Mortgage Provider Review: Mutual of Omaha

Mutual of Omaha is a brand name many people will recognize and for a good reason. This company has been around since the early 1900s. They get their name from the city they first called home – Omaha, Nebraska.

Today’s Mutual of Omaha is a Fortune 500 mutual insurance and financial services company. They offer a variety of financial products but are just building a name for themselves in the mortgage industry. They are best known as an insurance company provider. They offer a variety of insurance products, most to supplement Medicare or cover long-term illnesses. Mortgages are a reasonably new addition to their financial services portfolio.

Through Mutual of Omaha, you have access to traditional loans like fixed and adjustable mortgages. You can also refinance your home or apply for a reverse mortgage if you are 62 or older.

If you are a physician considering your home mortgage options, doing your homework is essential. Each lender has a little something different to offer. Some even have loan products designed with you in mind. Here is our complete review of Mutual of Omaha as a mortgage company.

Who Is Mutual of Omaha?

Mutual of Omaha isn’t the most significant financial service company. Still, it is probably one of the better known, especially if you are old enough to remember the show they sponsored in the 1960s called Wild Kingdom. It ran from 1963 to 1988.

Wild Kingdom resurfaced on Animal Planet in 2002. A web series called Mutual of Omaha’s Wild Kingdom premiered in 2013 and ran through 2018. In October 2022, the Mutual of Omaha-sponsored show went back into production for a fourth time featuring Pete Gros from the original show in the 60s and Rae Wynn-Grant. It will premiere on NBC in 2023.

Mutual of Omaha got its start in 1909 as Mutual Benefit Health and Accident Association headquartered in Omaha, NE. By 1920, the company was pulling in more than one million a year in premium income. By 1958, that number reached the one billion dollar mark.

It is still based out of Omaha, and insurance is the company’s primary service offering. In 2016, Mutual of Omaha established a mortgage division. It offers customer touchpoints both on the web and via a mobile app. They also have many brick-and-mortar branches around the country.

Although the company handles different kinds of mortgages, they process a lot of reverse mortgage applications. Mutual of Omaha is ranked third in the country for reverse mortgages.

Reat this: How to Navigate Buying a Home in the Current Market

Subsidiaries of Mutual of Omaha

Mutual of Omaha is a full-service financial company with a number of subsidiaries, including:

• United of Omaha Life Insurance
• Companion Life Insurance
• United World Life Insurance Company
• Omaha Insurance Company
• Mutual of Omaha Investor Services, Inc.
• Omaha Supplemental Insurance Company
• East Campus Realty, LLC

Mutual of Omaha Mortgage Division Timeline

• 2016 Mutual of Omaha entered a joint venture with PrimeLending, a PlainsCapital Co. under the Mutual of Omaha Mortgage brand name.
• 2018 Mutual of Omaha acquired Synergy One, which led to the addition of their mortgage division.
• Three months after the 2018 deal, Synergy One purchased BBMC Mortgage LLC from Bridgeview Bank Group, adding its portfolio to Mutual of Omaha.

In 2020, CIT Group purchased Mutual of Omaha, but that did not include its mortgage division.

The Better Business Bureau gives Mutual of Omaha Mortgage an A+ rating, with the average customer review at 4.85 out of five stars. In addition, Mutual of Omaha has A+ ratings with both A.M Best Company and S&P Global and A1 with Moodys Investors Service. None of these companies mention the mortgage division in their ratings.

What Kind of Mortgages Does Mutual of Omaha Offer?

Mutual of Omaha has a comprehensive list of mortgages available in 48 states and Washington D.C., each with a different mortgage interest rate. Mortgages from this company are not available in New York or West Virginia.

Conforming

A conforming loan falls under the limit Fannie Mae and Freddie Mac set. These are the government-managed corporations that buy mortgage-backed securities. The limit can change annually and vary by location.

For instance, in 2020, the limit throughout most of the country was $510,000. It was higher in certain areas. Any mortgage under this limit is conforming. Interest rates on conforming loans tend to be lower.

Jumbo

As the name suggests, jumbo loans are larger. They would exceed the limit established by Fannie Mae and Freddie Mac. Jumbo loans tend to require larger down payments and have higher interest rates.

Fixed

Mutual of Omaha also offers fixed and adjustable-rate mortgages. A fixed-rate mortgage has the same interest rate throughout the term. For instance, a mortgage with a 30-year fixed rate would have the same interest for 30 years.

Adjustable

An adjustable-rate mortgage is the opposite of a fixed. The interest rate fluctuates annually after a set time. You can tell the terms of an adjustable-rate mortgage (ARM) by the label on it. For example, 7/1 ARM is a mortgage with a fixed rate for the first seven years, and then it will adjust annually based on the current housing market.

ARM mortgages are attractive because they have lower interest rates but can be less stable. New home buyers often get the ARM and then refinance after the fixed rate ends.

VA

Mutual of Omaha also provides a number of government-sponsored home loans like the VA option. A VA loan is only available to veterans, current service members, and spouses. The benefits of a VA loan include lower closing rates, competitive interest, and no down payment.

