Business Insider's personal finance team compared Embrace Home Loans to the best mortgage lenders and found it to be a standard lender.
Embrace Home Loans has all of the most popular government-backed mortgage options and flexible credit options for borrowers with less-than-perfect credit histories. It also offers a fully underwritten preapproval option that can help borrowers make strong offers on homes. But this lender lacks transparency around borrower costs.
620
3%
Conforming, jumbo, FHA, VA, USDA, renovation, bridge, non-QM
- Has mortgages for borrowers with recent bankruptcies or self-employed individuals
- Down payment program available
- Renovation loans, bridge loans, and rate buydowns
- Physical branches are mostly located on the east coast
- No home equity loan options
- Doesn't disclose rates or fees online
- Available in all 50 states and Washington, DC, and has physical branch locations
- Minimum credit score and down payment displayed are for conforming mortgages
- Offers jumbo loan amounts up to $2.5 million
Embrace Home Loans Overview
Embrace Home Loans lends in all 50 states and Washington, D.C. It also has over 30 in-person branches, mostly located along the East Coast.
Embrace Home Loans was founded in 1983 under the name Advanced Financial Services, but it changed its name in 2009 after being acquired by Mason Dixon Funding.
Loan Options
Conventional Loans
You may qualify for a conventional conforming loan from Embrace if you have a credit score of at least 620 and a 3% down payment.
Embrace offers both purchase and refinance options, including cash-out refinancing, plus options for condos, co-ops, and new construction homes.
Jumbo Loans
Embrace has jumbo loans in amounts up to $2.5 million, with a minimum down payment of 10%. It has both fixed and adjustable-rate options on these loans.
FHA Loans and 203(k) Loans
Embrace Home Loans offers FHA loans for borrowers with credit scores down to 580 and a minimum down payment of 3.5%.
Its FHA offerings include FHA 203(k) loans, which let borrowers finance the cost of repairs and renovations into their mortgages.
VA Loans
Embrace says on its website that it offers VA loans for borrowers with scores as low as 580.
USDA Loans
This lender also offers USDA loans, which are available to low-to-middle income borrowers in eligible rural and suburban areas. You'll need at least a 620 credit score to qualify.
Specialty Loan Products
If you have specific needs when it comes to your mortgage, Embrace may have loans that suit your circumstances.
Its bridge loan is a good option if you need to buy a new home before you can sell your current one. These loans come with eight-month terms.
Embrace also has a few programs that can make getting into a home easier or more affordable. It has a 1-0 buydown that lowers your rate by one percentage point for the first year of your mortgage. And its Property Value Certificate and Approved to Close Backup Cash Guarantee programs can help you make a stronger offer on a home by guaranteeing financing, enabling you to waive appraisal and financing contingencies if you choose.
Non-QM Loans
The lender's Beyond by Embrace mortgages offer a few non-QM loan options for borrowers who might not qualify for a traditional mortgage.
Embrace's "Beyond" mortgages include:
- Options for borrowers (such as self-employed individuals or real estate investors) who need to use 1099s or bank statements to prove their income instead of the standard W-2s that lenders typically require.
- Mortgages for borrowers with recent bankruptcies, foreclosures, or other negative events on their credit reports.
Down Payment Assistance
Embrace offers a down payment assistance program for both first-time and repeat homebuyers in eligible areas. With this program you can get a mortgage with no down payment and potentially borrow up to 101% of the home's value with an interest-only second mortgage that must be paid off when the mortgage is. You'll need a 660 or better credit score to qualify.
How to Apply
You can get started with Embrace Home Loans online, over the phone, or through its convenient mobile app. The app can be used to apply and easily upload any required documentation.
If you want to get started with a loan officer near you, you can search for local branches on its website.
Embrace Home Loans Mortgage Interest Rates and Fees
Embrace Home Loans' mortgage rates are right around average compared to other lenders, according to Business Insider's review of Home Mortgage Disclosure Act data.
Embrace doesn't disclose its current rates or lender fees online. To find out how much you might pay to get a mortgage with this lender, you'll need to talk to a loan officer or get preapproved for a loan.
In 2023, the average borrower getting a conventional loan from Embrace paid $4,486 in origination charges, according to HMDA data. This is around average.
