MoneyGeek’s Take

Lower Mortgage Review

The company was initially founded in 2014 as Homeside Financial, but became what is now Lower in 2018. Headquartered in New Albany, Ohio, Lower offers conventional home loans, refinancing, Home Equity Line of Credit (HELOCs) and even government-backed loans like Veteran Affairs (VA), Federal Housing Administration (FHA) and USDA loans.

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Last Updated: 10/24/2022
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Lower’s minimum credit score and down payment isn’t available on their website, but you can contact them directly to ask about their requirements. MoneyGeek’s Lower mortgage loan review outlined the loan types and requirements offered by the lender, so you can determine if it’s the best first for your unique situation.

At a Glance: Lower Mortgages


  • Lower.com

    • VA: $0 For other products, contact lower directly. Minimum Down Payment
    • Conventional, refinancing, HELOC, VA, FHA and USDA (United States Department of Agriculture) loansLoan Products Offered
    • 42 states and Washington, D.C. (not available in Alaska, Hawaii, Nevada, New York, Rhode Island, South Dakota, Vermont or Wyoming)States of Operation
    • Yes Online Application

    on Lower.com Website

Lower Mortgage Loan Types, Details and Requirements

When applying for a loan with Lower, it’s best to check their requirements and terms first. Rates and features will depend on which loan type you select. Below, you’ll find more information about Lower’s products.

Mortgage Types Offered

Lower offers the following mortgage types:

  • Conventional
  • Refinancing
  • HELOC
  • VA Loans
  • FHA Loans
  • USDA Loans

If you’re still in the early stages of looking for the right lender, you can check out Lower’s mortgage calculator to get an estimate. There, you can adjust details to fit your specific situation.

Mortgage Rates

On Lower’s website, the lowest advertised APR is 4.370%, which is based on the national average mortgage rate. However, your final quote will depend on personal factors like your mortgage type, mortgage term, credit score, loan amount and location. To get an exact rate, you can call Lower’s representatives at 888-509-8301 or 844-645-6937.

Additional Fees

For your first mortgage loan with Lower, origination, underwriting, processing and administrative fees are waived. Keep in mind, though, that other fees may come with your mortgage.

Minimum Borrowing Requirements

Different Lower products have different minimum borrowing requirements. Below are some examples:

Refinancing: Lower offers RefiNow, which allows homebuyers to refinance their mortgages. To qualify for RefiNow, your current home loan should be Fannie Mae-owned and your primary residence should be a single-family home. Homebuyers must also have a minimum credit score of 620 and debt-to-income (DTI) ratio of 65% or below, in addition to a loan-to-value (LTV) mortgage ratio up to 97%.

FHA loans: To get an FHA loan or a Federal Housing Administration loan, Lower requires a credit score of 580 and a 3.5% down payment. Individuals with a lower credit score between 500 and 579 can still qualify as long as they can make a 10% down payment. You’ll also need verifiable income and employment of two years, bank statements and other documents that reflect your financial capacity. Additionally, homebuyers need a DTI ratio below 50%.

Learn more about Lower’s other mortgage loan products and their minimum borrowing requirements by contacting a Lower representative.

Lower Mortgage Application Requirements

If you want to apply for a mortgage with Lower, you may need to provide certain documents and information such as:

1

Photo ID

2

Tax returns

3

Proof of income

4

Asset statements

5

Written support (if needed)

6

Residential history

7

List of other debts

8

Employment verification

9

Proof of assets

10

Credit history

11

Debt-to-income (DTI)

12

W-2 statements

13

Pay stubs

14

Bank statements

15

License

16

Social Security number

However, there may be more documents that you need to present, depending on your situation. You can opt to contact Lower beforehand so you know exactly what to prepare.

Is Lower Right for You?

Different mortgage loan lenders fit different homebuyers. Remember that mortgages are huge financial commitments, so take time to choose the right lender.

Who Lower Is Perfect for

With Lower’s diverse product offerings, different types of homebuyers might be able to find a great deal. For instance, Lower offers FHA, VA and USDA loans for individuals who prefer loans that are backed by a government agency, which usually have lower minimum credit scores and down payments requirements.

Those who want more affordable rates for a conventional mortgage can consider Lower since rates can be as low as 3.99% for a 15-year fixed term. Homebuyers that are looking to borrow against the value of their home can also consider a home equity line of credit.

Who Should Not Choose Lower

The entire process of applying for a mortgage to closing with Lower can be done online or through their mobile app. So borrowers who prefer brick-and-mortar offices or those who are more comfortable with face-to-face interactions might like other mortgage lending companies.

Additionally, Lower doesn’t immediately disclose their minimum requirements and rates on their website. Thus, homebuyers might prefer lenders that are transparent about minimum credit score and other requirements.

Individuals living in Alaska, Hawaii, Nevada, New York, Rhode Island, South Dakota, Vermont or Wyoming shouldn’t consider Lower since they’re not available in these states.

How to Apply for a Lower Mortgage Loan

MoneyGeek’s Lower mortgage loan review lists what you can expect if you choose to apply with this lender:

1

Prequalify

Lower will ask for your personal information, contact details and where your home is located.

2

Fill Out Application Form

You can complete your entire application process online with Lower. You’ll need to fill out the aforementioned information to access Lower’s application form.

3

Wait for Pre-Approval

Qualified borrowers can get pre-approved within one business day. You might need to send other documents for Lower to review your application fully.

4

Review & Sign Loan Agreement

Once approved, review your loan agreement and send the signed document through their upload feature.

5

Receive or Direct Funds

6

Make Payments

You can make payments on the Lower website by logging in with your loan number and your property’s ZIP code.

What to Do if You Are Rejected by Lower

Your application may be rejected due to certain factors like low credit score, insufficient income and lack of credit history. However, don’t let this stop you from getting a loan, especially if you need it.

Moving forward, ask a Lower representative why your application wasn’t approved. You can then improve it over time and apply with a different lender. Avoid applying for another loan until you work on the factor that caused your application to be denied in the first place.

To help you through this process, consult a financial advisor or loan officer. They might be able to provide additional resources and information that can help you figure out your next steps.

Frequently Asked Questions About Mortgages From Lower

For this Lower mortgage review, MoneyGeek answers commonly asked questions to help you through the borrowing process.

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