Truist mortgage review 2024 (2024)

Truist Bank offers affordable rates and a variety of mortgage products that its competitors don't, like USDA loans, doctor loans and home equity lines of credit.

If you don't have a lot for a down payment, Truist's Community Homeownership Incentive Program allows borrowers who meet income requirements to put as little as 0% down with no mortgage insurance.

We also like that existing Truist customers can earn a rate discount and that the bank has both a robust online presence and physical branches in more than a dozen states.

The eighth largest commercial bank in the U.S., Truist was formed in 2019 from the merger of Branch Banking and Trust Company (BB&T) and SunTrust Banks, two North Carolina banks that date to the late 19th century.

Here are the benefits and drawbacks of taking out a mortgage with Truist.

Pros

• Low-down-payment options:Truist's Community Homeownership Incentive Program allows eligible borrowers to put as little as 0% down with no PMI.
• Doctor loans: Qualified medical professionals can get loans with a low or no down payment.
• High jumbo loan cap: Up to $5 million, higher than many competitors.
• Faster closing: Truist averages 36 days to close, compared to an industry average of 43.
• In-person availability: Nearly 2,000 Truist branches in 17 states and Washington, DC.

Cons

• No home equity loans: While Truist does offer HELOCs, it does not allow homeowners to borrow a lump sum against theequity in their home.
• Higher credit score for FHA and VA loans: Truist requires a 620 FICO Score, while some lenders will accept a 580.
• Customized rates not available online: Borrowers must contact Truist for personalized rates and mortgage fees.

Truist offers mortgages in 47 states and Washington, D.C. (It does not lend in Alaska, Arizona or Hawaii.)

• Fixed-rate: With a fixed-rate mortgage, borrowers have the same rate for the life of the loan. Truist offers 30-year, 20-year, 15-year, and 10-year fixed-rate mortgages and works with credit scores as low as 620.
• Adjustable-rate: Adjustable-rate mortgages (ARMs) start with a fixed rate for a set period, then change based on the market at regular intervals, typically every six months or year. Truist offers 5/6 ARMs with a fixed rate for five years and a variable rate every six months afterward. It also has a 7/6 ARM and a 10/6 ARM for most products.
• FHA loans: Backed by the Federal Housing Administration, FHA mortgages typically have lower credit and down payment requirements. Truist requires a 620 FICO score, which is higher than many competitors.
• VA loans: Active-duty service members and veterans can get approved for this lower-rate mortgage without a down payment or private mortgage insurance. While some banks accept a 580 credit score for a VA loan, Truist requires a 620.
• Jumbo loans: Truist offers jumbo loans of up to $5 million and looks for a score of at least 680.
• HomeReady and Home Possible: Backed by Fannie Mae and Freddie Mac, these mortgages are for low-income borrowers and require just 3% down. You should have a credit score of at least 620.
• USDA loans: Backed by the U.S. Department of Agriculture, USDA loans allow eligible homebuyers to get zero-down-payment mortgages in rural areas. Truist requires at least a 620 credit score.
• Construction loan: This short-term loan can be used to renovate your home or build a new one. Truist prefers a credit score of at least 700.
• Community Homeownership Incentive Program: A zero-down mortgage for borrowers who meet income limits or live in designated census tracts.

• Application fee: Can range from $595 to $1,250 based on the loan amount.
• Origination fee: Truist does not disclose information regarding origination fees.
• Prepayment penalty: No prepayment penalties.
• Rate lock fees: A basic 60-day rate lock, with credits for shorter periods and points for longer ones, up to 90 days. Extended locks are available with varying costs and adjustments and a float-down option is available for 180-, 270- and 360-day locks.
• Good faith deposit: Truist does not require a good faith deposit.

Truist Bank has several unique benefits for qualified borrowers.

Low-down-payment mortgage

Doctor loans

Medical professionals can qualify for a low- or no-down-payment loan with Truist without paying mortgage insurance, even if they have a higher debt-to-income ratio. Residents, interns and fellows can get zero down on up to $1 million, while practicing doctors and dentists are eligible for up to 89.99% financing on loans of up to $ 2 million.(Not available in all states.)

Relationship discount

Existing Truist Bank customers may qualify for a rate discount if they have payments automatically drafted from their account and meet other client requirements. Contact Truist for more details.

Truist offers both cash-out and rate-and-term refinancing and home equity lines of credit. It does not issue home equity loans.

• Credit score: Truist prefers a credit score of 620 to refinance, except for CHIP mortgages.
• Debt-to-income ratio (DTI): Truist does not disclose its maximum DTI ratio. In general, borrowers with a DTI below 49% are more likely to qualify for refinancing and those under 35% will get the best terms.
• Home equity: You'll need at least 20% equity for a cash-out refinance and 10.1% for a HELOC.
• Home appraisal: Your appraisal can be waived if the automated underwriting finding determines it's not required.

Truist is middle-of-the-road on customer service, landing near the industry average in both J.D. Power's 2023 U.S. Mortgage Origination Satisfaction Study, and its Mortgage Servicer Satisfaction Study.

The Better Business Bureau gave Truist Bank an A+ rating, its top grade, based on its public interactions, including how it addresses customer complaints.

Truist vs. Ally Bank

Truist has a wider range of mortgage offerings than Ally Bank, which doesn't issue any government-backed loans. And while Ally does have Fannie Mae-backed HomeReady loans, which qualified borrowers can get with as little as 3% down, Truist's CHIP program has a no-down-payment option.

If cost is the deciding factor, both Ally and Truist have competitive mortgage rates. But Ally doesn't charge any lender fees, which can add as much as 2% to your loan total.

The two lenders have similar closing times, with Truist averaging 36 days and Ally 35 days.

Customer service is a bit of a wash: While Truist scored an A+ from the Better Business Bureau and Ally's mortgage division received anA-, Truist placed middle of the pack in J.D. Power's U.S. Mortgage Origination Satisfaction Study in both 2022 and 2023. Ally came in sixth out of 22 in 2022 but was not included in the 2023 survey.

Truist vs. Rocket Mortgage

Both Truist and Rocket Mortgage boast a variety of mortgage products, but Truist offers USDA loans, doctor loans and HELOCs, which Rocket doesn't. (Neither lender issues home equity loans.)

Rocket Mortgage is the nation's largest mortgage lender, but it's an entirely digital operation: If you want that in-person experience, you'll need to see if you live near a Truist branch.

You can apply for a mortgage on the Truist website or call 877-907-1012, Monday through Friday from 8 a.m. to 8 p.m. ET and Saturday from 8 a.m. to 5 p.m. ET.

Truist is looking for a credit score of at least 620 for all of its mortgage products. So, if your credit is less than stellar, you should consider other options.

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CNBC Select reviews mortgage products using a variety of criteria, including the types of loans offered, average rates, terms, availability, fees, down payment options, online options and customer satisfaction.

We also incorporate findings from independent sources, including lender scores from the J.D. Power U.S. Mortgage Origination Satisfaction Study and ratings from the Better Business Bureau.

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