Business Insider's personal finance team compared Angel Oak Mortgage Solutions Mortgages to the best mortgage lenders and found it to be a standard lender with a good range of options for borrowers who don't qualify for a traditional mortgage.
Angel Oak specializes in non-QM loans, which makes it a good lender for self-employed borrowers, real estate investors, and those with unique financial situations.
Angel Oak Mortgage Solutions is a wholesale mortgage lender. Borrowers generally need to work with a mortgage broker to get a loan from a wholesale lender, but Angel Oak also has a direct-to-consumer option that allows borrowers to work with the lender directly.
Angel Oak Home Loans, its affiliated brick-and-mortar retail lender that worked directly with borrowers, closed in November 2022.
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Conforming, bank statement, 1099 income, DSCR, Platinum Jumbo, Portfolio Select, ITIN, Asset Qualifier, foreign national, P&L, bank statement HELOC, home equity
- Wide variety of non-QM loans
- Options for self-employed borrowers, real estate investors, foreign nationals, and more
- Has mortgages for recent negative credit events
- Requires relatively high credit scores
- Average rates and fees are relatively high
- Not available in Alaska, Massachusetts, New York, or Vermont
Angel Oak specializes in non-QM loans, making it a good option for self-employed borrowers, real estate investors, and those with unique financial situations.
- Minimum credit score and down payment displayed are for conforming mortgages
- Available in 46 states and Washington, DC
Overview of Angel Oak Mortgage Solutions
How to Apply With Angel Oak
If you're interested in Angel Oak Mortgage Solutions, you can work with a mortgage broker that originates loans from this lender. A mortgage broker will help you apply for mortgages with multiple lenders to find the best offer.
If you prefer to work directly with Angel Oak, you can fill out a form or find a loan officer near you on its direct-to-consumer website.
Where Angel Oak Lends
Angel Oak mortgages aren't available in Alaska, Massachusetts, New York, or Vermont.
Loan Options
Angel Oak Mortgage Solutions offers a wide variety of non-QM loans. Non-QM loans are mortgages that don't meet the requirements to be considered a qualified mortgage. Qualified mortgages have certain features that make borrowers less likely to default, including loan terms that are limited to 30 years, and no interest-only periods or balloon payments.
Non-QM loans help those who don't qualify for traditional financing get a mortgage, but they're typically more expensive.
Angel Oak's non-QM options include:
- Bank statement mortgages that allow self-employed borrowers to use bank statements to show their income.
- 1099 income loans that accept 1099 forms as proof of income rather than tax returns.
- A DSCR (debt service coverage ratio) loan that lets borrowers use the property's expected rental income to qualify for the mortgage.
- A P&L loan for self-employed borrowers who want to use their profit and loss statements to qualify.
- A Platinum Jumbo mortgage for borrowers who don't meet the requirements to qualify for a traditional jumbo loan.
- Portfolio Select mortgages for those who have a foreclosure, short sale, or deed-in-lieu of foreclosure that's at least one year old, or a bankruptcy that's at least two years old.
- Individual Tax Identification Number (ITIN) loans for borrowers who don't have a Social Security number.
- Asset Qualifier loans that allow borrowers to qualify using their liquid assets rather than showing income and employment.
- Mortgages for foreign nationals looking to purchase or refinance investment properties in the U.S.
- Bank statement HELOCs
- Home equity loans for self-employed borrowers and real estate investors
Some of these mortgages can be combined with a 2-1 buydown, which lowers your mortgage rate for two years.
Angel Oak Mortgage Solutions also offers conforming mortgages, which are what you may think of as traditional mortgages.
Angel Oak Mortgage Interest Rates and Fees
Angel Oak Current Mortgage Rates
Non-QM loans have higher rates than traditional mortgages. Because this lender specializes in these types of mortgages, borrowers typically pay higher rates with Angel Oak compared to other lenders, our review of Home Mortgage Disclosure Act data found.
As a consumer, you won't be able to view Angel Oak's current mortgage rates on your own; if an Angel Oak mortgage is available to you through your mortgage broker, your broker will walk you through the rates the lender can offer you. Otherwise, you can talk to a loan officer to get a rate quote.
The benefit of working with a broker is that you'll be able to easily compare offers from multiple mortgage lenders to find the one that's best for you. So even if you apply with this lender through a broker, you'll have other options if you don't like the rate you get with Angel Oak.
Angel Oak Origination Fees
In 2023, the average borrower getting a conventional mortgage from this lender paid $12,626 in origination charges, according to the latest HMDA data. This is high compared to other lenders and reflects the extra cost that comes with getting a non-QM loan.
Angel Oak Mortgage Solutions Pros and Cons
Pros
- Offers many types of non-QM loans
- Good choice for those who might not qualify for a conforming mortgage
- Some of its mortgages have shorter seasoning requirements for borrowers with foreclosures, bankruptcies, or other negative credit events
Advantages of Angel Oak
We think Angel Oak is a strong choice for non-QM loan borrowers, including self-employed borrowers and investors. It can also help you get a mortgage after a major credit event like a foreclosure sooner than you would be able to with a traditional mortgage.
