Quicken Loans, now called Rocket Mortgage, is one of the nation’s largest mortgage lenders. Even though the official name has changed, you can still view loan options and rates on the Quicken Loans website, but if you choose to apply, the process is handled by Rocket Mortgage.
Once approved, Rocket Mortgage is also the company providing the loan. If you’re considering Quicken Loans for your next home loan, this mortgage review gives you background about the company and the types of mortgages it has to offer.
- An overview of Quicken Loans
- Which loan products does Quicken Loans offer?
- Conventional loans at Quicken Loans
- FHA loans at Quicken Loans
- VA loans at Quicken Loans
- YOURgage loans at Quicken Loans
- Refinances at Quicken Loans
- What Quicken Loans customers are saying
- FAQs about Quicken Loans
- The final word on Quicken Loans
An overview of Quicken Loans
Quicken Loans is based in Detroit, Michigan, was started in 1985 by Dan Gilbert, who had a goal of making the mortgage process easier. In 2015, Quicken Loans launched Rocket Mortgage, a fully digital lending platform built from the ground up to help borrowers apply for financing and get funds quickly.
The popularity of Rocket Mortgage’s innovative online application, preapproval, and lending process is credited with growing Quicken Loans to the lending powerhouse it became. The name change from Quicken Loans to Rocket Mortgage happened in 2021 to align the company with the rest of the “Rocket” brand, which includes Rocket Homes, Rocket Auto, and Rocket Loans.
Which loan products does Quicken Loans offer?
Through Rocket Mortgage, Quicken Loans offers conventional, Federal Housing Administration loans, Veterans Affairs loans, jumbo loans, and mortgage refinances. Here’s an overview of loan types available:
- Conventional loans: You could choose between fixed- and adjustable-rate mortgages.
- FHA loans: FHA loans have low credit score and down payment requirements.
- VA loans: VA loans let qualifying veterans and active-duty service members finance up to 100% of a home purchase.
- Jumbo loans: Jumbo loans let homebuyers take out loans that exceed conforming loan limits.
- YOURgage loans: YOURgage is a personalized loan product that lets you choose a term of eight to 29 years.
- Mortgage refinances: Quicken Loans has several refinancing products, including cash-out refinances, FHA streamline refinances, and VA streamline refinances.
Quicken Loans doesn’t offer home equity loans or home equity lines of credit (HELOCs). It also doesn’t offer Department of Agriculture loans.
Conventional loans at Quicken Loans
Conventional mortgages are basic mortgages offered by mortgage lenders that are not backed by a government agency. These loans are geared toward borrowers with decent credit because they need at least a score of 620 to qualify.
The traditional amount to put down on a conventional loan is 20%, but as little as 3% may be accepted if you have private mortgage insurance (PMI). PMI may cost 0.5% to 1% of your loan annually, and those payments are typically broken into monthly installments and paid with your mortgage.
Borrowers need a debt-to-income (DTI) ratio of less than 50% to qualify. Your debt-to-income ratio compares your after-tax income to your monthly debt payments. Closing costs for a conventional Quicken Loans mortgage vary but could range from 2-6% of the home’s purchase price.
|Loan term||15 and 30 years|
|APR||Fixed and adjustable rates|
FHA loans at Quicken Loans
FHA loans are home loans backed by the Federal Housing Administration and come with less strict credit and down payment requirements than conventional loans. These features make it a good option for first-time homebuyers or buyers with a low or modest income.
Homebuyers could qualify for an FHA loan with a down payment of just 3.5% with a credit score of 580 or higher. However, FHA loans come with mortgage insurance premiums (MIP) paid upfront and annually. The upfront cost of insurance is 1.75% of your loan, and the ongoing costs vary depending on how much money you put down. If you make a down payment of 10% or higher, this insurance may be removed after 11 years.
|Loan term||Up to 30 years|
|APR||Fixed or adjustable rates|
VA loans at Quicken Loans
VA loans are loans backed by the Department of Veterans Affairs and let qualified veterans, active-duty military, and certain military spouses buy homes with as little as 0% down.
