BNC National Bank Mortgage Review 2021

BNC National Bank overview

BNC National Bank is a traditional brick-and-mortar bank, but its mortgage division operates as a hybrid full-service and online lender. It has mortgage offices in Arizona, Illinois, Kansas, Michigan, Minnesota, Missouri and North Dakota, and services loans nationwide. Because much of the bank’s mortgage and refinancing business is conducted online and clients don’t need to go into a branch, they’re often regarded as a lower-cost online lender. Headquartered in Bismarck, North Dakota, BNC National Bank was founded in 1990 and the mortgage division was launched in 2008. Because the company maintains offices near rural areas, BNC National Bank mortgage consultants are adept at navigating USDA mortgages, in addition to other loans.

Loan types

• Conventional
• Jumbo
• Fixed-rate
• Adjustable-rate (ARM)
• VA
• FHA
• HARP 2.0
• Hybrid ARMs
• USDA
• FHA 203(k)
• Cash-out refinancing
• No-cash out refinancing

Lender fees

BNC National Bank’s mortgage division charges a standard $1,095 origination fee for conventional and FHA mortgages. It doesn’t charge any origination fees for VA loans (which, according to a company representative, make up 40 percent to 45 percent of their business).

The company facilitates bond programs in the states in which it has offices. These programs can offset down payment and closing costs for low- to moderate-income borrowers. For first-time homebuyers who meet the requirements, BNC National Bank services federally-backed HomeReady and Home Possible Advantage mortgages.

For refinancing, returning BNC National Bank customers may have appraisal costs waived in some cases.

Minimum borrower requirements

BNC National Bank follows federal underwriting guidelines for all federally-backed mortgage programs. For properties and borrowers that qualify for USDA loans, that can mean no down payment. Home Possible and HomeReady mortgages allow borrowers to put as little as 3 percent down.

BNC National Bank borrowers can have a maximum debt-to-income ratio, or DTI, of 50 percent, depending on the mortgage they’re seeking. That means the sum of all monthly debts (including the new mortgage payment) cannot exceed 50 percent of your gross monthly income. The bank offers manual underwriting when needed, a service that can help those with unconventional situations (such as self-employed borrowers) qualify for a loan.