Northpointe Bank Review

Northpointe Bank at a Glance

Loan typesFixed and adjustable
Loan featuresVHA, FHA, rural development, jumbo, equity builder
Repayment Terms   15- or 30- year fixed, 3-,5-,7-,10-year adjustable
Down payment0%-20% minimums
Credit Score580+
Best forThose wanting a tailor-made program

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Overview

Northpointe Bank is a bank and mortgage lender operating out of Michigan and serving all 50 states. It specializes in designing custom loans to suit different types of buyers, with specific programs for things like:

  • Rural development
  • Home purchase
  • Rehabilitation
  • Qualified borrowers who have faced financial hardships.

It offers fixed-rate, adjustable, and jumbo loans, as well as the government-backed FHA and VA loans.

Best for?

This lender is best suited to borrowers who have special requirements – whether something related to personal financial circumstances, or to the property being purchased. Northpointe takes great pride in offering many different loan programs to suit different needs, and it is open to customizing programs to fit the needs of every new borrower that walks in the door.

Loan Features​

Northpointe offers the following loans:

  • 15- and 30-year fixed rate mortgages
  • 30-year fixed-rate construction mortgages
  • 5-year adjustable mortgages
  • VHA loans
  • FHA loans
  • Jumbo loans
  • Homeownership Opportunities Program, with up to $10,000 in federal grants assistance

Depending on the borrower’s needs, it can wrap up the loan with one of its tailored “smart programs.” These include:

  • EquityBuilder: Rather than using cash for a down payment, borrowers can apply it toward a lower interest rate and shorter loan term. Less upfront cash is needed, and the total interest payments are lower. Available in AL, AZ, CA, GA, IL, IN, KY, MI, NC, OH, SC, TN, UT, VA
  • Conforming Advantage: Offers a lower rate to borrowers with qualified credit who make at least a 5% down payment
  • Construction & Vacant Land: Combines the best features of a construction loan and a permanent loan to help borrowers who are looking to purchase a lot or land. Vacant land can be financed for as little as a 20% down payment. Available in AI, CO, FL, GA, IN, MI, NC, OH, SC.
  • Renovation: Ideal for up to 180 days of work on kitchen or bathroom renovations. Includes up to 50% of the appraised value on the home loan for renovations. Available in AL, CO, FL, GA, IN, MI, NC, OH, SC.
  • Rural Development: Offers low rates, $0 down payment and flexible credit requirements to eligible low-income and moderate-income buyers in rural areas.
  • Non-Warrantable Condominium: Enables financing for new condo projects that meet certain requirements, i.e. more than 20% of the units are commercial or mixed use; development has a high concentration of renters. Available in AL, AZ, CA, GA, IL, IN, KY, MI, NC, OH, SC, TN, UT, VA, WA. 

The Application Process

You can get prequalified quickly by either answering a few questions online or speaking to an agent by phone. You’ll be asked for your contact details, the loan amount, the purpose of the loan (i.e. to reside in it or to refinance), type of property, the state where the property is located, and estimated credit score.

During the formal application, you’ll be asked to provide all the information that any other lender would ask of you, such as:

  • Proof of ID
  • Social Security number
  • Proof of income
  • Financial documents, showing bank balance, assets, expenses and bills

Northpointe is able to approve applications quicker than most of its competitors. It promises to close mortgages within 15 business days for borrowers that meet certain requirements, such as: good credit score (at least 680), maximum or combined loan-to-value ratio of 90%, and maximum debt-to-income ratio of 41%.

Pros and Cons

ProsCons
Customized loan programsSome state-sepcific features
Dedicated loan agentJumbo rates are average
Rates lower than averageHuge range of features can be confusing

Northpointe’s strength lies in its flexibility. It has a team of dedicated loan agents who can guide you to one of its special loan programs or help design one to suit you. It offers some great benefits to qualified borrowers from certain professions or with a good credit rating, such as low down payments and super-quick approvals.

Northpointe started out in Michigan and it still offers a handful of benefits exclusively to borrowers in that state. However, it has expanded quickly, with agents now located in 16 states, and has gradually rolled out most of its benefits to include borrowers everywhere in the U.S.

Loan Terms – The Bare Basics

Northpointe’s home loans range from small mortgages to Jumbo loans of up to $2.5 million. Term lengths are restricted to 15 and 30 years for fixed-rate mortgages, and 5 years for adjustable mortgages. Down payments range from as low as 0% for qualified borrowers to 20%. Borrowers must be US citizens or permanent residents aged 18 or more.

Repayment Terms

Northpointe offers 15-year and 30-year fixed-rate mortgages, 5-year adjustable mortgages, and 30-year construction loans. Its rates are typically a little higher than the national average, although it compensates for this by offering lower down payments and other benefits in comparison to its competitors.

At time of writing, a 30-year fixed-rate loan (based on the example of a single family residence in Michigan with a good credit score, 25% down payment, and a loan amount of $150,000, carried a 4.5% interest rate (4.598% APR) – compared to a national average of 4.4%. A 15-year fixed rate was 4.25% (4.347% APR), and a 5-year adjustable rate was 4.125% (4.528%).  

Help & Support

Customers can reach Northpointe via email or phone. Calls and emails are responded to in short order. As a result of being located in the Eastern Time zone some evening calls are responded to the following day. 

Summary

Northpointe Bank offers the same types of fixed-rate and adjustable loans as many other lenders in the market, but it stands out with its “smart programs,”which are a group of custom programs to suit the needs of almost every type of borrower. The sheer range of options can be overwhelming at first glance, but it is also the reason that online feedback for Northpointe Bank’s mortgage service is overwhelmingly positive.

Physical Address

Northpointe Bank
3333 Deposit Dr NE

Grand Rapids

MI 49546

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