The minimum credit score you need to qualify is 620 and your debt-to-income ratio must be below 60%. Although VA loans don’t have mortgage insurance premiums like FHA loans, you do have to pay an upfront funding fee, which you could finance with your loan at closing.
However, you may qualify to have the fee waived if you are a service member with a service-connected disability, are a surviving spouse, or have received the Purple Heart.
|Loan term||Up to 30 years|
|APR||Fixed and adjustable rates|
YOURgage loans at Quicken Loans
YOURgage loans are a custom loan product that lets you create a mortgage that best fits your needs. This could be a good option for borrowers who want a loan term that’s shorter than 30 years but longer than 15, as loan terms range from 8 to 29 years.
To qualify, you need a credit score of at least 620 and a DTI of 50% or lower. The minimum you can put down is 3%, but PMI may be required if you put down less than 20%.
|Loan term||8 to 29 years|
Refinances at Quicken Loans
Homeowners may benefit from refinancing with Quicken Loans. Refinancing could potentially lower your interest rate, change your interest rate type, or lower your monthly payment. Through Rocket Mortgage, Quicken Loans offers several mortgage refinancing options, including conventional and government-backed loans.
Conventional loan refinance rates may be fixed or adjustable, and you may also be able to take cash out of your home equity through a cash-out refinance. The FHA streamline refinance and VA streamline refinance let you quickly refinance FHA and VA loans with less paperwork. With a VA cash-out refinance, qualifying veterans may be able to cash out up to 100% of home equity.
What Quicken Loans customers are saying
Quicken Loans is rated A+ on the Better Business Bureau website, but customer reviews are not as great. A common complaint that customers have reported to the Bureau is miscommunication during the mortgage process and excessive marketing calls about loans.
That said, Quicken Loans seems to respond and follow up with each Better Business Bureau complaint. However, few customers log back on to address whether the complaint was resolved. On other sites such as Credit Karma, Consumer Affairs, and Trustpilot, customers give Quicken Loans higher marks of four out of five stars.
Quicken Loans has also received the highest score from J.D. Power for customer satisfaction in primary mortgage servicing from 2014 to 2021. J.D. Power is a market intelligence firm that focuses on customer service in several industries.
FAQs about Quicken Loans
What is the difference between Rocket Mortgage and Quicken Loans?
Rocket Mortgage is the new company name for Quicken Loans. Quicken Loans still maintains the Quicken Loans website where you can review mortgage rates and options. There are also loan calculators, articles on how different loans work, and guides on how to get a loan.
But if you choose to apply for a loan online, you’ll be taken to the Rocket Mortgage website to complete the process. Rocket Mortgage will also be the mortgage lender if you’re approved.
Is Quicken Loans reputable?
Quicken Loans, now Rocket Mortgage, is a reputable company that’s been in business since the mid-80s. Rocket Mortgage has closed billions of dollars in mortgage volume and has been ranked No. 1 for mortgage origination satisfaction for the past 11 years from J.D Power. Quicken Loans has also been accredited by the Better Business Bureau since 1986.
What is the Quicken Loans application process?
The Quicken Loans application process takes place on the Rocket Mortgage website. You could either contact a loan expert and have them walk you through the process or you could do it online. Here’s what happens in the application process step-by-step:
- Get personalized options. You submit information about your finances and your homebuying needs to get personalized offers. Next, you can review rates, terms, and costs to determine the best loan for your situation.
- Verify your information. The information you provide about yourself and your finances will be verified. You may be asked for W-2s and other tax documents. During this stage, you’ll get regular updates about what’s happening during the loan process.
- Proceed to loan closing. Once approved, you’ll go to loan closing where you’ll sign off on documents, and you can typically choose where you want closing to take place.
The process of applying and managing your loan can be handled online.
The final word on Quicken Loans
Rocket Mortgage, previously Quicken Loans, aims to provide innovative technology to offer a customer experience that’s hassle-free. Working with a company that has decades of experience in mortgage lending could give you some peace of mind as you make such a major purchase.
However, Quicken Loans is just one of many options you could consider for your next purchase or refinance, and many lenders now offer completely online mortgage applications as well. Shopping around can help you find the best deal for your financial situation. You can compare Quicken Loans against other lenders on our best mortgage lenders page.
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