Quicken Loans

The Good

• One of the best reputations in the mortgage industry
• Hassle free application process
• A wide variety of products, including those for credit scores below 620
• Willing to work on higher debt-to-income ratios and programs where down-payment is less than 20%

Quicken Loans is a mortgage based company with its headquarters in Detroit, Michigan and in approximately 2017 was the largest retail lender in the US.

The company offers conventional and government friendly mortgages along with certain loan products whose repayment period can vary anywhere from eight to thirty years. Obviously,, the loan rates vary on the basis of the loan, but Quicken is known for having competitive rates for any situation and being an efficient, well-run lender.  They are also have programs allowing for as little as 3% down, higher debt-to-income ratios (meaning you can get more house even if your income is lower than needed at other lenders),  and jumbo loans.   In the case of a down payment which is less than 20%, banks will often not even consider this unless you qualify for a program such as VA loans.  But Quicken is able to wrap the private mortgage insurance (PMI) cost into a slightly higher rate and do these types of deals.

How?  They are a wholesaler – or what is sometimes called a “non-bank.”  This means that they fund your loan and take care of everything right up to the closing.  However, they then turn around and immediately sell it to a bank.  This has proven to be a popular model because you deal only with Quicken and they can determine the rates you pay, and the wholesale mortgage lenders have often proven to be more flexible than the larger banks.

The Bad

• Loan Rates are highly volatile
• Must contact the local office for more accurate rates
• Does not offer construction loans

There exists a large disparity between the interest rates posted on the Quicken Loans website and the rates which are given over the phone. The best way is to call the local branch and expect the quoted rate to depend on the current situation. The rate is highly dependent on the applicant’s current financial position, which also includes their credit score.

As the largest mortgage company in the US at the time of this writing, Quicken is a huge advertiser. You will see their rates posted everywhere.  Whether it’s Quicken or some other lender, always remember that these are “teaser” rates.  The actual rate you receive may be entirely different, so you need to talk to a mortgage rep or apply online to know your actual rate.

The Summary

Bottom line: Quicken Loans is a well-run company with competitive rates.  Particularly for a consumer who may have a somewhat unique situation (i.e. higher debt-to-income, jumbo loan in the millions, low credit, etc), Quicken is going to be able to move quicker and increase the likelihood of a smooth closing.

Though the website provides information on the various mortgage and loan programs offered by Quicken Loans, it’s still best to talk to a Quicken Loan agent to get further details.