MUTUAL OF OMAHA MORTGAGE REVIEW 2024: PURCHASE AND REFINANCE MORTGAGES WITH DECENT RATES AND EXCELLENT RATINGS

Vault’s Viewpoint on Mutual of Omaha Mortgages

Mutual of Omaha Mortgage is a direct lender offering home purchase and refinance mortgages in 48 states and Washington, D.C. The lender, a subsidiary of Mutual of Omaha Insurance, also offers reverse mortgages for seniors who want to tap into their home equity for income while remaining in their homes.

Under Mutual of Omaha’s mortgage umbrella are several options, including conventional, jumbo, FHA, VA and USDA mortgages. You can also refinance your home through a cash-out refinance to access equity as cash, or simply change your terms through a rate-and-term refinance. No matter which option you prefer, the company’s robust mobile app allows you to apply with just a few taps and quickly check on your loan’s approval and funding status.

Mutual of Omaha Mortgage’s range of purchase and refinance options could be good for first-time homebuyers, those seeking government-backed home loans and homeowners looking to access their home equity. Unfortunately, its website contains limited details about terms, fees and eligibility requirements. As such, you’ll likely need to contact a mortgage agent to discover what rate you might pay and what the qualification criteria are.

Also, this lender isn’t licensed to provide home loans in New York or West Virginia, so you’ll need to work with another mortgage lender if you’re looking to purchase or refinance a home in those two states.

About Mutual of Omaha

Mutual of Omaha Mortgage is the home financing arm of Mutual of Omaha. The insurance and financial services giant has operated since 1909 and launched the mortgage subsidiary in 2016. You can seek mortgage preapproval through its app or website. Loan agents are available to answer questions via online chat or phone, or in person at one of its branches in 25 states.

Mutual of Omaha Mortgage offers somewhat competitive mortgage rates, but you must prequalify to discover the rate you qualify for. Here are the lender’s interest rates as of April 19, 2024, for some of its most popular home loans:

• Conventional 30-year, fixed-rate loan: 7.376%
• Conventional 15-year, fixed-rate loan: 6.911%
• FHA 30-year, fixed-rate loan: 7.282%
• VA 30-year, fixed-rate loan: 6.948%

Mutual of Omaha Mortgage provides mortgages to homebuyers and refinance opportunities for homeowners, including cash-out refinances. The lender also offers reverse mortgages for seniors looking to tap into their equity with three funding options:

Receive a lump-sum payment.

Get monthly income to cover bills.

Establish a line of credit for unexpected expenses.

Minimum Borrower Requirements

Mutual of Omaha Mortgage doesn’t list eligibility criteria on its website, including credit score and down payment information, so you’ll need to chat with an agent through its chatbot or call 800-24-RATES to verify mortgage requirements. 

Every lender establishes its own qualifications, but we must draw upon regular lending standards and minimum requirements for government-backed mortgages to get a general idea of Mutual of Omaha’s criteria.

Common mortgage eligibility requirements:

• Conventional loan: This generally requires a minimum credit score of 620, and a debt-to-income ratio (DTI) of 36%, though some lenders may allow up to 43%. While a 20% down payment is recommended to avoid paying private mortgage insurance (PMI), you may qualify with a 3% down payment.
• Government-backed loans (FHA, VA, USDA): Government-backed home loans tend to have less stringent credit score requirements than conventional loans do. A 620 credit score may qualify you for a USDA or VA loan, while you may be approved for an FHA loan with a score as low as 500 (along with a down payment of at least 10%). FHA loans generally require a 3.5% down payment, while VA and USDA loans don’t require a down payment.

How to Apply for a Mutual of Omaha Mortgage

When you’re ready to apply for a home loan with Mutual of Omaha Mortgage, follow these three steps.

1. Apply for Preapproval Online

Mutual of Omaha provides a streamlined online process for seeking mortgage preapproval. A preapproval lets you know how much home you can afford and shows sellers you’re a serious buyer.

