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The Yahoo view: Prosperity Home Mortgage is a good lender if you’re looking for top-notch customer service, financial assistance, and a variety of home loan options.
Prosperity Home Mortgage LLC is a national mortgage lender that’s highly rated for customer service. In fact, it was ranked No. 1 in J.D. Power’s 2024 US Mortgage Origination Satisfaction Study.
The mortgage lender offers a variety of loan products along with perks like rapid closings, minimal-documentation loans, and 90-day rate locks. It also offers lots of financial assistance for down payments, closing costs, and more.
Learn more: Should you lock in a mortgage rate? And if so, when?
Key benefits
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Rated No. 1 for customer satisfaction among mortgage lenders, according to J.D. Power.
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Offers down payment assistance, closing cost credits, and programs to reduce rates and fees.
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Rapid-close, fast-track, and minimal-documentation options allow you to close fast.
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Mortgage rate locks last up to 90 days. (Prosperity’s website says longer rate locks may be available but could come with extra fees.)
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Many types of mortgages, including government-backed loans, conventional loans, and investment property loans.
Need to know
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Interest rates and fees are on par with industry averages.
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No home equity loan or HELOC options.
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No advertised rates to help you gauge potential costs.
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Does not originate loans in Hawaii or Iowa.
Visit Prosperity Home Mortgage’s website.
Prosperity Home Mortgage offers the following types of home loans:
Prosperity Home Mortgage does not offer the following types of home loans:
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Interest-only loans
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Lot loans
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Construction loans
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Accessible dwelling unit (ADU) loans
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Non-QM loans
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Energy-efficient mortgages
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Renovation loans
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1%-down loans
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Bridge loans
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Manufactured home loans
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Piggyback loans
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ITIN mortgages
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Medical professional loans
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Home equity loans
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HELOCs
Dig deeper: How a mortgage rate buydown program works
Prosperity Home Mortgage has tons of mortgages to help hopeful first-time buyers on their road to homeownership, including government-backed mortgages like FHA, VA, and USDA loans. It offers an “Uplift” program, which can help FHA and VA borrowers qualify for lower interest rates and fees, and there’s even a 0%-down FHA loan program.
The company is highly rated for customer satisfaction, offers down payment assistance and closing cost credits, and has buydown options that can help you reduce your interest rate — either temporarily or permanently.
Read more: Best mortgage lenders for first-time home buyers
Prosperity Home Mortgage doesn’t have any home equity loans or HELOCs. You’d need to use a cash-out refinance to tap your home equity at Prosperity. This requires taking out a mortgage loan larger than your current one, using those funds to pay off the old loan, and then getting the difference back in cash. You can then use the money however you’d like.
Although cash-out refinancing has merits, it can be expensive in high-rate environments, especially if you’re replacing your first mortgage with a new one with a higher interest rate.
Learn more: Cash-out refinance vs. HELOC — Which should you choose?
Prosperity Home Mortgage offers fixed and adjustable interest rates, but it isn’t very upfront about those mortgage rates. There are no published rates anywhere on the lender’s website, and to find out what rate you qualify for, you need to fill out the lender’s online application or contact a mortgage consultant near you.
Yahoo Finance uses 2023 Home Mortgage Disclosure Act data made up of 10 million home loan applications to score mortgage lenders on issued mortgage rates and total loan costs. We score each lender on a scale of 1 (lowest) to 5 (highest).
For example, with mortgage interest rates, a lender with a lower score charged a higher-than-median mortgage interest rate for loans issued in 2023. A higher score would indicate a lender granted lower-than-median home loan interest rates to borrowers in 2023.
With total home loan costs, a lower score would indicate that a lender charged higher-than-median total home loan costs in 2023. A high rating would mean that a mortgage lender offered lower-than-median all-in home loan costs in 2023.
What this means: Prosperity Home Mortgage offered a typical mortgage rate of 6.625% and a typical total loan cost of $6,510.15 to borrowers in 2023.
You can officially apply for a mortgage with Prosperity using the lender’s online application. You’ll do this after prequalifying and signing a contract on a house.
The online application requires you to create an account, answer a few questions about your loan purpose, and provide any additional documentation. This could include bank statements, recent pay stubs, your last two federal tax returns, and W-2 forms.
Prosperity has both mortgage preapproval and mortgage “prequalification.” Prequalification is when you provide basic information, hand over various financial documents, and learn what mortgage program and loan amount you may qualify for. To file for prequalification, you’ll need to reach out to a mortgage consultant.
