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LoanSnap Mortgage Review 2020

Editor’s note: Parts of this article were reviewed by a lender to ensure accuracy prior to publication. The overall conclusions, recommendations and opinions are the author’s alone. The information in this article is accurate as of the date of publishing.

LoanSnap, Inc. is a direct lender headquartered in San Francisco. The company was founded in 2018 and offers “smart home loans” based on artificial intelligence — that means LoanSnap’s platform analyzes an applicant’s entire financial profile digitally to provide the best mortgage options.

Working with LoanSnap

LoanSnap offers mortgages in the following 10 states:

  • Arizona
  • California
  • Colorado
  • Florida
  • Georgia
  • Illinois
  • Michigan
  • Tennessee
  • Texas
  • Washington

LoanSnap has one branch location in Costa Mesa, Calif., that has loan officers in house. The company declined to disclose its annual loan origination volume in an emailed response to LendingTree.

LoanSnap borrowing requirements

LoanSnap requires a minimum credit score of 620 and offers manual underwriting. Financing is available for single-family homes and condominiums. They don’t offer mortgages for multifamily homes, mobile homes or commercial properties.

LoanSnap mortgage products

Purchase

  • Conventional loans. Qualified buyers may be able to purchase a home with as little as 3% down with the Fannie HomeReady® or Freddie Mac Home Possible® conventional loan programs. LoanSnap offers fixed-rate loan terms of 10, 15, 20 and 30 years. The company doesn’t offer adjustable-rate mortgages.
  • FHA loans. Loans backed by the Federal Housing Administration (FHA) typically allow for lower credit scores and easier qualifying than conventional loans. LoanSnap indicated its FHA offerings may be temporarily limited.
  • VA loans. Military borrowers may be eligible for no-down-payment financing on a loan guaranteed by the U.S. Department of Veterans Affairs (VA). LoanSnap indicated its VA offerings may be temporarily limited.
  • Non-conforming loans. Borrowers that don’t meet conventional lending guidelines set by Fannie Mae and Freddie Mac may be able to qualify for a non-conforming loan.
  • Jumbo loans. If you need a loan above the $510,400 limit for conforming home loans, LoanSnap offers jumbo loans up to $1.5 million with a minimum 680 credit score and a 20% down payment.

Refinance

  • Rate-and-term refinance loans. LoanSnap offers a refinance loan for borrowers seeking a lower rate and monthly payment.
  • Cash-out refinance loans. Homeowners can tap their equity with a cash-out refinance and use the money to pay off high-interest-rate debt. LoanSnap’s smart technology factors in bills like credit cards and student loans to provide a detailed view of potential savings from this type of refinance.
  • Home equity lines of credit (HELOCs). A low-rate HELOC could convert equity into cash that can be used for home improvements or debt consolidation. Funds can be drawn as needed during a set draw period (much like a credit card), followed by a repayment period with the balance paid down in fixed installments.
  • FHA streamline refinance loans. Homeowners with a current FHA loan may be eligible for a lower rate or better terms without the hassle of an appraisal or income documentation with an FHA streamline.
  • VA interest rate reduction refinance loans (IRRRLs). Borrowers who have paid their current VA loan on time may be able to refinance without an appraisal or income paperwork.

LoanSnap special programs

The Vouch Program. This gives borrowers an opportunity to increase their chances of loan approval by asking up to five friends to vouch for them by providing LoanSnap with their name and phone number. The borrower gets $50 for each person who vouches for them.

The mortgage application process

  • How to apply. Customers can apply online or call a loan officer. The entire loan can be processed digitally.
  • Disclosure process. A loan estimate (LE) is issued electronically within three business days of completing a loan application. If the borrower agrees to the loan terms, the process moves forward. You can upload documents securely online, and LoanSnap accepts digital signatures.
  • Submitting loan for approval. LoanSnap may access income and asset documents digitally, or you can upload them if needed. LoanSnap orders appraisals through a third-party provider.
  • Final approval. The file is set up for funding and final approval once the lender clears all borrowing and third-party conditions.
  • Closing. Borrowers can complete most of their closing paperwork digitally and review documents prior to the final closing with a notary.
  • Servicing. LoanSnap loans are typically sold on the secondary market to other servicers after closing.

Communication during the process

Your loan officer is your primary contact throughout the LoanSnap mortgage process. Borrowers receive real-time loan updates through the borrower portal, email or text, or you can communicate through the LoanSnap smartphone app or call (888) 680-5777.

Pros and cons of a LoanSnap mortgage

Pros

  • Offers a smartphone app and a digital loan application
  • Offers proprietary smart loan technology

Cons

  • Operates in only 10 states and doesn’t have a robust in-person presence
  • No detailed website information about loan products or qualifying guidelines
  • Doesn’t offer loans for manufactured homes or multifamily homes
 

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