BB&T has a variety of loan options, from construction loans to low-down-payment mortgages, to suit nearly every buyer’s needs
Our Two Cents — BB&T offers competitive interest rates and a variety of mortgage options, including some with flexible down payment and credit score requirements. But it doesn’t have physical locations in all 50 states and receives low marks for customer satisfaction.
BB&T at a glance
|Lender||Loan Amount||APR Range||Terms||Key Benefit|
|BB&T||$60,000 to $3,000,000||2.734% – 3.072%||15 to 30 years||Low down payment loans|
*Rates based on $200,000, 740 credit score, primary single-family home with 20% down payment
Rates accurate as of July, 2020
What we like about it
Even if you have minimal savings and low-to-moderate income, you may still be able to get a BB&T home mortgage. The company offers several mortgages allowing you to put just 3% down, including the Rural Housing Loan and Community Homeownership Incentive Program. Its low down payment loans also have flexible income and credit score requirements, so you don’t need perfect finances to get approved.
Many lenders don’t offer construction loans or home equity loans, but BB&T does, which is a big plus. The company allows you to combine your construction and lot financing into a single loan that converts to a permanent mortgage once your home is finished.
BB&T mortgage rates are also competitive compared to other lenders, which is good news for buyers looking to save on interest. Its 30-year fixed loans have an interest rate of just 2.875%, which is nearly 40 basis points lower than the current average.
Things to consider
If you’d prefer to apply for your mortgage in person rather than online, BB&T may not be the right lender for you depending on where you live. It only has branches in 16 states, and most of them are located in the Southeast. So if you live in another area of the country, you may want to find a lender with branches in your state.
Another thing to consider is that BB&T ratings tend to be on the lower end for customer satisfaction. The company only gets one star from customers on the BBB website, and a two out of five-star rating from JD Power. Some of the negativeBB&T reviews online say that the company provides poor customer service, which is something to keep in mind.
[Read: Tips for Getting a Mortgage]
What you need to know
Whether you’re looking for a construction loan, a conventional mortgage or a low down payment loan, BB&T has options for you. It offers affordable construction-to-permanent loans with one set of closing costs and no prepayment penalties to help you build your dream home. If you’re looking to buy rather than build, BB&T also offers conventional loans with terms ranging from 10 to 30 years, as well as adjustable rate mortgages with a fixed interest period of up to 10 years.
If you don’t have enough money saved for a down payment, you may still be able to get a mortgage. BB&T has several loan programs with low down payment requirements, including the Community Homeownership Incentive Program. It only requires a 3% down payment and has no mortgage insurance premiums, making it an affordable option for low-to-moderate income buyers.
BB&T offers interest rates that are even lower than the current average. Its 30-year fixed loans have an APR of just 3.072%, while its 15-year mortgages have an even lower rate of 2.734%. Keep in mind that your rate may be higher if you have a low credit score or high debt-to-income ratio.
To find out what interest rates you qualify for, you must get prequalified. You can complete the application online or in-person if you live near a BB&T branch. You’ll need information like the ZIP code where you’re house hunting, your income and your Social Security number. If you choose to take out a loan, you can complete the mortgage application process in person or online by uploading your financial documents to a secure portal. BB&T will ask for recent pay stubs, tax returns and bank statements to evaluate your financial situation and will perform a hard pull on your credit.
Fees and penalties
BB&T charges a $985 origination fee on all of its mortgages. On some of its loans, it also charges prepayment penalties. If you’re trying to reduce your closing costs and save money, it’s possible to negotiate both of these fees.
Collateral and criteria
For most of its mortgages, BB&T requires borrowers to have a credit score of at least 620. However, its low down payment mortgages and VA loans have flexible credit requirements, so you may qualify for them with a lower score.
Too long, didn’t read?
BB&T offers low down payment mortgages with more flexible income and credit score requirements than traditional loans. It also provides construction loans to borrowers who are building their homes rather than buying, which not all lenders offer. Because of its wide variety of loan options and competitive interest rates, BB&T is a good choice for almost everyone. However, if you want to apply for your mortgage in person, BB&T may not be the best options. It only has branches in 16 states, most of which are located in the Southeast. If you live in a state where BB&T doesn’t have a physical presence, you may want to go with another lender.
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The SimpleScore is our proprietary scoring metric to compare products and services at The Simple Dollar in a transparent, evidence-based way. Our editorial team identifies five quantifiable aspects to compare for every brand, determines the rating criteria for each aspect score, then averages the five aspect scores to produce a single SimpleScore. For mortgage loans, we compared perks, product variety, credit impact to check rates, customer satisfaction and fees for every major lender. Our ratings are meant to be a directional tool to help you in the process of choosing a mortgage loan provider. Be sure to continue your research and shop around for the best mortgage loan that fits your specific needs.
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