One mortgage lender I’ve seen advertising quite a bit lately goes by the name “Mutual of Omaha Mortgage.”
I think they originally focused on reverse mortgages, but recently they started forwarding mortgages to home buyers and existing homeowners looking to refinance.
They seem to be quite aggressive in terms of pricing, as most lenders who advertise in rate comparison tables are.
For example, I’ve seen a lot of 30-year fixed rates in the mid-5s advertised by the company, albeit with points required.
But it speaks to their approach to being a discount online mortgage lender. Read on to learn more.
Mutual of Omaha Mortgage Fast Facts
- Retail, direct to consumer mortgage institute
- Offers home equity loans, refis and reverse mortgages
- Founded in 2013, headquartered in San Diego, CA
- Licensed to do business in 49 states and DC (not available in NY)
- Currently employs around 500 loan officers across 70 branches
- Often found in online mortgage interest rate comparison tables
- Funded $6 billion in home loans last year (a top-50 lender nationally)
- Most active in the states of California, Florida and Texas
What’s a little strange about Mutual of Omaha Mortgage is that they originally started as an insurance company.
You may have heard of Mutual of Omaha Insurance Company at some point, as they have been around since 1909.
To that end, they are a mutual company, meaning they serve their policyholders, not shareholders.
A bit like a credit union, their members basically have a stake in the business, and it’s less about making money and more about putting its customers first.
As for their mortgage division, it is just over 10 years old, having launched in 2013.
As mentioned, they initially focused on home loans for seniors, known as reverse mortgages.
But has since branched out to offer the full suite of home loan types to home buyers and those looking to refinance an existing loan.
Last year, the company financed a healthy $6 billion in home loans, with an almost equal split of home equity loans and refinances. This makes them a top-50 lender nationally.
They are most active in the states of California, Florida and Texas, but serve customers across the country thanks to their 70 branches and 500 loan officers.
Aside from their retail, direct-to-consumer business, they also operate Mutual of Omaha Mortgage TPO, which is their wholesale division for mortgage brokers.
The company has also partnered with several realtors to provide commission discounts of 19% (non-veteran) or 21% if you use one in conjunction with a mutual omaha home loan.
Currently, they are licensed in all states (and the District of Columbia) other than New York.
Loan programs are offered by Mutual of Omaha Mortgage
- Home purchase loan (including 1% down option)
- Refinancing of loans: interest rate/term, payment, streamline
- FHA Loans (Including Zero Down Option)
- VA loan
- USDA loan
- Renovation Loans: FHA 203k, VA Rehab and Conventional Options
- Construction loan
- Payment assistance
- Bridge loan
- Home equity loan
- Reverse mortgage
- Non-QM options like DSCR loans
Mutual of Omaha Mortgage has a wide variety of home loan programs to choose from, including all the usual stuff like conforming loans backed by Fannie Mae and Freddie Mac and jumbo loans.
They also have the full suite of government-backed loans, including FHA loans, USDA loans, and VA loans.
You can get both a fixed-rate loan, including a 30-year fixed or 15-year fixed loan, and an adjustable-rate loan such as a 5/6 ARM or 7/6 ARM.
Their ONE+ mortgage program brings the dream of home ownership within reach by offering a 1% down payment option with reduced private mortgage insurance (PMI).
If you go the FHA loan route, they have their Mutual Assist DPA (Down Payment Assistance) program that comes with 100% financing for FHA loans.
And of course, you can also get 100% financing through a USDA loan or VA loan.
If you’re buying a fixer upper, they have every renovation loan you can imagine, including the FHA 203k program, Fannie Mae HomeStyle Renovation, Freddie Mac CHOICERenovation, and even VA rehab loans.
In addition, they have got a one-off loan if you happen to be building a home that has interest-free payments during the construction phase.
And for those who want to buy before they sell, or need a move, they offer short-term bridging loans.
They seem to be dabbling in some non-QM loans too with a so-called Wealth Builder Loan that focuses on the income generating potential of the property as opposed to your income, employment or credit history.
This sounds a lot like a DSCR loan, meaning you qualify based on rental income.
Finally, the company offers a home loan if you need cash but don’t want to disturb your low-interest first loan.