USDA

The United States Department of Agriculture home loan is for those looking to purchase in rural areas. The program is for low and middle-income buyers who meet set qualifications. A USDA loan may help someone who otherwise wouldn’t qualify for a home loan but must buy in a designated area.

FHA

A United States Federal Housing Administration (FHA) loan also offers easy qualifying standards, including a low down payment (3.5 percent). This loan option is only available to first-time buyers but has fewer credit restrictions.

Reverse

A reverse mortgage is not a traditional home loan, but one Mutual of Omaha specializes in. With a reverse mortgage, a homeowner over the age of 62 can borrow money against the value of their home. Instead of making monthly payments, though, the lender gets the money back when the borrower leaves the house.

In the meantime, the loan accrues interest and fees on a monthly basis. The homeowner is also responsible for property taxes and insurance payments.

Mutual of Omaha also offers refinancing options for current homeowners.

Related: A Medical Resident’s Guide to Mortgage Rates

Mutual of Omaha Mortgage Loan Options vs. Other Lenders

Mutual of Omaha’s mortgage portfolio exceeds that of many other mainstream lenders.

Rocket Mortgage

Rocket Mortgage is one of the top lenders in the country, especially for refinancing. They are also known for their stellar customer service.

Mutual of Omaha offers a few more loan options than Rocket Mortgage, such as USDA and reverse. It also has less restrictive credit qualifications such as:

• A minimum credit score of 550 on government-backed loans and some traditional mortgages
• Recent bankruptcy is acceptable

Rocket Mortgage requires of credit score of 620 or higher on conventional home loans.

Chase

Chase Bank tends to be a favorite for first-time and low-income homebuyers. This is because they offer a particular product designed for them called the DreaMaker mortgage. That exceeds anything Mutual of Omaha provides. Chase also has a Homebuyer grant program that can assist with down payments or closing costs.

Mutual of Omaha is often more willing to look over a low credit score or bankruptcy, and Chase has stricter credit standards. Both lenders offer similar home loan products with the exception of:

• Chase –  DreaMaker
• Mutual of Omaha – Jumbo and reverse mortgages

Loan Depot

Loan Depot has a few more mortgage products than Mutual of Omaha for refinancing. Its portfolio includes:

• Rate and Term Refinancing – Alters the rate and term of the existing mortgage without paying out for equity.
• Cash Out Refinance – New mortgage and payout for home equity given in cash

In addition, Loan Depot offers construction loans for new home building and renovation. Despite having a few more loan options, Loan Depot is not the best choice for those with low credit scores or poor histories. They would still have better approval odds at Mutual of Omaha.

What Kind of Physician Home Loans Does Mutual of Omaha Offer?

Physician home loans are specially designed to meet the unique needs of doctors. Most physicians graduating from medical school have a large debt-to-income (DUI)  ratio. That puts them at a disadvantage in two ways. It can make it challenging to meet DUI requirements for a mortgage and to come up with a down payment.

A physician mortgage makes it possible for new doctors to get a loan without either. It is a special allowance provided to these borrowers because they have promising career trajectories through to retirement. They will likely make considerable income in the future, so they are less likely to default on their home loan.

There is no indication that Mutual of Omaha has a specific program for physician loans. They do have flexible credit qualifications, though. That may mean they would be willing to work with new doctors to help them buy a home. They simply don’t have physician mortgages listed in their portfolio.

Related: Can Physicians Have Cool Cars and Houses and Still Retire Early?

What Are the Benefits of a Mutual of Omaha Mortgage?

The standout feature of Mutual of Omaha is its wide range of mortgage products. That helps them provide loans for more buyers. They appear to have less strict credit requirements than many of the mainstream lenders.

Also, Mutual of Omaha has several options for you to use when applying for a home loan. You can download a mobile app on both Android and iOS devices that will walk you through the process. It will also calculate the cost of the loan for use and allow you to get your documents electronically and check your loan status.

You can also go online to their website and get an estimate of how much you can borrow and apply for the loan. Easy access is a plus. Other benefits of Mutual of Omaha include:

• No minimum credit score requirement for conventional mortgages.
• Government-backed loans will have minimums, but they are as low as 550.
• Borrowers who have recent bankruptcies can still get approved for a mortgage.
• Positive online customer reviews

The downside to using Mutual of Omaha is most of the work is self-service. You don’t talk to a loan officer prior to getting your loan. Also, they don’t provide loans in New York or West Virginia.

Is Mutual of Omaha the Right Choice for Physicians?

Probably not, unless you are willing to haggle to get your loan. Unlike other lenders, it doesn’t offer a physician mortgage loan per se. That doesn’t mean doctors can’t get approved there. The borrower may have to work with them to get a special deal.

It might be a better option if you are a physician with a low credit score or poor history since their requirements are more forgiving, though.

The truth is it’s difficult to know which lender offers physicians the best home mortgage options. There are too many on the market, and it takes work to go through them all. If you are considering investing real estate, we can help. We will do the leg work for you.

Want to read about other mortgage providers?

First Federal of Lakewood  |  NEO Home Loans  |  UFCU

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