Cons
- Minimum credit score requirements start at 640
- Not available in Alaska, Massachusetts, New York, or Vermont
- High average rates and fees
Potential Drawbacks of Angel Oak
The main drawback with Angel Oak is something that's an issue with all non-QM lenders: it's expensive. Non-QM loans are a lot riskier than qualified mortgages, so lenders charge more for them.
Additionally, though many of its loans offer a lot of flexibility in other areas, you will need a decent credit score to get a mortgage from this lender.
Is Angel Oak Mortgage Solutions Trustworthy?
Overall, we think Angel Oak is a trustworthy lender. It has an A+ rating from the Better Business Bureau.
Finding the Right Mortgage Broker
If you decide to get a mortgage through a broker rather than directly from a lender, you'll want to make sure the professional you work with has a reputation for providing great customer service.
Search online for brokers near you and read their reviews or ask for recommendations from people you know. Your real estate agent may also be able to give you the names of a few brokers they trust.
Once you've narrowed down your search, reach out to a few different brokers and talk to them about their experience and what their process looks like.
Comparing Angel Oak Mortgage to Other Lenders
Angel Oak Mortgage Solutions vs. United Wholesale Mortgage
As the name suggests, United Wholesale Mortgage is also a wholesale lender. UWM is the second-largest mortgage lender in the country, according to a Consumer Financial Protection Bureau analysis of HMDA data. Its servicing also ranks above average in customer satisfaction, according to J.D. Power's 2024 U.S. Mortgage Servicer Satisfaction Study.
Unlike Angel Oak, UWM offers more common mortgage types, including government-backed mortgages. If you're an average borrower who doesn't need a non-QM loan, United Wholesale Mortgage may be a better fit for you.
UWM does offer a few non-QM products, but its offerings aren't nearly as robust as Angel Oak's. For borrowers who are looking for a unique mortgage product that meets their specific needs, Angel Oak Mortgage Solutions is a good option to explore.
United Wholesale Mortgage Review
Angel Oak Mortgage Solutions vs. Newrez
Newrez has both retail and wholesale channels, meaning you can borrow from this lender directly or through a mortgage broker. It also offers a line of non-QM loans called its "Smart Series" mortgages, which includes loans for self-employed borrowers, investors, and those with recent negative credit events.
Newrez offers a better balance of traditional and non-QM products, while Angel Oak leans heavily into specialty loans for non-QM borrowers. Which one is right for you depends on what type of mortgage you're looking for, and which one can offer you the better deal.
Angel Oak Mortgage Solutions FAQs
Angel Oak Mortgage Solutions is a legitimate wholesale mortgage lender. It has an A+ rating from the BBB.
Angel Oak's credit requirements vary by loan type and start at 640. Conforming loan borrowers will need a score of at least 660 to get a mortgage with Angel Oak Mortgage Solutions. Other mortgages may require scores of at least 700.
Angel Oak Home Loans, the direct mortgage lender, shuttered its brick-and-mortar locations in November 2022, but Angel Oak Mortgage Services still does wholesale and direct-to-consumer lending.
Because it's a non-QM lender, Angel Oak's mortgage rates are relatively high compared to traditional lenders.
As with its rates, Angel Oak's average fees are on the high end compared to other lenders since non-QM loans tend to be pricier.
Why You Should Trust Us: How We Reviewed Angel Oak Mortgage Solutions
To review Angel Oak Mortgage Solutions, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a high number of loan types with affordable features, have positive customer reviews, and don't have any recent public controversies.
Our Overall Lender Rating
Loan Types: 4 out of 5
Angel Oak is a strong lender for non-QM loans, and has many different options that should fit a wide range of borrowers' needs. But if you're looking for more traditional types of mortgages, you'll probably want to look elsewhere. Angel Oak does offer conforming loans, but they're not the lender's main focus, and it doesn't have any government-backed mortgages.
Affordability: 2 out of 5
If you aren't able to qualify for a conforming or government-backed mortgage with another lender, you might benefit from Angel Oak's non-QM offerings. But because non-QM loans are more expensive than other types of mortgages, this lender doesn't rank high in affordability.
Customer Satisfaction: N/A
Because this is a wholesale lender, sufficient data on customer satisfaction with Angel Oak isn't available. We chose not to include this factor in its ranking. If you plan on getting a mortgage through a broker, be sure to do some research on brokers in your area and ask for recommendations from friends or neighbors to find the right broker for you.
Trustworthiness: 5 out of 5
Angel Oak Mortgage Solutions has an A+ rating from the BBB. BBB ratings are based on responses to customer complaints, honesty in advertising, and transparency about business practices.
