LoanMonkey Mortgage Pros and Cons
- Fast closing time
- They make a $250 donation to your charity of choice upon closing
- An entirely online process that takes just a few minutes to complete
- Only available in a handful of states
- Doesn’t offer USDA loans and new construction loans
- Does not accept applications from borrowers who are self-employed (as of writing this article)
LoanMonkey Mortgage Overview
LoanMonkey is a growing online mortgage provider that was founded in 2019. In just two short years, the founders built an online mortgage company that rivals many of its competitors.
LoanMonkey has many home loan offerings for their clients, including government-backed mortgages like FHA and VA loans. However, they don’t offer USDA loans at this point in time.
What Types of Mortgages Does LoanMonkey Offer?
LoanMonkey offers all sorts of loans to meet their customer’s unique needs. They offer conventional, adjustable-rate, Federal Housing Authority (FHA) and Department of Veterans Affairs (VA) loans.
They also offer jumbo loans for those looking to make a large purchase and mortgage refinance.
LoanMonkey Mortgage Eligibility Requirements
LoanMonkey, unfortunately, doesn’t publicly disclose its minimum qualification requirements. However, they do offer FHA loans, and since most lenders that offer FHA loans have similar requirements, it’s probably safe to assume that LoanMonkey has similar requirements.
Most lenders that offer FHA loans have a minimum down payment requirement of 3.5% and a minimum credit score requirement of 620.
LoanMonkey Mortgage Rates and Fees
LoanMonkey is by far one of the most transparent lenders out there when it comes to their mortgage rates and fees. They’ve got a simple online tool on their website that enables you to see dozens of loan options, with very little information input from you.
All you need to provide them with is the location you’re buying in, your expected purchase price and down payment, and your credit score.
Once you enter that info, LoanMonkey provides you with their up-to-date rates and closing costs for each product offering. They also show you several options for each loan that include varying levels of point purchasing and their associated upfront costs.
If you are unsure what is included in their closing costs, then you can just click on the “Show Details” button, and they provide an in-depth breakdown of every fee that is included in their closing costs. This is an incredibly helpful and groundbreaking feature for buyers!
LoanMonkey Mortgage Features and Benefits
LoanMonkey has a myriad of helpful features and benefits that they offer their customers. We’ve outlined some of the more noteworthy ones below:
Get Instant Online Preapproval
Like most online mortgage providers, LoanMonkey makes it quick and easy to get approved online for your mortgage. Their digital infrastructure removes steps that would take up valuable time should they be done face-to-face.
Choose Your Rate
LoanMonkey effectively lets you choose your rate when you’re shopping for a mortgage. This isn’t an entirely new concept, as they’re just offering you the ability to buy mortgage points (pay more upfront for a discounted rate).
However, they’re one of the few mortgage lenders that are transparent with your options from the beginning. When getting your rate quote from their website, you can compare your closing costs for different mortgages with varying amounts of points being bought.
Transparent About Fees
LoanMonkey differs from most lenders in that they are very upfront about their fees. You don’t have to apply for a mortgage with them to find out what their fees are. They provide that information alongside their current rates on their website.
And they even go as far as breaking down their fees line by line, so borrowers can understand exactly what they’re being charged for. This is a truly revolutionary practice in the mortgage industry!
How Does LoanMonkey Compare to Other Mortgage Lenders?
#1. LoanMonkey Mortgages vs. Quicken Loans
Quicken Loans is a leading online loan provider. Neither LoanMonkey nor Quicken Loans have physical branches, so neither will be able to provide you with any facetime with your loan officer.
Quicken Loans offers loans in all 50 states, whereas LoanMonkey only offers loans in 10 states, so there is certainly more availability when it comes to Quicken Loans.
Where LoanMonkey really shines when compared to Quicken Loans is their rate and fee transparency. LoanMonkey’s transparency when it comes to what you’ll actually be charged is second to none!
>> More: Quicken Loans Mortgage Review
#2. Rocket Mortgage vs. LoanMonkey Home Loans
Rocket Mortgage is another top lender when it comes to digitally provided mortgages. Like LoanMonkey, Rocket Mortgage doesn’t have any physical branches, but they offer mortgages in all 50 states.
