With several mortgage options to choose from, Chase makes it easy to find one that best fits your needs. Borrowers with a good income that are seeking a moderate loan amount, can opt for a conventional loan, while those that have a lower income can apply for an FHA loan with a reduced down payment cost.
While Chase does not explicitly indicate the minimum credit score required to qualify for its conventional loan option, its website indicates that its conventional loan option is subject to strict requirements. The lender considers FICO credit scores that are 660 to 719 as fair, 720 to 779 as good and 780 to 850 as excellent. The downpayment on a Chase conventional loan is 5% to 20% of the loan’s purchase price.
At a Glance: Chase Mortgages
- Conventional loan: 5% to 20% FHA loan: 3.5% Jumbo: 20% or more Chase DreaMaker Mortgage: 3% VA loans: 0% Mortgage loans with no PMI requirement: 20% Minimum Down Payment
- Conventional FHA loan Jumbo Chase DreaMaker mortgage VA loan Loan Products Offered
- 48 states (Not available in Alaska or Hawaii) and Washington, D.C.States of Operation
- Yes Online Application
Chase Mortgage Loan Types, Details and Requirements
MoneyGeek’s Chase lender review aims to help you understand the types of loan products offered by Chase in addition to each loan type’s respective requirements. Plus, it shares information about rates and fees that you’ll encounter when you apply.
Mortgage Types Offered
- Chase DreaMaker
In general, the lender offers both fixed-rate and adjustable-rate mortgages. With a fixed-rate mortgage, you’ll pay a consistent interest rate for the duration of the loan, whereas an adjustable-rate mortgage stays the same for a specific period of time and then becomes variable throughout the year. You can get a fixed-rate mortgage for 10-, 15-, 20-, 25- and 30-year terms, depending on the loan. Adjustable-rate mortgages are available for shorter term lengths of five-, seven- or 10-year terms.
The rate you’ll receive depends on many factors, including loan type, location, term and credit score. You can use the rate calculator on Chase’s website to calculate your approximate rate based on credit score, location and home type. The best way to get a personalized quote is to complete their prequalification process or reach out to one of their licensed loan originators by phone at 1-800-848-9136.
Chase discloses that the amount you’ll pay in late mortgage fees varies based on your loan amount, property location and the rates included in your agreement. To find out exactly how much you would pay, you can check your monthly statement.
Another fee to be aware of is a non-sufficient funds fee of up to $25. You’ll be charged this fee if your payment is returned due to a lack of funds in your account or your financial institution not honoring the amount.
Chase also mentions other charges, such as a full appraisal fee, which involves Chase hiring an appraiser to assess your property for its fair market value. This service costs between $425 and $800. The "broker price opinion" involves another potential fee of $78, which covers the cost of Chase hiring a real estate broker to estimate the property's market value.
The company further charges an additional fee for recording. This fee amount is location-specific, and covers the cost of the local county recorder recording the mortgage or deed to secure the loan, as well as the document to release the lien once the loan is paid off.
There is an additional fee for the Partial Release/Land Transaction, which is a request to release a portion of the collateral from the mortgage or modify the collateral. Among these changes are the addition of collateral, lot line adjustments, easements and more. The fee ranges between $50 and $300.
Minimum Borrowing Requirements
Conventional loans are offered to borrowers at both fixed and adjustable rates for those that meet the lender’s strict requirements. Eligible loan applicants should have a good credit score between 720 and 779 and the ability to make a downpayment of at least 5% to 20% of the loan’s purchase price.
Chase conventional loans may also grant borrowers lower monthly payments and lower closing costs than other loan products. This option is best for borrowers with decent credit scores and low-to-moderate incomes that are looking to finance a mortgage under a loan limit.
FHA loans are available for borrowers with slightly lower credit scores that will be using the loan to finance their primary residence. Generally, Chase accepts applicants that have credit scores between 660 and 719 that are financially prepared to make down payments of at least 3.5% of the loan’s purchase price. Since these are mortgages issued through the FHA, you’ll be required to submit additional documents like proof of employment and income.
