Homeside Financial is a national mortgage lender, offering home mortgages and home equity lines of credit, also called HELOCs. The company was founded in 2013 and has two headquarters, one in Columbia, Maryland, and the other in Columbus, Ohio.
Homeside has 22 locations in 10 states and offers HELOCs in 24 states and the District of Columbia. The lender provides a relatively easy application process and offers flexible HELOC options through its subsidiary Lower.
If you’re considering a HELOC from Homeside Financial, here are a few lender highlights to consider before you apply:
- Offers HELOCs in 24 states and the District of Columbi
- HELOC amounts of $15,000 to $350,000 are available
- Allows borrowers to get a loan-to-value ratio of up to 95 percent between HELOC and first mortgage
- Has no annual fee or prepayment penalty, but charges an origination fee on each draw
- The lender has a minimum credit score of 620
Pros and cons
The more you know about a lender, the easier it is to determine whether they’re a good fit for your needs. Here are some benefits and drawbacks of Homeside Financial to consider before you apply:
- Competitive interest rates: A Homeside HELOC starts at a variable APR of 5.75 percent. According to Bankrate, the average HELOC interest rate is 7.29 percent as of early August 2019, so you’ll have a chance of saving money compared with other lenders.
- Few fees: Homeside doesn’t charge an annual fee or a prepayment penalty, both of which you may be on the hook for with other HELOC lenders. You also won’t need to pay any lender fees at closing. There is, however, a 1 percent origination fee on each transaction.
- Flexible borrowing limit: You can borrow up to a loan-to-value ratio of 95 percent. With many other home equity lenders, the maximum loan-to-value is 80 percent, so Homeside can give you more flexibility in how much you can borrow.
- Average minimum credit score: The very lowest credit score the lender will accept is 620. However, you’ll have a better chance of getting approved with a 660 or higher.
- Draws can get expensive: The lender charges a 1 percent origination fee on every HELOC transaction, which can add up over time. If you borrow the maximum $350,000, for instance, you’ll have to pay a fee of $3,500 just to get it.
- No other home equity options: The lender only offers a HELOC and not a home equity loan, which may be a better option if you prefer a fixed interest rate and don’t need a revolving line of credit.
- Not available everywhere: The lender offers HELOCs in just 24 states and the District of Columbia. If you don’t live in one of the states where Homeside is licensed, you’ll be forced to look elsewhere.
- Variable rates only: Some home equity lenders allow you to get a HELOC with a fixed interest rate option during the repayment period, but Homeside offers variable rates only.
Homeside Financial offers mortgage and home refinance loans, along with its HELOC product. With the HELOC, you can borrow between $15,000 and $350,000. How much you can actually borrow, however, depends on how much your home is worth and the value of your first mortgage — you can borrow up to a loan-to-value ratio of 95 percent.
You have two options with repaying the line of credit. You can choose a 10-year draw period with a 20-year repayment period or a 15-year draw period and a 15-year repayment period.
Interest rates for a Homeside HELOC start at 5.75 percent APR. The rate, however, is variable, which means that it can fluctuate over time as market rates change.
The lender doesn’t charge an annual fee or a prepayment penalty. And while you won’t need to pay any lender fees at closing, you will be on the hook for government taxes and fees. Also, there’s an origination fee of 1 percent on each HELOC transaction.
Finally, the lender requires borrowers to have property insurance to get a HELOC, and you may also be required to have flood insurance if you live in a flood zone.
Homeside Financial has a minimum credit score requirement of 620, though a loan officer told Bankrate that a 660 or higher is ideal. You may also qualify with a debt-to-income ratio of 40 percent to 50 percent, depending on your credit score.
To get a HELOC with Homeside, you need to be a resident of a state where the lender offers the product. Eligible states include: Alabama, California, Colorado, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Michigan, Maryland, Mississippi, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Vermont, Virginia, Wisconsin and West Virginia.
How to apply
You can start the application process for a Homeside Financial HELOC online through the lender’s website, but you can’t complete the entire process without talking to a loan officer.
You’ll start by sharing your name, state, email address and phone number. Then Homeside will have a Lower loan officer reach out to you directly to continue the process.
If you’re considering a Homeside HELOC, you can fill out the short form to have a loan officer call you or call the lender directly at 833-519-9579. You can get answers to your questions by calling that same number.
You can also send a message through the lender’s homepage by clicking on “Help” in the bottom right corner of the page. Before you accept a loan from the lender, however, be sure to apply or get prequalified with a few other HELOC lenders first, so you can compare the terms and pick the best fit for you.