North American Savings Bank Review 2021: Options for Non-Traditional Homebuyer Profiles

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Good for Self-Employed Borrowers
North American Savings Bank Review 2021
North American Savings Bank Review 2021
Editor’s Score: (4.6/5)
Good for Self-Employed Borrowers
North American Savings Bank Review 2021
Editor’s Score: (4.6/5)
  • Minimum Credit Score:
    620
  • Minimum Down Payment:
    0% to 5%, depending on loan type; 10% jumbo
  • Can Apply Online:
    Yes
  • Operates In:
    49 States

NextAdvisor’s Take

Pros
  • Lends in 49 states
  • Has unique loans products for borrowers with credit issues or are self-employed
  • Advertises daily interest rates for purchase and refinance loans
  • Can get lower rate if rate drops during 90-day rate lock period
  • Streamlined online application process
  • Can get customized rate quote without hard credit check
Cons
  • 12 in-person branches, but only in Missouri
  • Does not offer USDA loans, construction loans, renovation loans, and home equity products
  • Higher credit score standards on FHA and VA loans
The Bottom Line

North American Savings Bank may be a good option for veterans, first-time homebuyers, self-employed people, and borrowers with less-than-perfect credit histories. That’s because the bank offers VA loans, FHA loans, and mortgages for people who don’t fit conforming loan standards. As another benefit, NASB originates mortgages in nearly every state.

EDITORIAL INDEPENDENCE

As with all of our mortgage lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information about our scoring methodology, click here.

North American Savings Bank Full Review 

North American Savings Bank (NASB) was founded in 1927 and is now headquartered in Kansas City, Missouri. As a full-service bank, NASB offers checking accounts, savings accounts, CDs, and money market accounts — but it mainly focuses on home loans. 

North American Savings Bank company webpage states it has originated more than $22 billion in mortgages for 83,000-plus borrowers since 2010. Customers can conveniently bank online, through a mobile app, or at one of the bank’s 12 branches, which are spread across Missouri. Here’s what to know about the lender if you’re looking to buy or refinance a home. 

North American Savings Bank: Mortgage Loan Types and Products

North American Savings Bank has mortgage programs for borrowers looking to purchase a home or refinance a mortgage. Here’s what’s on the menu right now:

NASB has several programs that can help nontraditional borrowers get a home. For instance, its nonconforming home loans advertizes flexible underwriting guidelines for borrowers with credit issues. Another unique loan product is the bank statement loans. It allows self-employed borrowers to show income using bank statements rather than tax returns. The bank also has a Good Neighbor Home Loan Program, which is designed for people looking for homes in low- to moderate-income areas in certain parts of Kansas and Missouri. There are no lender fees through this program, and borrowers can receive closing cost assistance.

North American Savings Bank: Transparency

North American Savings Bank’s website is easy to use and offers custom rate quotes without providing personal information or agreeing to a hard credit pull. This is important because you’ll be able to see if the lender’s a good fit without it affecting your credit. 

After checking your rate, you can set up an account to start the application process online, call a loan officer to apply over the phone, or visit one of the 12 NASB branches spread across Missouri. Customers can upload documents and do most of the underwriting process online, but they’ll need to visit a local title office to close on the loan. 

The lender also has a resource section on its website addressing basic mortgage terminology and what the process entails, but those who have questions can also call or email a loan officer. 

North American Savings Bank: Mortgage Rates and Fees 

On its website, North American Savings Bank advertises interest rates for 30-year and 15-year fixed-rate mortgages and 30-year fixed-rate FHA loans. The rate tool allows you to personalize the quote according to loan amount, down payment, credit score range, and county. You’ll also get a fee estimate, though NASB doesn’t provide a line-item breakdown.

When you later get a loan preapproval or apply for a mortgage, the lender will perform a hard credit pull, which will affect your credit. (A hard-credit pull is common for all lenders at this stage.) You’ll also receive a more detailed list of the fees you’ll pay at closing. The loan officer we spoke with said NASB charges an origination fee of $995, though most borrowers receive a lender credit to offset the fee. 

The bank didn’t provide a list of fees borrowers might pay at closing, but the following are common among most lenders: 

North American Savings Bank doesn’t charge prepayment penalties on any of its loans, so you can pay off your mortgage early without incurring extra fees. 

