Network capital financing at a glance
Originally built on direct mail advertising, Network Capital Funding, a mortgage lender based in Irvine, Calif., First hit the airwaves in 2009, sponsoring the “Mortgage Radio Show”. It’s a show that continues today, airing on a dozen stations across the country.
And there is a lot to say. The lender offers an excellent selection of loan products including specialized programs that target borrowers outside of the usual lending box. Online capabilities are also a cut above.
Here’s a breakdown of Network Capital Funding’s overall score:
Variety of loan types: 4 out of 5 stars
Variety of loan products: 5 out of 5 stars
Online convenience: 5 out of 5 stars
Prices and fees: 3 out of 5 stars
Transparency rate: 4 out of 5 stars
Network Capital Funding Mortgage Types and Products
Network Capital offers a wide selection of home loans, including purchase, refinance and jumbo mortgages. The lender also supports all government guaranteed loans such as FHA, VA, and USDA mortgages.
In addition, Network Capital Funding offers specialized loans and services:
Offers personalized fixed rate loan terms starting at eight years.
Takes into account alternative credit data for some loan programs.
Provides an “like cash” loan where an application is reviewed for approval within 24 hours.
Offers bank statement loans and accepts investment property as collateral.
Tri Nguyen, founder and CEO of Network Capital Funding, says the company will provide home loans up to $ 5 million and the average customer has a FICO score of 729, or 72%. loan to value ratio and 39% debt to income ratio. However, before the pandemic, the lender said some of its loan programs allowed a minimum credit score of 550, while others relaxed the DTI to 65%.
Online convenience of network capital financing
By pressing the orange “Buy a Home” or “Refinance” button on the Network Capital website, you answer a few initial questions to gather some basic information. At this point, and before a credit score is pulled, a mortgage banker contacts you and helps guide the process from there.
A web application allows you to apply, get updates on the loan process, electronically sign and upload documents, depending on the lender. “We can electronically collect most pay stubs, W-2 forms, bank statements and tax returns with a few clicks,” says Nguyen.
“While mobile apps are useful for tech and financial experts, many of our consumers choose to consult our professionals for advice and recommendations, which is our most competitive advantage,” he says.
Network Capital Funding Mortgage Rates and Fees
One of the most important considerations when choosing a mortgage lender is understanding the cost of the loan. In order to give consumers a general idea of what a lender might charge, NerdWallet rates lenders on two factors regarding mortgage fees and rates:
A lender’s average setup fee compared to the median of all lenders filing under the Home Mortgage Disclosure Act. Network Capital Funding scores 2 out of 5 stars for this factor.
The mortgage rates offered by a lender compared to the best available on comparable loans. Network Capital Funding scores 4 out of 5 stars for this factor.
Network Capital Funding tells NerdWallet – and states on its website – that it does not charge “any application, origin, rate lock-in, processing or subscription fees to eligible borrowers.” However, the lender reported average origination fees to HMDA in 2019, as evidenced by the two-star rating for the fees shown above.
Borrowers should consider the balance between lender fees and mortgage rates. While it may not always be the case, paying an upfront fee can lower the interest rate on your mortgage. Some lenders will charge a higher upfront fee to lower their advertised interest rate and make it more attractive. Some lenders just charge a higher upfront fee.
You can decide to buy reduction points – fees paid with your closing costs – to reduce your mortgage rate.
Deciding whether to pay a higher upfront fee depends on how long you plan to live in your home and how much money you need to ask for. closing costs when you sign the loan documents.
Transparency of the network capital financing rate
Interestingly, Network Capital takes you through a few hurdles to access mortgage rates. Clicking on “Rates” from the menu takes you to a page where you are prompted to enter a promotional code to view mortgage rates on a sample of four loan products. Custom pricing is not available online.
The posted rates are insanely low, but by clicking on “Rate Info” under each quote, you’ll find out why: the rates include a 1% cut-off point, a debt-to-income ratio of less than 25%, and credit rating over 740 with a 20% drop.
Keep in mind that discount points are optional, and while the loan terms are not unreasonable, they reflect a qualified buyer, as advertised mortgage rates often do.