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Embrace Home Loans Review 2024
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Embrace Home Loans Review 2024

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.

Embrace Home Loans has all of the most popular government-backed mortgage options and flexible credit options for borrowers with less-than-perfect credit histories. It also offers a fully underwritten preapproval option that can help borrowers make strong offers on homes. But this lender lacks transparency around borrower costs. 

Embrace Home Loans Mortgages

Bankrate Embrace Home Loans Mortgages

Insider’s Rating

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

4.24/5


Types of Loans Offered

Conforming, jumbo, FHA, VA, USDA, renovation, bridge, non-QM

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Has mortgages for borrowers with recent bankruptcies or self-employed individuals
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Down payment program available
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Renovation loans, bridge loans, and rate buydowns
Cons

  • con icon Two crossed lines that form an ‘X’. Physical branches are mostly located on the east coast
  • con icon Two crossed lines that form an ‘X’. No home equity loan options
  • con icon Two crossed lines that form an ‘X’. Doesn’t disclose rates or fees online


Product Details

  • Available in all 50 states and Washington, DC, and has physical branch locations
  • Minimum credit score and down payment displayed are for conforming mortgages
  • Offers jumbo loan amounts up to $2.5 million

Overview of Embrace Home Loans

Embrace Home Loans lends in all 50 states and Washington, DC. It also has over 30 in-person branches, mostly located along the East Coast. 

Embrace Home Loans was founded in 1983 under the name Advanced Financial Services, but it changed its name in 2009 after being acquired by Mason Dixon Funding.

Embrace Home Loans Offerings

Conventional Loans

You may qualify for a conventional conforming loan from Embrace if you have a credit score of at least 620 and a 3% down payment.

Embrace offers both purchase and refinance options, including cash-out refinancing, plus options for condos, co-ops, and new construction homes. 

Jumbo Loans

Embrace has jumbo loans in amounts up to $2.5 million, with a minimum down payment of 10%. It has both fixed and adjustable-rate options on these loans.

FHA Loans and 203(k) Loans

Embrace Home Loans offers FHA loans for borrowers with credit scores down to 580 and a minimum down payment of 3.5%. 

Its FHA offerings include FHA 203(k) loans, which let borrowers finance the cost of repairs and renovations into their mortgages. 

VA Loans

Embrace says on its website that it offers VA loans for borrowers with scores as low as 580, but that you’ll “typically” need a score of at least 620 to qualify.

USDA Loans

This lender also offers USDA loans, which are available to low-to-middle income borrowers in eligible rural and suburban areas. You’ll need at least a 620 credit score to qualify. 

Specialty Loan Products

If you have specific needs when if come to your mortgage, Embrace may have loans that suit your circumstances.

Its bridge loan is a good option if you need to buy a new home before you can sell your current one. These loans come with eight-month terms. 

Embrace also has a few programs that can make getting into a home easier or more affordable. It has a 1-0 buydown that lowers your rate by one percentage point for the first year of your mortgage. And its Property Value Certificate and Approved to Close Backup Cash Guarantee programs can help you make a stronger offer on a home by guaranteeing financing, enabling you to waive appraisal and financing contingencies if you choose. 

Non-QM Loans

The lender’s Beyond by Embrace mortgages offer a few non-QM loan options for borrowers who might not qualify for a traditional mortgage.

Embrace’s “Beyond” mortgages include:

  • Options for borrowers (such as self-employed individuals or real estate investors) who need to use 1099s or bank statements to prove their income instead of the standard W-2s that lenders typically require.
  • Mortgages for borrowers with recent bankruptcies, foreclosures, or other negative events on their credit reports.

Down Payment Assistance

Embrace offers a down payment assistance program for both first-time and repeat homebuyers. With this program you can get a mortgage with no down payment and potentially borrow up to 101% of the home’s value with an interest-only second mortgage that must be paid off when the mortgage is. You’ll need a 660 or better credit score to qualify.

This program is only available in the following US states: Alaska, Alabama, Arkansas, Arizona (except Phoenix/Maricopa County), Colorado, Connecticut, Georgia, Hawaii, Idaho, Illinois (except Cook County), Kansas, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, North Carolina, North Dakota, New Hampshire, New Mexico, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Utah, Virginia, Wisconsin, and Wyoming.

Embrace Home Loans Mortgage Interest Rates and Fees

Embrace Home Loans’ mortgage rates are right around average compared to other lenders, according to Business Insider’s review of Home Mortgage Disclosure Act data. 

Embrace doesn’t disclose its current rates or lender fees online. To find out how much you might pay to get a mortgage with this lender, you’ll need to talk to a loan officer or get preapproved for a loan.

Many lenders provide sample interest rates on their websites to give potential borrowers an idea of the types of rates they offer. Some even offer rate customization tools that let users input some basic information about their credit and the house they’re purchasing to see what they might pay. 

In 2022, the average borrower getting a conventional loan from Embrace paid $3,476 in origination charges, according to HMDA data. This is around average. 

