Sebonic Financial Mortgage Review | The Ascent

Top perks

Quick close

Sebonic Financial is fully digital. This lender uses a proprietary app called Octane to manage mortgage applications. Octane’s technology offers drag-and-drop functionality, e-signing capability, and real-time status updates throughout the process. This technology allows some borrowers to close their loans faster than they might with another lender. It’s also really convenient. Sebonic Financial offers a remote closing in locations where it’s permitted by law. If you’re in one of those states, you can go from a rate inquiry to a mortgage application to the keys to your castle from the location of your choosing.

Low fees

Sebonic Financial does not charge an application fee. Even better, they also cover many of the fees other lenders tack on to your closing costs. Sebonic will not charge you for underwriting, processing, tax certification, flood certification, or your credit report.

Sebonic does charge an origination fee (the amount is not disclosed and it varies), but that fee is waived for repeat customers.

Wide selection of home loan options

Sebonic Financial offers a wide enough variety of loan types to meet the needs of most borrowers:

  • FHA loan for borrowers who need more flexible underwriting
  • VA loan for eligible servicemembers and government employees
  • USDA loan for lower-income borrowers buying in towns and rural areas
  • Conventional loan for anyone who qualifies
  • Conventional 97 for borrowers who want to make a lower down payment (usually for first-time home buyers or lower-income borrowers)
  • Piggyback loan to help you avoid private mortgage insurance
  • Interest-only loan for borrowers who plan to sell or refinance soon

What could be improved

Accommodate more borrowers

Even though Sebonic has a nice menu of home loan options, they can’t meet every borrower’s needs. Sebonic does not offer a home equity line of credit (HELOC) or home equity loan. If you want to access your equity, your only option at Sebonic would be a cash-out refinance loan.

You’ll also have to keep shopping if you’re looking for a new home construction loan, or a stated income loan for self-employed people and business owners who want to verify income using bank statements instead of pay stubs and tax returns.

Transparency

Sebonic Financial doesn’t publish mortgage rates on its website. That makes it hard for borrowers to shop around for low rates before they apply. If you want to know the rate, you’ll have to fill out Sebonic’s online form and agree to be contacted by a loan officer.

Although rates are far from the only factor to consider when choosing a mortgage lender, they do give you a starting point. We like it when this information is available without much work.

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