As the nation’s largest mortgage originator, Rocket Mortgage is a top consideration for many homebuyers and borrowers wishing to refinance their existing loan. The lender offers most home loan types including conventional, FHA and VA loans with flexible borrower requirements.
While you must apply to view your personalized rate quotes, the non-bank lender offers a rewards loyalty program to reduce closing costs before applying. You may also appreciate the ability to speak with loan experts by phone or live chat daily.
Rocket Mortgage overview
Rocket Mortgage is consistently one of the largest mortgage originators year in and year out. This non-bank lender operates completely online and opened its doors in 1985. It was previously known as Quicken Loans until rebranding under its current name in July 2021.
Individuals and couples can apply for conventional, FHA, VA and jumbo home loans. The lender offers purchase, rate-and-term refinance and cash-out refinancing. Several programs only require a minimum 580 FICO score or have low down payment requirements.
Additionally, Rocket Mortgage services most of the loans they originate except for jumbo loans.
Unfortunately, USDA loans and home equity lines of credit (HELOCs) are unavailable.
Potential borrowers can preview current mortgage rates online. However, the lender doesn’t disclose your personalized rates and potential lender fees until you apply.
Customer reviews are generally favorable but there are several complaints as this online mortgage lender handles a high volume of mortgage applications. Most of the criticism revolves around difficulties calculating escrow payments and receiving automated principal and interest payments.
How to qualify for a Rocket Mortgage loan
Several factors determine your eligibility and these vary by loan type. However, here are some of the basic guidelines.
Credit score
Borrowers should have a credit score above these thresholds before applying:
- Conventional mortgage: 620
- FHA loans: 580
- VA loans: 580
- Jumbo mortgage: 680
The lender offers two additional ways to qualify with a relatively low credit score. First, borrowers can apply with a creditworthy co-borrower or a co-signer.
Another option is for applicants with a score slightly below 580. These individuals can participate in the Fresh Start program, which can help improve their credit scores.
Income requirements
Rocket Mortgage advises having a debt-to-income (DTI) ratio of 45% or lower to qualify for the best rates.
You must furnish the past two years of income history and your current assets. Again, this is a standard requirement among lenders.
Down payment requirements
This online lender will also take your loan-to-value (LTV) ratio into consideration to calculate the necessary down payment. This ratio can also determine if you must pay private mortgage insurance (PMI) premiums or a similar expense.
Select conventional loans may only require a 3% down payment (97% LTV) although it’s advised to put at least 20% down to avoid PMI.
Federally-insured loan programs such as FHA loans can require as little as 3.5%, although paying at least 10% waives mortgage insurance premiums after 10 years of monthly payments. Additionally, VA loans may not require any down payment.
What is today’s rate? See the current mortgage rates
How to apply for a Rocket Mortgage loan
The entire application process is online and you can upload documents using your phone camera or computer when necessary.
Depending on your situation, you may need to speak with a home loan expert to complete the prequalification process. Some examples of special circumstances include being self-employed or wanting a first-time homebuyer loan.
An agent will usually call, text or send an email within a few minutes. However, you can initiate a phone call or live chat conversation at any point during the application process if you want hands-on help.
Pre-qualification and preapproval
You can initially pre-qualify for a purchase loan or refinance with a soft credit check that won’t impact your credit score. This first step only takes a few minutes but doesn’t verify your income or credit history.
However, you won’t be able to view your personalized rates and mortgage options until you get mortgage preapproval which requires a hard credit check to determine which loans you qualify for. Many applicants receive a verified approval letter within a day.
Several documents to have available when you apply include:
- Proof of income (pay stubs or tax returns).
- Employment verification.
- Bank statements.
- Driver’s license.
- Social Security number.
Sharing the property address and estimated value can make estimating the loan amount and minimum down payment easier in the early stages of the application process.
Underwriting and closing
Most mortgage closings take 30 to 45 days once you choose your desired loan program, rate and term. Many loan types require an independent property appraisal. The loan underwriters will likely request additional documentation to finalize the closing documents.
Pros of a Rocket Mortgage loan
- Offers conventional, FHA, VA and jumbo loans.
- Live customer support is available each day.
- Services most of the loans it originates.
- Can reduce closing costs through Rocket Rewards.
Cons of a Rocket Mortgage loan
- No in-person access.
- Doesn’t offer USDA or home equity loans.
- Must request preapproval to view personalized rate.
- No publicly disclosed lender fees.
Rocket Mortgage perks and special features
You will have access to many home purchase and mortgage refinance options along with easy-to-reach customer service through Rocket Mortgage.
Savings and discounts
An exciting option for any borrower to reduce their closing costs is offered through Rocket Rewards.
This free loyalty program awards points by completing short tasks such as reading mortgage-related articles, watching videos and using calculators. You can redeem these points as a closing cost credit.
You can also inquire about other potential savings and discounts by phone or live chat with a Rocket Mortgage home loan expert.
Many loan options
Homebuyers can access many loan options and compare rates for several programs when seeking mortgage preapproval. For example, certain conventional loans may only require a minimum 3% down payment for qualified borrowers. FHA and VA purchase loans are also available.
