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Mr. Cooper
Mr. Cooper is a large national lender with a slick website, plenty of loan options and a special focus on FHA loans and first-time buyers. One caveat, however: 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; refinancing; investment property
Min. credit score required
620 for conventional loans; 580 for FHA loans; 600 for VA loans
Nationwide availability
All U.S. states, Puerto Rico and U.S. Virgin Islands
Min. down payment
3% for conventional 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; refinancing; investment property
Nationwide Availability
All U.S. states, Puerto Rico and 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 slick website, plenty of loan options and a special focus on FHA loans and first-time buyers. One caveat, however: 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.
Affordability differs from lender to lender, so comparing costs is key. While Mr. Cooper’s advertised rates are lower than national averages, there’s a catch: The lender assumes 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 doesn’t charge a fee for rate locks or underwriting.
This factor 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.
Know what to expect when you work with a specific lender. While Mr. Cooper 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, however, its digital tools are top-notch.
You can apply for a purchase loan or a refinance on Mr. Cooper’s website. The lender’s process is similar to that of other online lenders. Here are some tips to prepare for the process:
Mr. Cooper can help you refinance your existing mortgage. Before you start, think about your goals. Are you refinancing to adjust your current mortgage rate and term? Do you want to tap 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.
Mr. Cooper’s 1% Mortgage Markdown Program offers a rate buydown to help borrowers cope with the sharp increase in mortgage rates. This program reduces your loan’s interest rate by a full percentage point for the first year.
The Mr. Cooper Close On Time Guarantee assures those buying a property with a Mr. Cooper mortgage that the home loan will close on or before the contract closing date. If not, you’ll get a check equal to your first month’s principal and interest payment.
Mr. Cooper’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. 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.