Mr. Cooper Mortgage Review 2024
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
580 to 640
0% to 3.5%
Conventional, FHA, VA, jumbo, home equity loan, HELOC
See how we reached our verdict below.
- Comprehensive home loan options with simple application processes
- Competitive programs like 1% interest rate reduction for the first year of payments
- Easy mortgage management through mobile app
- Doesn’t publish rates publicly online
- Online application only available for preapproval home loans
- Mixed reviews around customer support experiences
Mr. Cooper mortgage overview
Headquartered in Dallas, Mr. Cooper is one of the largest home loan servicers in the U.S. and has been in business for 30 years. The company offers a digital loan experience with an online loan tracking system.
- Areas of service: All 50 states
- Digital service: Digital service only
- Headquarters: 8950 Cypress Waters Blvd., Coppell, Texas, 75019
- Website: MrCooper.com
Mr. Cooper rates, terms and fees
Rates
Mr. Cooper doesn’t publish mortgage rates publicly online, though borrowers who have applied for loan preapproval or approval can see updated rates daily.
Mr. Cooper’s rates can fall on the high end compared to other national mortgage lenders, averaging around 0.81 percentage points above the average prime offer rate (APOR) in 2023, based on 2023 data from the Home Mortgage Disclosure Act (HMDA). The lender’s rate spread increased from 0.53 points in 2022 to 0.81 points in 2023.
Fees
The average total cost of taking out a home loan with Mr. Cooper was $10,138 in 2023 across all loan types, according to data from the Federal Financial Institutions Examination Council (FFIEC). This amount included origination fees, appraisal fees, application fees and other potential closing costs. Mr. Cooper’s origination fees made up a significant portion of these costs, averaging $6,895 in 2023.
Some types of loans may incur additional fees. VA loans, for example, may come with VA funding fees that vary based on your down payment.
What discounts does Mr. Cooper offer?
Mr. Cooper offers multiple discounts and credits. The company’s 1% Mortgage Markdown is its most notable incentive. This temporary buydown program reduces borrowers’ effective rate by lowering the interest rate by one percentage point for 12 months.
Other offers include:
- A $1,500 credit for a future qualifying refinance.
- Up to $10,000 cashback when connecting with a local real estate agent and using the Cooper Cashback program to buy and sell.
- “Swap” your rate for a lower rate later with a reduced origination fee through the RateSwap program.
What types of mortgage loans does Mr. Cooper offer?
Mr. Cooper offers a variety of home loans including:
Conventional loans
Mr. Cooper offers conventional loans that include fixed-rate mortgages and adjustable-rate mortgages (ARMs). Refinancing options are also available, though more details aren’t available online.
Conventional loan qualification requirements
- Minimum credit scores are not disclosed online
- May allow for down payments as low as 3%, though down payments under 20% will require private mortgage insurance (PMI)
FHA loans
Mr. Cooper offers FHA loans, which are insured by the Federal Housing Administration (FHA). These mortgages come with more flexible credit requirements and low down payment options. FHA streamline loans are also available for existing FHA borrowers who want to refinance.
FHA loan qualification requirements
- 580 minimum middle FICO score
- Private mortgage insurance (PMI) required
- Down payments as low as 3.5%
VA loans
Mr. Cooper offers VA loans, which are backed by the U.S. Department of Veterans Affairs (VA), to eligible active duty service members, veterans and surviving spouses of veterans. The company also offers VA Interest Rate Reduction Refinance Loans (VA IRRRL), which can reduce your monthly payment on an existing VA loan.
VA loan qualification requirements
- 640 minimum middle FICO score
- 0% down payment required for eligible borrowers
- A full entitlement, which guarantees how much the VA will pay should you default on your mortgage
- Certificate of Eligibility (COE)
- VA funding fee (which may be as high as 2.15% of the cost of the home loan if your down payment is under 5%)
Jumbo loans
Borrowers can also apply to Mr. Cooper for jumbo loans, which are non-conforming mortgages that exceed traditional loan limits set by Freddie Mac or Fannie Mae. Jumbo loans may allow borrowers to finance up to $2.5 million (depending on property type) and are often available on 15- or 30-year fixed or adjustable-rate mortgages.
Jumbo loan qualification requirements
- Minimum down payment and credit score not disclosed
Home equity loans
Mr. Cooper offers home equity loans in addition to refinancing options, though the company doesn’t publish information online about terms, limits or rates.
Home equity loan qualification requirements
- No qualifications are specified online
Mr. Cooper mortgage qualifications
| Credit score minimum | Conventional: Not disclosed FHA: 580 VA: 640 Jumbo: Not disclosed Home equity: Not disclosed |
| Down payment minimum | Conventional: 3% FHA: 3.5% VA: 0% down payment options Jumbo: Not disclosed Home equity: Not disclosed |
| DTI ratio Debt-to-income (DTI) ratio compares your monthly gross income to your monthly debt payments. maximum | Not disclosed for any loans |
Don’t know your credit score? Get your free score on LendingTree Spring today.
How to boost your loan approval odds
While Mr. Cooper doesn’t disclose the minimum requirements it uses to assess applications, we can glean some valuable information from the HMDA data. In 2023, Mr. Cooper’s approved average loan-to-value (LTV) ratio was 64%, and 43.9% of approved loans had a debt-to-income ratio under 40%. The lender’s total loan approval rate in 2023 was 81.2% across all loan types.
To increase your odds of loan approval, take the following steps:
- Lower your DTI ratio, eliminating or reducing debt before you apply for a loan.
- Build good credit habits, including making on-time payments, to boost your credit score.
- Choose loan types that you’re most likely to be eligible for, and ask to borrow amounts under a 40% DTI.
