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About Tomo
Tomo is a new mortgage lender founded by former Zillow executives Greg Schwartz and Carey Armstrong. Tomo charges zero lender fees, according to the company, and its appraisal coverage protects buyers from having to bring more cash to the table if the appraisal comes in low.
Pros & Cons
- Appraisal coverage
- Price-match guarantee
- No lender fees
- No HELOC options
- No refinance options
Rates
Tomo offers rates that are competitive with national mortgage rates. Its rates are also backed by a price-match guarantee. If you find a lower mortgage rate elsewhere, Tomo guarantees to match it. This promise is valid for primary residences only, though, and it will only be honored once per loan. Tomo doesn’t price-match jumbo loans below a certain APR.
Application process
Even before you’re ready to go through the mortgage process, you can pre-qualify with Tomo, which doesn’t affect your credit score and can narrow down the price range for homes to consider.
Once you find the home you love, Tomo provides a preapproval letter — this step will result in a hard pull on your credit. If the seller accepts your offer, Tomo can help make the remaining steps of the process — closing, etc. — more efficient.
Loan types
Tomo is a purchase-only lender that boasts a streamlined homebuying process and the most competitive rates on the market. As of publishing, Tomo offers loans for home purchase with 15- and 30-year fixed rates. Its loan minimum is $75,000, and it only funds purchases for single-family homes, townhomes, condos and multifamily buildings up to four units.
Tomo is probably not a good fit if you plan on purchasing a mobile or manufactured home or are looking for a construction-only loan.
Refinancing
Tomo does not currently offer refinancing options. Check out our guide to mortgage refinance companies for more information about this type of funding.
Requirements
Tomo’s borrower requirements include the following:
- A credit score of 580 or above
- A credit account in good standing
- U.S. citizenship, permanent residence with documentation or nonpermanent residence with documentation
- A minimum 3% down payment
To get better rates, you want a credit score higher than 620 — and be prepared to pay more than 5% down. If a 5% down payment seems too large, you might be looking at homes you can’t afford.
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 |
Costs and fees
Tomo charges no lending fees, but buyers still need to plan for closing costs. The company will include anticipated costs in your official Loan Estimate. Tomo says that it typically sees closing costs around 3% of the home purchase price.
Appraisal coverage is free on eligible Tomo mortgage transactions. This coverage eliminates any surprise costs at the end of your home purchase journey and ensures you’ll have the same APR, monthly payment and cash-to-close even if the appraisal is lower than expected.
FAQ
What is Tomo?
Tomo is an online broker that focuses on loans for conventional home purchases. It doesn’t have adjustable-rate options.
Is Tomo legit?
Tomo started funding loans in 2021 and is a legitimate business and licensed in 30 states and D.C. The company was started by two former Zillow executives with over a decade in the homebuying industry.
Where is Tomo available?
Tomo is available online and services the following states:
- Alabama
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- District of Columbia
- Florida
- Georgia
- Idaho
- Iowa
- Illinois
- Louisiana
- Kansas
- Kentucky
- Maryland
- Michigan
- Minnesota
- Nebraska
- New Jersey
- North Carolina
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Virginia
- Washington
- Wisconsin
Tomo is headquartered in Austin, Texas, with additional locations in Washington and Connecticut.
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- 4,546,779 reviews on ConsumerAffairs are verified.
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- We use intelligent software that helps us maintain the integrity of reviews.
- Our moderators read all reviews to verify quality and helpfulness.
Tomo Company Information
- Company Name:
- Tomo
- Website:
- hellotomo.com