It's worth noting that people applying for an FHA loan may have a debt-to-income (DTI) ratio of 50% or lower. The mortgage insurance premium (MIP) you’ll receive varies depending on the down payment that you make.
FHA loans utilize a one-size-fits-all premium rate calculation which may last the duration of your loan. One notable limit of FHA loans is that the county where your property is located sets the loan limits.
Jumbo Mortgage Loans
Homebuyers looking to apply for a jumbo mortgage loan need a very good credit score of at least 780 or higher and enough funds to cover a 20% down payment (or more) of the loan’s purchase price. To qualify for this loan, you’ll have to provide documentation that indicates that you can cover the principal, interest, taxes and insurance. Other requirements that you may need for this type of loan are high-cash reserves and a loan-to-value (LTV) of 80% or lower.
Chase jumbo loans may have fixed or variable rates, competitive interest rates and higher monthly payments.
The Chase DreaMaker mortgage is exclusively available for purchase or no-cash-out refinance of a primary residence one- to four-unit property for 30-year fixed-rate terms. Your income limits and homebuyer education apply on a DreaMaker mortgage.
The $500 Homebuyer Education Benefit is only available when purchasing a DreaMaker SM primary residence. A supply certificate of completion from an approved education provider is required for the education course. The $500 Homebuyer Education Benefit funds will be applied during the closing of the loan first to points on the loan, if any, then to Chase fees and non-Chase fees.
The said homebuyer education may also be considered miscellaneous income and may be reportable to the customer and the IRS on Form 1099-MISC (Miscellaneous Income) or Form 1042-S (Foreign Person's U.S Source Income Subject to Withholding) for the year in which they were awarded.
Chase provides VA loans to current military members, veterans and their family members for a downpayment of 0%. However, to be eligible, you need proof that you served for a set amount of time in the active military, Reserves or the National Guard. The VA assesses eligibility based on the type and time of your service, as well as the duration of your time in the military.
To qualify, you’ll also need to meet the minimum credit score and provide proof of income. VA loans aren’t subject to private mortgage insurance (PMI) and have less strict requirements. However, a long approval time and documentation process may delay your loan.
Other than the requirements mentioned, you also need to check the following physical conditions of the home you want to buy:
- Roof is in good condition
- Heating and cooling system is functional
- Clean and continuous water supply is available
- Foundation structure is pest-free
- Walls are free of lead-based paint (commonly found in homes built before 1978)
Some fees come with a VA loan. VA loans require a unique payment called the VA Funding Fee, which is directly settled with the Department of Veteran Affairs and is currently set at a maximum of 3.6%.
To reduce the funding fee cost, you can make a higher down payment of at least 5% of the purchase price. You can also avoid the fee for specific circumstances, such as receiving disability payments due to your military service. Active military members who show proof they received the Purple Heart are also exempt from paying the funding fee.
There are limitations to the VA loan: you cannot include someone other than yourself or your spouse on the loan or title and you can only use it to buy a home that will be your primary residence.
Another restriction for VA loans relates to condominium purchases. If you intend on buying a condo, you need to ensure that it's on a list of condominium developments approved by the VA. If it's not on the list yet, you need to request VA to support it.
Chase Mortgage Application Requirements
If you plan to apply for a Chase mortgage loan, it's best to prepare the following:
Your most recent one-month pay stubs.
Your pay stubs cannot be more than a month old when you submit your application.
Your W-2 form showing the last two years of employment.
Most recent three-month bank and investment statements
- Don't forget to include your accounts (checking, savings and investments). Your statements must show that you have enough money to afford your down payment and several mortgage payments.
- If there are any large deposits or withdrawals, you need to provide a detailed letter to explain these.
A completed and signed Form 4506-T or 4506T-EZ
You and the seller sign your home purchase contract.
