On Q Financial Reviews

On Q Financial can be a good option for those who don’t fit the mold of a traditional homebuyer. It offers various mortgages geared towards different groups of people, including Native Americans, low-income families and buyers of manufactured, production and custom homes.

But if you’re short on time, other lenders with more transparency regarding interest rates and lender fees might be a better fit. On Q Financial doesn’t post this information on its website, making it harder to quickly comparison-shop online.

On Q Financial’s catalog of mortgage products includes:

• Conventional loan: Loans not backed by the government are called conventional loans. There’s no private mortgage insurance when putting at least 20% down. These loans are best for those with good credit.
• FHA loan: These loans are insured by the Federal Housing Administration (FHA), a government agency. They’re best for people who can’t qualify for a conventional loan because of credit scores or lack of down payment funds.
• VA loan: VA loans are offered by the U.S. Department of Veteran Affairs (VA) to eligible military members and their spouses. Loans have lower credit and down payment requirements.
• USDA loan: Homebuyers purchasing homes in eligible rural areas can use a USDA  (U.S. Department of Agriculture) loan to buy their homes with 0% down.
• Construction loan: One-time-close construction loans save you from having to pay closing costs twice when building a new home, once to finance your build and again to mortgage the amount borrowed once the house is complete.
• Home improvement loan: Renovation loans bundle the mortgage for your new home with the cost of repairs or upgrades you want. They’re a great option if you’re buying a fixer-upper.
• Investment property loan: These loans help you buy a home you don’t plan to live in as your primary residence. They have higher interest rates and higher down payment requirements.
• Manufactured home loan: On Q Financial offers conventional, FHA, USDA and VA mobile home mortgages for double- and triple-wide manufactured homes. Mobile homes must have been built after June 15, 1976, and in a factory.
• Jumbo loan: Jumbo loans are for mortgage amounts too high for a conventional loan. On Q Financial offers jumbo mortgages up to $5 million with fixed, adjustable and interest-only loans.
• Native American home loan: Also called a HUD 184 loan, this loan helps American Indian and Alaskan Native tribe members purchase or refinance a home with little money down.
• Freddie Mac Home Possible loan: The Home Possible conventional loan program helps eligible low-income families purchase a home by offering low down payment options. Freddie Mac is a government-sponsored agency that buys loans from lenders.

On Q Financial requires the following credit scores on its loans:

• Conventional: 620
• FHA: 580
• USDA: 580
• VA: 580 with approval from an automated underwriting system (AUS; computer program evaluating buyer eligibility)

To apply for an On Q Financial mortgage loan, you’ll generally need:

• W-2 (two years)
• Tax returns (two Years)
• Bank statements (two months)
• Most recent pay stubs (two pay stubs)
• Information regarding debts, foreclosure or bankruptcy
• Any bonuses not included on your W-2
• Sale of any property or stock
• Additional documentation, as requested

If you’re starting your home search and looking for preapproval, On Q Financial asks for similar documentation, including your:

• W-2s (two years)
• Pay stubs (two months)
• Tax returns (two years)
• Bank statements (two months)
• Social Security number
• Personal identification

The company participates in several federal and state down payment assistance programs for first- and second-time borrowers. These programs help homebuyers put down some or all of the downpayment needed for a mortgage loan using money from grants or loans. Grants usually don’t need to be repaid.

Two national programs On Q Financial participates in are:

• Within Reach Down Payment Assistance program for up to 5% in down payment assistance, closing costs, prepaid items and earnest money deposits for FHA loans.
• Chenoa Fund program for up to 3.5% in down payment assistance for FHA loans.

Some other state programs it participates in include:

• Missouri Housing Development Commission Next Step Loan program for up to 4% of the loan. Program is not limited to first-time homebuyers.
• North Carolina Housing Advantage Home Advantage program for up to 3% in down payment assistance for first-time and repeat homebuyers. There’s also up to $15,000 on the NC First Home Advantage program for eligible veterans and first-time homebuyers.

On Q Financial gives a general guidance of expecting to pay 2% to 5% of a home’s purchase price in closing costs. The company doesn’t lay out what fees you can expect, but it does state which fees aren’t usually negotiable, such as:

• Title fees
• Courier fees
• Tax service fees
• Recording fees
• Appraisal fees

You might be able to negotiate other fees listed on your mortgage loan estimate with the seller or your lender. The lender's origination fees tend to be the most expensive item in your closing costs and generally range from 0.5% to 1% of the purchase price.