Vylla Bad Credit Mortgage Reviews

For people with weaker credit, and who are nonetheless faced with the major financial burden of homeownership, Vylla represents a multifaceted service that can them help pin down the right home and also the best mortgage for it. It’s also a great solution for any other potential home loan borrower.

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    About Vylla

    First time buyers are suitable candidates for Vylla especially, however, though the company also has a home refinancing solution for existing homeowners.

    This two-sided approach is made possible through its owner, Carrington Holding Company.

    Carrington has been around since 2003 and has consolidated its many operations into one consumer-facing product—Vylla. With a single convenient dashboard to find a home anywhere in the US, and then sort through offers for many types of loans and mortgages from multiple providers, Vylla is setting the bar higher for real estate customer experience and stands out from other noninstitutional lenders. This makes it an excellent holistic platform for new homeowners of any kind. 

    Vylla Financial Terms in a Glimpse

    Minimum Credit Score
    500 - 620
    BBB Rating
    A-
    Loan Duration
    10-30 years
    Minimum Down Payment
    3.00%

    What Vylla Offers 

    Vylla mortgages are expansive in nature and generally include any type of mortgage one could want in the US. Mortgages with bad credit are supported as well, making Vylla’s streamlined interface a friendly sight for borrowers with weaker credit scores and humble ambitions, plus a great way to browse top-tier properties and the jumbo loans they require.

    Home Loans

    As a loan aggregator that connects users with providers in its own large network, Vylla institutes a minimum credit score of 620 and a down payment of 3% to be matched with any of its lenders, though this will vary depending on the loan you get. For low credit or cash-strapped potential homeowners, this is a blessing. A jumbo loan will require at least 5% down and a credit score of 680 while government-guaranteed loans like USDA and VA loans won’t require more than a credit score of 500.

    Low Credit Home Loans

    Though not a categorical loan type like a Jumbo or VA loan, a Vylla mortgage with bad credit score are a specialty, and available to borrowers who apply for most loans through this provider.

    Conventional Home Loan

    Both fixed and adjustable rate conventional home loans are available, for homes with a value under $484,350.

    VA

    Vylla takes special care to consider veterans in its pre-loan questionnaire, and it’s because the company offers VA loans with $0 down to qualifying servicemembers.

    USDA

    For homes and home buyers that qualify for a USDA home, meaning those who buy in a rural area and fall under a household income level, Vylla is a great option.

    Jumbo

    Home loans that are larger than those able to be guaranteed by Freddie Mac or Fannie Mae, namely over $484,350 in 2019, are available to Vylla users who fit this profile.

    FHA

    Vylla loops in most of the government-backed housing loans including those from the Federal Housing Administration. Available for qualified borrowers with at least 3.5% down and below the maximum income threshold.

    Refinancing

    Existing homeowners with the need to refinance their mortgage can do so through Vylla, and for multiple purposes (lowering a payment, cashing out, and more).

    How Vylla Works

    Vylla is ultimately split into two services, Home Loan and Home Search. The simplest is Home Search, so that’s where we’ll begin.

    Searching for a Home: With a similar interface to popular real estate search platforms, Vylla users click on Start Your Search on the homepage to be brought to the separate search site vyllahome.com. Here, you’ll enter the name or zip code of where you want to live, and then click Search. You can navigate by dragging your mouse on the map, zoom in with the + and - buttons, and click on homes to see details. A key feature is the ability to search according to your budget, and even still the number of homes available was impressive. Once you’ve found your home, you’ll click a link to get in touch with a Vylla Marketing agent, who gets the buying and lending processes started.

    Searching for a Home Loan: To search for the type of home loan you want, click on the Start the Process button on the homepage. Then you’ll choose whether to Refinance or Purchase a new home and loan.

    Purchase:

    Click on Purchase to see three more options. The first, Start Loan Inquiry, lets you send an inquiry to a loan agent with your personal details and needs. The second, Monthly Payment, allows you to look for loans that meet your monthly budget. The third, Purchase Price, is for those who need a loan and already have a home in mind. For the latter two options, Vylla sends you through a series of questions about your income, credit score, down payment, and more before providing a list of eligible loans.

    Refinance:

    Click on Refinance to see three options, Get Cash-Out, Reduce Loan Term, and Lower Monthly Payment. Regardless of the reason for refinancing that you choose, Vylla then asks relevant questions before presenting its eligible refinancing loans. These include the use and type of residence, location, estimated value, credit score, loan balance, and more.
    A tip for new Vylla users is that while the number of home loan offers produced may seem overwhelming, it’s because non-members aren’t preapproved for the terms they see. This is why it’s crucial to sign up first, so that the home and loan search processes are more fitting, and the mortgage terms listed more concrete.

    Vylla Fees and Terms

    We found it difficult to narrow down exactly how much one can expect to pay for a home loan through Vylla, but by going through the application process for several loans with various lenders we determined that a 2% to 6% sum is the average closing cost. As an aggregate lender, it’s not possible to find a flat rate, though one constant is Vylla’s underwriting fee of $599, charged whenever you take out the loan you decide is the best.

    In terms of the documentation, one will need to provide to get a Vylla loan, the following documents are typical:

    • Tax returns
    • W-2 forms
    • Rental payment if applicable
    • Government-issued ID
    • Pay stubs, invoices, and proof of income
    • Bank statements and proof of assets

    Vylla Customer Service

    The website has a handy section accessible under the fold which has links to countless useful articles, FAQs, and more for quick answers to common inquiries, but if you need human customer service, you’ll find the team both available and prompt—as we did. An easy way to get in touch is with the online live chat function, but we found it a bit difficult to find.

    More prominently displayed is the phone number for Vylla support, which one should know is actually the toll-free number to Carrington Mortgage Services (though this won’t make an impact on the level of service provided). Calling during weekdays resulted in wait times of less than 5 minutes for our review team.

    Vylla Pros and Cons

    Pros

    • Many Ways to Find a Home Loan: Search by the monthly payment you’d like to make, the price of the home want to buy, or even the exact home and loan you’ve already found on the marketplace tool.
    • Good for Low Credit Borrowers: Vylla is known as a safe haven for borrowers with scores as low as 620 (and even 500 for VA and USDA loan programs), and notably offers mortgages for those with bad credit as well.
    • Several Types of Loans: FHA, VA, USDA, Jumbo, and conventional loans of fixed and adjustable rates are found on Vylla, a wide selection that stands out among other competing lending platforms.
    • Reasonable Terms: Vylla only charges an underwriting fee and leaves the other terms to the individual lender you choose, and minimum down payments are as low as 3%.

    Con's

    • No Preapproval: One of the biggest chips on Vylla’s shoulder is that the loans it lists for potential borrowers are not those they’ve been preapproved for. One must pursue the process of getting approved for the terms listed with the individual lender.
    • Only Some States: Leaving prominent US States like Massachusetts and New York in particular out of the equation means that Vylla’s accessibility is limited by geography to a degree.
    • Offline Lender: There is no option to complete the loan online at Vylla and get funding from the lender. Vylla connects you to a specialist who helps you handle these details separately.

    Final Thoughts About Vylla

    Vylla is a friendly, user-focused mortgage lending platform. By stitching together a home search marketplace and a loan aggregator, potential homeowners will find a turnkey solution they can stick with from the earliest exploratory stages to the closing of their new purchase, all in one ecosystem.

    An especially thoughtful approach for such a cutting-edge solution is that even those with poor credit can benefit from Vylla, with bad credit mortgages paired with favorable terms and a great customer service team. For all this, Vylla only charges a reasonable underwriting fee, providing a new model for home borrowers of all kinds to rely on.