For preapproval, you’ll need to fill out the full online application. If approved, this is a “conditional commitment” that Prosperity Home Mortgage will lend you money to buy a home.
Read more: What documents do I need for mortgage loan preapproval?
Prosperity has several online tools and resources. There are three calculators: a monthly mortgage payment calculator, a calculator that gives a detailed financial breakdown of your mortgage, and a rent vs. buy calculator. However, Prosperity also provides educational videos, and the lender has a mortgage glossary and several articles, guides, and checklists in its Mortgage 101 center. There is also a blog, though this is largely used for information on the company itself — not its offerings as a lender.
Learn more: How much house can you afford? Use our free home affordability calculator.
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Great customer service. The company took the No. 1 spot in J.D. Power’s 2024 Mortgage Origination Satisfaction Study.
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Robust online resources. The lender offers a glossary, videos, articles, three calculators, and more, giving it 3 stars in our Online Features category.
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Strong affordability. Prosperity has all the major government-backed loan options, 3%-down conventional mortgages, down payment assistance, and other programs for first-time home buyers. It gets 4 stars in the Affordability category.
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Poor rate transparency. There is no way to see rates on Prosperity’s website, giving it 1 star in this category.
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No home equity products. Cash-out refinancing is the only way to access your home equity with Prosperity. It doesn’t offer home equity lines of credit or home equity loans.
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Average interest rates and fees. Prosperity’s rates and fees are right on par with industry averages, so we give it 3 stars in this category.
Dig deeper: How to get the lowest mortgage rates possible
Rocket Mortgage has more loan options than Prosperity, offering home equity loans and 1%-down loans. It doesn’t have USDA mortgages, though, while Prosperity does. Both lenders offer several ways to reduce your up-front loan costs and interest rates, and each has strong customer satisfaction ratings. (Prosperity ranks No. 1 with J.D. Power, and Rocket is No. 6, still well above the industry average.) Neither lender is particularly transparent about its mortgage rates, though according to HMDA data, Rocket’s rates do tend to come in lower than Prosperity’s.
Rocket Mortgage review
Fairway Independent Mortgage also has more types of home loans than Prosperity, boasting options like medical professional mortgages, renovation loans, and interest-only loans. Neither lender has any home equity products, and both are above average in customer satisfaction (though, again, Prosperity ranks higher).
Fairway specializes in FHA loans, which make up more than a quarter of their total loan volume. If you’re looking for one of these mortgages, Fairway may be your best bet.
Fairway Independent Mortgage review
Prosperity Home Mortgage LLC is owned by HomeServices of America, a nationwide real estate brokerage that is an affiliate of Berkshire Hathaway.
Prosperity Home Mortgage typically does not retain servicing rights to the loans it originates. These are usually transferred to third-party services shortly after closing. This is a common occurrence with many lenders and affects only which company you send your payment to — not your loan terms or any other mortgage details.
Prosperity Home Mortgages offers FHA, VA, USDA, and conventional loans, as well as loans for investment properties and second homes. You can also refinance your mortgage loan with Prosperity.
Methodology:
Yahoo Finance reviews and scores mortgage lenders with quintile scoring in five primary categories: 1) Interest rates. Using 2023 Home Mortgage Disclosure Act data comprised of 10 million home loan applications, we score mortgage lenders on issued mortgage rates below or above the annual median of reporting lenders. 2) Affordability. A measure of loan product availability and the willingness of a lender to offer government-backed loans, low down payments, down payment assistance, and consideration of nontraditional credit. 3) Loan costs. HMDA data is again analyzed, and lenders are rated based on total loan costs compared to the annual median. 4) Rate transparency. The ability of a website user to obtain a mortgage interest rate estimate. We score lenders based on whether rates are enhanced with discount points or high credit score requirements, disclaimers revealing rate assumptions, sample advertised rates, and whether adjustable or no discount point rate estimates are available. 5) Online features. An analysis of the educational material, calculators, and additional resources available to users.
Review of Nationwide Multistate Licensing System (NMLS) data on regulatory actions can trigger a penalty to the score of any lender with a consumer mortgage-related administrative or enforcement action within the past five years.
Advertisers or sponsorships do not influence ratings.
Editorial disclosure for mortgages:
The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender’s website for the most current information. This site doesn’t include all currently available offers.
This article was edited by Laura Grace Tarpley.