Northpointe Bank Mortgage Review 2024

Among lenders, Northpointe Bank is notable for the breadth of its home loan programs. Applicants can choose from 22 home loan programs, including government-backed loans from the Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA) and U.S. Department of Agriculture (USDA).

Loan Types

Northpointe offers the standard roster of home loans that you’ll find at many other mortgage lenders:

• Conventional (fixed and adjustable rate)
• FHA
• Jumbo
• USDA (Rural Development)
• VA

Where the bank separates itself from the competition is through its unique, specialty home loan offerings. These include:

• Northpointe 100%. Allows qualified homebuyers in 23 states to buy a house with no down payment. This program requires a minimum credit score of 680.
• SimpleLoan. These loans can be ready to close in 15 business days or less. If your loan isn’t closed in that time frame, Northpointe will provide you with a $300 rebate.
• Conforming Advantage. Offers lower interest rates than its standard conforming loan programs. Qualified borrowers can put down as little as 10%.
• New Start. This specialty loan provides financing for borrowers recovering from a “significant credit event.” Eligible borrowers can receive up to $1 million, and low down payment options are available.
• Doctor Loan. Special financing and terms for medical doctors and specialists, pharmacists, medical residents and medical fellows.

Loan Features

Regardless of the loan program you choose, you may be eligible for the following Northpointe mortgage features:

• TrueApproval. Provides full credit approval prior to finding a property, potentially allowing you to close faster.
• Lock and Shop. When combined with TrueApproval, allows you to lock in your rate for up to 90 days. Rate lock periods of 60 days and 90 days require an upfront deposit equal to 0.25% and 0.50% of the loan amount, respectively.
• Temporary Buydown. Reduces your mortgage rate for up to three years at the start of your loan.
• Rate Refresh. If your rate drops after you close, this program covers some of your closing costs if you choose to refinance with Northpointe within five years of closing on your original home loan.
• Delayed Financing. Offers a way for you to tap your current home equity so that you can make a cash offer on a new house.

Lending requirements for a Northpointe mortgage vary depending on the program.

Minimum Credit Score

Northpointe doesn’t disclose minimum credit scores for its standard mortgage offerings, but you here’s what you can expect to need for some of its specialty loans:

• Conforming Advantage. 680
• New Start. 580
• Northpointe 100%. 680
• SimpleLoan. 680

Minimum Down Payment

Northpointe Bank’s loan offerings have the following down payment requirements:

• Conventional. 3%
• Conforming Advantage. 10%
• Construction. 5%
• Fannie Mae HomeReady. 3%
• FHA 203(k) (Renovation). 3.5%
• Jumbo. 10%
• Professional. 3%

The following Northpointe loans don’t require a down payment:

• Doctor loans
• EquityBuilder
• NorthPointe 100%
• USDA (Rural Development) loans
• VA loans

Minimum Debt-to-Income Ratio

Northpointe Bank doesn’t publicly disclose debt-to-income (DTI) ratios for all of its loans. The lender specifies that you can have a DTI ratio up to 55% for a New Start loan or up to 41% for a SimpleLoan.

A general rule of thumb is that you should aim for a DTI ratio of 36% or less—and no higher than 43%—to qualify for a mortgage.

Mortgage underwriters will also review your income and employment information, and you may be asked to submit documents such as bank statements or pay stubs.

While Northpointe Bank provides a significant amount of information on its website, details on mortgage fees are limited.

According to a loan officer reached by phone, Northpointe Bank charges a flat $1,195 origination fee, regardless of the loan size. The bank doesn’t charge any other fees, although there is a required $550 deposit. However, that’s refunded at closing, and the advisor notes that Northpointe also covers the cost of an appraisal.

If you use Northpointe’s Lock & Shop feature, you’ll pay an upfront deposit of 0.25% of the loan amount to lock the rate for 60 days. A 90-day lock has a 0.50% upfront deposit. These deposits are nonrefundable.

While you can begin a Northpointe Bank mortgage application online, you’ll need to work with a loan advisor to finish the process.

After reviewing Northpointe’s mortgage rates and loan options, you can complete an online form with some initial information about your lending needs. This form asks for:

• Contact information
• Loan purpose (i.e. buy, build or refinance)
• Purchase price
• Loan amount
• Property type
• Estimated credit score

A loan advisor will then reach out to request any additional information needed. You can also visit a Northpointe Bank branch to begin the process if you’d rather talk to someone face to face.

After Northpointe receives your information, it’ll send it to an underwriter. Northpointe Bank uses what it calls Day One Underwriting, which means the bank will immediately review your financial information to give you conditional approval for a loan.

Upfront underwriting can help speed up the process of purchasing a home and, depending on the home loan program you chose, Northpointe claims you can close on your loan in as few as 15 business days.

If you’re turned down for a loan, you still have options. For instance, talk to your loan advisor about the Fannie Mae HomeReady program that Northpointe offers. This program allows you to place a co-borrower on the loan, even if that person doesn’t live with you, which can improve your chances of getting approved.

Another option would be to try a different lender. For instance, some of the top lenders for first-time homebuyers may be willing to work with applicants who have been turned down elsewhere. You could also see if there are different programs available through online lenders.

Northpointe Bank customers are largely satisfied, according to reviews on real estate website Zillow. The company has a score of 4.94 out of 5 stars, based on 4,323 reviews. Many of the comments praise specific loan advisors for their responsiveness and assistance in making the loan process easy.

At the Better Business Bureau, Northpointe Bank has an A+ rating, although there have been 20 complaints within the last year. The Consumer Financial Protection Bureau also has one mortgage-related complaint listed for the company.

Those complaints often reference issues that occurred when a loan was transferred from Northpointe to another servicer. Other complaints involve payment processing problems, unresponsive staff or multiple requests for the same information.

We graded Northpointe Bank based on features that have a meaningful impact on the cost of a mortgage and a borrower’s experience, including interest rates, loan options, accessibility, closing time and customer service.

We award bonus points if a lender offers a specialty rate discount or mortgage product, a home equity product or maintains a fully online mortgage application process.

Our scoring method is broken down as follows:

• Interest rate. 20%
• Loan options. 20%
• Time to close. 20%
• Accessibility. 20%
• Customer service experience. 20%
• Bonus points. Up to 25 points

We chose to focus on these core elements to bring forward lenders that offer the most competitive rates while also providing a satisfactory customer experience accessible to borrowers of all financial backgrounds. We believe this scoring system best reflects consumers’ top priorities when comparison shopping for mortgage lenders.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.