Smartfi Home Loans, LLC Reviews

Smartfi Home Loans doesn’t publish its starting rates online. However, the company had a slightly higher average rate for home purchases in 2021 than the national average (about 0.021% higher).

Keep in mind that interest rates depend on many factors, including a borrower’s credit history and debt-to-income ratio. You're more likely to secure lower-than-average interest rates if you have an excellent credit score (800 or above) and a low debt-to-income ratio (below 36%).

Smartfi Home Loans offers fixed or adjustable rates on its FHA and VA loans. An adjustable-rate mortgage (ARM) has a fixed rate for a certain period of time. After that time, the rate can reset and change based on market indexes, which means your monthly payment will also fluctuate. Note that, if you’re interested in an ARM from Smartfi, the only option is a five-year ARM, and the company does not state the adjustment period.

Fixed-rate mortgages are generally best suited for individuals who plan to live in their homes for more than just a few years. It can also be a good option for someone who already has excellent credit and will qualify for the lowest rates available.

On the other hand, you may want to consider an ARM if your current living situation may be short-term and it’s possible that you may sell your home before the rate resets. You can always consult with a loan officer about your short-term and long-term financial plans before you decide on an ARM.

Smartfi Home Loans average home purchase rate vs. national average

You can start the application process by visiting the company’s website and clicking on “Apply Online.” You’ll first create an account with your name, a valid email address and password.

Once you log in, you’ll see the various aspects of the application. You can click between the different parts (e.g., borrower info, income and assets) to answer the questions, and you can save your progress and finish the application at a later time.

Be prepared to provide information about your income and assets; Smartfi Home Loans uses this data to determine your loan amount. You must also input your Social Security number so the company can conduct a hard credit check.

Smartfi Home Loans will request financial documentation, which applicants can upload within the application portal. You may need to submit documents like W-2s, bank account statements, retirement account statements and prior years’ tax returns.

Once you submit your completed application, you should receive a timeline for a preapproval decision.

Robert, a ConsumerAffairs reviewer from Willoughby, Ohio, had this to say about their experience with Smarfi Home Loans: “I refinanced with Smartfi Home Loans and everything went very quick and smooth. It’s not my forever home and I still took the 30-year loan ... I only have a couple more years, probably. It took my PMI insurance away and it was a lower interest rate also. So, I saved $100 a month.”

Smartfi Home Loans application features

Smartfi Home Loans offers conventional loans (fixed-rate mortgages), five-year ARMs, FHA loans and VA loans.  If you qualify for VA loans and need a loan beyond the conforming limits, Smartfi Home Loans offers a VA jumbo loan as well. The company does not currently offer USDA loans.

Conventional loans through Smartfi Home Loans are only available with fixed interest rates. The two most common loan terms for fixed-rate mortgages are 15-year and 30-year. Both FHA and VA loans are available with either fixed or adjustable rates. Fixed-rate loans come in 15-, 20-, 25- or 30-year terms; ARMs have five-year terms.

In addition, the company offers two different types of reverse mortgages: an FHA option and a brand-specific option called Smartfi Choice. The Smartfi Choice alternative has a lower age minimum than most reverse mortgage options (borrowers may qualify at age 60 as opposed to 62).

In 2021, Smartfi Home loans initiated 110 home purchase applications. Of those applications, 0 preapprovals were denied, about 76% (84) were closed and about 6% (6) were denied.

Loan applications for home purchases only by year

Refinancing

In 2021, the majority of the loans Smartfi Home Loans originated were for home purchases (about 59%). Less than half of loans, about 41%, were for refinancing purposes. The company does not currently offer cash-out refinances.

Many lenders saw an increase in refinance applications over the past two years. In 2020 and 2021, mortgage rates fell to historic lows, which drove many borrowers to refinance.

Locking in a lower rate can save you money in interest over the loan term and equate to savings in your monthly payment. In fact, data from Freddie Mac reveals that borrowers who refinanced in the first six months of 2021 were able to save an average of $2,800 annually in their mortgage payments.

However, fewer borrowers are expected to refinance in 2022; rates have steadily climbed over the past year. Even with rising rates, you may still consider refinancing if you can save money in the long run. Rates today may still be lower than when you first started your mortgage. Before you refinance, consider the overall costs associated with a new loan (like closing costs) and compare with to your potential savings.

Home purchase vs. refinance loans by year

Smartfi Home Loans does not disclose all of its borrower requirements online. However, you’ll typically need a 620 credit score to qualify for a conventional loan. Minimum credit score requirements are usually lower on government-backed mortgages, so you’ll likely need a 500 for an FHA loan and a 580 for a VA loan.

Down payment requirements can also vary depending on the loan type. Conventional loans usually require at least a 3% down payment, while FHA loans require 3.5% down if your credit score is at least a 580 (10% down if between a 500 and 579). VA loans do not have down payment requirements, so you can receive 100% financing.

If you’re considering a reverse mortgage, there is typically no credit score requirement for this type of funding. However, there are other limitations with a reverse mortgage, like the age of the borrower and homeownership status.

National mortgage requirements by type

For other loan types, read our guides on USDA loans and jumbo loans.

SmartFi Home Loans does not disclose the lender fees it charges on new loans. However, the company will provide you with a Loan Estimate after you’ve been preapproved. The Loan Estimate will outline all of the closing costs, including any lender fees Smartfi Home Loans may charge.

In general, closing costs total to 2% to 5% of the loan amount. So, if your loan amount is $200,000, you can plan to spend between $4,000 and $10,000 in closing costs. These expenses can include real estate attorney’s fees, title search charges, appraisal costs, property taxes, etc.

Keep in mind that reverse mortgages also come with additional fees, like closing costs. If you take out a Home Equity Conversion Mortgage (HECM) through Smartfi Home Loans, you may have to pay a fee for the required reverse mortgage counseling services. Some lenders also charge a monthly servicing fee. You can request fee information directly from Smartfi Home Loans before you start a reverse mortgage.