Alterra 2021 Home Loan Review: Offers Under-Represented Borrowers Alternative Underwriting Options, But Rates and Fees Not Listed Online


We want to help you make better informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information see How we make money.

Alterra 2021 Home Loan Review

Alterra 2021 Home Loan Review

Editor’s Note: (3.1 / 5)

Alterra 2021 Home Loan Review

Editor’s Note: (3.1 / 5)
  • Minimum credit score:

    580 FHA and VA; 620 conventional

  • Minimum deposit:

    0% to 3.5%, depending on the type of loan

  • Can apply online:

    Yes

  • Works in:

    34 states

NextAdvisor’s Take

Advantages

  • Available in 34 states and Washington, DC
  • For the Hispanic community; many loan officers are bilingual in Spanish and English
  • Various loan programs, including mortgages for people without SSN
  • Offers quotes (over the phone or in person) without a credit check

The inconvenients

  • Unresponsive customer service
  • Branches are not available in all states
  • Rates not advertised on the lender‘s website
  • Does not offer construction loans, home equity lines of credit or home equity loans

The bottom line

Alterra Home Loans focuses on lending to underserved communities in 34 states plus Washington, DC This lender can help you get a loan if you are a first-time home buyer, self-employed, live in a household with multiple sources of income, have need help with a down payment, or don’t have a social security number, or need a Spanish-speaking loan officer.

Editorial independence

As with all of our mortgage lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information on our rating methodology, Click here.

Complete review of Alterra home loans

Alterra Home Loans is a mortgage lender that was established in 2006 and is now part of Panorama Mortgage Group. The Las Vegas-based lender offers a variety of loan products for many types of borrowers, including those who are self-employed, need down payment assistance, or have income from multiple sources.

As a 100% Hispanic business, Alterra’s mission statement says it strives to help under-represented homeowner groups. The company says 73% of its customers were “diverse” and 62% were “first-time buyers” in 2019. Many of the lender’s loan officers are fluent in English and Spanish, which can help multilingual customers to navigate the home buying process.

If you are looking to take out a mortgage, here is an overview of Alterra home loans.

Alterra Home Loans: Types and Products of Mortgages

Alterra Home Loans offers mortgages to borrowers who want to buy, renovate or refinance a home. On the lender’s menu at the moment:

Alterra also helps borrowers overcome various barriers to buying a home. For example, the company’s underwriting model accommodates borrowers who are self-employed or who live in households where multiple family members contribute to monthly bills.

The lender also offers a foreign national loan program where borrowers can use an Individual Tax Identification Number (ITIN) instead of a Social Security number. To be eligible, borrowers will need to provide a 20% down payment, prove two years of employment in the same type of work, and provide their last two tax returns using the ITIN. These home loans also come with a higher interest rate.

Alterra mortgage loans: transparency

The Alterra Home Loans website does not advertise mortgage rates or lender fees, and offers very little information about its offers. Customers will not find details of the types of loans Alterra offers, information on qualifying requirements, or helpful resources on the mortgage process.

Borrowers can complete an online form to request a phone call to a loan officer or they can visit one of the lender’s branches in person. We tried to call the lender several times and did not contact anyone, but received a reminder from a loan officer after filling out the online form. The representative gave information about the loan process and provided a no hard credit call quote.

If you decide to complete a mortgage application, you can submit one online or through the lender’s mobile app, Pronto Plus. A loan officer will contact you to open an account and complete the loan approval process. You can track your application, upload documents, sign documents electronically, and check your employment online.

Alterra home loans: mortgage rates and fees

Alterra Home Loans does not advertise interest rates on its website or provide a list of fees borrowers may pay on closing. However, it can be helpful to know the closing costs that are common with most lenders. You can expect to pay around 2% to 5% of the total price of your home in fees, including lender fees and third party fees. Costs may include:

Alterra loan eligibility varies with each mortgage program. To qualify for a conventional loan, borrowers need a credit score of at least 620 and a minimum down payment of 3%. But with FHA loans, borrowers need a credit score of only 580 with a down payment of at least 3.5%. Alterra also requires a score of at least 580 to get a VA loan, although you don’t need a down payment.

Refinancing with Alterra mortgage loans

Homeowners with an existing mortgage may be able to save money or borrow money with a refinance loan. The Alterra website does not offer much information on the refinancing process or provide resources and interest rates, so you will need to contact a loan officer for more information. Alterra offers:

  • Refinancing loans at rate and duration, which allow you to get a new interest rate, a new loan term, or both. Homeowners often use this type of loan to save money, get rid of private mortgage insurance, or switch from an adjustable rate mortgage to a fixed rate loan.
  • Cash refinancing loans, which allow you to borrow money using the equity in your home as collateral. You would take more mortgage than you owe, pay off your existing loan, and then accept the difference in cash.

As with any home loan, it’s a good idea to compare mortgage lenders before refinancing.

Alterra’s Home Loans Compared to Other Mortgage Lenders

Alterra home loans Motion mortgage Truist Mortgage
Minimum credit score 580 for FHA and VA; 620 for conventional 580 (some mortgage programs may require a higher score) Not provided
Minimum deposit 0% for VA and USDA; 3% for conventional; 3.5% for FHA 0% to 3.5% 0% for VA and USDA; 3% for conventional; 3.5% for FHA
Where does the lender operate? 34 states and Washington, DC All 50 states and Washington, DC 47 states and Washington, DC
Main types of loans Conventional, VA, FHA, USDA, jumbo, fixed rate, variable rate, refinancing, cash-out refinancing, renovation Conventional, Jumbo, VA, FHA, USDA, Various Home Improvement Loans, Variable Rate, Fixed Rate, Refinance, Refinance With Withdrawal, Reverse Mortgages Conventional, Jumbo, VA, FHA, USDA, Construction, Variable Rate, Fixed Rate, Multiple Refinance Programs, Home Equity Loans, Home Equity Lines of Credit

How To Shop For The Best Mortgage Rate

Your mortgage rate affects the cost of borrowing over the life of the loan, so getting a low rate can help save you money. Shopping around is the best way to find a good deal. Start by researching mortgage lenders, submit at least three mortgage applications, and compare loan estimates. Multiple credit applications can temporarily lower your credit score, but you can reduce the impact by submitting the applications within a short period of time – around two to six weeks.

According to a study by the Consumer Financial Protection Bureau, simply comparing offers can help you save up to $ 300 per year. You can save even more depending on the interest rate you get and whether you negotiate. For example, you can send the best offer to another lender and ask them to lower their interest rate or their closing costs, or both. Mortgage lenders may be willing to compete for your business, especially if your credit is strong.

Editorial independence

As with all of our mortgage lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information on our rating methodology, Click here.


Comments are closed.