Much like Quicken Loans, Rocket Mortgage isn’t quite as transparent with its rates and fees when compared to LoanMonkey. They are known for their top-notch customer service, though!
>> More: Rocket Mortgage Review
#3. LoanMonkey Mortgage vs. Better Mortgage
Better Mortgage is an online mortgage provider that, much like LoanMonkey, doesn’t serve the entire US. Better Mortgage offers loans in just 46 states; however, they are known for being a great overall lender.
They allow you to submit alternative credit data, such as rent payments, if your credit history is a bit lacking.
This is a feature that LoanMonkey does not offer as of right now. Better also has their signature “Better Guarantee,” where they will pay you $100 if they can’t beat their competitor’s price by at least $100.
When considering both of those things, Better Mortgage may be a better option than LoanMonkey for those who don’t have a very robust credit history. Better’s ability to take alternative credit data into account makes them a bit more borrower friendly.
>> More: Better Mortgage Review
#4. LoanDepot Mortgages vs. LoanMonkey Mortgages
LoanDepot is a hybrid mortgage lender with more than 200 physical branches across the country. This makes LoanDepot the better choice if you’re looking for some facetime with your loan officer throughout the process.
For those looking for a completely online mortgage application process, though, LoanDepot can still help. You don’t have to walk into a physical LoanDepot branch to get a mortgage with them.
You will, however, have to contact a loan officer for a rate quote though, so if you’re looking for a purely digital experience, LoanMonkey may be a better choice (so long as they’re available in your state).
>> More: LoanDepot Mortgage Review
LoanMonkey Mortgage FAQs
Is LoanMonkey a Good Choice for Mortgages?
LoanMonkey is a great choice for a mortgage loan if you are in a state they serve. Their sleek online interface makes applying and getting approved for a loan both quick and easy. Additionally, their upfront rates and fees provide borrowers with peace of mind – they know that there won’t be any hidden fees when the closing time rolls around.
However, they only offer mortgages in 10 states (California, Colorado, Georgia, Iowa, Louisiana, Minnesota, Montana, South Dakota, Texas & Wyoming).
This will, unfortunately, disqualify most people from applying for a mortgage with them, but they are rapidly expanding, so be sure to check back with them every couple of months. You never know when they might start offering mortgages in your state.
How Do LoanMonkey Mortgage Rates Compare to the National Average?
LoanMonkey rates are very competitive when compared to the national average. Right now, they’re a small team, so they can pass on some of their cost savings to borrowers like you. Be sure to check their rates when you apply though, mortgage rates fluctuate every day, so be sure to look at their up-to-date rates on their site and compare them to the national average.
Does LoanMonkey Offer Mortgage Refinance?
LoanMonkey has several options when it comes to refinancing your mortgage. Their up-to-date rates and fees for refinances are available on their website.
What Credit Score Do You Need for a LoanMonkey Mortgage?
LoanMonkey doesn’t publicly disclose their credit score requirements; however, it’s probably safe to say they are in line with other FHA mortgage providers. Most FHA mortgage lenders have a minimum credit score requirement of 620 to get a loan with them.
Does LoanMonkey Charge a Mortgage Origination Fee?
LoanMonkey does charge an origination fee. However, they are very upfront with the fees that are associated with your purchase. On their fee breakdown worksheet, you can find rough estimates as to how much all these fees will cost you.
Bottom Line: LoanMonkey Mortgage Review
Overall, LoanMonkey is a fantastic online mortgage provider. Their clear and upfront closing costs make it easy for prospective buyers to estimate how much money they will need when closing time comes.
LoanMonkey’s sleek online interface makes their all-digital mortgages a breeze to go through, which is a great selling point for those looking for an all-digital mortgage experience.
However, LoanMonkey’s biggest downfall is that they cannot lend in all 50 states yet. They can only offer mortgages in ten states, which eliminates them as a possibility for most buyers.
On the flip side, they do seem to be steadily expanding their reach, so be sure to keep an eye on them over the coming years!