Information
About lender
Bay Equity Home Loans is a retail, direct-to-consumer mortgage lender. The company offers customers a wide range of loan programs. The Bay Equity Home Loans client can take conventional loans with fixed or adjustable interest rates, VA loans, FHA loans, USDA loans, jumbo loans, home-equity lines of credit (HELOCs), reverse mortgages, and mortgage refinance loans.
Bay Equity is headquartered in Corte Madera, California. The company has many retail branches in 27 more states of the country. The company's loan programs are currently available to residents of 48 states, including DC. Company customers can apply for a mortgage and converse with a loan officer online using the company's website.
Bay Equity was founded by three brothers, Brett McGovern, Casey McGovern, and John Curtin, in 2007 in Corte Madera, California. The brothers note they founded the company a year before the 2008 crisis, which the company could overcome because they were one family and helped each other. The purpose of creating Bay Equity was to build a home loan lender that would differ from others because it treats customers as people, not as figures. Following its goals, Bay Equity is among the country's top 30 mortgage lenders.
Pros and cons
Pros
A wide range of loan programs to choose from.
One of the few lenders allowing its clients to take jumbo loans.
Fast and convenient application process.
Cons
The website does not indicate exact details on the size of fees.
There are origination and prepayment fees.
Not available in all states of the country.
Conclusion
Bay Equity Home Loans is a good choice for borrowers looking for a reliable mortgage lender. Bay Equity can offer almost all existing home loans, including jumbo loans. However, the company does not indicate any rates and fees on the site, which creates difficulties for people who are looking for a suitable lender and get as many pre-qualifications as possible. Also, before applying for a loan to Bay Equity, the borrower needs to check if there is a retail branch of the company nearby.
Terms and conditions
Each type of loan issued by Bay Equity requires payment of a $450 processing fee, a $995 underwriting fee, and an origination fee, the amount of which is not specified on the company's website. Also, Bay Equity does not specify the interest rate indicators for any credit option.
Conventional loan
Bay Equity offers conventional loans with fixed or adjustable interest rates. The company's website does not specify the exact interest rates for conventional loans. The minimum loan amount for a conventional loan is $100,000. The borrower needs to make at least a 3% down payment to receive a conventional loan.
VA loan
A VA loan is a loan that is guaranteed by the Department of Veterans Affairs (VA). VA loans can only be taken by an eligible veteran. Loans of this type do not require a down payment and do not require payments for private mortgage insurance (PMI). However, this loan has a specific fee called the VA funding fee. This fee is 2.4% of the loan amount.
USDA loan
This loan is guaranteed by the United State Department of Agriculture and is created for borrowers who purchase real estate in eligible rural territories. This type of loan does not require making a down payment. This loan requires payment of a guarantee fee of 1% of the loan amount.
FHA loan
An FHA loan is a loan that is guaranteed by the Federal Housing Administration (FHA). This loan requires a down payment of 3.5%, and this type of loan requires payment of mortgage insurance fees in the amount of 1.75% of the loan amount. This loan has less stringent requirements for credit score and debt-to-income (DTI) ratio.
Home-equity line of credit (HELOC)
Home-equity line of credit (HELOC) is a credit line that the borrower takes against the property's value. The borrower has a revolving credit line secured by their home. Funds from the home-equity line of credit (HELOC) can be used for large purchases or home improvements. However, the borrower risks losing the house if they have problems paying off the loan.
Refinance loan
Bay Equity offers many refinance loan options. The borrower can refinance the loan using a conventional loan with a fixed or adjustable interest rate, VA loan refinance, or jumbo loan. Refinance loan allows the borrower to reduce the loan term or interest rate of an existing mortgage. Thus, the borrower can reduce monthly mortgage payments.
Jumbo loan
A jumbo loan is a mortgage with a credit limit higher than the conventional loan credit limit. The maximum loan amount for a jumbo loan can reach up to $5 million. A jumbo loan has a higher interest rate and requires a larger down payment than a conventional loan. Moreover, the jumbo loan has much stricter requirements for credit score and debt-to-income (DTI) ratio than a conventional loan.
Funding a loan
The borrower does not receive funds from Bay Equity Home Loans. The company issues a loan only for the purchase of real estate or refinancing of an existing mortgage. The borrower needs to wait 30 to 45 days from the approval date before buying a house. During this period, the lender goes through the process of evaluating and buying real estate for the borrower.
