Prosperity Home Mortgage
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About Prosperity Home Mortgage
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Prosperity Home Mortgage (NMLS #75164) is a full-service mortgage company. It’s been in business since 2006, making it a relative newcomer in the industry. It’s a subsidiary of The Long & Foster Companies, Inc., and it’s licensed in 47 states and Washington, D.C. The company offers a broad range of loans, including conventional, jumbo, FHA, VA and specialty renovation loans.
Pros & Cons
- First-time homebuyer programs
- Pre-qualification without a hard credit check
- Digital account sync
- Doesn't post rates
- Transfers its loans
- Not available in Hawaii, Idaho or New York
Prosperity Home Mortgage specializes in home purchase loans and also offers refinancing. It provides an expedited application process and a rapid close if you sign into its portal and sync your accounts. The company has programs for first-time homebuyers to help with closing costs.
Prosperity Home Mortgage doesn’t publish its current mortgage rates, but in the past three years its rates have been slightly lower than the national average.
It’s important to note that starting rates you may see published are based on borrowers with the best qualifications (25% available for down payment and minimum 740 credit score). If your credit score isn’t as high or you can’t put as much down, the rates you’ll be offered likely will be higher than most publicized rates.
Interest rates depend on a number of factors, some economic and others related to your personal finances, the size of the loan and conditions of the home you want to purchase.
Prosperity offers both fixed- and adjustable-rate mortgages (ARMs). The interest rate on a fixed-rate loan stays the same over the life of the loan — and your monthly payments remain the same too. Adjustable-rate mortgages often offer a low interest rate for a specified period of time (maybe five years) before they reset based on the fed rate at the time.
Many borrowers prefer a fixed-rate loan, but an ARM can make sense in certain circumstances. For example, if you plan to move in a few years or refinance, an ARM could save you money in interest. On the other hand, if rates go up and you can’t refinance (say, if you lose your job), you could get stuck in a cycle of increasing interest rates and higher monthly payments. Your loan officer can help you compare loan options so you can make the right choice.
Prosperity Home Mortgage average home purchase rate vs. national average
|Year||Difference from national average|
To get a mortgage through Prosperity Home Mortgage, you first have to create an account. This allows you to save your application as you go along and track your process. To apply, you’ll need to supply information about the home you want to buy, your employment and income information, tax returns, details about your co-signer (if applicable) and other documentation. Prosperity offers a 45-day rate lock.
Prosperity’s XLR8 program can expedite the mortgage approval process for conventional loans. The company says it can verify a borrower’s credit, assets and income with minimal documentation if they connect their bank accounts and employer payroll. Complete the digital loan application on the website or mobile app to connect your accounts via a secure portal.
After closing, your loan will be transferred to a servicing partner, where you’ll make your mortgage payments. This will not change your loan terms.
Prosperity Home Mortgage application features
|Mobile document upload|
|Physical branches||31 states|
|Publishes minimum rate on website||X|
|Rate lock||45 days|
|Pre-qualification (no hard credit pull)|
|Certified approval letter|
Prosperity Home Mortgage offers conventional (fixed- and adjustable-rate) and government-backed home loans, including FHA, VA and USDA loans. It also has programs to help with closing costs and the down payment requirement, and it participates in the HomeReady by Fannie Mae program for qualified buyers.
In 2021, Prosperity closed 36,464 home purchase loans. Only about 3.7% of these applications were denied, but its preapproval denial rate was fairly high compared with that of other mortgage lenders — many denied zero preapprovals that year.
Loan applications for home purchases only by year
|Home purchase applications||45,573||38,321||23,730|
|Home purchase loans closed||36,464||30,387||18,466|
|Home purchase applications denied||1,681||1,254||505|
|Home purchase preapprovals denied||236||231||193|
There are a few ways you can refinance your mortgage with Prosperity, including cash-out refinancing and FHA streamlining, a quick process that requires no appraisal and incurs no out-of-pocket closing costs for the borrower.
Refinancing is a small part of Prosperity’s business, making up only about 20% of its loans in 2021. This portion is likely to be even lower in 2022, while rates are high. Still, if you can find a rate that’s at least 1% lower than your current one, it’s worth weighing the closing costs versus what you’d save with the new rate over the life of the loan. Your loan advisor can help you make those calculations.
Home purchase vs. refinance loans by year
|Home purchase loans||80.45%||69.56%||86.17%|
Prosperity Home Mortgage doesn’t outline its requirements by loan type on its site, but typically a conventional loan requires a 3% down payment and a minimum credit score of 620.
The company also looks at things like your employment history, tax returns and debt-to-income ratio (DTI) to determine how much you can afford. Most lenders look for a DTI of 36% or lower.
National mortgage requirements by type
|Min. credit score||Min. down payment||Compare with other lenders|
|Conventional||Typically 620||Typically 3%||Mortgage lenders|
|FHA||500||3.5% with 580 credit score||FHA lenders|
|VA||Set by lender (often 580)||0%||VA lenders|
|USDA||Set by lender (often 640)||0%||USDA lenders|
Cost and fees
Prosperity Home Mortgage doesn’t publish the fees it charges for loan origination, but within three days of receiving your application it’ll send you a Loan Estimate that outlines your estimated closing costs, including lender’s fees. Some lenders charge an origination fee of 0.5% to 1% of the loan amount.
Other closing costs you can expect to pay include the appraisal fee, real estate taxes, homeowners insurance and — sometimes — mortgage insurance premiums. Some states also require a real estate attorney, in which case you pay attorney’s fees. All told, closing costs for a home purchase may add up to 2% to 5% of the total loan amount.
To help with closing costs, Prosperity offers the following programs for qualified borrowers:
- First-time homebuyer program, with 3% down payments
- BorrowSmart, a $1,500 lender credit to cover closing costs
- The Uplift program, which lowers rates and fees on FHA and VA loans
Check with your loan officer to see if you qualify.
What is Prosperity Home Mortgage?
Prosperity Home Mortgage is a mortgage lender that specializes in home purchases and some refinancing. It offers a wide range of conventional and government-backed loans and specialty mortgage programs. It also has programs for real estate investors.
Is Prosperity Home Mortgage legit?
Prosperity Home Mortgage is a subsidiary of The Long & Foster Companies, Inc. Its parent company is an affiliate of Berkshire Hathaway. Prosperity closed more than 85,000 home purchase loans in the last three years (2019 to 2021).
Where is Prosperity Home Mortgage available?
Prosperity Home Mortgage offers loans in 47 states (not Hawaii, Iowa or New York) and Washington, D.C. It has nearly 500 physical branches across the country.
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Prosperity Home Mortgage Company Information
- Company Name:
- Prosperity Home Mortgage
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