Mr. Cooper Mortgage Review 2020
By Jennifer Bradley Franklin
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Bankrate Score
4.2
0.0
Please note: In response to the coronavirus pandemic, lenders are changing their requirements continuously. Although we strive for accuracy at the time of publication, please be sure to check with the lender for updated details on down payments, credit scores, etc.
Mr. Cooper is a non-bank mortgage lender and servicer in the U.S. The company, formerly Nationstar Mortgage, was founded in 1994 and is headquartered in Dallas, Texas. The company offers a wide variety of services, including dedicated and non-dedicated loans and manual underwriting for clients with special circumstances. Mr. Cooper provides a number of mortgage options for homebuyers, including:- Home Possible, a program by Freddie Mac geared toward low- to moderate-income borrowers with as little as a 3 percent down payment
- HomeReady, a Fannie Mae program for low-income borrowers
- Investment
- Jumbo
- FHA streamline refinance
- FHA Standard: Fixed and ARM
- Home equity loans
- VA: IRRRL, cash-out refinance, fixed and ARM
- Agency jumbo/super conforming
- Non-QM
Nationwide availability
Available in all U.S. states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands
Minimum credit score
620 for conventional loans; 580 for FHA loans; 700 for jumbo loans; 600 for VA loans; 680 for Non-QM (bank statement) loans
Loan types
Home Possible, HomeReady, investment, jumbo, FHA streamline refinance, FHA Standard: Fixed and ARM, home equity loans, VA: IRRRL, cash-out refinance, fixed and ARM, agency jumbo/super conforming and Non-QM
Pros
- Nationwide availability in all 50 states, District of Columbia, Puerto Rico and U.S. Virgin Islands
- Electronic submission of loan documents
- Offers manual underwriting for prospective clients with special circumstances
- FICO credit scores as low as 580 can obtain a loan
- Dedicated and non-dedicated loans, so lender can customize terms
- Easy-to-use app that allows borrowers to check application status and make payments
Cons
- Fees for services, including loan origination, rate lock and underwriting
- No branch locations
- Origination fees on typical conventional conforming loans range from $995 to $1,220
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Mr. Cooper overview
Loan types
- Home Possible, a program by Freddie Mac geared toward low- to moderate-income borrowers with as little as a 3 percent down payment
- HomeReady, a Fannie Mae program for low-income borrowers
- Investment
- Jumbo
- FHA streamline refinance
- FHA Standard: Fixed and ARM
- Home equity loans
- VA: IRRRL, cash-out refinance, fixed and ARM
- Agency jumbo/super conforming
- Non-QM
Lender fees
Mr. Cooper lender fees vary by loan type. In general, origination fees on typical conventional conforming loans are $995 ($1,220 in New Jersey only). Prospective borrowers can get estimates of fees and rates based on inputs (property information, down payment, credit score and other factors) via the Mr. Cooper website.
Minimum borrower requirements
Mr. Cooper abides by the conforming loan requirements for mortgages approved by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, as well as those backed by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA). While VA loans (available to military veterans, active service members and their families) sometimes offer no down payment options, the other loans generally require a minimum down payment of 3 percent for conventional loans and 3.5 percent for FHA loans.