Alterra Home Loans Review: Happy Customers and Rare ITIN Loan Program

Alterra Home Loans has a strong focus on serving minority borrowers. For all borrowers, this lender offers more human interaction than you might get from some other lenders. That's a good thing for first-timers or anyone who has questions throughout the mortgage process. Your home is probably going to be the biggest purchase of your life, so it's nice to connect on day one with a trusted guide who will help you through the process.

Check out our Alterra Home Loans review to find out if this might be the best mortgage lender for you.

This mortgage lender is a good fit for: Borrowers who need a specialty loan. That includes anyone looking for a low down payment mortgage such as the FHA loan, or the zero-down VA or USDA loans. Alterra Home Loans also makes a special effort to serve borrowers who need more flexible underwriting, like business owners with no W-2 forms, or foreign nationals who don't have a Social Security number (SSN). Alterra Home Loans is also a good fit for people who want to conduct business in Spanish.

Top perks

Caters to underserved borrowers

"Underserved" means any group that is at a disadvantage because they have less access to financial products. Alterra's mission is to serve borrowers who have fewer options. That includes those with lower income, limited financial resources, or no SSN. It could also include borrowers using alternative documents to qualify and people pooling resources to buy a home. In other words, Alterra Home Loans is a good fit for creditworthy borrowers who typically have to jump through more hoops to get a mortgage and might not know they can qualify.

Bilingual

Alterra Home Loans is Hispanic owned and places a lot of emphasis on serving the Hispanic community. Spanish-speaking loan officers are available to work with any applicant. Also, the website can be displayed entirely in Spanish.

ITIN loans for foreign nationals

Many lenders require a SSN to get a mortgage. Alterra Home Loans is one of a small group of lenders that offer a special loan type for people who have an individual taxpayer identification number (ITIN) but no SSN. Since you don't have to be eligible to work in the U.S. to get an ITIN, undocumented immigrants are eligible to apply for a 30-year fixed-rate mortgage.

Specialty loans

Alterra Home Loans offers several loan options that not all lenders offer:

• USDA loans for lower-income borrowers buying eligible property (usually rural).
• Mortgages for non-warrantable condos that don't meet Fannie Mae or Freddie Mac lending guidelines. For example, if the building has five to 20 units, no single entity can own more than two. And commercial space may not account for more than 35% of the building. Those conditions would make it a hard no from some lenders, but Alterra will work with you.
• Portfolio loans for borrowers who need more flexible underwriting.
• A Home Possible mortgage, which is a 3%-down conventional mortgage for low- to moderate-income borrowers.
• Chenoa Fund mortgage down payment assistance programs. Chenoa offers forgivable second mortgages for FHA loan down payments and repayable second mortgages for FHA or conventional loan down payments (some programs have income limits).

Reputation

Alterra Home Loans' customers leave very good online reviews, in English and Spanish. Reviewers tend to comment on their positive interactions with Alterra Home Loans staff and say costs are lower than expected.

Pronto Plus loan tracking app

Alterra Home Loans offers a digital mortgage application and tracking experience on Pronto Plus, its proprietary app. You can track your application, upload documents, share your financial information, and e-sign documents from any device.

What could be improved

Transparency

Alterra Home Loans does not publish information about mortgage rates and fees on its website, or even a full menu of the types of loans it offers.

Not yet nationwide

Alterra's parent company, Panorama Mortgage Group, LLC, is licensed almost everywhere in the U.S. But at this time, you can't get a loan if you're in Alaska, Arkansas, Hawaii, Massachusetts, New York, Rhode Island, Vermont, or West Virginia.

Alterra Home Loans' main advantage is that it offers many paths to homeownership for creditworthy borrowers who might struggle to get a mortgage through traditional channels from other lenders. To that end, qualification criteria varies depending on what loan product is best for you.

To apply, you do need to reside in one of the states where Alterra is licensed to make home loans.

The ITIN loan application (great for foreign nationals or those without a SSN) has several requirements:

• Down payment of 3.5%
• Closing costs are about 7% if there are no seller concessions
• DTI up to 50%
• Min. score required 620 or no score for W2 employees
• Min. score required 660 or no score for self-employed
• Three months of income documentation required using bank statements ONLY
• Tax returns will not be used to calculate income
• 12 months of rent history required
• Must have two active tradelines or utilities for at least 12 months
• Gift funds allowed
• No visa required
• Valid passport needed
• Rates are higher than the best rates for a typical conventional loan
• Fixed rates
• This loan program has high lender fees

The borrower does not need to provide documents that prove legal status in the United States.

For a conventional loan, you usually need a 620 credit score. A down payment of 20% isn't a hard-and-fast requirement, but it'll save you money by letting you avoid purchasing private mortgage insurance.

To get an FHA loan, you need a down payment that's 3.5% of the purchase price. If your credit score is between 560 and 619, Alterra Home Loans offers an Expanded Credit Program. As a trade-off for the lower credit score, expect to make a down payment of at least 10%.

VA loans don't require a minimum credit score. You also don't have to make a down payment on a VA loan. But to qualify, you need to be in one of these categories:

• Service member
• Veteran
• Qualified spouse
• Military school cadet/midshipman
• Public health service officer
• NOAA officer

USDA loans have no down payment requirement. The credit score requirement tends to be more generous on a USDA loan compared to a conventional loan. But keep in mind you have to be in a qualifying location, usually rural.

Debt-to-income ratio

The debt-to-income (DTI) limit depends on the home loan option you choose. FHA loans, VA loans, and USDA loans allow a DTI of 50% or higher. The limit may be lower for other types of mortgages. Your DTI tells the underwriter how much of a monthly mortgage payment you can afford. That is combined with your down payment to determine how big of a loan you can qualify for. You can use an online mortgage calculator to get an idea of how much you can borrow.

This mortgage lender doesn't publish its refinance rates, so you'll have to apply to find out what you qualify for.

You can't find any information about rates or fees online. You'll have to apply or make a phone call to compare costs with other lenders you're researching.

Keep in mind that there's more to a mortgage than the interest rate. And one lender with a low mortgage rate and high fees can leave you poorer than a lender with a higher rate at a lower upfront cost. Alterra is worth considering because of its reputation for good customer service, its hard-to-find mortgage options, and its dedication to the Hispanic community. You just need to do a little more work to figure out the bottom line.

¿Quiere realizar sus negocios en español? Give Alterra Home Loans a call.

Alterra Home Loans is a good option if you can't qualify for a mortgage based on traditional criteria. If you have an ITIN but no SSN, are self-employed, or need to apply using alternative credit data, Alterra Home Loans may have a mortgage program that works for you.

Alterra Home Loans is also a great choice for borrowers who are looking for a USDA loan or who want to buy a non-warrantable condo.