Newrez Mortgage Review 2025
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- 50+ mortgage lenders reviewed and rated by our team of experts.
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Our Take
4.0
Newrez offers a standard mix of home loans and some boutique options for self-employed and bad credit borrowers. However, the lender lost points for not posting any mortgage rates online. Most likely to appeal to borrowers who need flexible guidelines to qualify for a mortgage, like alternative income documentation or a higher debt-to-income ratio.
Pros
- Accepts history of bad credit, foreclosure or bankruptcy.
- Flexible options for self-employed borrowers.
- Originated an above-average amount of FHA loans, according to the latest federal data.
Cons
- Doesn’t post mortgage rates online.
- Online chat not available for customer service.
- No construction or renovation loans.
Full Review
Newrez is a nonbank lender based in Fort Washington, Pennsylvania. Loans are available nationwide.
🏠 Popular loan types include: fixed or adjustable rate; conventional; FHA; VA; USDA; jumbo; rate-and-term or cash-out refinance
🔑 Specialty loan options include: investment property loans; loans for self-employed borrowers
💵 Home equity borrowing options: home equity loans
Newrez offers some perks and promotions to save money during the homebuying process. These include:
Lock & Shop: A 45-day interest rate lock during your house hunt, with an option to adjust if rates are lower when you get an offer accepted.
NewZip: A real estate agent network offering closing cost discounts for buyers and commission reductions for sellers who finance through Newrez. (Not available in all states.)
Close on time guarantee: Newrez will pay $5,000 if your loan doesn’t close on schedule.
For nontraditional borrowers who need more flexibility to qualify for a mortgage, Newrez offers three non-QM loans in its “Smart” series:
SmartSelf, for self-employed borrowers.
SmartVest, for experienced real estate investors.
SmartEdge, for those with less-than-perfect credit looking for a jumbo loan.
» MORE: How to apply for a mortgage
How we score Newrez
Every year, NerdWallet writers and editors use the latest data and independent research to score lenders on an overall rubric, reflecting factors that are most important to mortgage borrowers. Select Why This Category Matters below to learn more.
Newrez has a NerdWallet home loans rating of 3.5 stars overall. Here’s a breakdown of this year’s score.
Category | Star rating |
|---|---|
Average mortgage rates and fees | |
Mortgage rate transparency | |
Variety of loan types | |
Customer experience |
Average mortgage rates and fees (30%)
Our team analyzes federal data to compare mortgage lenders’ origination fees and offered mortgage rates, measuring annual averages across all loan types, as reported by the lenders. The lowest combination of average rates and fees earns the highest star rating in this category. (It’s worth noting that loans considered higher risk, including those such as FHA loans that are easier to qualify for, often have higher interest rates and fees.) Pro tip: In some cases, paying upfront fees may lower a borrower’s mortgage interest rate.
Mortgage rate transparency (25%)
We check how straightforward it is to comparison-shop rates online. NerdWallet’s transparency ratings are higher for lenders that post sample rates on their sites, and highest for sites with self-serve tools that allow shoppers to see what rates might be like for their particular loan. Pro tip: Borrowers who compare customized rate quotes by applying to three or more lenders could save thousands of dollars over the life of their loan.
Variety of loan types (25%)
Finding the right mortgage is different for each borrower. The highest star ratings in this category are awarded to lenders that our research shows offer a wide range of loan types, improving the odds that a borrower will find the best match for their needs: options for purchase and refinance; fixed-rate and adjustable-rate loans; government-backed FHA, VA or USDA loans; renovation or construction loans; and home equity loans or HELOCs.
Customer experience (20%)
How easy is it to interact with this lender? The highest-rated lenders in this category offer features that are convenient and clarifying for borrowers, such as: an online application, multiple customer service options, a helpful mobile app and candid closing timeline communications.
Newrez also earned bonus points for offering options for borrowers with credit challenges.
What borrowers say about Newrez
NerdWallet’s lender star ratings assess objective qualities, including rates, fees and loan offerings. To help you understand borrowers’ subjective experiences, NerdWallet has gathered customer satisfaction ratings from J.D. Power and Zillow. We also contacted Newrez customer support.
→ Below-average score in J.D. Power’s 2024 U.S. Mortgage Origination Satisfaction Study. Mortgage origination covers the initial application through closing day.
Score: 692 out of 1,000. Industry average for origination is 727.
→ Below-average score in J.D. Power’s 2024 U.S. Mortgage Servicer Satisfaction Study. A mortgage servicer handles loan payments.
Score: 542 out of 1,000. Industry average for servicing is 606.
→ Excellent customer rating on Zillow.
Customer rating: 4.96 out of 5, as of the date of publication. Rating reflects more than 6,700 customer reviews.
🤓 Our Nerds say...
Newrez has completed multiple acquisitions of smaller lenders in recent years, notably Caliber in 2023. As a borrower, it can be confusing to learn your mortgage transitioned to a new servicer, or to know where to turn if you have questions. Newrez’s below-average servicer satisfaction score likely reflects some customer frustration.
Alternatives to a home loan from Newrez
We recommend comparing mortgage rate offers from three or more lenders.
New American Funding is another nonbank lender that offers flexible qualifying options for self-employed borrowers.
Rate offers loans for borrowers recovering from credit challenges.
» MORE: Best nonbank mortgage lenders
More from NerdWallet
NerdWallet’s overall ratings for mortgage lenders are evaluated based on four major categories: average mortgage rates and origination fees, rate transparency to consumers, variety of loan types (purchase, refinance, fixed and adjustable, for example) and customer experience. Among the factors we consider in these categories are: options to apply for home loans online, typical time to close, mobile app experience, level of detail about mortgage rates on lender websites, and NerdWallet’s own analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. These and other items inform detailed rubrics, which generate ratings from 1 star (poor) to 5 stars (excellent). Read more about how we rate mortgage lenders here.
