Ditech Home Loans Overview
About three-quarters of Ditech Home Loans’ current and former customer base rate the lender 5 stars, culminating an impressive average grade of 4.5-stars on its in-house online customer review platform. The company has been in business since 1995. John Paul Reddam was the original founder, but he has since left the company. At one point, it had a famous slogan during its early days in the mortgage market: “Lost another loan to Ditech!” Since then, the company claims to have fundamentally changed the way it works for the benefit of both it and its customers.
|30 year fixed||4.04%||4.00%||+0.03|
|15 year fixed||3.46%||3.48%||-0.02|
|30 yr fixed mtg refi||4.06%||4.00%||+0.05|
|15 yr fixed mtg refi||3.55%||3.52%||+0.02|
|7/1 ARM refi||5.76%||5.44%||+0.32|
|15 yr jumbo fixed mtg refi||3.66%||3.58%||+0.08|
National Mortgage Rates
Regions Served by Ditech Home Loans
Does Ditech Home Loans Operate in My Area?
Ditech Home Loans offers mortgage services in nearly every state and Washington, D.C., aside from New York. This lender has no physical branch locations, but you can reach mortgage lending professionals at 1-800-700-9212.
What Kind of Mortgage Can I Get With Ditech Home Loans?
Fixed-rate mortgage: Fixed-rate mortgages offer the chance to know what you’re going to have to pay over your loan’s term. In other words, the interest rate that you’re given at the time you’re approved is the rate that will stick for its entire duration. This also applies to your private mortgage insurance (PMI) payments. Down payments on these Ditech loans typically range anywhere from 5% to 20% of your new home’s value, and 10-, 15-, 20-, 25- and 30-year terms are available.
Adjustable-rate mortgage: If you’re planning on staying in your home for a shorter period of time, an adjustable-rate mortgage (ARM) could be viable. These include low interest rates during your initial payment term, while after that, Ditech will alter your rate every year. The lender has 10/1, 7/1 and 5/1 ARMs to choose from, with the first number being the number of years of your opening term.
FHA loan: FHA loans are tailor-made for anyone with a lackluster credit score and history and hardly any money for a down payment. In fact, you may only be required to put down 3.5% of your home’s value and have a minimum credit score of 580. The Federal Housing Administration (FHA) financially backs these loans, but Ditech Home Loans is technically your lender.
VA loan: The Department of Veterans Affairs insures all VA loans. These mortgage opportunities are solely for veterans, active military members, those in the National Guard and reserves and surviving spouses of former military personnel. Even if you have a less-than-perfect credit score and no money to put down toward a home, a VA loan is still attainable. In fact, up to 100% of a home’s value can be covered by these mortgages, with terms such as a 30-year fixed-rate and a 5/1 ARM available.
Manufactured home loan: Manufactured homes are exactly what they sound like: they’re factory-built houses. Builders typically create these at least eight feet wide and 40 feet long, though there is plenty of room for you to customize them as you see fit. You can pair these loans with FHA, VA, fixed-rate and adjustable-rate terms.
Refinance loan: Every one of the home loan styles listed above is available as a refinancing mortgage. These are great for anyone who’s looking to shrink the amount of time left on a loan term or simply lower monthly payments.
HARP: A HARP, or Home Affordable Refinance Program, loan provides a simple, government-backed way for many homeowners to refinance their mortgage. Although this system is run by both the Department of the Treasury and the Department of Housing & Urban Development, all loan-specific actions are handled directly through Ditech. In order to qualify for HARP, you must meet the following criteria:
- Be current on your mortgage
- Have had your loan originated on or before May 31, 2009
- Have your current loan-to-value (LTV) higher than 80%
- Make sure the home is your primary residence, a one-unit second home or a one- to four-unit investment property
- Have Fannie Mae or Freddie Mac back your mortgage
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What Can You Do Online With Ditech Home Loans?
With no branches for prospective borrowers to visit, Ditech Home Loans’ website is the centerpiece of its entire mortgage lending business. Therefore it should come as no surprise that its website is well-built and organized. It features many tools and calculators to educate and prepare you for a home loan. This is most evident through the company’s online blog, which includes various stories and sets of tips that are of interest to current and future homeowners. It even delves into lifestyle changes, ideas, taxes and other financial areas that typically affect the company’s clientele.
Interest rates at Ditech are readily available online, but it can be difficult for consumers to see these rates and accurately infer how they would affect their personal financial life. To combat this and provide more value, the company has built online mortgage calculators focused on fixed-rate vs. ARM comparisons, refinancing projections, future principal and interest payments, whether you should rent or buy and more.
Speaking to a human representative is comforting for many people going through the mortgage process, especially for the first time. Ditech employs a “Home Loan Specialist” search based on your area so that it’s easy to locate these professionals when you need them.
Would You Qualify for a Mortgage From Ditech Home Loans?
First and foremost, Ditech requires that the minimum FICO® credit score for approval is 580. This is slightly lower than some lenders, offering it a slight advantage to those with a weaker credit score and history. However, this is the minimum for an FHA loan, which much of Ditech’s competition includes in their portfolios as well.
Your debt-to-income (DTI) ratio is also important in the mortgage application process. For the most part, any customers with a DTI above 43% will not get approved, with the best interest rates reserved for those with a 30% DTI or lower. Beyond this, the size of your proposed loan, the loan-to-value ratio and the size of your down payment will all come into play.
What’s the Process for Getting a Mortgage With Ditech Home Loans?
When you initially begin a working relationship with Ditech Home Loans, you’ll be paired up with a loan specialist. This individual will take you through all of the mortgage options that are available at Ditech, and make recommendations as to what will likely work best for you. The loan specialist will then walk you through the application process and tell you which documentation the lender requires. These usually includes bank statements, pay stubs and other income paperwork.
A Ditech underwriter will then rigorously dig through your application and credit report, although occasionally you may need to provide some additional information. Should you get approved for a loan, the company will set a closing date. You receive info on the exact closing costs in as little as three business days before that date.
How Ditech Home Loans Stacks Up
A sizable portion of lenders pride themselves on offering proprietary mortgage options that no competitor can replicate exactly. Ditech Home Loans, however, lacks that unique service. This may seem like no big deal considering the already large plethora of mortgage options at the company. But what it does is make it tough to differentiate between it and the list of other lenders that you could just as easily choose from.
Tips for Managing a Mortgage
- For the first few months that you make mortgage payments, it may be worthwhile to spend less on other costs. While saving money is always welcome, the purpose for this would be to illustrate exactly how much your mortgage will affect your daily financial life so that it doesn’t become a problem down the line.
- Many financial advisors don’t specialize in just wealth management and investment portfolios, but also other financial verticals, such as banking and mortgages. Finding a fiduciary advisor is typically difficult, but the SmartAsset financial advisor matching tool can set you up with as many as three in your area that can handle your needs.