Spring EQ Mortgage Review

About Spring EQ LLC

Spring EQ LLC

Spring EQ changed the way you access the equity in your home. We offer a free quote in minutes without checking your credit, typically require only 4 documents and you get your money in as little as 14 days!

review breakdown

Recommended
88%
Interest Rates
Fees & Closing Cost
Customer Service
Responsiveness

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Working with Spring EQ

Spring EQ is currently licensed to do business in 31 states in the U.S., as well as Washington D.C.

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Connecticut
  • Colorado
  • Delaware
  • Florida
  • Georgia
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Michigan
  • Nebraska
  • New Hampshire
  • New Jersey
  • North Carolina
  • Ohio
  • Oregon
  • Rhode Island
  • Tennessee
  • Vermont
  • Virginia
  • Washington
  • Wisconsin

 

The headquarters is in Philadelphia, with an additional branch in Frisco, Texas, and both branches have loan officers specializing in home equity lending.

The application process is mostly digital, and upon completion of very basic information on the website, a loan officer contacts the customer by phone or email to go over possible options.

Spring EQ lends on the following types of properties:

  • Single-family homes
  • Condominiums

 

Spring EQ does not lend on the following types of properties:

  • Multifamily, manufactured, mobile homes, condotels, co-ops

 

All properties must be owner-occupied or second homes; investment properties are not allowed.

Spring EQ also offers manual underwriting, which may be helpful for borrowers who need to understand their options if they don’t quite meet all the lender’s requirements on paper.

According to Spring EQ, one niche that separates them from other home equity lenders is their ability to approve debt consolidation loans. More than 40% of Spring EQ’s customers use their home equity loans to pay off other debt.


Spring EQ mortgage products

Spring EQ is a fixed-rate home equity lender that specializes in one product: 5- to 30-year, fixed-rate amortizing loans. They do not currently offer home equity lines of credit, although they are aiming to release a HELOC product in the first quarter of 2019, according to a company spokesperson.

Here are some of the features of the Spring EQ fixed-rate home equity loans:

  • You can borrow up to 100% of the value of your home. According to the FTC, the amount you can usually borrow on a fixed-rate home equity loan is limited to 85% of the total value of your home. Spring EQ allows borrowers to take a home equity loan up to 100% combined loan-to-value.
  • Approval possible for credit scores as low as 660.
  • Minimal documents required for submission. Only four documents are typically required to be considered for a Spring EQ home equity loan:
    • Proof of ID
    • Proof of income
    • A current mortgage statement for your first mortgage
    • Proof of current homeowners insurance
  • Requires only a drive-by appraisal. The Spring EQ loan can be approved with just a drive-by appraisal, which is an appraisal that requires only an inspection of the exterior of your home. Besides speeding up the process, the cost of a drive-by appraisal is significantly less than a full interior/exterior appraisal.
  • Closing in as fast as 14 days. In some cases, closings can be accomplished in 14 days. According to Spring EQ, the average time from application to customers getting their cash is 20 days.

The mortgage application process

The mortgage process is mostly electronic, allowing customers to virtually sign all but the final closing documents. Here is a brief overview of the process:

  • Initial options with and without credit. Customers can request a rate quote with or without having a credit report pulled. In order to get a full approval, a credit report must be obtained.
  • Disclosure process. If you decide to proceed with the application, you create an online account for the portal used to upload the necessary documents.
  • Submission of loan for approval. Once you provide the four documents listed above and the lender has ordered an appraisal on the property, the customer advocate submits the loan for initial approval. Once complete your loan decision is provided.
  • Final approval. After Spring EQ reviews all documents and receives the appraisal, it finalizes approval.
  • Closing disclosure. Once Spring EQ has issued you the closing disclosure, you can schedule the date, time and location, or have a Spring EQ customer advocate help you schedule the closing time and place.

Communication during the process

  • Initial contact. A loan officer will start the process and guide you until the loan is ready to process for final approval. The loan officer is always the primary contact throughout the process for any program, rate or fee questions.
  • Loan processing contact. Spring EQ assigns you a customer advocate once your loan process begins, and the advocate will work with you through the entire process until closing.
  • Electronic status notifications. Automatic emails will keep you notified of the status of the loan, and provide information about what’s been completed and what is outstanding.

Pros and cons of a Spring EQ mortgage

Pros

  • Website with interactive buttons that show rather than tell about the benefits of home equity loans
  • More flexible qualifying guidelines with combined loan-to-value ratio up to 100%, and credit scores as low as 660
  • Dedicated contacts throughout the process to answer both program and loan-process questions
  • Drive-by appraisal saves money and time
  • Electronic status notifications supplement the communications from a loan officer and customer advocate
  • Streamlined documentation requirements, typically only 4 documents
  • Customer can schedule own closing time and place

 

Cons

  • Website lacks detailed information about what a home equity loan is
  • No other product offerings for accessing home equity, such as home equity lines of credit or first mortgage cash-out refinances
  • Multifamily, manufactured, co-ops or condotels are not allowable property types
  • Investment properties are not eligible for financing

Editorial 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.