Top perks
A lender who helps you strategize your debt payoff
Churchill Mortgage is different from other lenders in a way you might find very appealing.
Its mission is to do what's right for you. Churchill says, "We want to set you up for financial success and ultimately set you free."
Churchill's unusual approach to mortgages involves focusing on your financial well-being, not on getting you the most house for your money. Rather than encourage you to buy the most house for your money (a common lending strategy), Churchill suggests loan options that get you out of debt fastest and at a lower cost. To accomplish a faster payoff, you usually have to buy a home in a lower price bracket, so that you can afford the payment on a 15-year mortgage. If that doesn't suit you, Churchill offers traditional 30-year mortgages.
No-score mortgage
Churchill Mortgage offers a home loan for borrowers with no credit score. That's because Churchill caters to people who have worked hard to pay off their debt. Some of these hopeful home buyers shut down all of their credit accounts and spent years paying them down to zero. Others are in the cash lifestyle tribe, and eschew credit in general because of the cost and the potential for financial pain. In either case, the absence of recently reported credit data can leave a person with no credit score. That doesn't mean you aren't creditworthy.
The no-score mortgage might be a great option for you if you don't have or want credit accounts. It could also be a great choice if you plan to establish credit but haven't gotten your credit score started.
Specialty home loan options
Besides the usual choices, Churchill also offers a few home loan options you can't find everywhere:
- USDA loan: The USDA loan is a zero down payment loan for low- and moderate-income borrowers buying an eligible home, usually in a rural area
- Construction loan: A construction loan is for borrowers buying a home that hasn't been built yet
- Family opportunity loan: A joint home loan program home loan program designed for adult children helping their parents buy a home.
- Home Possible, Home Possible Advantage, HomeReady: Low down payment home loan programs to help first-time home buyers, and low- to moderate-income borrowers.
Low down payment mortgage
Churchill offers a number of home loan options that have a very low down payment requirement. You can get a conventional mortgage at Churchill with 3% down. If you qualify for a VA loan or a USDA loan, the down payment requirement is zero.
Free rate cap
Churchill offers a free rate cap. (Some mortgage lenders call this a rate lock.) Once your rate is approved, Churchill holds it there for you for free for 90 days. If mortgage rates go down before you close your loan, Churchill lowers your rate. If mortgage rates go up, yours stays the same. You can extend your rate cap for another 90 days if you need to.
Note that the rate cap is not available on all loans.
There is a related service called Rate Relief. The seller or builder can prepay some interest, so the borrower can have lower payments for the first two years. But this program has no effect on your loan's interest rate.
Refinance rate watch
If you want to keep an eye on interest rates and refinance your mortgage as soon as it makes good financial sense, you can sign up for Churchill's Rate Watch. You're automatically notified when interest rates hit your target.
What could be improved
No home equity loan
Churchill does not currently offer a home equity loan, although they told us by email that a home equity line of credit is available. The downside to most HELOCs is that the interest rate is variable, which means it can change periodically while you still have the debt. That can make payments and the final cost of the debt somewhat unpredictable.
Lack of transparency
Churchill does not disclose its rates, fees, or specific qualification criteria. When we called, they shared with us that there's a $40 credit report fee per borrower, plus closing costs that include a $1,600 processing and underwriting fee.
