Review
Updated
Fact Checked
Ashley Maready
Offer status
The offers on this page may no longer be available. In 2023, Caliber Home Loans merged with Newrez. Existing customers should have a seamless experience during the transition. New customers will be directed to Newrez for all loan applications.
Caliber Home Loans is a great choice for first time home buyers, military home buyers, and anyone who needs a fast loan closing. The Caliber Ultimate Homebuying Experience can efficiently move some borrowers from application to closing in as little as 10 days. Also, this lender specializes in low down payment mortgages. Our Caliber Home Loans review will help you decide if Caliber is right for you.
Best for: Loan variety
Caliber Home Loans
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Caliber is a great home loan option that offers more variety than some other lenders, which might make it easier to find what works best for you. It also offers fast closings and some assistance programs for certain borrowers. Caliber offers a Smart Series loan program, a program for self-employed individuals, those with credit issues, and experienced real estate investors with complex finances.
Min. Credit Score 580 FHA 620 Conventional
- 580-620
Min. Down Payment 3% Conventional 3.5% FHA
- 0%-3.5%
Key Features
- Smart Series program for self-employed borrowers, those with credit issues, and real estate investors
- Variety of loan options
- Fast closing
- Assistance for certain buyers
Loan Types
- Conventional
- FHA
- VA
- USDA
- Jumbo
Fixed Rate Terms
- 10y - 30y
Adjustable Rate Terms
- 3/1, 5/1, 7/1 and 10/1 ARMs, with a 5/5 ARM option.
- 5/6, 7/6, 10/6 for Smart Series ARMs
Top Mortgage Lenders
It's important to compare mortgage lenders so you understand all your options. Here are a few of our favorite lenders, listed side by side so you can see how they each stack up against their competition:
| Lender | Min. Down Payment | Credit Score | Next Steps |
|---|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
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Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
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Full Caliber Home Loans Review
This mortgage lender is a good fit for: A number of borrowers, including those who need a fast closing, who want to participate in a down payment assistance or first-time home buyer program, or borrowers who qualify for a VA loan.
Pros
- Many loan options to choose from
- Fully-digital application
- Services most of its own loans
Cons
- Lack of rate and fee transparency
- No HELOCs or home equity loans
Top perks
Wide selection of loan options
Caliber Home Loans offers a broad menu of mortgage loan options. They include the following:
- HomeOne is a conventional mortgage requiring a 3% down payment.
- HomeReady and Home Possible loans are for low- to moderate-income borrowers. They require a low down payment and offer flexible terms not found on all mortgages. For example, you may be able to have a co-borrower who does not live with you, or a mortgage cosigner.
- FHA 203(k) and HomeStyle are renovation loans. The 203(k) loan program is an FHA mortgage with extra funds to repair or rehab a property. The HomeStyle loan can be used for luxury upgrades like financing a pool or even building a garage apartment.
- Mortgage refinancing. Caliber Home Loans offers FHA and VA streamline refinance loans to help borrowers lower the interest rate on a loan. A streamline refinance has fewer requirements than a purchase mortgage application. The FHA streamline refinance might not require a new appraisal. The VA streamline refinance does not require income verification or an appraisal. Also, there may be no out-of-pocket costs.
- USDA home loans are 0% down payment loan options for borrowers in eligible areas, usually (but not always) rural. Household income cannot exceed current limits, set county by county.
- VA home loans are 0% down payment loan programs for active duty and former military as well as some spouses.
- FHA loans are 3.5% down payment mortgages with more generous credit requirements. A borrower with bad credit (a FICO® Score under 580) can qualify with a 10% down payment.
- Conventional loans are any mortgages not backed or insured by the federal government.
- Jumbo loans are any mortgages in an amount that exceeds federal loan limits and may have different qualification requirements.
Caters to the military
Caliber Home Loans has a separate website for education and information about VA loans. It also provides information about military relocations.
Digital application
The company provides a cutting-edge desktop and mobile app.
Assistance programs
First-timers and those looking for a low down payment mortgage will find several down payment assistance options. Caliber Home Loans offers to help borrowers experiencing financial hardship caused by COVID-19, a natural disaster, or another significant event. Options can include a monthly payment mortgage forbearance plan, repayment deferral, or even loan modification.
Fast closing
For borrowers who meet underwriting guidelines and can digitally deliver all required documentation, Caliber Home Loans says it can close a purchase loan in as few as 10 days.