How to apply for a Mr. Cooper mortgage
1. Choose your loan type
Start at Mr.Cooper.com and choose the type of loan you’re interested in. You can choose from options like “Get Cash,” “Refinance,” or “Buy or Sell a Home.”
If you want to refinance or do a cash-out refinance, you’ll need to complete the forms presented and wait to be contacted by an account representative.
2. Get prequalified
If you want to get preapproval or apply for a mortgage loan, you can apply on the company’s website. You’ll be asked to share preliminary information like your name, type of property you want to purchase, estimated down payment and Social Security number. Submitting the prequalification will grant Mr. Cooper permission to conduct a soft credit pull.
3. Submit a loan application
Outside of the preapproval process for home mortgages, prospective borrowers need to speak to an account executive. When you choose your loan type, you can fill in based information, including products you’re interested in, along with your email address and phone number. An account representative will call you back on their operational days, which run from Monday to Saturday.
Note that formal loan applications involve hard credit pulls.
Documents you’ll need for prequalification or preapproval
- Identification
- Tax documents
- Bank statement
- Pay stubs
- Debt and asset statements
- Gift letters (if you’re using gifted funds)
Find out more about how to apply for a home loan.Is it safe to get prequalified with Mr. Cooper?
Mr. Cooper is an established and licensed mortgage lender, so it’s safe to submit a prequalification application. This lender only uses a soft credit pull for prequalifications, which can have a lesser impact on your credit score compared to hard pulls. Keep in mind that any impact on your credit scores from loan or preapproval applications are only temporary.
Prequalifications are also a necessary part of obtaining a mortgage and buying a home. Sellers may prefer borrowers who have preapproval letters, and in some cases may not even allow buyers without preapproval letters to tour their homes or submit offers.
Mr. Cooper’s customer service experience
Mr. Cooper offers diverse options for customer support. The first option is its self-help knowledge base, which can provide quick answers for common customer questions. There’s also a live chat solution, which includes support from a virtual assistant chatbot and live agents. Finally, there is the option to call customer support.
Reach customer support quickly with these options:
- Call 833-685-2566
- Use live chat
- Submit a ticket through the Message Center
You can also mail in requests to the following address:
Mr. Cooper
Attn: Customer Relations
P.O. Box 619098
Dallas, TX 75261
Customer support is available during the following hours:
- Monday-Thursday 7 a.m. to 8 p.m. CT
- Friday 7 a.m. to 7 p.m. CT
- Saturday 8 a.m. to 5 p.m. CT
How does Mr. Cooper compare to other lenders?
 |  |  |
|
|---|---|---|---|
| LendingTree’s rating | |||
| Minimum credit score | Not disclosed | 500 to 620 | 580 to 620 |
| Minimum down payment | 0% to 3.5% | 0% to 5% | 0% to 10% |
| Rate spread Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan. | 0.81% | 0.40% | -0.04% |
| Loan products and programs |
|
|
|
| Better for: | Borrowers seeking fast prequalification or loan approval, with the option for special programs and incentives. | Homebuyers looking for digital mortgage solutions, and those with credit scores under 620. | Borrowers looking for clearly defined loan parameters online and low rate spreads. |
Mr. Cooper vs. AmeriSave Mortgage
Mr. Cooper and AmeriSave are both largely digital mortgage providers offering extensive options. AmeriSave offers more transparent information online, a lower rate spread, and the addition of a USDA loan, but Mr. Cooper may stand out with its incentive programs like the 1% interest rate decrease for the first year, or the RateSwap program.
→ Read more in our full AmeriSave mortgage review.
Mr. Cooper vs. Better Mortgage
Better Mortgage offers extensive information about qualifying processes, credit score requirements and minimum down payments online, which may make it easier for borrowers to choose the right product for them. The company also allows for complete online applications for diverse products, which is unlike Mr. Cooper’s more restrictive application process.
However, Mr. Cooper offers home equity loan options, and its incentive programs still stand out.
→ Read more in our full Better Mortgage review.
Ready to compare lender offers on LendingTree? Get Your Rates TodayHow LendingTree rated Mr. Cooper Mortgage
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (such as conventional, FHA and VA loans). In some cases, additional information was provided by a lender representative.
Mr. Cooper’s scorecard:
Publishes rates online
Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application
= 0 points = 0.5 points = 1 point
Frequently asked questions
Mr. Cooper allows potential borrowers to apply for pre-approval or loan approval online. The lender notes that applicants can receive preapproval within five minutes and verified approval in as little as four hours. This lender also provides custom insights on the loan, home and neighborhood you’re under contract with through its StreetSmarts feature.
Mr. Cooper is a legitimate mortgage lender. The company is based in Dallas, and has served more than 5.3 million homeowners. It’s one of the largest mortgage servicers in the U.S., and operates under Nationstar Mortgage LLC, which was founded in 2001 and is licensed to do business in most states.
You can see more information about Mr. Cooper’s state-specific licenses and registrations through the Nationwide Multistate Licensing System and Registry (NMLS) website.
Mr. Cooper home loans — including home equity loans and refinance loans — will likely impact your credit score. In most cases, your score is likely to drop around by an average of 20.4 points and rebound within a year. Making on-time mortgage payments can help improve your credit score over time.
Mr. Cooper has a 4.2 star rating on Trustpilot, which is based on more than 5,500 client reviews. This score gives Mr. Cooper a “great” score, which indicates that many customers had a positive experience with this mortgage servicer.
Many customer reviews noted that the loan approval process was relatively easy and mortgage representatives were friendly, professional and offered multiple options to help borrowers choose solutions that best suited their needs. Other reviewers noted positive customer service experiences, especially when dealing with personal or financial hardship that required assistance from their mortgage lender.
Despite the predominantly positive customer reviews, a common customer complaint in lower-rated reviews was difficulty in speaking to a live agent when issues arose.