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Spring EQ Mortgage Review 2021

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Editor’s note: The overall conclusions, recommendations and opinions are the author’s alone. The information in this article is accurate as of the date of publishing.

Spring EQ is a home equity lender operating in a majority of states across the country. It bills itself as a “technology-based originator of nationwide loan products” and is headquartered in Philadelphia.

Since its founding in 2016, Spring EQ has been working to transform the way homeowners tap into their available home equity.

Pros and cons of a Spring EQ mortgage

Pros

  • Offers fixed-rate home equity loans
  • Offers traditional and cash-out refinance options
  • Provides a digital application process
  • Provides a “drive-by” appraisal option for loan amounts up to $175,000

Cons

  • Doesn’t offer purchase loans or HELOCs
  • Doesn’t operate in all 50 states
  • Doesn’t provide functionality for online loan payments

Working with Spring EQ

Spring EQ is licensed to operate in the following 39 states, as well as the District of Columbia:

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Michigan
  • Minnesota
  • Mississippi
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • North Carolina
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Tennessee
  • Texas
  • Vermont
  • Virginia
  • Washington
  • Wisconsin

Aside from its Philadelphia home base, there are branch locations in:

  • Mesa, Ariz.
  • Jacksonville, Fla.
  • Carrollton, Texas

According to Spring EQ, the company stands out from other home equity lenders through its ability to approve debt consolidation loans.

Spring EQ borrowing requirements

Borrowers interested in a home equity loan from Spring EQ need at least a minimum 680 credit score and a maximum 50% debt-to-income ratio. However, a higher score can help you secure better overall loan terms.

Spring EQ provides loans for primary and second homes; investment properties aren’t eligible.

Spring EQ mortgage products

Refinance

  • Rate-and-term refinance loans. A traditional refinance typically involves getting a new mortgage with a lower interest rate and monthly payment, changing your repayment term or switching from an adjustable-rate mortgage to a fixed-rate mortgage.
  • Cash-out refinance loans. If you want to access a portion of the equity you’ve built in your home, a cash-out refinance is one way to do so. Use the funds to consolidate debt, make home improvements or cover college expenses, among other purposes.

Home equity

  • Home equity loans. Spring EQ provides fixed-rate home equity loans with repayment terms up to 30 years and loan amounts up to $500,000. The maximum loan-to-value ratio allowed is 90%.

Spring EQ does not currently offer home equity lines of credit (HELOCs).

The mortgage application process

  • How to apply. Once you provide basic details about yourself, your home’s value and your outstanding loan balance, a loan officer makes contact by phone or email to discuss your loan options.
  • Disclosure process. If you decide to move forward with a loan application, you’ll create an account through Spring EQ’s online portal and upload the necessary documentation. The four main documents required are proof of ID, proof of income, proof of homeowners insurance and a current mortgage statement.
  • Submitting loan for approval. After you’ve provided all the required information and paperwork, Spring EQ will order a home appraisal to verify your property’s value and your available equity. You may only need a drive-by appraisal, which involves an inspection of the exterior of your home. Besides speeding up the process, the cost of a drive-by appraisal is significantly less than that of a full appraisal.
  • Final approval. After Spring EQ reviews all documents and receives the appraisal, it finalizes your loan approval.
  • Closing. In some cases, you may close on your loan in as little as 11 days, though the average borrower gets their funds in 18 days.
  • Servicing. You’ll make your home equity loan payments directly to Spring EQ. You can make payments by phone, by mail or by filling out and submitting an ACH form via email. Online payments aren’t currently available on the Spring EQ website.

Communication during the process

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. You’ll also receive automatic emails to help you keep track of your application status and learn what’s been completed and what is outstanding.

The Spring EQ team can be reached by phone at 888-978-9978 or through the contact form on its website.

 

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