Also a servicer
Caliber Home Loans keeps most of its mortgages, rather than selling them to another servicer to collect payments. If you've ever had your mortgage taken over by a new servicer, you know it can be inconvenient and frustrating to make the transition. You also have no control over who you work with to repay your mortgage, as you cannot choose your servicer the way you can choose your lender. Keeping the loans for long-term servicing creates consistency and stability for customers.
Automatic payment options
Caliber Home Loans has an account management portal that allows borrowers to set up automatic payments at several different frequencies. In addition to the standard monthly payment, you can choose bi-weekly or semi-monthly automatic payments. The bi-weekly payment shortens the life of your loan because you end up making 13 monthly payments each year. The semi-monthly payment can be a helpful budgeting tool for people who get paid twice a month.
What could be improved
No rates or fees online
One of the biggest mortgage loan cost drivers is the interest rate. You'll want to secure the best mortgage rate you can. You can start comparing by mortgage rate shopping, but you can't compare rates and fees at Caliber Home Loans unless you make a formal application.
No HELOCs or home equity loans
If you're a homeowner considering the pros and cons of a HELOC vs. cash-out refinance or you're interested in a home equity loan, you'll need to shop somewhere else.
Lower customer satisfaction scores
Compared to other large mortgage lenders, Caliber Home Loans scores below average in the most recent J.D. Power U.S. Primary Mortgage Servicer Satisfaction survey. Caliber Home Loans does get an A from the Better Business Bureau, which means that when customers do complain, Caliber Home Loans responds.
How to qualify
You’ll need a 580 FICO® Score for an FHA loan. For most other loans, Caliber Home Loans requires a minimum credit score of 620.
Debt-to-income requirements with Caliber Home Loans vary by loan type. For most borrowers, total monthly debt obligations (including mortgage payments) should stay under 43% of total income. You might still qualify for a mortgage with a 50% DTI if the other parts of your application are strong.
Most loan programs require you to bring some money to the table. So be ready to make a down payment or cover some closing costs. If you don't qualify for a VA loan or a USDA loan, you'll need at least 3% down. If you qualify for a USDA loan, you may be able to roll your closing costs into the loan.
How are Caliber's refinance rates?
Caliber Home Loans doesn't publish its refinance rates. Because it is a very large national lender, Caliber's rates will usually be competitive.
How are Caliber's rates compared to the national average?
Caliber Home Loans' mortgage rates trend about the same or a little higher than the national average. Also, you can't see rates on Caliber's website. The only way to find your rate is to apply. You can get a general idea by calling and talking to a loan officer, but that usually entails disclosing your contact information.
Caliber Home Loans is right for you if:
Caliber is an especially good option for lower- and moderate- income households who want to take advantage of special mortgage programs designed to help them get into homeownership.
Consider Caliber if you need more flexible underwriting guidelines to finance improvements or renovations along with the purchase.
Also, Caliber Home Loans is a good choice for someone who is wary of unknown mortgage servicers. Caliber keeps and services most of the loans it makes, rather than selling them on the secondary mortgage market. Anyone who has had the displeasure of being involuntarily switched to a mortgage servicer without good customer service will appreciate the consistency.
FAQs
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Caliber's mortgage rates trend higher than the national average.
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Probably, especially if you want a fast close and human interaction. Also, it's a great choice for people who want a digital mortgage experience, and folks who don't like the idea of your loan being sold soon after you get it. Since rates and fees are undisclosed, the only way to know for sure whether Caliber is the best option is to apply and compare.
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Probably. You'll have to apply to find out the rate and fees. Caliber doesn't publish that information.
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Caliber is able to accommodate borrowers with a wide range of credit scores and financial resources. It's best if you have a 620 credit score, but Caliber offers programs for people with lower scores. Your debt-to-income ratio should be no higher than 43%. But in 2021, changes were made to mortgage rules, and some lenders can now approve applicants with a DTI over 50%. Lastly, your down payment: USDA and VA loans don't require a down payment, but everyone else needs 3% or more. If that's too steep for you, Caliber can help you find out if you qualify for down payment assistance.
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Caliber offers many mortgage options, including:
- Conventional loan
- FHA loan
- VA loan
- USDA loan
- Jumbo loan
- Construction loan
- Renovation loan
- Low down payment mortgages
- Down payment assistance programs
- Fixed-rate mortgage
- Adjustable-rate mortgage
Our Mortgages Experts
Kimberly is a career writer and editor with more than 30 years' experience. She's a bankruptcy survivor, small business owner, and homeschool parent. In addition to writing for The Motley Fool, she offers content strategy to financial technology startups, owns and manages a 350-writer content agency, and offers pro-bono financial counseling.
Fact Checked
Ashley Maready
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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