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Mr. Cooper
Mr. Cooper is a large national lender with a special focus on FHA loans and first-time buyers. The lender ranks in the Top 10 nationally for volume of FHA mortgages originated. As you’d expect of a big player, Mr. Cooper has a slick website and plenty of loan options. One caveat: The lender routinely ranks poorly in customer satisfaction surveys.
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loans offered
Conventional, FHA, VA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; investment property
Min. credit score required
620 for conventional loans, 580 for FHA loans, 600 for VA loans
Nationwide availability
Available in all U.S. states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands
Min. down payment
3% for conventional conforming loans, 3.5% for FHA loans, none for VA loans
Mr. Cooper
4.8
Bankrate Score
Loans offered
Conventional, FHA, VA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; investment property
Nationwide Availability
Available in all U.S. states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands
Min. credit score required
620 for conventional loans, 580 for FHA loans, 600 for VA loans
Available in all states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands
Electronic submission of loan documents
Dedicated and non-dedicated loans so lender can customize terms
Easy-to-use app that allows borrowers to check application status and make payments
Fees for services, including loan origination, rate lock and underwriting
No branch locations
No USDA loans
Mr. Cooper is a large national lender with a special focus on FHA loans and first-time buyers. The lender ranks in the Top 10 nationally for volume of FHA mortgages originated. As you’d expect of a big player, Mr. Cooper has a slick website and plenty of loan options. One caveat: The lender routinely ranks poorly in customer satisfaction surveys.
To determine Mr. Cooper’s Bankrate Score, Bankrate’s editorial team rated it and other lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. (Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews.). We derived its overall score by considering three basic factors.
Loan cost is a deciding factor for many borrowers. The affordability nature of loans differ from lender to lender, so comparing costs is key. While Mr. Cooper’s advertised rates are lower than national averages, there is a catch: They assume you’ll pay discount points that could add up to sizable upfront costs. Additionally, Mr. Cooper charges lender fees and application fees. However, the lender will pay your moving expenses if you’re relocating within 50 miles of your current address (with some limitations), which can make a difference for your bottom line. Also, Mr. Cooper doesn’t charge a fee for rate locks or underwriting.
Availability factors can make the overall mortgage-application process smoother or more challenging. Mr. Cooper provides conventional loans as well as some government-insured loans (FHA and VA), along with options to refinance your existing mortgage. The lender is licensed to lend throughout the U.S., Puerto Rico and the U.S. Virgin Islands.
Customer experience factors can help you know what to expect when you work with a specific lender. While the lender has favorable reviews on Trustpilot, it’s important to note its reputation has some blemishes: The lender’s track record with the Better Business Bureau includes more than 3,000 complaints in the past three years, and it ranks near the bottom in J.D. Power’s customer satisfaction study of large mortgage originators. As far as your experience working with Mr. Cooper, its digital tools are topnotch.
You can apply for a purchase loan or a refinance on Mr. Cooper’s website. The company’s process is similar to other online lenders’. Here are some tips for streamlining the process:
Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
Gather personal and financial documents. With any lender, you must supply documentation proving your income, assets and debts. These documents typically include:
Those who are self-employed might also need to include additional information and undergo an income audit. This might include asking an accountant to verify your income is stable by speaking with customers; reviewing business records, like P&L statements; or taking other steps.
Provide details about the property. If it’s a purchase mortgage, you’ll need to supply the address of the home you’re buying and submit to an appraisal. If you’re refinancing, you may or may not need an appraisal.
Mr. Cooper refinances existing mortgages, and its refi process is similar to the purchase process. Before you start, think about your goals. Are you refinancing to adjust your current mortgage’s rate and term? Do you want to tap into home equity? Do you want to change loan programs, such as refinancing out of an FHA loan into a conventional mortgage? Once you’ve settled on those details, you can apply through the lender’s website or via its call center.
The lender’s mobile app makes it convenient to apply online, monitor your application status and make monthly payments. If you prefer, you can contact the lender at 833-685-2565 during customer service hours Monday through Saturday. You won’t be able to meet with a loan officer at a branch location, however. Instead, all your communication will be via call center, website or the app.
Yes, they're the same. Mr. Cooper, a publicly traded company, bought Nationstar Mortgage in 2016. Mr. Cooper officially retired the Nationstar brand name in 2017. In its latest annual report, Mr. Cooper refers to Nationstar Mortgage as an operating subsidiary.
Mr. Cooper
Rating: 4.8 stars out of 5
4.8
Bankrate Score
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Loans offered Conventional, FHA, VA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; investment property |
Loans offered Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing; construction and renovation loans |
Loans offered Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; home equity loan; investment property; flex-term |
Min. credit score required 620 for conventional loans, 580 for FHA loans, 600 for VA loans |
Min. credit score required 620 for conventional loans, 700 for jumbo loans, 580 for FHA loans, 620 for VA loans |
Min. credit score required 620 for conventional loans, 680 for jumbo loans, 580 for FHA loans, 580 for VA loans |
Down payment 3% for conventional conforming loans, 3.5% for FHA loans, none for VA loans |
Down payment 3.5% for FHA loans |
Down payment 3% for conventional conforming loans, 3.5% for FHA loan, none for VA loans, 10%-15% for jumbo loans |
Nationwide availability Available in all U.S. states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands |
Nationwide availability Available in all U.S. states |
Nationwide availability Available in all U.S. states |