Pros and cons of Newrez
Newrez Pros:
- Can close loans in as few as 10 days.
- Option for 1% down on a conventional loan with up to $5,000 in down payment assistance.
- Works with bad credit borrowers, including foreclosure and bankruptcy.
- Offers mortgages for self-employed borrowers.
- Lends in all 50 states, plus Washington DC, Guam, Puerto Rico, and the US Virgin Islands.
Newrez Cons:
- You must contact the lender directly to get a rate quote.
- Average origination fee is higher than the national average.
- Interest rates are not as competitive as some lenders.
- High number of complaints with the CFPB.
- There is no live online chat for customer support.
Newrez mortgage rates
Newrez interest rates tend to be higher than the national average, based on data from the Home Mortgage Disclosure Act (HMDA). This trend is likely due to the lender working with borrowers who have poor credit.
While Newrez doesn’t publish its mortgage rates online, we used HMDA data to calculate the average rates it has recently charged borrowers.
| Loan Type | Average Interest Rate |
| Conventional 30-Year | 7.21% |
| Conventional 15-Year | 6.06% |
| FHA 30-Year | 6.39% |
| VA 30-Year | 6.10% |
Average rate and fee data sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).
Remember that interest rates vary a lot by customer. Your rate depends on your credit score, down payment, loan type, and home price. That means you shouldn’t take average rates (or advertised rates) at face value. Instead, pick three to five lenders you’re interested in and get rate quotes from each. Then, compare the interest rates, closing costs, and other fees you’re offered to see which lender can give you the best deal.
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Newrez mortgage review for 2025
Founded in 2008 and headquartered in Fort Washington, Pennsylvania, Newrez has evolved into a national lender that funds billions of dollars in mortgage loans each year. It operates as part of the Rithm Capital portfolio and works with an extensive network of real estate professionals and loan officers.
The lender has a strong presence nationwide, serving borrowers in all 50 states, as well as Washington, D.C., Guam, Puerto Rico, and the U.S. Virgin Islands.
In this Newrez lender review, it’s clear that the company offers a wide range of mortgage options for various types of buyers, including those with unique financial situations, such as first-time home buyers, self-employed borrowers, and those rebuilding their credit. That said, mortgage rates and fees can be higher than average, so it’s worth weighing those costs against the value of its specialized programs.
Affordability
In 2025, borrowers may find that Newrez’s mortgage rates and origination fees are higher than those of more competitive lenders. For instance, Newrez’s average origination fee is approximately $4,096, surpassing the national average of $2,792. Additionally, average Newrez mortgage rates are typically higher compared to lenders like NBKC Bank. However, Newrez’s willingness to underwrite loans for borrowers with bad credit can contribute to these higher rates.
The RezSource 1% down program allows eligible borrowers to purchase a home with as little as 1% down, covering up to $5,000 of the down payment.
Newrez also offers various perks and promotions to help borrowers save money during the home-buying process. These include the Lock & Shop program, which provides a 45-day interest rate lock during your house hunt, and the NewZip real estate agent network, offering closing cost discounts for buyers and commission reductions for sellers who finance through Newrez (availability may vary by state). Additionally, Newrez’s Close-on-Time Guarantee promises to pay $5,000 if your loan doesn’t close as scheduled.
Lending flexibility
Newrez offers more than just the usual types of loans. Alongside fixed- and adjustable-rate mortgages, it offers government-backed loans, including FHA, VA, and USDA. These can be especially helpful for buyers who need more flexibility on credit or down payment requirements.
If you’re buying your first home, the RezSource program could be worth a look. It allows you to obtain a conventional loan with as little as 1% down, which can significantly reduce the pressure on your savings. For self-employed buyers, the SmartSelf program takes a broader view of your finances, not just tax forms and pay stubs. And if you’ve had past credit problems but still want to buy a higher-priced home, the SmartEdge program may help.
They also have refinancing options, including both rate-and-term and cash-out refinancing. Plus, the SmartVest program supports seasoned investors looking to finance rental properties. And for homeowners who want to borrow against their home’s value, Newrez also offers home equity loans.
Trustworthiness
Newrez has received a higher-than-average number of complaints with the Consumer Financial Protection Bureau (CFPB), which may raise concerns for some borrowers. It also has low customer ratings on Trustpilot and scored below average in J.D. Power’s 2024 U.S. Mortgage Origination Satisfaction Study. That said, the Better Business Bureau gives Newrez an A+ rating, and many borrowers use the lender without issues. It’s a reminder that online reviews can show one side of the story, especially when unhappy customers are more likely to speak up.
Customer experience
You can get started with Newrez by filling out a prequalification or preapproval form online. After that, a loan officer will help you through the rest. But keep in mind that Newrez doesn’t post its mortgage rates online, so you’ll need to contact them directly to see your options. While you can reach customer service by phone, email, or online form, there’s no live chat, which might be a drawback if you want quick answers.
FAQs about Newrez
Yes, Newrez offers the Rezsource 1% down program, which allows first-time home buyers to qualify for a conventional loan with as little as 1% down. Additionally, Newrez offers FHA loans, which require a minimum down payment of 3.5% and lower credit score minimums.
Yes, Newrez works with borrowers who have bad credit. The SmartEdge program qualifies people with a history of past credit issues, including foreclosures or bankruptcies. Newrez also offers FHA loans, which are available to borrowers with credit scores as low as 580.
Yes, self-employed buyers can get a mortgage through Newrez’s SmartSelf program. This loan option lets applicants qualify based on bank statements instead of traditional W-2 income documentation. It’s ideal for freelancers, business owners, and gig workers who need more flexible qualifying criteria.
To qualify for a Newrez mortgage, you’ll typically need a credit score of at least 620 for a conventional loan, though its Rezsource loan accepts scores as low as 580 with a 1% down payment. FHA loans require a minimum credit score of 580 with a 3.5% down payment. VA loans also allow for a 580 credit score with no down payment. For USDA loans, Newrez does not publish a specific credit score requirement, but most lenders expect a score in the 600s.
The Lock & Shop feature lets you lock an interest rate for 45 days during your home search, with the flexibility to adjust if rates decrease. You can also get a closing cost discount when you work with a NewZip real estate agent. Additionally, the Close-on-Time Guarantee promises a $5,000 payment if your loan doesn’t close as scheduled.
Is Newrez the best mortgage lender for you?
This Newrez lender review highlights a company that offers a wide selection of mortgage loans that are good options for first-time buyers, individuals with less-than-perfect credit, self-employed professionals, and real estate investors. If you’re buying a home in Guam, Puerto Rico, and the U.S. Virgin Islands, this lender could be a good fit for you, too. But if you’re mainly looking for the lowest rates and excellent customer service, consider a different lender.
How The Mortgage Reports scored Newrez
The Mortgage Reports evaluates and ranks lenders based on four key factors, each weighted to reflect its impact on the borrowing experience.
- Customer experience (20%): Examines the lender’s digital and service accessibility, including the availability of an online pre-approval or pre-qualification process, ease of contact, and the presence of a current rates page on their website.
- Affordability (20%): Assesses the average origination charges and the average interest rate the lender offers.
- Lending flexibility (40%): Evaluates the lender’s minimum down payment and credit score requirements, as well as the availability of FHA, VA, and USDA loan options.
- Trustworthiness (20%): Measures customer satisfaction and reliability based on Consumer Financial Protection Bureau (CFPB) complaints per 1,000 loans and ratings from reputable third-party review platforms such as Trustpilot.
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Written by: Valencia Higuera