Anyone have experience with sprout mortgage?

Question

https://www.sproutmortgagedire...

Not talking about sprout financial. I'm talking about sprout mortgage direct. Anyone has any experience with these guys?

Chris Mason · Answer

I see someone just clicked "like" on my post above. Sprout post-March 2020 is a completely different outfit. They've redesigned themselves almost from the ground up in response to changing market conditions (in particular, in response to what paper Wall Street is - and isn't - buying).

In general PSA: any and all mortgage advice from March 2020 or before should be disregarded. March 2020 was a bigger discontinuity for the mortgage industry than 2008.

Chris Mason · Answer

Not a scam, real company. Have closed with them.

Also not different from any other non-qm.... opaque, slow, expensive compared to Fannie, and a generally frustrating pain in the butt. Standard features of non-qm.

The value proposition is that they are NOT expensive when compared to hard money, so it's a question of if it is worth it to you in order to get rates/fees/terms that will beat HML (but don't bother if it's a scenario where you MUST close in less than 45 days, b/c that is a coin toss). Standard value proposition of non-qm.

Every non-qm lender says "we are different, bla bla bla." Also a standard claim of non-qm.

No guarantee that Sprout is the best deal in town. Might want to check with a correspondent banker or wholesale broker who can check them against the other non-qm folks. Retail correspondent and wholesale brokered are priced basically the same in non-qm, neither brokers brokering nor bankers correspondent banking have any rate/term advantage in non-qm, pick who you like.

Account Closed · Answer

Wanted to revive this thread... I am currently in the process of a cash-out refi with them. I used a mortgage broker this time around to obtain the best LTV cash out along with the 10 I/O, 40 year fixed that is offered in which she ended up choosing Sprout to close the loan. Anyone else experience any negatives or positives with them?

Chris Mason · Answer

@Zach Mitchell

Just going to leave this here: https://www.instagram.com/p/CCsdFhGjLbF/

Zach Mitchell · Answer

@Chris Mason Thought I would follow up on this. Have had experience with both PRMG and Sprout Mortgage now. Long story short..... DON'T USE EITHER OR YOU'LL REGRET IT. Luckily these were not my personal loans but you were definitely correct.

Tim Johnson · Answer

I also have closed loans with them.  As @Chris Mason said they are slow but better terms then Hard money.

Average close time is 50 days right now.  We only use them foreign national loans, everything else we go to different lenders for and non warranty condos.

They only offer cash out, rate term, and purchase.

Kevin Romines · Answer

We have a corespondent relationship with them and I have closed loans with them. What questions and concerns do you have?

Jared Rine · Answer

@J Jones sorry to hear that.  Where are the properties?

Full disclosure I'm a mortgage broker and used to use them "pre-covid" when they were solely Non-QM only.  They should have really stuck with that.  In trying to weather the storm they went into issuing conventional paper and it's been a nightmare and they've lost a lot of business b/c their u/w'ing teams and other seem to not know what they're doing.  I haven't used them since, but have heard stories like yours.  I feel the pain.

J Jones · Answer

We're about to walk away from them. We own 2 homes worth collectively close to 3 million dollars. We have 0 debt and no mortgages. My wife has been in the process of doing a cash out for 200,000 for the last 3 1/2 months. They demanded our full trust documents and a whole lot of extra stuff that they have no business asking for.  They have run us in complete circles and her credit score is around 800. There is absolutely no reason

Zach Mitchell · Answer

@Chris Mason It’s not the 25 bps, it’s the $6k in lender credits. I don’t mind delays but I definitely don’t want to end up not closing.

Anyone have experience with sprout mortgage?

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