PHH Mortgage Review: Popular Home Loans and Homeowner Assistance

PHH Mortgage is a non-bank mortgage servicer and originator that offers many of the most commonly sought-after types of home loans. PHH Mortgage might offer competitive rates, but it's hard to know for sure because the information it makes freely available is limited. You'll have to start a conversation with a loan officer to find out what this lender offers and how much it might cost. Read our PHH Mortgage review to learn more.

This mortgage lender is a good fit for: Borrowers whose needs can be met by traditional conventional loans, or FHA or VA loans.

Top perks

Low down payment mortgages

PHH Mortgage says on its website that it offers options to applicants who don't have a large down payment. Low down payment mortgages require as little as 3% down, and some programs allow the closing costs to be rolled into the loan so you need less cash at closing. Negative points are also an option. That means in exchange for a higher interest rate on your loan, the lender will contribute cash toward the closing costs. All of these strategies can help get you into homeownership without a big outlay of money.

Homeowner assistance programs

PHH Mortgage offers a pathway to several different homeowner assistance programs for qualified borrowers. They include:

• Repayment plan to help you get caught up after a short-term hardship
• Forbearance plan for borrowers who need to delay payments
• Natural disaster assistance
• Loan modification to reduce your rate, extend your term, or lower your payment

Responsible mortgage servicer

Freddie Mac, the government-sponsored enterprise that supports homeownership, named PHH Mortgage a winner of its 2022 Servicer Honors and Rewards Program (SHARP)sm. This award recognizes mortgage loan servicers (the company you send your payment to) who work with customers to help them avoid defaulting on their loan and losing their home. PHH Mortgage beat out all but two other large lenders to achieve the Bronze.

What could be improved

Transparency

PHH Mortgage is not forthcoming online with information about its loans. You can't find out what loan programs are offered or what the current interest rates are. Everything needs to go through one of its loan officers, and you'll inevitably end up on a marketing list. That makes it hard to compare lenders and impossible to research options online.

Reputation

There have been government actions against PHH Mortgage, including one that was settled in 2023 for loan processing mistakes.

However, PHH Mortgage currently earns an A from the Better Business Bureau. The BBB ranks businesses based on their responses to customer complaints, their transparency, whether there are any government actions against the business, and other factors.

Rate lock

PHH Mortgage offers a rate lock. A rate lock is a great way to relieve the stress that comes with the fear that rates will rise while you're still getting ready to buy. Once you lock your rate with PHH Mortgage, it won't change no matter what happens to market rates. That's great when rates are rising and you close on time. But it's not to your advantage when rates are fluctuating and your purchase is delayed.

Here's the downside. PHH Mortgage's rate lock does not float down. If rates fall after you lock, you are stuck paying the higher rate if you go forward with your mortgage. Plus, if your rate expires and market rates are lower, PHH Mortgage will not offer you a loan at the lower rate. If you apply with PHH Mortgage, you will have to pay the higher of the current market rate or your locked rate. This restriction is not typical among big mortgage lenders.

To apply with PHH Mortgage, you'll need to live in a state where it lends. Those are:

The minimum credit score to qualify for a loan with PHH Mortgage is 580-720, depending on what type of loan you need and how much you want to borrow. The highest credit score requirements are for large jumbo loans. PHH Mortgage doesn't disclose its other qualification criteria. Most lenders look at three main factors in your application: your credit score, your down payment or equity, and your debt-to-income ratio. It's common for lenders to limit your DTI to 45% for most loans, but there are programs that allow a higher DTI. Your debt-to-income ratio represents how much of your income you spend on debt, including housing. A DTI under 36% is fantastic.

PHH Mortgage does not disclose refinance rates.

PHH Mortgage does not disclose mortgage rates.

You want a mortgage lender that services its own loans. When loans are sold, you have to make your payments to a company you didn't choose to do business with and you might not have even heard of. When a lender services its own loans, it can feel more consistent and stable.

You want a traditional conventional or government-backed mortgage. In the states where it lends, PHH Mortgage offers the standard home loan options that will serve most people's needs.