NASB Mortgage Review | The Ascent

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Home loan options for borrowers in many situations

The best thing about this lender is its ability to match borrowers with a home loan that works. Besides the usual conventional loan, FHA loan, and jumbo loan, NASB offers a number of harder-to-find home loan options and nontraditional mortgages. Take a look.

Low or no down payment mortgage

NASB offers a mortgage called the Zero Down Home Loan program. Qualified borrowers can get a home with no down payment. You don’t have to be a first-time home buyer, and there are no income restrictions. You do need to contribute 1% of the purchase price in some way. Closing costs and even cash reserves count toward this requirement. You also need a 700 credit score.

Mortgage for borrowers with past credit issues

The non-conforming loan program at NASB is for borrowers who don’t meet conforming loan guidelines — for example, someone with a recent bankruptcy or job change. This is also a good option for self-employed borrowers who have been in the same line of business for at least a year.

Another option is the NASB FLEX loan, which has a shorter waiting period after bankruptcy or foreclosure than conforming loans do. NASB says they can count virtually any assets you hold as an income source to qualify for this loan.

Mortgage for self-employed borrowers

The NASB Bank Statement mortgage is a stated income loan for borrowers who would rather document income with bank statements rather than tax returns and pay stubs. This is a great program for self-employed borrowers who have plenty of cash flow, but whose taxable income is too low to qualify for a traditional mortgage. That can happen, for instance, when business owners take legitimate deductions to reduce tax liability.

Similarly, the portfolio loan options at NASB allow the underwriter to look at all income streams and use more flexible guidelines. A “portfolio loan” is one that the lender does not intend to sell on the secondary mortgage market. Since the lender plans to keep the loan, it doesn’t have to check certain boxes that make the loan more sellable. A NASB portfolio loan is a good option for foreign nationals, borrowers with high income but low credit, and borrowers with high net worth but low income.

Self-directed IRA loan

If you have a self-directed IRA, you can use it to buy a home. The IRA itself will be the borrower. This type of loan favors you, because even though you are the IRA account holder, you are not personally responsible for the debt. If the loan goes into default, the lender can foreclose on the home and pursue the assets in the IRA, but can’t go after your other assets. (In a rising market, lenders usually recover their losses by selling the home. Sometimes, however, selling the home is not sufficient.) A self-directed IRA mortgage is a way to use your IRA to invest directly in real estate, which is not permissible in a 401(k).

Good Neighbor loan

NASB makes a special effort to help Kansas-City-area residents achieve the dream of homeownership. The Good Neighbor loan requires a minimum credit score of 580, much lower than what’s required for most conventional loans. Qualified borrowers can get a credit to help with closing costs, and there is no lender fee. This is not the same program as the HUD Good Neighbor Next Door program for first-time home buyers and public servants.

VA loan

The VA loan is for borrowers who have served in the military, and some military spouses. A few other people can also qualify, such as those who were cadets at a military school. If you are eligible, you can get a mortgage with no down payment and no mortgage insurance.

Bridge loan

A NASB bridge loan helps you finance your new home before you complete the sale of your old home.

90-day rate lock

For borrowers who opt for a conforming, FHA, or VA loan, NASB offers a fixed rate lock for up to 90 days. If rates go up during that time, yours stays the same. If rates go down, you can request the lower rate.

Outstanding customer service

NASB Mortgage has a great reputation. This lender is holding strong with a 5-star rating on Zillow, and an A+ with the Better Business Bureau.

Flat-rate origination fee

Some lenders charge an origination fee equal to a percentage of your loan amount. This fee can be as high as 3%. NASB Mortgage charges a flat fee of $995 ($0 for VA loans).

What could be improved

No USDA loan

A USDA loan is a government-backed mortgage that helps low- and moderate-income borrowers get a home with no down payment. Eligible properties are usually rural. It’s one more path to homeownership for borrowers who struggle to meet the requirements for a conventional mortgage. NASB serves a large geographical area where properties are USDA-eligible, so it would be helpful if they added this option to the menu.

Geographic limits on some loan programs

NASB’s Good Neighbor program is wonderful, but it’s only available to borrowers in the Kansas City metro area.

No home equity products

NASB is not currently accepting home equity line of credit (HELOC) applications. When that option opens back up, it is likely to be only for NASB bank customers. Bank accounts are only available to residents of Missouri and Kansas.

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