And reverse mortgages for seniors in need of cash who don’t want a monthly payment.
Mutual of Omaha Mortgage lends to all property types, including single-family homes, condominiums/townhouses, multi-unit properties.
It is unclear if they lend to manufactured homes, so check with a loan officer if necessary.
The only thing they really lack is a home equity line of credit (HELOC), assuming you’d rather have a line of credit instead of a lump sum payment from a home loan.
How to Apply with Mutual of Omaha Mortgage
To get started, you can visit their website or a local brick-and-mortar branch. If you go online, their website is full of helpful information, including helpful articles, frequently asked questions, and several mortgage calculators.
You can click “Find a Loan Officer” to search by branch or individual, or you can simply click “Apply Now” to be paired with a loan officer.
Note that the Apply Now route does not actually allow you to apply directly on your own.
While the loan advisor’s guide will actually let you start a real loan application.
So if you know who you want to work with, you can start all on your own.
Either way, their digital loan application is powered by ncino and lets you do most tasks electronically, whether it’s uploading documents or filling out the app itself.
There is also a free smartphone app you can download if you prefer to use a smartphone during the process.
Once you’re approved, you’ll be able to see your progress, send a message to your loan officer, and securely share the terms of financing your loan.
All in all, they make it easy to apply for a home loan and keep you connected from start to finish to make it as painless and quick as possible.
Mutual of Omaha mortgage rates
One benefit of using Mutual of Omaha Mortgage is that they are transparent when it comes to mortgage interest rates.
You can see their daily mortgage rates on their website without having to log in or fill out anything.
They show a conventional 30-year fixed, conventional 15-year fixed, FHA 30-year fixed, and VA 30-year fixed.
From what I saw, the rates were quite aggressive, but their displayed rates often required two discount points.
In other words, if the loan amount was $500,000, you would have to pay $10,000 to get the advertised interest rate.
This is a form of prepaid interest where you pay upfront at closing for a lower mortgage rate and lower monthly payments.
So be sure to consider the mortgage’s APR, which takes into account points and other lenders’ fees.
It’s unclear if they charge a loan origination fee or fees for things like underwriting and processing.
When you get an offer from a loan officer, ask and check your paperwork to see if these fees are charged (and if you can avoid them if they are!).
Mutual of Omaha Mortgage Reviews
One thing Mutual of Omaha Mortgage doesn’t lack is customer reviews. And from what I’ve seen, they seem to be mostly favorable.
At Experience.com, they have an impressive rating of 4.86/5 from a whopping 71,000+ customer reviews.
For example, at Zillow, the company has an excellent 4.87/5 star rating from over 1,300 reviews.
On Bankrate the company has a solid 4.6/5 from about 115 reviews, and on Google lots of positive reviews across their many branches.
Additionally, they are an accredited business with the Better Business Bureau and currently have a perfect ‘A+’ rating based on complaint history.
So there is more than enough feedback to get a sense of their level of customer satisfaction.
And as I said, they are a joint company that puts their customer first, with the financial backing of a 100-year-old insurance company.
In other words, they are legitimate and safe to work with and will likely continue to work for the foreseeable future.
To sum things up, Mutual of Omaha Mortgage has an excellent selection of loan programs, including zero-down offers and also appears to have low mortgage rates.
This is why they constantly advertise their prices online. So they can also be a leader when it comes to price, but be aware of lender fees and any mortgage points you’ll have to pay at closing.
If they have the right price, it looks like they have the right products and also the right approach when it comes to customer service.
So they could be a good option to consider whether you live in California or Maine and are buying a home or refinancing an existing mortgage.
Mutual of Omaha Mortgage Pros and Cons
The good things
- Can apply for a home loan online or visit a branch
- Offer a digital mortgage application and free smartphone app
- Lots of loan programs, including zero down options, home loans and reverse mortgages
- Tens of thousands of excellent customer reviews across multiple review sites
- A+ Better Business Bureau rating and an accredited business
- Backed by a 100-year-old, A+ rated insurance company (financially stable)
Maybe not
- Not licensed in New York State
- Unclear what lender fees they charge
- Don’t offer HELOCs
- Can transfer your loan after closing
(photo: Tim Vrtiska)
