Embrace Home Loans Mortgage Review 2023

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Founded in 1983, Embrace Home Loans is a full-service mortgage lender operating in every state. Based in Rhode Island, the company has more than 300 mortgage professionals across the country who closed over 13,700 loans in 2020. 

The company’s mortgage portfolio, which surpassed $6 billion in 2015, includes both fixed-rate, and adjustable-rate conventional mortgages, as well as government-backed loans, jumbo loans, and refinancing options. 

Today's Rates

Regions Served by Embrace Home Loans

Does Embrace Home Loans Operate in My Area?

Embrace Home Loans is licensed to offer mortgages in all 50 states, as well as Washington D.C. While the company allows customers to apply for a mortgage on its website, it also operates 62 physical branches in Alabama, Arizona, Connecticut, Delaware, Florida, Hawaii, Massachusetts, Maryland, Maine, Minnesota, Missouri, New Hampshire, New Jersey, Nevada, New York, Rhode Island, South Carolina, Virginia and West Virginia. 

What Kind of Mortgage Can I Get With Embrace Home Loans?

Fixed-rate mortgage: A conventional fixed-rate loan is the most common mortgage, as it offers homebuyers predictable monthly payments with an interest rate that remains the same for the duration of the loan term. Embrace Home Loans offers fixed-rate mortgages in 30- and 15-year terms. 

Adjustable-rate mortgage: An adjustable-rate mortgage or ARM is defined by an interest rate that changes over time. This loan option, which Embrace Home Loans calls a variable rate mortgage, begins with a fixed-rate period, usually five, seven or 10 years, followed by annual rate adjustments. ARMs may be good options for homebuyers who do not expect to live in their homes for more than five years. 

FHA loan: These government-backed loans offered through the Federal Housing Administration can help first-time homebuyers achieve homeownership. FHA loans are typically easier to qualify for compared to conventional loans, and require a down payment as small as 3.5%. The FHA 203(k) program, also available through Embrace Home Loans, allows homebuyers to bundle the price of a home and qualified renovations into one loan.

VA loan: Another federally-backed mortgage program, Veterans Administration or VA loans help members of the armed forces and military veterans purchase homes. A home can be purchased using a VA loan with no down payment, closing costs or private mortgage insurance. However, you will need to pay a funding fee of up to 3.3%, although this surcharge can be rolled into the overall loan amount. 

USDA loan: U.S. Department of Agriculture or USDA loans incentivize homeownership in more rural parts of the country by offering zero down payment options and low interest rates for low- and moderate-income households.  

Beyond by Embrace: These unconventional loans offered by Embrace Home Loans  are suited for self-employed borrowers who may have trouble getting a conventional loan because they lack a W-2. The company offers these loans in the fixed-rate and ARM variety, as well as cash-out refinances.  

Jumbo loan: Jumbo loans enable homebuyers finance properties that are too expensive for conventional mortgages. While the Federal Housing Finance Administration in 2023 caps conforming loans throughout most of the country at $726,200 ($1,089,300 in designated high-cost areas), jumbo loans allow homebuyers to exceed these limits. 

Refinance loan: Embrace Home Loans offers a variety of refinance options, including cash-out refinances, debt consolidation refinances and rate-and-term refinances. 

Home improvement loan: Embrace offers two types of 203(k) loans to help you improve the home you're purchasing that needs an upgrade. It can be a good fit for those looking to flip a home purchase or renovate their long-term home. 

What Can You Do Online With Embrace Home Loans?

As a prospective homebuyer, you can apply for a loan in as little as 15 minutes on the Embrace Home Loans website, according to the company. You’ll receive a loan estimate and several other documents after completing the loan application. The loan estimate will include the costs associated with the loan, including the interest rate, monthly payment, estimates of taxes and insurance, as well as closing costs. 

You can also use the Embrace Home Loans website to search for individual loan officers in particular locations or branch offices. The company also provides reference materials on its website aimed at educating potential customers about the mortgage and homebuying process. 

For mortgage rates, you’ll need to speak with a representative from the company. 

Would You Qualify for a Mortgage From Embrace Home Loans?

The requirements to qualify for a mortgage with Embrace Home Loans vary depending on the type of loan you’re interested in obtaining. For conventional loans, you’ll typically need a FICO score of at least 620, although that requirement drops to 580 for FHA loans. 

Customers who are self-employed and seeking an unconventional loan through the company’s Beyond by Embrace program will need a FICO score of at least 700 to qualify. Those seeking a USDA loan will need a FICO score of 620 and at least two years of steady employment.

What’s the Process for Getting a Mortgage With Embrace Home Loans?

The first step in getting a mortgage through Embrace Home Loans is getting pre-qualified and/or preapproved. Although they sound similar and often are conflated, the pre-approval process is more thorough and can help your offer stand out with sellers. Pre-qualification provides a prospective buyer with a sense of how much house they can afford. 

Having been pre-approved, you can begin your house hunt. After finding your ideal property and making an offer on it, you’ll work with a mortgage specialist from Embrace Home Loans who will organize all the necessary paperwork into a loan file. An underwriter from the company will then examine those documents and assess the risk of your application. Embrace Home Loans says it works to deliver its underwriting decision within 24 hours. 

Once the underwriter has approved your mortgage you’ll receive a commitment letter from the company that will include the terms of the loan, interest rate, conditions of approval and other disclosures. 

The final step in the process is closing on the deal. Embrace Home Loans says you should be prepared to bring a check for the down payment amount and any other outstanding costs to the closing. Once you and the seller have signed all of the requisite documents, the title company will file the transfer of title with the county recorder in your name.

How Embrace Home Loans Stacks Up

Embrace Home Loans has a plethora of loan options for a range of potential customers, as well as a mobile app known as Snapp. While not all private mortgage lenders originate loans throughout the whole country, Embrace Home Loans is licensed in all 50 states, plus Washington D.C. 

Embrace Home Loans seeks to rise above the competition with several branded offerings, including its Beyond by Embrace unconventional loan program for self-employed customers.and those with credit events like bankruptcy or previous foreclosures. However, it’s unclear from the company’s website what terms are available for adjustable-rate mortgages and whether or not the company offers loans in 20- or 25-year terms, as some other lenders may.  

Tips for Finding the Best Mortgage

• If you’re unsure of how high or low current interest rates are, SmartAsset can show you different rates offered by different lenders. You can even choose between fixed-rate and adjustable rate mortgages and customize your search with your credit score, target home price and down payment amount. 
• While a real estate agent will help you with your home search, a financial advisor can help you save for a home and set appropriate spending limits. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.