Mortgage Manufacturing facility Overview: They Dare You to Examine Charges Elsewhere

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Do you want a low mortgage rate and a good experience to boot while obtaining a home loan? While that basically sounds impossible, a company called “Loan Factory” might be worth looking into.

That’s the dual promise they make to prospective clients, and they appear to put their money where their mouth is.

They say their rates are on average $1,000 less than their competitors, and instead of hiding them, you can find them right on their website without logging in.

What makes them unique from big banks and lenders is the fact that they’re a mortgage broker, which gives them access to lots of different rates.

This allows them to shop and negotiate on your behalf so you don’t have to. If that sounds good, read on to learn more.

Loan Factory Fast Facts

  • Mortgage broker that offers home purchase and refinance loans
  • Founded in 2006, headquartered in San Jose, CA
  • Licensed to do business in 40 states and the District of Columbia
  • 25 physical branches located throughout the country
  • Have funded $10.1 billion in home loans since inception
  • Their CEO was the #1 loan originator in 2020 per Scotsman Guide rankings

As noted, Loan Factory is a mortgage broker, or middleman between you the homeowner (or home buyer) and a wholesale lender.

They work as a liaison to help you secure financing, whether it’s a home purchase loan or a mortgage refinance.

The company got their start back in 2006 and are headquartered in San Jose, California.

Loan Factory is helmed by CEO Thuan Nguyen, who just happened to be Scotsman Guide’s Top Originator for 2021 with a whopping $2 billion in loan volume.

Some 96% of that volume consisted of mortgage refinance loans, so that’s probably their bread and butter product.

At the moment, the company is licensed in 40 states and the District of Columbia.

Those states include Alabama, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin.

How to Apply with Loan Factory

Your first step might be visiting their website to check daily mortgage rates. Simply enter some basic info and you’ll be off to the races.

If you like what you see among the rates listed, click on “Apply Now” next to the corresponding rate to begin your loan application.

They say it takes about five minutes to complete, at which point you’ll be instructed to upload supporting documentation, such as tax returns, bank statements, and pay stubs.

Once they receive your paperwork and your loan is submitted to a partner lender, a loan officer will reach out and you’ll be eligible to lock your mortgage rate.

After locking the rate, they will send you an email confirmation that clearly details your rate and if there is any cost (discount points) or cash back associated (lender credit).

At that time, you’ll need to pay for a home appraisal, which will be conducted while an underwriter reviews your loan file.

You can log on to their website at any time to check your progress, and they automatically update your status as you go.

It’s also possible to simply create an alert and receive daily pricing updates after you view rates, or click on “Qualify Me” to run your own little mortgage pre-qualification online.

If you’re the type who prefers to work face-to-face, they’ve got about 25 branches scattered across the country. You can also call them directly to get started.

Either way, much of the loan process can be conducted paperlessly from a smartphone or computer.

Loan Programs Available at Loan Factory

  • Home purchase loans
  • Refinance loans: rate and term, cash out, streamline
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • HomeReady and Home Possible (3% down programs)
  • RefiNow (low income program)
  • Jumbo home loans
  • FHA loans
  • VA loans
  • USDA loans
  • Fixed-rate mortgages: 30-yr, 25-yr, 20-yr, 15-yr, 10-yr terms
  • Adjustable-rate mortgages: 5/1, 7/1, 10/1 ARM

Loan Factory Mortgage Rates

The main draw of going with Loan Factory is pricing, namely low mortgage rates and limited fees.

As mentioned, they say they beat other lenders by $1,000 on average, which means a lower combination of rate/fee.

So if a lender offers a rate of 3.25% with $2,500 in fees, they might have the same rate with just $1,500 in fees.

They’re able to offer competitive pricing for a number of reasons, the main one being that they have 37 wholesale lender partners to shop with.

Those lenders include the likes of Rocket Mortgage, UWM, loanDepot, PennyMac, Freedom Mortgage, OnQ Financial, AmeriSave, and many more.

Additionally, Loan Factory may receive volume discounts from their partners, and they employ salary-based loan officers as opposed to commission-based ones.

Reduced overhead thanks to a reliance on technology and limited advertising means they can pass savings onto their customers.

They also apparently “cut their profit” so borrowers can obtain lower rates. This would imply taking lower commissions on the back end. In other words, they make less per loan but make up for it on volume.

From what I saw, their rates were indeed on the low end, and you can see for yourself on their website without the need to sign up or log in first.

Loan Factory Reviews

On Google, Loan Factory has perfect 5-star reviews across most if not all of their physical branches.

Simply check out a branch near you and you’ll likely see a 5-star rating. Collectively, they’ve got nearly 6,000 reviews on Google at last glance.

Over at Zillow, they’ve got a near-perfect 4.98-star rating out of a possible 5 from roughly 400 customer reviews.

A good number of those reviews indicate that both the interest rate and closing costs were lower than expected, a testament to their strong pricing.

They’ve also got a 4.9-star rating on Facebook from 150 reviews, and a 4.9 rating on LendingTree from about 60 reviews, along with a 97% recommended score.

Veterans may qualify for a $0 down VA loan

You can also check out Yelp reviews for branches near you, which also tend to be highly rated.

Lastly, they are an accredited business with the Better Business Bureau, and currently hold an ‘A+’ rating based on complaint history, of which they’ve had just one in the past 12 months.

Somewhat amazingly, they also have a 4.99/5 rating on the BBB website, which is impressive given reviews via the BBB are typically poor.

To sum things up, Loan Factory seems to be all about low pricing and quality service, which means they could be a really good fit for an existing homeowner looking to refinance.

I’d consider them a streamlined, no-frills discount lender that is best suited for those with straightforward loan scenarios in search of the lowest price.

If you want a more boutique experience, you may want to consider alternatives.

Loan Factory Pros and Cons

The Good

  • No application fee
  • Can shop your rate with 37 different lenders at once
  • Their loan officers are salaried (not commissioned)
  • Appear to offer low mortgage rates (and you can see them online)
  • Offer a digital mortgage application and loan process
  • Also have brick and mortar branches in several cities nationwide
  • Excellent customer reviews across all ratings sites
  • A+ BBB rating, accredited business
  • Free mortgage calculator and mortgage glossary on their website
  • Some staff speak Cantonese, Filipino, Hindi, Korean, Mandarin, Spanish, and Vietnamese

The Perhaps Not

  • Aren’t licensed in all 50 states
  • Limited physical locations

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