PROS / Ditech waives its processing fee in certain cases.
CONS / This agency does not have local agents.
VERDICT / Ditech is an online mortgage lender that can process mortgages in 49 states and Washington, DC. Its rates are competitive for the home mortgage companies industry, but it does not offer construction or home equity loans. It works with people in less-than-ideal situations to find a suitable home loan.
In August 2015, Green Tree Servicing and Ditech mortgage combined to form Ditech Financial LLC, which provides mortgages and refinancing at low rates through conventional and FHA loans. It does not provide construction, interest-only or home equity loans, however.
Overall, its loan programs are the same as you'll find with most mortgage companies. The fixed-rate loans run 10 to 30 years in five-year increments, while the adjustable rate mortgages (ARMs) have fixed rate terms of five, seven or 10 years. Many people prefer ARMs when they know they will either sell the house or refinance before the fixed-interest term is up.
This mortgage lender doesn't have local agents, but it does business out of four main branches. It has agents qualified to issue loans in 49 states plus Washington DC, but your correspondence will be via phone or online. We never received a reply to our email inquiries, nor were we able to contact corporate headquarters for general information. Nonetheless, we easily reached a loan officer when calling to apply for a loan. The loan officers we spoke to took time to fully answer our questions and run a quote for us.
Ditech's interest rates were about average for the lenders in the industry. In addition, it has a low processing fee, which the loan agent we spoke to said can be waived in certain cases. You need a minimum 5 percent for a down payment, which is the standard to avoid paying private mortgage insurance, but this lender does not have a preferred down payment.
It does have a preferred debt-to-income ratio and a minimum credit score, but it can work with borrowers who don't meet these requirements. It requires an employment record of one year, which is the second lowest of the mortgage companies we evaluated.
The website offers an extensive help section with articles, FAQs and a glossary, plus calculators to help you determine payments, interest savings if you refinance, and what your purchase capability is.
Ditech does its loan business via phone and email. It services 49 states plus Washington DC. It offers the usual fixed-rate and adjustable-rate loans, both conventional and FHA. Its rates are lower than average, as is its fee. The loan agents were willing to work with clients. If you don't mind not working with a local agent, it's a good company to consider.