Okay. Hovnanian American Mortgage Evaluation: Large Mortgage Fee Offers for Residence Builder Prospects


Right now we’ll check out one other residence builder’s lender, Okay. Hovnanian American Mortgage.

They’re the affiliated lender of Okay. Hovnanian Houses, which is a top-15 residence builder nationally.

Like different builders, they created their very own financing division to streamline their new residence gross sales.

And to higher management the client expertise from begin to end.

The largest perk to utilizing them is the financing specials you probably received’t discover elsewhere. Learn on to study extra.

Okay. Hovnanian American Mortgage Quick Details

  • Affiliated mortgage lender for Okay. Hovnanian Houses
  • Offers residence buy loans for brand new residence patrons
  • Based in 2002, headquartered in Boynton Seaside, FL
  • Father or mother firm is among the largest residence builders nationwide
  • Licensed to do enterprise in 14 states and the District of Columbia
  • Funded greater than $1.1B in mortgages final 12 months
  • Most energetic within the states of Arizona, California, Delaware, Texas, and Virginia

As famous, Okay. Hovnanian American Mortgage is the lending division of Okay. Hovnanian Houses, a prime U.S. residence builder.

Their mother or father firm Hovnanian Enterprises, Inc. is a publicly traded firm (NYSE:HOV), presently valued at practically $1 billion {dollars}.

They’ve been round since 1959, and function 128 residential communities throughout 14 completely different states.

These states embody Arizona, California, Delaware, Florida, Georgia, Illinois, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia, West Virginia, and Washington, D.C.

These are the locations the place Okay. Hovnanian American Mortgage is licensed to lend as nicely, since they solely exist to serve their residence purchaser clients.

In fiscal 12 months 2022, they delivered greater than 6,000 houses to patrons throughout all markets, placing them within the top-15 largest homebuilding corporations in the US.

The lending unit received its begin means again in 2002 and is headquartered in Boynton Seaside, Florida. At current, they’ve 36 licensed mortgage mortgage originators working on the firm, per the NMLS.

As a result of they’re a house builder lender, they solely provide residence buy loans. No mortgage refinances can be found.

However in addition they function a full-service title firm referred to as Japanese Nationwide Title Company and Hovnanian Insurance coverage Company.

So you will get your new residence, mortgage, title insurance coverage, escrow companies, and even householders insurance coverage all from one umbrella firm.

After all, it will probably pay to buy round, so don’t overlook financial savings for comfort.

Find out how to Apply for a Mortgage

To get began, you may go to a brand new residence gross sales workplace or go to their web site. Both means, you’ll be put in contact with a licensed mortgage officer.

They’ll be capable of talk about pricing and mortgage choices with you. For those who like what you hear, you may proceed to the mortgage utility.

It’s a digital app powered by ICE Mortgage Expertise that may accomplished from any gadget, together with a pc, pill, or smartphone.

It means that you can hyperlink financial institution accounts and different financials, add key paperwork, and eSign disclosures on the fly.

As soon as submitted, you’ll be capable of verify mortgage standing 24/7 to find out what excellent gadgets nonetheless should be accomplished. And you will get in contact together with your lending workforce each time you may have questions.

Finally, they make it straightforward to use for a house mortgage due to the most recent tech, but in addition have a human lending workforce standing by.

Observe that loans are offered off to a 3rd celebration after closing as a result of they aren’t a mortgage servicer.

Mortgage Applications Supplied by Okay. Hovnanian American Mortgage

  • Residence buy loans
  • Conforming loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Mounted-rate loans: 30-year mounted, 15-year mounted
  • ARM loans: 5/6 ARM, 7/6 ARM
  • Buydown loans: 3/2/1 and a couple of/1 buydowns
  • State bond loans

Regardless of being a house builder lender, Okay. Hovnanian American Mortgage gives a superb number of mortgage packages, together with conforming loans backed by Fannie Mae and Freddie Mac and jumbo loans.

Additionally they provide all the most important government-backed mortgages, together with FHA loans, VA loans, and USDA loans.