For those who are self-employed or get paid any commissions, you need to submit two years of tax returns, signed.
If you own a business, you must submit the most recent two years of personal tax returns and any business returns you filed for your company (e.g., 1120, the 1120S, and Schedule K-1 or 1065).
Is Chase Right for You?
Since a mortgage is a significant commitment, it's best to weigh your options before signing with a specific lender. MoneyGeek's Chase review explores home buyer profiles that may or may not be compatible with Chase’s products and services.
Who Chase Is Perfect for
Since Chase provides homebuyers with a variety of loan products, it may offer one that suits your needs. You’ll benefit from a conventional mortgage loan that offers at least a 5% down payment of the purchase price for first-time homeowners. On the other hand, qualified aspiring buyers may apply for VA loans with no down payment.
Their efficient online process also helps aspiring homebuyers to apply with ease. You’ll know which loan you qualify for within minutes.
Who Should Not Choose Chase
Chase has many physical branches across the country, but their loan application process is a combination of online and in-person. As such, homebuyers who are not tech-savvy may prefer working with a brick-and-mortar bank instead. It’s still possible to connect with a licensed loan originator to guide you through the process, but this may cause some delays.
Chase’s conventional loan requires a down payment of 5% for all loans not related to your first home purchase. Homebuyers purchasing an additional property that isn’t their primary residence may want to find other mortgage loan providers. Chase also does not offer mortgages for manufactured or mobile homes.
How to Apply for a Chase Mortgage Loan
MoneyGeek’s Chase mortgage loan review provides an idea of what to expect when applying with this lender.
Check if you prequalify for any of Chase’s mortgage products online. You’ll get a decision within minutes and learn about your options. Chase provides their customers detailed quotes, not just estimates.
Fill Out the Application Form
Start by navigating to the Mortgage section on the Chase website. Click on the "Start online" button that will be visible at the bottom of the page. Make sure you scroll down. You will be asked whether you have an application in progress or are a current Chase customer. Depending on your status with Chase, you may be asked to fill out some required fields.
Get an Estimate
After you submit your application, Chase will send you a Loan Estimate, which gives you an insight into the loan terms, such as interest rate, monthly payment and other fees.
Review the Estimate
Verify that you understand and agree with all the terms in the Loan Estimate. You may seek the advice of your real estate agent or one of Chase’s Home Lending Advisors if you need help.
Show You are Ready
If you would like to move forward with the Loan Estimate, kindly tell your Home Lending Advisor that you would like to proceed with the application.
If you prefer not to create an account online, you may contact Chase by phone or in-person at one of their branches to complete the application process.
What to Do if You Are Rejected by Chase
Chase may deny your mortgage application for numerous reasons; job changes, high DTI ratios and poor credit scores can all cause your application to be rejected.
When assessing your application, lenders evaluate your ability to repay your loan. If you have changed jobs within the last two years, lenders may consider you a high-risk applicant. Additionally, if you have a high DTI ratio, indicating you owe more than you earn, it may be hard to find a lender that will trust your ability to pay your monthly dues. A low credit score or recent history of large purchases with your credit card is also a red flag for lenders.
If your application is denied, it’s important to ask the lender why it was rejected and inquire about your best options moving forward. That way, you can work to improve your application if you wish to reapply in the future.
Frequently Asked Questions About Mortgages From Chase
As part of our Chase mortgage review, MoneyGeek answered the most frequently asked questions to give you more information about this lender.
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- Chase. "What is PMI and How Is It Calculated?." Accessed May 31, 2022.
- Chase. "Guide to Jumbo Loan Down Payments." Accessed May 31, 2022.
- Chase. "Understanding Your Credit Score." Accessed May 31, 2022.
- Chase. "FHA Appraisal Requirements Checklist." Accessed May 31, 2022.
- Chase. "Everything You Should Know About a Home Appraisal." Accessed May 31, 2022.
- Chase. "Calculators and Resources." Accessed May 31, 2022.