Embrace Home Loans Overall Lender Rating

Loan Types: 4 of out 5

We like that Embrace offers a wide variety of mortgages, including some more niche options like non-QM loans and bridge loans for borrowers with unique needs. But the lender doesn’t have any home equity loans or HELOCs. 

Affordability: 4 out of 5

If you’re looking for an affordable lender, Embrace Home Loans might be a good choice. It has all three of the most popular types of government-backed mortgages, which typically have less stringent credit requirements and lower mortgage rates. It also offers down payment assistance for both first-time and repeat buyers. 

Customer Satisfaction: 4.97 out of 5

On its Zillow lender profile, Embrace Home Loans has a 4.97 out of 5-star rating, based on over 3,000 online customer reviews.

Trustworthiness: 4 out of 5

Overall, we found Embrace to be a trustworthy mortgage lender. It currently has an A+ rating from the Better Business Bureau. A strong BBB grade indicates a company is honest in its advertising, transparent about business practices, and effective in responding to customer complaints.

However, Embrace is the defendant in a lawsuit brought by a former employee who alleges she was fired for raising concerns that the lender was originating FHA loans that she said didn’t meet Department of Housing and Urban Development guidelines. 

Embrace Home Loans Pros and Cons

Advantages of Using Embrace Home Loans

Embrace is a strong mortgage lender overall, and has a lot of loan options to meet the needs of many different types of borrowers. This includes its non-QM loans for self-employed borrowers, real estate investors, and those who have experienced negative credit events in the recent past. 

If you’re struggling to come up with the cash for a down payment, you might also like Embrace’s down payment assistance program. 

Considerations and Potential Drawbacks

If you want to complete the mortgage process in person, this might not be the right lender for you depending on where you live, since Embrace only has physical branch locations in certain parts of the US. Embrace also doesn’t list sample rates or what fees it charges online, making it hard to gauge how much you might pay with this lender.

How to Apply

You can get started with Embrace Home Loans online, over the phone, or through its convenient mobile app. The app can be used to apply and easily upload any required documentation.

If you want to get started with a loan officer near you, you can search for local branches on its website. 

Customer Service and Experience

Business Insider looked at positive and negative customer reviews, BBB complaints, and other sources to understand what borrowers think about Embrace Home Loans.

Easy Experience With Communicative Loan Officers

In reviews, many previous borrowers said the process with Embrace Home Loans was smooth and that the professionals they worked with made themselves easy to get ahold of in case borrowers had any questions or concerns.  

Compare Embrace to Other Lenders

Embrace Home Loans vs. Rocket Mortgage

Embrace Home Loans and Rocket Mortgage have similar mortgage offerings, though Rocket doesn’t offer USDA loans.

Rocket Mortgage earned the No. 2 spot in J.D. Power’s 2023 Mortgage Origination Satisfaction Study, meaning it stands out in customer satisfaction. Embrace wasn’t included in J.D. Power’s annual study, though it has very positive reviews on its Zillow lender profile. Rocket Mortgage is also one of Business Insider’s best mortgage lenders.

Both are strong choices; the best fit comes down to which offers the best rate and the type of mortgage you’re looking for. So it could be worth getting preapproved with both of these lenders.

Rocket Mortgage Review

Embrace Home Loans vs. NBKC Bank

NBKC Bank is a good lender for borrowers looking for a simple online application process and an easy way to explore customized rates. But its loan options are relatively limited compared to Embrace Home Loans. 

If you have a recent negative event on your credit report, Embrace’s Beyond mortgage program might be a better fit for you. NBKC offers HELOCs, but only to residents of the Kansas City metro area. Embrace doesn’t offer any kind of home equity loan options.

NBKC Bank Mortgage Review

Embrace Home Loans FAQ

Yes, Embrace Home Loans is a real mortgage lender based in Rhode Island. 

To get a conforming loan, you’ll need at least a 620 credit score. For its FHA loans, Embrace Home Loans accepts scores as low as 580. If you get a mortgage through its Beyond by Embrace program, you may qualify for a loan even if you have recent dings on your credit report.

Dennis Hardiman founded Embrace Home Loans in 1983. He is currently the CEO of the company.

Embrace Home Loans offers a variety of mortgage types, including conforming, jumbo, FHA, VA, USDA, renovation, bridge, and non-QM loans. 

You can start an application online or using Embrace’s convenient mobile app. Or if you prefer, you can start in person at a branch near you or over the phone. 

Embrace’s average mortgage rates are around average compared to other lenders. 

Embrace’s customer service is highly rated among previous borrowers. You can expect to work with communicative loan officers who will work to help you have a smooth process. 

Embrace offers a wide variety of mortgages and other beneficial features like down payment assistance. We think it’s one of the more affordable mortgage lenders out there. 

Why You Should Trust Us: How We Reviewed Embrace Home Loans

For our review of Embrace Home Loans, we used our methodology for reviewing mortgage lenders.

We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then we average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a large number of loan types with affordable features, have positive customer reviews, and don’t have any recent public controversies.