Guild Mortgage review: Flexible credit, closing cost assistance, and unique mortgage options

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Guild Mortgage loans are available in any US state except New Jersey or New York.

The bottom line: Guild Mortgage is our favorite lender for first-time homebuyers, thanks to its flexible credit requirements and easy online process. Overall, it’s a great option for many types of borrowers, because it offers a variety of mortgages, including unique types of loans.

Overall lender rating

Feature Insider rating (out of 5)Types of loans5Affordability5Customer satisfaction4Trustworthiness4Total4.5

Pros and cons

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ProsCons

Offers many unique mortgages, including bridge loans, energy-efficient mortgages, and mortgages for those who have no Social Security number

Get up to $2,500 in closing cost assistance

Can apply with rental payment history if you have no credit score

Hybrid closing option keeps your closing appointment quick

Doesn’t have a home equity loan, HELOC, or construction loanMortgages aren’t available to residents living New Jersey or New YorkCharges funding, underwriting, and wire transfer fees; sometimes charges origination feesCan’t see rates online before moving forward

Guild Mortgage interest rates and fees

Unlike many lenders, Guild Mortgage doesn’t show mortgage rates online. Many companies show typical rates for 15-year and 30-year mortgages online, and some even let you customize your rate by entering your credit score, down payment amount, and zip code. But you’ll need to either call a customer service agent to talk about a rate or skip straight to applying for preapproval.

If you look at customer reviews on Zillow, you’ll see that many borrowers’ rates were “as expected” or “lower than expected” with Guild mortgage. So the lender does seem to offer competitive rates overall.

Guild Mortgage does charge lender fees for funding, underwriting, and wire transfers. It also imposes origination fees on certain loans. Not all mortgage lenders charge these types of fees.

Compare to other mortgage lenders

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Guild Mortgage vs. Fairway Independent Mortgage Corporation

Types of home loans

Conforming, jumbo, FHA, USDA, VA, reverse, renovation, manufactured, bridge, energy-efficient, doctor, 3-2-1 Home Plus, Payment Advantage, ITIN mortgages

Types of home loans

Conforming, jumbo, FHA, USDA, VA, renovation, reverse

Alternative credit data

Yes

Alternative credit data

Yes

Guild MortgageFairway Independent Mortgage

Although Guild Mortgage and Fairway Independent Mortgage Corporation both offer several types of home loans, you may be drawn to Guild Mortgage’s bridge loan or down payment assistance programs. These are good options if you either need to move before selling your home or don’t have much money for a down payment.

You’ll want to go with Fairway if you live in New Jersey or New York, though, because Guild Mortgage doesn’t provide loans in these states.

Guild Mortgage vs. Rocket Mortgage

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Types of home loans

Conforming, jumbo, FHA, USDA, VA, reverse, renovation, manufactured, bridge, energy-efficient, doctor, 3-2-1 Home Plus, Payment Advantage, ITIN mortgages

Types of home loans

Conforming, jumbo, FHA, VA

Alternative credit data

Yes

Alternative credit data

No

Guild MortgageRocket Mortgage by Quicken Loans

You’ll need to use Guild Mortgage or another lender for a USDA, renovation, reverse, or manufacturing loan, because you can’t get these loans through Rocket Mortgage. Guild Mortgage is also better for people with a low credit score, because Rocket Mortgage requires a credit pull to qualify for a mortgage.

But Rocket Mortgage has more term length options, with terms as short as eight years. You also may like Rocket Mortgage if you want more accessible customer service, because it has live online chat seven days per week.

How Guild Mortgage works

You can apply for a mortgage online in any US state except New Jersey or New York. Guild Mortgage also has branches in 32 states, if you’d rather talk to someone face to face.

Guild Mortgage offers the following types of home loans:

ConformingJumboFHAVAUSDAReverseFixed-rateAdjustable-rateRenovation loansDoctor mortgagesEnergy-efficient mortgagesManufactured loansBridge loans, short-term loans for a down payment if you need to move but haven’t sold your home yet3-2-1 Home Plus, which offers low-to-moderate-income, first-time homebuyers up to $2,500 in closing cost assistance and a $2,000 Home Depot gift cardPayment Advantage, a mortgage that comes with a temporary 1% interest rate reduction to lower your monthly payments for the first yearITIN mortgage for borrowers with an Individual Tax Identification Number who don’t have a Social Security number

This lender can also help connect you with down payment assistance in the form of loans or grants if you have a low-to-moderate income and need help financing a down payment

You can refinance into a fixed-rate or adjustable-rate mortgage, or do a cash-out refinance. You may also streamline refinance your FHA, VA, or USDA mortgage.

Guild Mortgage doesn’t offer home equity loans or HELOCs, and it doesn’t have regular construction loans.

Most lenders pull your credit score when you apply for preapproval. But Guild Mortgage gives you the option to apply with alternative forms of credit, such as proof that you pay your bills on time. This makes Guild Mortgage a worthwhile option if you have a low credit score, or none at all.

Guild Mortgage also lets you close digitally, making it a safe lender during the COVID-19 pandemic.

To speak with customer support, call Monday through Friday, 6 a.m. to 5 p.m. PT.

Is Guild Mortgage trustworthy?

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The Better Business Bureau gives Guild Mortgage an A rating from the BBB. The BBB says that Guild Mortgage has a A rating due to government action taken against the business. 

In 2020, Guild Mortgage paid the United States $24.9 million when it was accused of approving FHA mortgages for people who didn’t qualify, resulting in loan defaults. If this recent issue worries you, you may decide you’d rather go with another lender.

Guild ranked above the industry average in J.D. Power’s 2022 Mortgage Origination Satisfaction Study. In 2021, it ranked No. 1.

Guild Mortgage FAQ

What is the minimum credit score for Guild Mortgage?

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It depends on which type of mortgage you get. You’ll need a 620 credit score for a conforming mortgage, but only a 600 score for an FHA loan.

Guild Mortgage also accepts rental payment history from borrowers who don’t have a traditional credit score.

Is Guild Mortgage a direct lender?

Yes, Guild Mortgage is a direct lender. This means it originates its own loans, as opposed to a mortgage broker, which connects borrowers with multiple lenders to find the best fit.

Is Guild Mortgage a good company?

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Guild Mortgage is a good option for many types of home loans, especially if you have a low credit score or none at all. It also could be a good fit if you want to close on your mortgage digitally instead of in person. However, Guild charges some lender fees that not all lenders require. If you qualify for a mortgage with other companies, too, you may want to compare fees to see which is the best choice for your situation.

Who is Guild Mortgage owned by?

Mary Ann McGarry is the current CEO of Guild Mortgage. Guild was founded by Martin Gleich in 1960. Gleich retired in 2007.

Read the original article on Business Insider

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