The Latest Updates on Discover Home Loans in 2023

Discover Home Loans has been making waves in the mortgage industry since it first launched in 2012. As one of the nation’s largest lenders, Discover is known for its low rates, zero fees, and excellent customer service But what’s new with Discover Home Loans in 2023? Here are the latest updates on this top mortgage lender.

Discover Expands Loan Options

One of the biggest pieces of news is that Discover has expanded the types of home loans it offers. When it first started out Discover only provided conventional mortgages and home equity loans. But over the past couple years it has added new options

• FHA loans – These government-backed mortgages only require a 3.5% down payment and are ideal for borrowers with lower credit scores.

• VA loans – Like FHA loans, these don’t need any down payment for qualifying veterans and military members.

• USDA loans – Discover now offers USDA loans as well, which are zero-down payment mortgages for low-income borrowers in rural areas.

• Jumbo loans – Discover recently started offering jumbo mortgages above the conventional limit of $647,200. Its jumbo loans go up to $3 million.

This wider selection of loans makes Discover a one-stop shop for more homebuyers. No longer limited to conventional loans, you can now get government-backed mortgages and jumbos with Discover’s signature low rates and zero fees.

Discover Expands to New States

In more big news, Discover Home Loans is now available in all 50 states. When it first began operations, Discover didn’t offer mortgages in Iowa or Maryland due to state restrictions. But it has since expanded and become licensed to lend in every state.

This growth opens up Discover’s services to even more borrowers across America. No matter where you live, you can apply for a Discover mortgage and enjoy competitive rates along with no origination fees or closing costs.

Discover Offers Lower Rates for Refinances

In 2022, Discover introduced a new rate discount specifically for refinances. Borrowers who refinance with Discover can qualify for 0.25% off the lender’s already low advertised rates. This makes refinancing with Discover even more affordable.

To get the refi rate discount, you’ll need a credit score of 720 or higher and a loan-to-value ratio below 80%. Discover offers streamlined online applications for refinancing an existing mortgage.

Discover Expands Loan Amounts

Discover now offers higher loan amounts than when it first launched. Here are the current loan amount limits:

• Conventional loans – Up to $3 million
• FHA loans – Up to $970,800
• VA loans – No limit
• USDA loans – Typically up to $522,400
• Home equity loans – Up to $300,000

With these higher limits, more borrowers can get financing for higher-priced homes. Discover’s conventional loan limit matches the maximum for most lenders, while its home equity loan maximum has gone up $100,000.

Discover Maintains Top Ratings and Reviews

Despite its growth over the past decade, Discover has stayed committed to top-notch customer service. It maintains an A+ rating with the Better Business Bureau, indicating a strong track record for transparency and resolving customer complaints.

Discover also keeps receiving rave reviews from actual borrowers:

• WalletHub – 4.2 out of 5 stars based on over 14,000 reviews
• Zillow – 4.8 out of 5 stars from 130 reviews
• Trustpilot – 4 out of 5 stars across nearly 700 reviews

These high ratings show that Discover delivers an excellent borrowing experience even as its mortgage business rapidly expands. Low rates and zero fees are nice perks, but Discover’s friendly and helpful service is what earns its reputation.

Discover Rolls Out New Rate Guarantee

In late 2022, Discover introduced a new rate guarantee program. This offers borrowers a set rate for 60 days while their loan closes.

Discover will guarantee your interest rate won’t go up during this period. If rates drop, you get to re-lock at the lower rate. This protection provides price stability whether rates trend up or down.

The 60-day lock-in is longer than many lenders, giving you ample time to close without worrying about fluctuations. Discover charges a 0.25% fee for this guarantee, but it’s refundable if you don’t end up needing the set rate.

Discover Improves Its Online Services

While Discover maintains top-notch phone and in-person support, it also continues improving its digital services. Recent upgrades include:

• A smoother mobile app with an improved interface
• The ability to upload documents directly through the online portal
• Faster pre-qualification and rate-checking tools
• Text alerts to keep borrowers updated on their loan status
• Expanded online education resources and mortgage calculators

These features make the lending process more convenient. Borrowers can complete most steps digitally and get 24/7 access to Discover’s tools and information.

Discover Strengthens Loan Servicing

Discover Home Loans services all the mortgages it originates rather than selling them to other companies. This helps it provide better accountability and customer service over the life of a loan.

Recent initiatives to improve servicing include:

• Shorter wait times when phoning the servicing department
• An online loan portal to easily make payments or view your account
• Email alerts for payment reminders and important mortgage notices
• Dedicated loan specialists for personalized assistance
• Hardship programs to postpone payments if you’re impacted financially

Bolstering its servicing resources ensures Discover can maintain top-notch support after you become a mortgage holder.

Discover Expands Home Improvement Financing

Along with its regular mortgage offerings, Discover now provides financing specifically for home remodels and renovations. These home improvement loan options include:

Home equity loans – Discover offers home equity loans up to $300,000 that can fund upgrades and repairs.

HELOCs – Newly launched in 2022, Discover’s HELOC provides a revolving credit line you can tap as needed for projects.

Cash-out refinance – You can tap your equity through a cash-out refi, using the funds for renovations.

Personal loans – Discover’s affiliate company, Discover Bank, offers personal installment loans from $2,500 to $35,000 to cover home improvements.

With these choices, Discover provides more ways for homeowners to afford renovations, whether small repairs or massive remodels.

Discover Rolls Out Neighborhood Revitalization Program

In mid-2022, Discover introduced a new initiative called Neighborhood Revitalization in collaboration with real estate company NeighborWorks America. This program provides grants and affordable financing to help revitalize distressed communities.

It offers the following assistance in select neighborhoods:

• Grants covering closing costs and down payments
• Reduced mortgage rates
• Access to down payment assistance programs
• Homebuying education and financial counseling

The program makes homeownership more accessible in areas that need investment and restoration. It’s currently available in a handful of states, but Discover plans to expand it to additional neighborhoods.

Discover Promotes Homebuyer Assistance and Education

Discover Home Loans emphasizes empowering buyers through education and aid options. Recent efforts include:

• An online Learning Center with homebuying and financing guides
• A YouTube series covering the basics of mortgage lending
• Email guides to borrowing that break down the process
• Lists of nationwide down payment assistance programs
• Tips for first-time homebuyers and low-income families
• Access to HUD-approved housing counseling agencies

Discover aims to provide the insights and resources homebuyers need to make informed decisions. Its educational content covers every step from preparing your finances to closing on your home.

What’s Next for Discover?

Discover entered the lending space just over a decade ago, but it has already grown into one of America’s top 10 mortgage originators. It achieved this by offering unbeatable value through low rates, zero fees, and great service.

As Discover expands into new states and neighborhoods, we can expect it to shake up the market even more with its affordable mortgages. Discover says they’re focused on “bringing humanity back to home lending.” We look forward to seeing how its lending experience and community initiatives continue evolving.

One thing is for certain – Discover is transforming how mortgages work. Its zero-fee model forces competitors to rethink their own fees and rates. And Discover’s commitment to personalized guidance makes homebuying less intimidating. As this lender keeps growing, it may remold consumers’ mortgage expectations entirely.