Embrace Home Loans Pros and Cons
Pros
- Non-QM mortgages for recent bankruptcies or foreclosures and self-employed borrowers
- Offers down payment assistance
- Has renovation loans, bridge loans, and a rate buydown option
Embrace is a strong mortgage lender overall, and has a lot of loan options to meet the needs of many different types of borrowers. This includes non-QM loans for self-employed borrowers, real estate investors, and those who have experienced negative credit events in the recent past.
If you're struggling to come up with the cash for a down payment, you might also like Embrace's down payment assistance program.
Cons
- Physical locations are limited to the East Coast
- Doesn't offer home equity loans or HELOCs
- Lacks rate and fee transparency
If you want to complete the mortgage process in person, this might not be the right lender for you depending on where you live, since Embrace only has physical branch locations in certain parts of the U.S. Embrace also doesn't list sample rates or fees it charges online, making it hard to gauge how much you might pay with this lender.
Is Embrace Home Loans Trustworthy?
Overall, we found Embrace to be a trustworthy mortgage lender. It currently has an A+ rating from the Better Business Bureau and no recent major scandals.
What Borrowers Are Saying About Embrace Home Loans
Business Insider looked at positive and negative customer reviews, BBB complaints, and other sources to understand what borrowers think about Embrace Home Loans.
Easy Experience With Communicative Loan Officers
In reviews, many previous borrowers said the process with Embrace Home Loans was smooth and that the professionals they worked with made themselves easy to get ahold of in case borrowers had any questions or concerns.
Compare Embrace to Other Lenders
Embrace Home Loans vs. Rocket Mortgage
Embrace Home Loans and Rocket Mortgage have similar mortgage offerings, though Rocket doesn't offer USDA loans.
Rocket Mortgage ranked high in J.D. Power's 2024 Mortgage Origination Satisfaction Study, meaning it stands out in customer satisfaction. Embrace wasn't included in J.D. Power's annual study, though it has very positive reviews on its Zillow lender profile. Rocket Mortgage is also one of Business Insider's best mortgage lenders.
Both are strong choices; the best fit comes down to which offers the best rate and the type of mortgage you're looking for. So it could be worth getting preapproved with both of these lenders.
Embrace Home Loans vs. NBKC Bank
NBKC Bank is a good lender for borrowers looking for a simple online application process and an easy way to explore customized rates. But its loan options are relatively limited compared to Embrace Home Loans.
If you have a recent negative event on your credit report, Embrace's Beyond mortgage program might be a better fit for you. NBKC offers HELOCs, but only to residents of the Kansas City metro area. Embrace doesn't offer any kind of home equity loan options.
Embrace Home Loans FAQ
Yes, Embrace Home Loans is a real mortgage lender based in Rhode Island.
To get a conforming loan with Embrace Home Loans, you'll need at least a 620 credit score. For its FHA loans, it accepts scores as low as 580.
Dennis Hardiman founded Embrace Home Loans in 1983. He is currently the CEO of the company.
Embrace Home Loans offers a variety of mortgage types, including conforming, jumbo, FHA, VA, USDA, renovation, bridge, and non-QM loans.
You can start an application online or using Embrace's convenient mobile app. Or if you prefer, you can start in person at a branch near you or over the phone.
Embrace's average mortgage rates are around average compared to other lenders.
Embrace's customer service is highly rated among previous borrowers. You can expect to work with communicative loan officers who will work to help you have a smooth process.
Why You Should Trust Us: How We Reviewed Embrace Home Loans
For our review of Embrace Home Loans, 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 we average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a large 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 of out 5
We like that Embrace offers a wide variety of mortgages, including some more niche options like non-QM loans and bridge loans for borrowers with unique needs. But the lender doesn't have any home equity loans or HELOCs.
Affordability: 4 out of 5
If you're looking for an affordable lender, Embrace Home Loans might be a good choice. It has all three of the most popular types of government-backed mortgages, which typically have less stringent credit requirements and lower mortgage rates. It also offers down payment assistance for both first-time and repeat buyers.
Customer Satisfaction: 4.97 out of 5
On its Zillow lender profile, Embrace Home Loans has a 4.97 out of 5-star rating, based on over 3,000 online customer reviews.
Trustworthiness: 5 out of 5
Embrace Home Loans has an A+ rating from the BBB. A strong BBB grade indicates a company is honest in its advertising, transparent about business practices, and effective in responding to customer complaints.