As well as, you will get both a fixed-rate mortgage, corresponding to a 30-year or 15-year mounted, or an adjustable-rate mortgage, corresponding to a 5/6 ARM or 7/6 ARM.

Given the current rise in mortgage charges, in addition they provide buydown loans, together with a 3/2/1 buydown that reductions the speed a full three share factors in 12 months one.

You may also be capable of get your palms on some homebuyer help through choose state bond loans that supply decrease down funds and authorities subsidies.

Okay. Hovnanian American Mortgage Charges

Whereas some mortgage corporations put up their every day mortgage charges on-line, Okay. Hovnanian American Mortgage doesn’t.

With regard to how their rates of interest are, they merely say, “There isn’t any option to precisely and actually reply this query with out first evaluating your particular person state of affairs and financing wants.”

In different phrases, mortgage charges range by buyer, based mostly on mortgage parameters corresponding to credit score rating, down fee, mortgage program, and so forth.

The excellent news is they could provide particular financing gives to their new residence patrons, as is commonly the case with affiliated builder lenders.

As a result of builders typically purchase ahead commitments in bulk, they will apply particular reductions which can be typically arduous for outdoor lenders to beat/match.

However these offers are sometimes restricted to sure houses in particular developments, and the funds are topic to operating out.

They’re additionally time-limited, that means you will need to get underneath contract and/or shut by X date to make use of these particular funds.

If you converse to a brand new residence shopping for rep or mortgage officer, you’ll want to inquire about offers corresponding to everlasting or momentary charge buydowns.

This may increasingly come within the type of a closing value credit score, which will be utilized to a mortgage charge buydown.

These could make or break your choice to use the house builder’s lender or an outdoor financial institution/lender.

Okay. Hovnanian American Mortgage Critiques

There aren’t a ton of critiques for the lending arm of Okay. Hovnanian. However they do have a number of kicking round.

They’ve received a 4.3/5-star score from six critiques on Redfin, and an ideal 5/5 on a separate Redfin web page from 5 critiques.

In the meantime, their mother or father firm has a 4.3/5 from practically 4,000 critiques on NewHomeSource, which is a significantly better pattern dimension.

And given the truth that many of the mother or father firm’s residence patrons are probably additionally mortgage clients, these ought to be related.

After all, it’s not all excellent. Over at ConsumerAffairs they’ve a way more questionable 1.4/5 from over 250 buyer critiques.

So a little bit of a blended bag, although some critiques could need to do with the properties themselves, not the mortgages.

Remember to take the time to learn by way of the critiques to find out potential hiccups that you simply would possibly be capable of keep away from.

Lastly, they’re an accredited firm with the Higher Enterprise Bureau (BBB) and presently maintain an ‘A+’ score based mostly on grievance historical past. Talking of, they’ve zero complaints on file.

To sum issues up, Okay. Hovnanian American Mortgage appears to supply a superb mixture of expertise, a full mortgage menu for residence patrons, and first rate buyer critiques.

Additionally they have the large benefit of providing below-market mortgage charges like different residence builder lenders.

However at all times collect greater than a single mortgage quote. Whereas Okay. Hovnanian American Mortgage could provide the very best pricing, there could be higher offers on the market.

And when you’ve got competing quotes, they could be extra keen to barter with you on charge and/or closing prices.

Okay. Hovnanian American Mortgage Professionals and Cons

The Professionals

  • Can apply for a house mortgage on-line
  • Digital mortgage utility powered by ICE Mortgage Expertise
  • Loads of mortgage packages to select from
  • Provide mortgage charge specials for residence purchaser clients
  • A lot of glorious buyer critiques
  • A+ BBB score, accredited firm
  • A lot of free mortgage calculators on their web site
  • Intensive mortgage glossary explaining key phrases

The Cons

  • Solely provide residence buy loans
  • Aren’t licensed in all states
  • Don’t publicize mortgage charge or lender charges
  • Some blended critiques for mother or father firm
  • Don’t service loans after closing

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