BNC National Bank Mortgage Review: Great for VA Loans and First-Timers

BNC National Bank offers mortgages in all 50 states. BNC also has physical branches in seven states, mostly in the Midwest. BNC specializes in VA loans, but offers a full selection of home loan options. Most borrowers can find a loan here that will meet their needs, but you may have to put in a little work to get the information you need to compare loans.

Take a look at our full BNC National Bank mortgage review to find out if this is the best mortgage lender for you.

This mortgage lender is a good fit for: Borrowers who are eligible for a VA loan. BNC National Bank is also great for first-time home buyers and anyone looking for low-down-payment options.

Top perks

VA loan experts

BNC National Bank is a strong VA lender, steadily climbing the ranks of top VA lenders nationwide. By the end of 2021, BNC expects to have made nearly triple the number of VA loans it made in 2018. This lender is a VA loan specialist, and a great resource if you are eligible. To qualify, you must be one of the following:

• Service member
• Veteran
• Department of Defense employee
• NOAA employee
• National Guardsman
• Reservist
• U.S. military school cadet or midshipman
• Qualified surviving widow
• Public health service officer
• Served in certain organizations during World War II

Great customer service

BNC National Bank has an excellent reputation for customer service. When we checked, BNC had 4.7 out of 5 stars on Zillow, with thousands of reviews. Many borrowers write that BNC made an effort to proactively address their needs and close on time. BNC also has an A+ rating from the Better Business Bureau, which means that when customers do have a problem, BNC National Bank tends to respond.

Low-down-payment mortgages

BNC National Bank offers several options for borrowers who want to buy a home with a low down payment, including:

• VA loan: Zero down
• USDA loan: Zero down (for low- to moderate-income borrowers buying eligible homes, usually rural)
• FHA loan: 3.5% down
• Home Ready loan: 3% down (for low- to moderate-income borrowers)
• Home Possible loan: 3% down (for low- to moderate-income borrowers)

BNC also offers other low-down-payment mortgages for borrowers in some states.

Digital mortgage

If you're ready to apply, you can go straight to the website and start at your convenience, from a computer or phone. You can manage your mortgage application through the app, and a loan officer will assist. BNC doesn't offer fully remote closing yet, but plans to in 2022.

Construction loans

A construction loan helps you buy a lot and finance the building of a home. Most construction-loan borrowers pay only interest while their new home is being built (they are still paying housing expenses someplace else, after all). When construction is complete, the loan is converted to a traditional mortgage.

BNC National Bank offers construction loans, which can be hard to find.

What could be improved

Transparency

BNC National Bank does not publish mortgage rates on its website. You may come across BNC's rates on a third-party website, but there is no way to easily search for them. Rather, you can price out loans on a site, then see if BNC comes up on the list of options.

Rates are not the only factor you should consider, but they are an important piece of the home-buying transaction. Even a fraction of one percent can substantially change the total cost of your loan.

Through our research, we found that BNC is indeed a rate leader -- but it was hard to find out. BNC National Bank promises some website updates in the very near future, and we're hoping that brings a rate quote tool.

HELOCs only available to bank customers

If you're shopping for a home equity loan or HELOC, look elsewhere unless you have a deposit account at BNC.

For many borrowers, a cash-out refinance loan is a better option when interest rates are very low. But under some circumstances, a home equity financing product works better. For instance, if you:

• Have a reason for holding on to your current mortgage
• Only want to borrow the exact amount you need, and not one dollar more
• Expect to pay off the additional loan in a short time

In those cases, a HELOC might be a better option, and you should compare BNC's options with those of other lenders.

The minimum credit score for a conventional loan at BNC National Bank is 620. Also, you need at least a 3% down payment.

That said, BNC National Bank offers a variety of home loan options that have flexible underwriting guidelines. Even if you don't qualify for a traditional conventional loan, BNC might be able to find a home loan for you.

BNC National Bank doesn't have a strict cutoff for debt-to-income ratio. Debt-to-income, or DTI, is the percentage of your before-tax income that you spend on debt each month. For example, if you earn $4,000 per month and your debt payments total $1,000 per month, your DTI is 25%. You can qualify most easily if your DTI is 36% or lower (including your proposed new housing payment). But some mortgages allow a DTI of 50% or more.

If your credit score is lower than 620, you might qualify for a government-backed loan. FHA loans require a 580 credit score (lower for borrowers who make a bigger down payment). VA and USDA loans don't have minimum credit score requirements, but are known to allow lower credit scores than conventional loans.

A BNC loan officer looks at your down payment, cash reserves, credit score, and DTI, and helps you determine what loan you might qualify for.

For a home equity line of credit, you must have (or open) a deposit account at BNC National Bank.

BNC's refinance rates trend a little lower than the national average mortgage rate. When we checked, BNC National Bank refinance rates were the same as purchase loan rates. That's nice -- some lenders charge more for refinance loans.

BNC National Bank mortgage rates trend a little lower than the national average. Generally speaking, BNC is a low-price leader in the mortgage industry.

Keep in mind that only applicants who meet the lender's credit score requirement, down payment requirement, and debt-to-income limit qualify for the lowest rate.

• You need a VA loan
• You need a low-down-payment mortgage
• You're a first-time buyer