Mr. Cooper Mortgage Review
Mr. Cooper was established in 1994, and as of March 2022, was among the top 15 loan originators in the U.S. Although the company is headquartered in Dallas, Texas, its loan products have helped make owning a home a reality for aspiring homebuyers nationwide. Mr. Cooper offers conventional loans, Federal Housing Administration (FHA) and FHA Streamline loans, Veterans Affairs (VA) and VA Interest Rate Reduction Refinance Loans (IRRRL).
Minimum down payment and credit score requirements aren’t included on the Mr. Cooper website. However, the company indicates that downpayments for conventional loans can range from 3% to 20% of the loan’s purchase and that the company follows the minimum credit score requirements set by government-sponsored entities (GSEs).
Mr. Cooper also offers a mortgage calculator so you can calculate exactly how much you’ll need for a down payment. MoneyGeek recommends contacting a Mr. Cooper representative to receive a personalized estimate.
At a Glance: Mr. Cooper Mortgages
- Mr. Cooper
- Conventional Loans: 3% up to 20%, depending on eligibility requirements FHA Loans: 3.5% VA Loans: $0 for qualifying borrowers For information on other products, MoneyGeek advises contacting the lender’s representative. Minimum Down Payment
- Conventional, FHA and FHA Streamline loans, VA and VA IRRRL loansLoan Products Offered
- All U.S. states and Washington, D.C.States of Operation
- Yes Online Application
on Mr. Cooper Website
Mr. Cooper Mortgage Loan Types, Details and Requirements
MoneyGeek’s Mr. Cooper lender review highlights the company’s mortgage offerings, minimum requirements and any additional fees. You can browse the below information to learn more.
Mortgage Types Offered
Mr. Cooper offers the following loan types:
- Conventional Loans
- FHA Loans
- FHA Streamline Loans
- VA Loans
- VA IRRRL Loans
The best loan for you will be based on your goals and financial situation. It’s best to learn about each loan so you can determine which one best suits your needs.
Mr. Cooper offers fixed-rate and adjustable-rate mortgage loans, but the exact rates that it offers aren’t provided online. Loans with fixed rates have a constant rate throughout the duration of the loan, while those with adjustable-rates have an initial fixed-rate period, afterwhich, your rate will change based on the market. Fixed-rate loans won’t fluctuate like adjustable-rate loans, but they may start at a higher rate and cost than the initial period of an adjustable-rate loan.
You can also use Mr. Cooper’s mortgage calculator to determine the amount you can borrow at a given rate based on your situation.
Mr. Cooper doesn’t explicitly state the amount associated with each fee, but it does disclose that there are numerous fees involved in acquiring a mortgage with the lender.
To start, you’ll pay a loan origination fee and mortgage application fee to a title company, which will then pay the lender, Mr. Cooper. Next there are several “shoppable” third party fees, including those for a home inspection, survey, title search, title insurance, closing, settlement and attorney fees, where you can choose the provider. There are also “unshoppable” costs to third parties, where Mr. Cooper selects the provider. These include appraisal fees, credit reporting fees and flood certification. Lastly, other closing costs, like homeowner’s insurance, escrow, property taxes and private mortgage insurance (PMI), may also be required.
You should ask a Mr. Cooper representative to breakdown the total cost, including all fees, so you can budget accordingly.
Minimum Borrowing Requirements
For conventional loans, Mr. Cooper adheres to the requirements set by GSEs including Fannie Mae or Freddie Mac, the FHA and the Department of Veterans Affairs.
To borrow from Mr. Cooper, you need to provide a down payment of 3% to 20% for conventional loans, 3.5% for FHA loans and $0 for VA loans. In most cases, credit score requirements are 620 for conventional loans, 580 for FHA loans and 600 for VA loans. However, these are standards set by GSEs, so there may be other eligibility requirements to qualify for a conventional loan with Mr. Cooper.
Mr. Cooper Mortgage Application Requirements
With Mr. Cooper, you can apply either online, through mail or by fax. The lender provides a step-by-step process in its Help Center. You’ll first need to create an account to download the form that includes a list of all the documents you’ll need to provide.
Is Mr. Cooper Right for You?
Mr. Cooper doesn’t fit everyone’s mortgage loan needs — and that’s okay. Different types of homebuyers have different needs. MoneyGeek reviewed Mr. Cooper’s mortgage loans to help you decide if it’s the best lender for you.
Who Mr. Cooper Is Perfect for
Mr. Cooper is ideal for a variety of homebuyers since they offer conventional loans and government-backed loans. If you’re tech-savvy and prefer applying for and closing your mortgage online, Mr. Cooper is an ideal option. Mr. Cooper is also a great choice for those looking to save money, as down payments for conventional loans can be as low as 3%. Eligible military personnel should also consider getting a mortgage with Mr. Cooper since there is no down payment for a VA loan.
Who Should Not Choose Mr. Cooper
If you’re someone who prefers viewing all rates, fees and minimum requirements online, you might want to consider another lender who’s more transparent. You’ll also need to call a Mr. Cooper representative or fill out its online form to learn more about rates that fit your situation. Mr. Cooper also isn’t the right lender for you if you’re looking for home equity loans, home improvement loans or home equity lines of credit (HELOC).
How to Apply for a Mr. Cooper Mortgage Loan
If you choose to apply for a loan with Mr. Cooper, you’ll likely go through the following steps:
Check if you qualify for a mortgage loan with Mr. Cooper by checking its different loan types and requirements for each.
Fill Out Application Form
To apply, you can go to the lender’s website. They’ll ask for your personal information, including contact details and the location of your property.
Wait for Pre-Approval
If your loan application is approved, the company will send you a loan agreement.
Review Loan Agreement
Review and sign the loan agreement after you’ve thoroughly reviewed it and asked the lender any questions.
Receive or Direct Funds
To learn more about how you’ll receive your funds, you should ask a Mr. Cooper representative during the application process.
You’ll need to log in to make payments and settle your mortgage online.
What to Do if You Are Rejected by Mr. Cooper
You have to meet certain qualifications and requirements when you apply for a loan. So there’s a possibility that Mr. Cooper might not approve your application. Some factors that can cause your application to be denied include a low credit score, insufficient income, lack of credit history and more.
If you’re rejected for a loan, you should ask a Mr. Cooper representative why your application was denied. That way, you can work on improving your application before reapplying or applying with a different lender.
Shopping around for mortgage loans can be overwhelming. We recommend consulting a financial advisor or loan officer to help guide you through this process.
Frequently Asked Questions About Mortgages From Mr. Cooper
MoneyGeek answers the most commonly asked questions about mortgage loans in our Mr. Cooper lender review.
- Better Business Bureau. "Mr. Cooper." Accessed May 31, 2022.
- Mr. Cooper. "Applying for Mortgage Assistance." Accessed May 31, 2022.
- Mr. Cooper. "Closing On Your Refinance." Accessed May 31, 2022.
- Mr. Cooper. "About Us." Accessed May 31, 2022.
- Mr. Cooper. "Mortgage Calculators." Accessed May 31, 2022.
- Mr. Cooper. "Types of Home Loans." Accessed May 31, 2022.