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Suntrust – About The Lender
Suntrust Bank is a major commercial bank and supplier of mortgages to the US housing market. It is in the top 20 US banks by total assets and market capitalization and actively participates in the mortgage lending market in all 50 states, through its branch system and online.
Suntrust is a major nationwide lender with a variety of loan options that can meet almost any customer’s needs. Its retail footprint being only in the southeastern United States means that if you want to meet your loan officer face-to-face, you need to live near one of its branches. However, what it lacks in retail presence, it makes up for in online (online application, chat) and on-the-phone service. You can apply from your phone, your iPad, any mobile device, as well as your computer and conduct the entire process online.
In addition to home purchases, Suntrust also refinances properties – you can get a “rate and term” (also known as no-cash out) refinance, or you can take equity out of your home with a cash-out refinance, with the exception of Texas, where they don’t do refinances in which cash is taken out.
Suntrust Mortgage Pros & Cons
Suntrust Mortgage Products, Fees, and Conditions
No changes and no surprises with these loans. They are made to agency standards, with the maximum loan $453,100 – $679,750, depending on location of the property. The minimum credit score is 620.
No changes to the rate or payments for the life of the loan. These loans start with amounts that are $1 higher than the agency conforming limit – at $453,101, up to $769,751, depending on the location of the property. The maximum jumbo loan is $1,500,000 and a 20% minimum down payment is required.
Suntrust’s jumbo loans also have significant reserve requirements. This means that, in addition to proving the availability of the down payment and closing costs, the borrower must have six or months of monthly payments (Principal, Interest, Taxes and Insurance) in assets that can be liquidated in an emergency. The minimum credit score is 720.
These loans are fixed for the first five years and then adjust annually. In other words, these loans have interest rates which are subject to change during their life. The minimum credit score is 620.
As with the agency loans, there are no changes to the rate or payments. However, these loans are well-suited to those who have limited funds for a down payment or whose credit history is not pristine. Where most agency loans prefer that you have a 720 credit score, FHA loans allow for 660 or lower and down payments as low as 3.5%. The maximum loan, depending on the location of the property, is $679,750. The minimum credit score is 620.
Eligible veterans can obtain 100% financing using their VA eligibility, to a maximum loan of $679,750, depending on the location of the property. No down payment required. 30-year fixed rate loans are the most commonly used VA mortgage program. The minimum credit score is 620.
These loans are fixed for five years and then adjust annually for the remaining 25 years of the loan. Interest rates are subject to change during the lifetime of the loan. The maximum loan, based on the location of the property, is $679,750. For eligible veterans only, up to 100% of the purchase price of value of the property. The minimum credit score is 620.
Special Loan Programs
These loans help homebuyers who qualify to purchase a home with a lower down payment, lower interest rates, and reduced mortgage insurance cost. These are available in true conforming (up to $453,100 or in the agency high-balance programs, for which the maximum loan varies by county, with a high of $679,750. The minimum credit score is usually 640.
Allows qualified buyers purchasing a home in certain rural areas to purchase a home with 100% financing – in other words, no money down. Income limits apply – the borrower has to earn 115% of the US median income or less, to qualify. Currently, the US median income is approximately $59,000 annually, so 115%, or $67,850, the maximum one can earn to qualify for a USDA loan. The loan amount may be increased to include the financing of some closing costs if the home appraises higher than the purchase price. This is the only program in the industry to do so. The minimum credit score is 620.
Often, these professionals are bogged down in student loan debt. They earn good money but are challenged to save for a down payment. Suntrust will make a 100% loan (no down payment) up to $750,000 to these professionals. The minimum credit score is 720.
A borrower can achieve jumbo loan amounts using Suntrust’s Jumbo Loan Solution, a combination 1 + 2 up to $1,025,500, using a conforming, $453,100 first mortgage and a maximum second mortgage of $572,400. This avoids the significant reserve requirements and high minimum credit score requirement of jumbo financing
Suntrust Mortgage Process
Is the Suntrust Mortgage Right for You?
Suntrust is best suited for the borrower who can deal with technology (if not located in the Southeastern United States) and who meets reasonable standards for credit score (620 – 850), can qualify based on their income and demonstrate down payment and reserve requirements for Suntrust’s programs.
You do not have to have the highest credit scores or significant cash down payment for their loans. Suntrust has a solution for most borrowers, including some that require no cash down and a workaround for jumbo borrowers who cannot meet the reserve requirements.
While Suntrust doesn’t have the highest customer satisfaction ratings on the major rating sites, such as J.D. Power and Bankrate.com, they were very responsive to our requests for information.