Homeowners wanting to refinance a mortgage can choose a conventional rate-and-term refinance, FHA streamline refinance or a VA IRRRL if they don’t want to tap their home equity. Various conventional and government-backed cash-out refinancing loan options are also available.
Additionally, households living in a high cost-of-living area can be eligible for jumbo loans of up to $2.5 million. However, the VA-insured jumbo loan limit is only $1.5 million.
Responsive customer support
You can call, email, text or chat with a loan expert seven days a week at any stage of the application process, even if you are still deciding whether Rocket Mortgage is worth it. Sharing your screen in the application portal to receive hands-on help is also possible.
Only some applications require speaking with a loan officer immediately. You may appreciate this hands-off approach as you can initiate a conversation as needed.
How Rocket Mortgage could improve
Here are some of the potential pitfalls of using Rocket Mortgage.
Must get preapproval to view rates and fees
While the lender provides a rates page with sample quotes for its most popular purchase and refinance loan types, you won’t see your personalized rates until you are preapproved. While the posted rates are not deceptively low teaser rates that most applicants won’t qualify for, these sample rates have several limitations.
For example, the rate quotes usually include buying mortgage discount points, an upfront expense only some borrowers are willing to pay. Taking it a step further, the lender doesn’t disclose any of its fees to the public, making it harder to estimate your total loan costs.
Instead, you must undergo a hard credit check to preview your personalized rates and fees. As a result, you may decide to wait to apply with this lender until you are ready to get a mortgage within 45 days to avoid multiple credit checks appearing on your credit report.
No USDA loans or home equity loans
You must find another lender to obtain a USDA loan if you live in a qualifying rural area.
Additionally, you will need to consider another platform to get a home equity loan or a HELOC that keeps your current mortgage rate and term intact as the lender only offers cash-out refinancing to tap equity.
Home equity loans have become more valuable due to the recent increase in interest rates that doesn’t make a cash-out refinance practical for many borrowers.
No local branches
While the digital application is easy for many situations and you can easily contact a loan expert online or by phone, this lender doesn’t have any physical branches. Some borrowers may prefer working with a local loan officer to receive hands-on help or navigate a complex situation.
Rocket Mortgage customer service and reviews
Phone-based support is available Monday to Friday from 7 a.m. to midnight ET, Saturdays from 9 a.m. to 8 p.m. and Sundays from 9 a.m. to 7 p.m.
Live chat through the Rocket Mortgage website and mobile app operates from 7 a.m. to midnight ET on weekdays, as well as 8 a.m. until midnight over the weekend.
You can also email 24/7, although response times can be slower.
As of June 2023, Rocket Mortgage has a Better Business Bureau (BBB) rating of 2.34 out of 5 with over 1,550 customer reviews. It has a Trustpilot score of 3.4 out of 5 from over 4,350 ratings, ranking it “average” on the platform’s rating system.
Additionally, this mortgage lender has had 1,170 consumer complaints on the CFPB’s Consumer Complaint Database over the past three years. Several negative marks mention inaccurate escrow estimates and the necessary recipient not receiving the funds on time.
Rocket Mortgage alternatives: Rocket Mortgage vs. Better vs. loanDepot
Rocket Mortgage is a leader in the online mortgage sector with many purchase and refinance options. It has a fast and interactive application process although you may prefer a competing non-bank mortgage lender as they may have more flexible credit requirements or charge fewer lender fees.
For example, Better doesn’t charge application, processing or underwriting fees which can result in lower closing costs. But it’s still a good idea to compare rates and discounts from several mortgage lenders to compare your total borrowing expenses. This online-only lender also offers 24/7 customer support.
If you’re struggling to meet the minimum credit score requirements, you may have more success going through loanDepot. It’s possible to qualify for FHA loans with a minimum 500 credit score but you must make a 10% down payment instead of the relaxed 3.5% requirement available to borrowers with a score of 580 or above.
Additionally, loanDepot has physical branches in many cities across the country, which appeals to borrowers who want a locally-based loan officer.
Frequently asked questions (FAQs)
Yes, Quicken Loans rebranded as Rocket Mortgage in 2021 to reflect the lender’s speedy application process. Rocket Mortgage is a subsidiary of Rocket Companies, which offers various consumer financing services including personal loans.
Yes, Rocket Mortgage is a legit online lender for home loans and refinancing. The lender is the nation’s largest non-bank mortgage originator and offers responsive customer service. In addition, conventional, FHA, VA and jumbo loans are available at competitive rates.
FHA and VA loans require a minimum 580 credit score. You’ll need 620 or higher for conventional loans. Jumbo loans require a credit score above 680.
Yes, Rocket Mortgage offers conventional, FHA and VA rate-and-term refinancing and cash-out refinancing. Your original loan can be issued from another lender too.
It’s also possible to refinance FHA and VA loans into a conventional loan or into a different government-backed program. For example, you may refinance an FHA loan into a non-FHA program to stop paying mortgage insurance premiums.
