Watermark Home Loans review: Digital lender with mortgages for people who might not qualify elsewhere
Watermark Home Loans; Vicky Leta/Insider
Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Overall lender rating
| Feature | Insider rating (out of 5) |
| Loan types | 3.5 |
| Affordability | 4.5 |
| Customer satisfaction | 4.5 |
| Trustworthiness | 5 |
| Total | 4.38 |
Pros and cons
| Pros | Cons |
|
|
Watermark Home Loans mortgage interest rates and fees
Watermark Home Loans discloses few details about its mortgages on its website. On its "calculators" page, it displays some mortgage rates, but these are national average rates, not its own sample rates.
To learn more about the rates Watermark offers, you'll need to click on the "Get My Quote" box at the top of its site and provide contact information.
Most mortgage lenders will display a few sample mortgage rates online to give borrowers an idea of the rates they offer. Some even have tools that let you see customized rates based on your location, credit score, loan amount, and other information.
Some lenders also provide disclosures that have information about the lender fees they charge borrowers. Lender fees can include things like an origination fee or a charge for pulling your credit report. Watermark Home Loans doesn't disclose the lender fees it charges online.
Watermark Home Loans vs. New American Funding
Watermark Home Loans | New American Funding |
Types of mortgages Conforming, jumbo, FHA, VA, USDA, non-QM | Types of mortgages Conforming, jumbo, FHA, VA, USDA, reverse, buydown loan, I CAN mortgage |
Standout feature Completely digital experience | Standout feature I CAN mortgage |
New American Funding and Watermark are both good lenders for borrowers with unique financial situations.
While Watermark has mortgage options for those with recent dings on their credit and high debt-to-income (DTI) ratios, New American Funding has options that let borrowers with no credit history use non-traditional credit to qualify. Non-traditional credit can include things like providing your rent payment history to show you have a good track record of making on-time payments.
New American Funding has a few more options than Watermark Home Loans, including its I CAN mortgage which lets you choose any loan term between eight and 30 years.
Watermark Home Loans vs. NBKC Bank
Watermark Home Loans | The College Investor |
Types of mortgages Conforming, jumbo, FHA, VA, USDA, non-QM | Types of mortgages Conforming, jumbo, FHA, VA |
Standout feature Completely digital experience | Standout feature Live online chat |
If an easy online experience if important to you, NBKC Bank and Watermark are both solid options. For those who prefer a lender with a little more rate transparency, NBKC Bank lets you get customized quotes commitment-free using its online rate calculator.
But if you have a unique financial situation, Watermark's non-QM options would likely better suit your needs.
How Watermark Home Loans works
Watermark Home Loans is an online mortgage lender headquartered in Irvine, California. It currently lends in 45 states and Washington, DC. If you're buying a home in Alaska, Missouri, New York, Rhode Island, or Vermont, you won't be able to get a mortgage with this lender.
Watermark offers a completely online mortgage experience, and you can start an application on its website. You may also apply over the phone if you prefer.
This lender has conforming, jumbo, FHA, VA, USDA, and non-QM mortgages.
The "QM" in "non-QM" refers to qualified mortgages. Qualified mortgages meet certain criteria set forth by the Consumer Financial Protection Bureau. These mortgages are typically less expensive and less risky for both the lender and the borrower, but non-QM loans can be beneficial for those who have the ability to repay a mortgage but don't qualify with the standard mortgage underwriting process.
Watermark's non-QM options are geared toward borrowers who:
- Have a recent bankruptcy or foreclosure on their credit report
- Have a high DTI
- Are self-employed and want to use their bank statements as proof of income
It also has interest-only mortgage options.
Watermark Home Loans requires conforming mortgage borrowers to have a credit score of at least 620 and a down payment of 3%.
If you have questions for this lender, you can get in touch via phone or email.
Is Watermark Home Loans trustworthy?
Watermark Home Loans has an A+ rating from the Better Business Bureau. BBB grades are based on a company's honesty in advertising, transparency about its business practices, and effectiveness in responding to customer complaints.
Watermark has very positive customer reviews on its Zillow profile, with an average rating of 4.84 out of 5 stars.
Watermark Home Loans FAQ
Is Watermark Home Loans a lender or a broker?
Watermark Home Loans is a mortgage lender.
Lenders differ from mortgage brokers in that brokers help you compare offers from a variety of lenders. They do the legwork of shopping around and pulling together information from multiple lenders so you can easily decide which one offers the best deal. Brokers don't lend mortgages; for that, you'll work with a lender.
Where is Watermark Home Loans located?
Watermark Home Loans is a completely online lender. Its headquarters are located in Irvine, California.
Is Watermark Home Loans legit?
Yes, Watermark Home Loans is a real lender with positive online customer reviews and an A+ rating from the BBB.