New Fed Mortgage/Commonwealth Mortgage Review 2020
By Mitch Strohm
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NMLS: 1881
Bankrate Score
3.9
5.0
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.
New Fed Mortgage is a full-service mortgage lender operating in multiple states throughout the country. It offers a wide range of loan options for borrowers with varying qualifications. Founded in 2000, New Fed Mortgage is headquartered in Danvers, Massachusetts. It's the parent company of Commonwealth Mortgage, which offers discounted rates and a best-rate guarantee — it’ll pay $500 if you can find a better deal at another lender. In 2017, New Fed Mortgage was named the best mortgage company in Massachusetts Banker and Tradesman newspaper.Nationwide availability
Available in Connecticut, Florida, Illinois, Massachusetts, Maryland, Maine, New Hampshire, New Jersey, Pennsylvania and Rhode Island
Minimum credit score
New Fed doesn't publish credit score requirements on its site. The score you'll need to qualify for a loan varies by loan type. These are generally the minimums for each loan type: 620 for conventional loans; 500 for FHA loans.
Loan types
Conventional, FHA, VA, USDA, fixed-rate and adjustable-rate (ARM); refinancing options include rate-and-term refinancing and cash-out refinancing; also offers reverse mortgages
Pros
- Wide range of loan options for borrowers of all types
- Borrowers choose mortgage terms from eight to 30 years
- Low mortgage rates
Cons
- Doesn't offer online approval process; you have to speak to a loan officer
- Only lends in 10 states
- Branch access limited to Massachusetts and New Hampshire
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New Fed Mortgage/Commonwealth overview
Loan types
- Conventional
- FHA
- VA
- USDA
- Fixed-rate
- Adjustable-rate (ARM)
- Refinancing, including rate-and-term refinancing and cash-out refinancing
- Reverse mortgages
Lender fees
New Fed and Commonwealth offer a no-cost closing option, which includes fees in APR — like origination and application fees — as well as non-APR fees such as title costs. Both New Fed and Commonwealth partner with CMR Closing Services, LLC, to provide a discounted closing.
If you’d like to lower your obligation at closing, keep in mind that there are several mortgage programs that can help as well. FHA, VA and USDA loans may provide the option to wrap closing costs into your mortgage.
Minimum borrower requirements
New Fed Mortgage doesn’t publish borrower requirements, but you can generally expect it to follow Fannie Mae’s underwriting guidelines for conventional mortgages. It takes a credit score of 620 or higher to qualify for a conventional loan. You’ll also need a down payment of at least 3 percent and a debt-to-income ratio (DTI) of 43 percent or lower.
FHA loans generally require borrowers to have a credit score of 500 or higher, a DTI of 50 percent or lower and a down payment of at least 3.5 percent. VA loans don’t have a down payment or minimum credit score requirement, but you’ll typically need a FICO score of 620 or higher.
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Get started with New Fed Mortgage/Commonwealth
Borrowers apply in person, online or by phone. If you apply online, a representative will contact you.Hours
New Fed Mortgage/Commonwealth consumer rating and reviews
91% recommended
Customer Service Rating