SWBC Mortgage Review 2022
SWBC, short for Southwest Business Corporation, offers a variety of mortgage loan types including conventional, FHA, VA, USDA, Jumbo, conforming and non-conforming, and refinance. In most cases, applicants will need a minimum credit score of 600 and a maximum debt ratio of 50% to qualify for a conventional loan. However, the requirements may be different for some government-backed mortgages.
Borrowers with fair credit scores may struggle to qualify with many lenders, but SWBC may be a good choice thanks to its relatively low requirements.
The benefits explained
- Loans for those with fair credit: SWBC offers mortgages to those with credit scores as low as 600.
- Wide range of loans available: With the exception of interest-only loans, SWBC offers most types of loans, including FHA, VA, and USDA loans.
- Quick closing times: The mortgage lender claims to close loans as quickly as 21 days.
- In-person and online applications available: Applicants can either work with a loan officer in person or go through the entire process entirely online.
Just because the lender says it usually takes 21 days to close doesn’t mean your mortgage will close that quickly. Many factors go into how long it takes to close, including how quickly you provide the requested information and documentation.
Disadvantages Explained
- Not available nationwide: SWBC is not offered in Connecticut, Hawaii, Massachusetts, New Hampshire, New York, North Dakota, Rhode Island, South Dakota, Vermont, or Wyoming.
- Rates and conditions not available: There isn’t a lot of information available on the SWBC website, so you’ll need to speak to a loan officer in your area to find out what you might be eligible for.
- No advantage for the purchase of a first home available: Applicants cannot access popular homeownership programs such as HomeReady and HomePossible.
Types of mortgages offered by SWBC
The SWB offers the following types of mortgage loans:
- Classic loan: Borrowers need a minimum credit score of 600 and a maximum debt-to-income ratio (DTI) of 50%, and they must deposit at least 2% to qualify for a loan. SWBC charges a flat origination fee of $1,095, not including other closing costs.
- FHA loan: SWBC requires borrowers to put at least 3.5% as a down payment and does not disclose other requirements, such as minimum credit score or maximum DTI.
- AV loans: Applicants do not need to make a down payment on a VA loan, and there are no minimum credit requirements.
- USDA loan: No down payment is required for a USDA loan; contact a loan officer near you for more details and to find out if you are eligible.
- giant loan: SWBC offers jumbo loans up to $3 million; the lender requires borrowers to deposit at least 10% and have a maximum DTI of 43%.
Want to see what other lenders have to offer? See our list of top mortgage lenders for more options.
SWBC Features and Benefits
SWBC offers the following features to borrowers:
- Options for the self-employed: Generally, it can be difficult for self-employed people to qualify for a loan on their own, but SWBC offers loan options to help self-employed borrowers qualify. Contact a loan officer for more details.
- Pre-qualification or pre-approval available: You can find out what rates and terms you might qualify for and be able to show buyers that you’re a more serious buyer.
- Fully online application process: SWBC uses an app called Blend where applicants can apply and submit necessary documentation online to help make the process seamless.
How to Apply for an SWBC Loan
If you want to apply for a mortgage through SWBC, here’s how:
- Go to the SWBC website and click “Apply Now” at the top of the home screen.
- Enter your email address and a password to create an account.
- You will be prompted to enter personal information such as your name, assets, income, and property information.
- Answer the questions to provide details about your citizenship status and demographics, and fill in other information.
- Submit the application and you will be contacted by a loan officer about next steps, which may include uploading the requested documents.
If you want to learn more about getting pre-approved for a mortgage or if you’re not ready to submit an application, you can go to the SWBC website and search for a loan officer by going to “Find a pro”. From there you will find a list of licensed offers with names and contact details.
Customer service
SWBC offers several contact options depending on whether you are already a customer or not. Those inquiring about loans can contact SWBC by sending a message through the website or by finding a loan officer nearby – each officer will have their own hours of operation.
For existing customers or those with pending applications, you can either call your loan officer or log into your online account and send a secure message.
Client satisfaction
SWBC seems to have mixed reviews from customers, with comments mostly related to the customer service the contestants have received. The lender also has three regulatory actions against it, the most recent being in 2019 over interest charges.
In Investopedia’s survey of 1,195 mortgage customers, however, SWBC ranked fifth in customer satisfaction, out of 45 mortgage lenders.
Account management
Customers can make payments by check or bank transfer online, and they can receive paper statements if they wish. SWBC also allows customers to manage their accounts through a secure online portal.
Alternative choices
Here are a few lenders you might want to consider besides SWBC.
| SWBC | LoanDeposit | Fairway Mortgage | |
|---|---|---|---|
| Minimum credit score | 600 (conventional) | 500 (FHA loans); others not disclosed | 620 (conventional) |
| Maximum TDI | 50% | 43% | 47% |
| Home ownership programs | Nope | Not disclosed | Yes |
| Rates | Not disclosed | Not disclosed | Not disclosed |
| Costs | Closing costs of $1,095 | Not disclosed | Not disclosed |
| Types of loans | Conventional, VA, FHA, VA, USDA, Jumbo, Refinance | Conventional, VA, FHA, Jumbo, Refinance | Conventional, VA, FHA, VA, USDA, Jumbo, Refinance |
| Average closing time | 21 days | Not disclosed | 30–45 days |
| Availablity | 40 states | At national scale | At national scale |
When it comes to finding the best home loan for your needs, shopping around is a smart move. Here are some criteria to consider when comparing lenders:
- APR: APR, or annual percentage rate, is a good way to compare the cost of borrowing because it includes the interest rates and fees you’ll pay.
- First-time buyer advantages: Some mortgage lenders offer programs like HomeReady, where first-time homebuyers can qualify with a lower down payment.
- Down payment requirements: Lenders may set their minimum down payment differently, so find one with requirements you can afford.
- Discounts: Lenders may offer discounts, such as mortgage points, where you typically pay 1% of your loan amount to reduce interest rates by a fraction of a percent.
- Loan conditions: Depending on your needs, lenders may be able to work with your desired term, although most offer 30 and 15 year mortgages.
- Penalties: Although most lenders don’t charge a prepayment fee, it’s worth checking to see if you’ll be charged to pay off your mortgage sooner.
final verdict
SWBC is ideal for those with fair credit who may not have a lot of funds to make a large down payment. Given the variety of loan options available, most borrowers could find the right fit for them with this lender. Additionally, working with a dedicated loan officer, whether online or in person, can help make the application process smoother and less overwhelming.
However, those who do not reside in states where SWBC is licensed are out of luck. And first-time home buyers may not have access to certain programs through SWBC. Since rates aren’t readily available on their website, it’s hard to tell if their rates are considered competitive with other mortgage lenders until you go through the pre-qualification process.
If you’re a first-time home buyer or live in one of the states that SWBC doesn’t serve, take a look at our picks for the best mortgage lenders today.
Methodology: how we review the best mortgage lenders
Investopedia is dedicated to providing consumers with comprehensive and unbiased reviews of mortgage lenders. We assessed 45 mortgage lenders and collected nearly 1,500 data points, including information on the following:
- Quality of service (customer experience, online applications, benefits/grants, etc.)
- Operational characteristics (state licensing coverage, number of loan officers, etc.)
- Types of loans offered (fixed rate, FHA, USDA, etc.)
- Accessibility (days before closing, minimum debt ratio, etc.)
We also conducted a survey of 1,195 mortgage borrowers to learn more about the most important characteristics from the customer’s perspective and customer satisfaction with different lenders. Mortgage lenders have been objectively rated in the categories above to help readers make informed home loan decisions.
To learn more, see our comprehensive mortgage lender review methodology.