Nova Home Loans

Nova Home Loans

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About Nova Home Loans

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Nova Home Loans (NMLS #3087) is part of Nova Financial & Investment Corp., a privately held financial services company headquartered in Tucson, Arizona. It’s been in business for over 40 years. Nova Home Loans offers conventional, VA, FHA, USDA and jumbo loans. The company also offers renovation loans and other specialty programs.

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    Pros

    • Specialty loan programs available
    • Dedicated loan officer assigned to each borrower
    • Online application

    Cons

    • Only available in 11 states
    • Slightly high average rates
    • Few in-person branches

    Bottom Line

    Nova Home Loans is a mortgage lender that provides loans to borrowers in 11 states. You can apply for a mortgage online or by phone. First-time homebuyers may find its services especially useful because each applicant works with a dedicated loan officer throughout the process.

    Rates

    Nova Home Loans doesn’t publish its starting rates online. However, in 2021, the company had an average home purchase rate that was higher than the national average by about 0.1%. Higher home prices and lower down payments could explain these higher rates.

    Nova Home Loans offers both fixed-rate and adjustable-rate mortgages (ARMs). ARMs are gaining popularity, especially as rates have increased to 10-year highs in 2022. With an ARM, you’ll have a low introductory rate for a few years, typically three to five years. After that, rates can reset and fluctuate based on market rates. An ARM could be a useful financial tool to save money in the short term, but remember that rates could increase significantly in the future.

    Nova Home Loans average home purchase rate vs. national average

    YearDifference from national average
    2021+0.10%
    2020+0.03%
    2019+0.22%
    Information pulled from public Home Mortgage Disclosure Act data. Rates reflect noncommercial home purchase loans only.

    Application process

    If you want to get a mortgage, you can start the application process online by visiting Nova Home Loans’ website and clicking “Apply Now.” The form will ask you to select a loan officer to work with — if you don't have a preference, the company will assign one to you.

    You’ll answer preliminary questions about the loan amount, down payment and any co-borrowers. You’ll also give authorization for the company to pull your credit report.

    According to the company, completing an application should only take about 15 minutes. Nova Home Loans also promises an immediate pre-qualification decision after you submit your application.

    At some point in the process, a loan officer should reach out to verify other details, like your income and assets. Be prepared to upload financial documentation like W-2s, prior years’ tax returns, pay stubs and bank account statements.

    You can log in to the application portal and view your loan status online. Once preapproved, you can begin shopping for a home and submit purchase offers.

    Nova Home Loans application features

    FeaturesAvailability
    Online application
    Mobile document upload
    Physical branches4 states
    Publishes minimum rate on websiteX
    Rate lock
    Pre-qualification (no hard credit pull)X
    Certified approval letterNot disclosed

    Loan types

    Nova Home Loans offers a variety of loan products to suit individual borrowers’ needs, including conventional (with fixed and adjustable rates), FHA, VA, USDA and jumbo loans. The company also offers specialized loan programs, like loans for medical professionals or self-employed borrowers. The most common loan term is 30 years, but the company also offers 15- and 20- year terms.

    Nova Home Loans also provides mortgage loan options for individuals who aren’t U.S. citizens (e.g., permanent or non-permanent resident aliens and foreign nationals), something many other lenders don’t offer.

    In 2021, borrowers submitted 14,566 home purchase applications to Nova Home Loans. Of those applications, zero preapprovals were denied, and about 3% (454) of applications were denied, which is a lower denial rate than the industry average (about 8%). Ultimately, the company closed about 67% (9,807) of these loans.

    Loan applications for home purchases only by year

    202120202019
    Home purchase applications14,56615,11114,295
    Home purchase loans closed9,80711,2499,183
    Home purchase applications denied454574653
    Home purchase preapprovals denied000
    Information pulled from public Home Mortgage Disclosure Act data. Includes conventional, USDA, VA and FHA mortgages.

    Refinancing

    For the past two years, most loans Nova Home Loans originated were for refinancing purposes. In 2021, about 59% were attributed to refinance loans and cash-out refinances combined, compared with 40% in 2019. Many borrowers decided to refinance in 2020 and 2021 to take advantage of historically low mortgage rates.

    Since 2021, mortgage rates have been rising. To combat inflation, the Federal Reserve raised the Federal Funds rate (which affects mortgage rates) by 0.75 percentage points in July 2022. Because rates are much higher today than they were in 2021, fewer borrowers are expected to refinance in 2022.

    You may still decide to explore refinancing if it helps you save money in the long run. You could secure a lower interest rate if your financial situation has improved over time — for instance, you may have a better credit score or debt-to-income ratio than in the past, which could qualify you for a lower rate.

    Home purchase vs. refinance loans by year

    202120202019
    Home purchase loans40.67%37.89%59.89%
    Refinance loans34.29%46.50%24.74%
    Cash-out refinance25.04%15.61%14.52%
    Information pulled from public Home Mortgage Disclosure Act Data. Includes conventional, USDA, VA and FHA mortgages.

    Requirements

    Nova Home Loans discloses many of its borrower requirements on its website. It doesn’t state a minimum credit score for conventional loans, but you’ll likely need a 620 to qualify.

    The company requires a higher minimum credit score on FHA loans than some other lenders — you’ll need at least a 550. However, Nova Home Loans has low credit score requirements on VA and USDA loans. It requires a score of at least 550 for a VA loan and at least 620 for a USDA loan.

    Minimum down payment requirements seem to adhere to the industry norms. However, on FHA loans, the company requires a 10% down payment with credit scores as low as 550.

    Nova Home Loan mortgage requirements by type

    Min. credit scoreMin. down paymentCompare with other lenders
    ConventionalNot disclosed3%Mortgage lenders
    FHA55010% with a credit score of 550; 3.5% with higher scoresFHA lenders
    VA5500%VA lenders
    USDA6200%USDA lenders

    For other loan types, read our guide on jumbo loans.

    Costs and fees

    Nova Home Loans doesn’t list its lender fees for loan originations on its website. Most lenders charge an origination fee, either as a flat fee or as a percentage of the loan amount (usually between 0.5% and 1%).

    Origination fees are part of closing costs, which average around 2% to 5% of the loan amount. After you’re preapproved, your lender will give you a Loan Estimate, which outlines all the closing costs you’ll pay, like appraisal fees, real estate taxes and title search fees.

    Nova Home Loans FAQ

    What is Nova Home Loans?

    Nova Home Loans is a mortgage lender that offers conventional, FHA, VA, USDA and jumbo loans. The company provides mortgage loan products to borrowers in 11 states, mainly in the West and Southwest. In 2021, Nova Home Loans originated over $6.7 billion in home loans.

    Is Nova Home Loans legit?

    Nova Home Loans is the largest privately held mortgage lender in Arizona, according to the company. It’s an experienced lender with over 40 years in the business.

    Where is Nova Home Loans available?

    Nova Home Loans offers mortgage loans in 11 states: Arizona, California, Colorado, Florida, Indiana, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The company operates branches in four states, including Arizona, California, Colorado and Nevada.

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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.
    1. Federal Financial Institutions Examination Council (FFIEC), “HMDA Dataset Filtering.” Accessed September 12, 2022.
    2. Freddie Mac, “Refinance Trends in the First Half of 2021.” Accessed September 13, 2022.
    3. NPR, “The Fed delivers biggest interest rate hike in decades to combat surging inflation.” Accessed September 13, 2022.

    Nova Home Loans Company Information

    Company Name:
    Nova Home Loans
    Website:
    www.novahomeloans.com