mortgage has a convenient digital mortgage tool and multiple types of loans available. However, rate information is hard to come by, and the percentage of loans it denies may mean strict requirements for borrowers.

Rates

Lennar Mortgage isn’t transparent about its current interest rates, but we looked at Home Mortgage Disclosure Act (HMDA) data to see its average rates over the last few years. In 2019, the company’s average interest rate on home purchase loans was 0.10% below the national average. Since then, Lennar Mortgage’s average rates have climbed, and in 2021 they landed just above the national average.

You can complete the company’s pre-qualification process to learn what your rates may be, but keep in mind that you can’t see your rates until after its team has reviewed your information.

Lennar Mortgage offers loans with fixed rates and loans with adjustable rates. Most borrowers prefer fixed-rate mortgages. However, when rates are high, you may be tempted to consider an adjustable-rate mortgage (ARM) with an introductory rate that’s lower than your fixed-rate alternatives. However, once the introductory period is over, your adjustable rate may increase, depending on market conditions.

Because of this, ARMs are somewhat of a gamble, but if you plan on selling your home before the adjustment period ends or you expect rates to decrease in the future, an ARM can be attractive.

Lennar Mortgage average home purchase rate vs. national average

YearDifference from national average
2021+0.01%
2020-0.08%
2019-0.10%
Information pulled from public Home Mortgage Disclosure Act data. Rates reflect noncommercial home purchase loans only.

Application process

Lennar Mortgage's digital mortgage application process lets you start an application from your phone, tablet or laptop. You can connect your bank accounts and tax information to avoid paperwork, and the tool automatically saves your progress so you don’t lose your place.

You also have access to customer support online, over the phone and in person. This can be helpful in case any questions come up during the online process or if you just prefer to work with a real person.

Lennar Mortgage application features

FeaturesAvailability
Online application
Mobile document upload
Physical branches21 states
Publishes minimum rate on websiteX
Rate lockUndisclosed
Pre-qualification (no hard credit pull)Undisclosed
Certified approval letterUndisclosed

Loan types

Lennar Mortgage originates a variety of loans, including conventional, jumbo (nonconforming conventional) and government-backed mortgages, like FHA, VA and USDA loans. With a conventional mortgage, you can choose between a fixed or adjustable interest rate, depending on your financial situation and goals. Reverse mortgages are also available for people age 62 or older.

Between 2019 and 2021, Lennar Mortgage closed more than 107,000 home purchase loans. Out of its more than 153,000 applications during that period, it denied about 10%. That’s slightly higher than the industry-average denial rate, which hovers around 8%.

Loan applications for home purchases only by year

202120202019
Home purchase applications53,29954,08745,762
Home purchase loans closed37,11738,18932,121
Home purchase applications denied4,6425,9585,062
Home purchase preapprovals denied62143
Information pulled from public Home Mortgage Disclosure Act data. Includes conventional, USDA, VA and FHA mortgages.

Refinancing

In 2020 and 2021, refinancing got more popular industry-wide as interest rates hit historic lows. That’s because demand for refinancing tends to increase when rates drop.

Lennar Mortgage didn’t experience this trend as drastically as many other lenders, though. Its 2021 refinance totals were actually lower than those in 2019 (even though 2020 did see a significant spike). Refinance originations are expected to be low through 2022 given rate increases across the industry.

Home purchase vs. refinance loans by year

202120202019
Home purchase loans98.65%94.63%98.45%
Refinance loans0.84%4.29%1.01%
Cash-out refinance0.40%0.88%0.49%
Information pulled from public Home Mortgage Disclosure Act Data. Includes conventional, USDA, VA and FHA mortgages.

Requirements

Lennar Mortgage doesn’t outline its requirements for each type of loan, but it does offer a pre-qualification option accessible by clicking the “GET PRE-QUALIFIED” button in the top right corner of its website and working your way through the application. Once you’ve completed the application, its team will review your information and let you know what types of loans you may qualify for based on how much it thinks you can afford.

In general, most conventional loans require at least 3% down and a credit score of at least 620. If your credit score is lower, you may consider an FHA loan instead. FHA credit minimums typically start at 500, but you’re stuck with a 10% minimum down payment unless your credit score is over 580.

National mortgage requirements by type

Min. credit scoreMin. down paymentCompare with other lenders
ConventionalTypically 620Typically 3%Mortgage lenders
FHA5003.5% with 580 credit scoreFHA lenders
VASet by lender (often 580)0%VA lenders
USDASet by lender (often 640)0%USDA lenders

Cost and fees

Like most lenders, Lennar Mortgage charges various closing costs. The types and amounts of these fees depend on a multitude of factors, but they usually add up to somewhere between 2% and 5% of your loan amount.

Lennar Mortgage is actually fairly transparent regarding its lender fees. For example, you can expect origination fees to equal up to 2% of the loan amount. Lennar Mortgage’s other possible fees include a commitment fee (up to $1,500), an underwriting fee (up to $950), a document preparation fee (up to $950), a processing fee (up to $800) and several relatively minor service fees.

Lender fees don’t include other costs you must pay at closing, though, like homeowners insurance, private mortgage insurance and your down payment. To help offset these costs, Lennar Mortgage provides a few down payment assistance (DPA) options, including grants and second mortgages. Most DPA programs are for first-time homebuyers and have more flexible qualifying criteria.

Lennar is also legally required to provide a Loan Estimate after you submit your application, and this should give you an idea of all your anticipated charges before you commit to borrowing.

FAQ

What is Lennar Mortgage?

Lennar Mortgage is a subsidiary of Lennar Corporation, which is an S&P 500 real estate and financial services company.

Is Lennar Mortgage legit?

Lennar Mortgage has been in business since 1981. It has more than 1,200 associates nationwide, and it helped more than 38,000 families purchase homes in 2021 alone.

NMLS Consumer Access lists two prior legal names for Lennar Mortgage: Eagle Home Mortgage LLC and Universal Amerian Mortgage Company LLC. In 2018, Universal American Mortgage Company agreed to pay $13.2 million to resolve allegations that it falsely certified compliance with FHA mortgage insurance requirements.

Where is Lennar Mortgage available?

Lennar Mortgage is licensed in:

  • Alabama
  • Arizona
  • California
  • Colorado
  • Delaware
  • District of Columbia
  • Florida
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Louisiana
  • Maryland
  • Massachusetts
  • Minnesota
  • Nevada
  • New Jersey
  • New York
  • North Carolina
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas
  • Utah
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin

It has branches in most states where it’s licensed. Exceptions include Idaho, Louisiana, Massachusetts, New York, Ohio, Oklahoma, Oregon, West Virginia and Wisconsin.

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ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. To learn more about the content on our site, visit our FAQ page. Specific sources for this article include:
  1. Federal Financial Institutions Examination Council, “HMDA Data Publication.” Accessed July 6, 2022.
  2. NMLS Consumer Access, “Lennar Mortgage, LLC” Accessed September 21, 2022.
  3. Department of Justice (DOJ), “Universal American Mortgage Company LLC (UAMC) Agrees to Pay $13.2 Million to Resolve False Claims Act Allegations Related to Loan Guarantees.” Accessed September 21, 2022.

Lennar Mortgage Company Information

Company Name:
Lennar Mortgage
Website:
www.lennarmortgage.com