According to the loan officer we spoke with, borrowers need a credit score of at least 620 and a minimum down payment of 3% (for first-time buyers) or 5% (for repeat buyers) to qualify for a conventional loan. NASB sets the same credit score minimum for FHA and VA loans, which is higher than some of the lender’s competitors. Borrowers need a down payment of at least 3.5% to get an FHA loan, but the upfront costs are different on VA loans. In lieu of a down payment, VA loan borrowers pay an upfront funding fee between 1.4% and 3.6% of the total amount borrowed. 

Customers who want to borrow more than the conforming limit can get a jumbo loan with a down payment of at least 10%. The credit score minimum is generally higher than it is on a conventional loan, but it depends on the borrower’s overall financial situation. 

NASB says you can lock in a fixed mortgage rate for up to 90 days on conventional conforming, FHA, or VA loans while you search for a home. If rates go up after you lock, you’re protected from paying the higher cost—and if rates drop, you can lower your rate. NASB typically closes loans within 45 to 60 days. So if you think rates will rise during that time, it may be wise to lock a rate. 

Refinancing With North American Savings Bank

If you have an existing mortgage, a refinance could help you lower your mortgage payments, borrow cash, adjust your loan term, or drop mortgage insurance. Many homeowners decide to refinance when interest rates start dropping. 

On its website, North American Savings Bank provides a few resources to help borrowers understand the basic refinance process and costs that come along with it. You’ll need to either call the bank for a rate quote or fill out an online form to get a return call. Borrowers can start the application online, over the phone, or at a bank location. There are several refinance programs to choose from, depending on your goals and existing loan type. Here’s what North American Savings Bank offers:

  • Cash-out refinances, which allow you to borrow money using your home equity as collateral. Because you increase your loan amount, your monthly mortgage payments will increase and it might take you longer to pay down the loan.
  • Rate-and-term refinances, which allow you to change your interest rate, loan term, or both. If you qualify for a lower interest rate, you could save money as long as you’re not extending the loan term too far. 
  • FHA streamline refinances, which allow you to refinance an existing FHA loan without going through an appraisal or credit check in some cases. 
  • VA interest rate reduction refinance loans (IRRRL), which allow you to refinance an existing VA-backed home loan with less paperwork. 

North American Savings Bank Compared to Other Mortgage Lenders

North American Savings BankBank of AmericaPennyMac Loan Services
Minimum credit score620 for conventional, FHA, and VA loans620 for conventional, FHA, and VA loans; 720 for jumbo loansTypically 620 for a conventional loan and 580 for FHA loan
Minimum down payment0% for VA; 3% to 5% for conventional; 3.5% for FHA; 10% for jumbo0% for VA; 3.5% for FHA; 5% for conventional; 20% for jumbo0% for VA loan and USDA loan; typically 3% to 5% for conventional loan; 3.5% for FHA loan
Where does the lender operate?All states except New YorkAll 50 states49 states and Washington, D.C.
Major loan typesConventional, VA, FHA, fixed-rate, adjustable-rate, jumbo, refinance, cash-out refinance, streamline refinance optionsConventional, VA, FHA, fixed-rate, adjustable-rate, jumbo, refinance, cash-out refinance, home equity productsConventional, VA, FHA, USDA, fixed-rate, adjustable-rate, refinance, cash-out refinance, streamline refinance options

How to Shop Around to Get the Best Mortgage Rate

Getting a good interest rate on your mortgage is important because it can help you save hundreds or thousands of dollars over the loan term. Interest rates vary with every lender, so you’ll need to shop around to make sure you’re getting a good deal. 

Once you submit a mortgage application with multiple lenders, go over the Loan Estimates and check the interest rate and fees that are being charged. Make sure the loan estimates are based on the same loan scenario, as fees can vary depending on the property type, loan amount, credit score, down payment, and property location. Lower interest rates may come with a higher upfront cost in the form of discount points. While paying for discount points can help you save money, you’ll need to consider whether you’ll be in the home long enough to come out ahead.

Once you pinpoint the best deal, send it to another lender and ask them to lower their interest rate or closing costs — or both. Mortgage lenders may be willing to compete for your business, especially if you have strong credit. 

EDITORIAL INDEPENDENCE

As with all of our mortgage lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information about our scoring methodology, click here.