2. Work With a Loan Officer

If you’re preapproved and want to continue with the loan process, you’ll work with a Mutual of Omaha Mortgage loan agent to discuss terms and apply for full approval. Be prepared to follow up your application with financial documents requested by the lender, such as:

• Proof of income: W-2 forms from the past two years, as well as your most recent pay stubs. If you’re self-employed, a recent profit-and-loss statement and documents showing unpaid invoices may be requested.
• Proof of identity: Copy of driver’s license or other government-issued ID, copy of Social Security card and immigration documents (if applicable).
• Debts and expenses: Account numbers and statements for credit and loan accounts and medical bills.
• Asset information: Statements for bank, retirement and investment accounts, including 401(k)s, individual retirement accounts (IRAs), certificates of deposit (CDs) and brokerage accounts.

3. Close Your Loan

Once your purchase or refinance loan is approved, you can close the loan. Mutual of Omaha doesn’t publish its average closing time, but new home loans and mortgage refinances generally close in 30 to 60 days. Be prepared to pay closing fees, which usually amount to 2% or 3% of the loan amount.

How Does Mutual of Omaha Stack Up Against Its Competitors?

The Consumer Financial Protection Bureau recommends looking at loan estimates from at least three mortgage lenders before settling on the best option. Here’s a breakdown of how other mortgage providers compare with Mutual of Omaha Mortgage.

Mutual of Omaha Mortgage vs. JPMorgan Chase

This is a battle of financial giants. Mutual of Omaha has been a finance industry fixture for over 100 years, while JPMorgan Chase is the nation’s largest mortgage lender among banks, according to National Mortgage News. Like Mutual of Omaha Mortgage, JPMorgan Chase offers purchase and refinance options in the form of conventional, adjustable-rate, jumbo. FHA and VA mortgages.

Interest rates for these two mortgage lenders are fairly competitive. Since rates update daily, you’ll have to check rates frequently on both sites to get the most accurate rates. Most recently, Mutual of Omaha Mortgage’s rate barely fell short of Chase’s on a 30-year, fixed-rate conventional loan. Meanwhile, Chase’s rate on a 15-year, fixed-rate conventional loan edged out Mutual of Omaha Mortgage’s rate most recently. Fortunately, both companies publish up-to-date interest rates online, so it should be fairly easy to check on any given day.

Neither lender provides many specifics on their websites about fees and eligibility criteria. If you’re interested in a mortgage from either of these lenders, contact a loan agent or prequalify to find out what loan amount and interest rate you’re eligible to receive.

Mutual of Omaha Mortgage vs. Better

Like Mutual of Omaha Mortgage, Better provides new home loans and mortgage refinance options. For at least some mortgages, Better charges lower interest rates than Mutual of Omaha Mortgage does. For example, most recently, Better’s conventional 30-year fixed rate was significantly lower than Mutual of Omaha Mortgage’s. Also, Better doesn’t discount its conventional 15-year, fixed-rate mortgage, which most recently exceeded Omaha’s rate. Better also beat Mutual of Omaha Mortgage on the rate for a 30-year, fixed-rate FHA loan with its more recent rate numbers. To get the most accurate rates, be sure to check on each lender’s site. 

While both mortgage providers are available widely, Better offers loans in all 50 states, which could benefit applicants in New York and West Virginia, where Mutual of Omaha Mortgage isn’t licensed to provide mortgages. Plus, Better offers a Better Price Guarantee, which promises to beat a competitor’s valid offer by at least $100 or credit you $100 if they can’t.

While Mutual of Omaha Mortgage doesn’t publish minimum credit score requirements on its website, Better lists its conventional mortgage credit requirements, which are in line with industry standards. You’ll need a credit score of at least 620 to qualify for a conventional purchase or refinance mortgage and a score of at least 700 for a jumbo loan.

Neither mortgage company publishes its closing costs, which usually represent a percentage of the loan amount. However, Better does say its average mortgage closing costs range from $1,500 to $5,500, which can be rolled into your loan.