Editorial Review

Pacific Union Financial Mortgage Review 2019

Pacific Union Financial has been acquired by and is now doing business as Mr. Cooper. NerdWallet’s review will be updated soon to reflect any changes in lending services.

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Our Take

3.0

NerdWallet rating 

The Bottom Line: Pacific Union doesn't shy away from those with low credit scores or challenging financial histories.

Pacific Union Financial

at Pacific Union Financial

Min. credit score 
620
Min. down payment 
N/A
Loan types and products
Purchase, Refinance, Jumbo, FHA, VA, USDA

Pros & Cons

Pros
  • Minimum FICO score is generally 560, but can go lower.
  • Special loans for borrowers with past foreclosure or bankruptcy.
  • Branches in 11 states.
Cons
  • Must speak to a loan officer to get a personalized rate quote.
  • No online application, just a contact form.
  • No mobile app.

Full Review

Pacific Union Financial is an independent mortgage lender born in Northern California — which explains the West Coast sounding name — but now located in northern Texas. That’s quite a relocation strategy, and it seems to have worked. The lender now serves every state but one, with offices in nearly half of them, alphabetically from Alabama to Wisconsin and geographically from Maryland to Costa Mesa, California.

Here is what you can expect when shopping for a mortgage from Pacific Union Financial.

Compare Pacific Union Financial with other lenders

Pacific Union Financial mortgage products

Pacific Union Financial offers purchase and refinance loans, as well as jumbo mortgages, but no home equity products or reverse mortgages, a typical selection for a nonbank lender.

Government-backed mortgages are fully represented with Federal Housing Administration, Veterans Affairs and Agriculture Department loans.

“Our typical client is a low down payment customer, so typically an FHA customer,” says Evan Stone, founder of Pacific Union. “We deal with people that have oftentimes more challenging credit profiles.”

Stone says Pacific Union’s “advertised minimum” FICO score is 560, but the lender will go below that on an exception basis. Average loan amounts are “about $225,000,” he adds.

“We fund loans that most lenders turn down,” Stone says.

» MORE: Use our mortgage calculator to find out your monthly mortgage payment.

One way Pacific Union Financial works to stand out from the pack is with portfolio loans for borrowers with less than perfect credit. Portfolio loans are held by the lender rather than sold to an investor, and that allows for a bit of flexibility as far as a borrower’s credit qualifications.

Those loans, offered under a Pacific Union program called FlexKey, allow for expanded loan-to-value and debt-to-income standards. A Restart loan option offers borrowers with “past credit events,” such as a foreclosure or bankruptcy, an easier path to financing, including “relaxed” documentation.

“We feel the FlexKey product suite provides a needed approach to responsible lending for consumers who don’t fit inside the pristine credit box that most mortgage investors require,” Brandon Story, a senior vice president with Pacific Union Financial, said in a press release when the product rolled out in April 2016.

Story added that the loan program would promote “broader access to credit” and “help promote homeownership to a wider range of consumers.”

The Pacific Union Financial mortgage loan process

The Pacific Union Financial website is modern, attractive and full of motion graphics but has little functionality. While there are a few useful calculators and some interesting blog posts, you can’t get much done on your mortgage loan here.

Clicking on “Apply Now” at the top of the home page doesn’t launch a mortgage application but rather a short form for an initial interest rate quote and contact from a loan officer. Stone says a mobile app is in development.

And that’s the primary business model at work here: you working with a loan officer, either over the phone or in person at one of Pacific Union Financial’s 67 branch offices. The lender employs more than 1,500 mortgage professionals and partners with other, independent “correspondent” mortgage bankers.

And Stone points to a special service dedicated to a growing population of homeowners: “We have a team, a sales team and an operations team, for which Spanish is their primary language. The purpose of that is to cater to Hispanic borrowers,” he says.

Considering fees and mortgage rates

Typical lender fees are $995, according to Stone. To get an interest rate estimate, you’ll need to speak to a loan officer.

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NerdWallet's star ratings for mortgage lenders are awarded based on our evaluation of the products and services that lenders offer to consumers who are actively shopping for the best mortgage. The six key areas we evaluated include the loan types and loan products offered, online capabilities, online mortgage rate information, customer service and the number of complaints filed with the Consumer Financial Protection Bureau as a percentage of loans issued. We also awarded lenders up to one bonus star for a unique program or borrower focus that set them apart from other lenders. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.