Watermark Home Loans Mortgage Review 2025

Watermark Home Loans overview

Watermark Home Loans is a direct online mortgage lender in business since 2006. The lender is based in Irvine, California, and is available to borrowers in most states. It offers an array of mortgage options, including conventional and government-backed loans as well as niche products like interest-only and piggyback loans. The lender also provides refinancing options.

Pros and cons of Watermark Home Loans

How Bankrate scored Watermark Home Loans

Affordability: 5/5

Because of Watermark Home Loans' low APRs, low- and no-down-payment loans and no-closing-cost options, the lender gets a perfect 5 out of 5 stars for affordability.

• Interest rates: The lender reported annual percentage rates (APRs) below those of Bankrate's national average mortgage rates, at the time of this review.   
• Down payment: With Watermark Home Loans, you can choose from no- and low-down-payment mortgage options. Conventional loans require a minimum of 3 percent down, while FHA loans require a minimum of 3.5 percent. USDA and VA loans have no down payment requirements.
• Fees: The lender doesn’t charge an application fee.
• Closing costs: Watermark Home Loans offers no-closing-cost options. This typically means you can roll the closing costs into the mortgage in exchange for a higher rate instead of paying for them upfront.

Availability: 5/5

With its diverse mortgage offerings, wide national footprint and online application accessibility, Watermark Home Loans scored a perfect 5 out of 5 for availability.

• Home loans offered: The company stands out for its extensive mortgage options, which include the standard home purchase and refinancing options as well as products for real estate investors, self-employed borrowers and older homeowners.
• Footprint: The lender has grown to now service most states in the U.S.
• Where to find: When you're ready to apply for a mortgage, you can do so online or by phone at Watermark Home Loans. Since the lender works solely online, you won't be able to apply in person anywhere. 

Borrower experience: 4.1/5

Watermark Home Loans isn't transparent about rates on its website, meaning you'll need to submit a form to get a rate quote, so the lender gets 4.1 out of 5 stars for borrower experience.

• Application and preapproval process: You can get a rate quote and apply for a mortgage on the lender's website. To get started, you'll answer some questions about where you are in the homebuying process and the type of home you're looking for. Then you'll need to share some financial information and upload documents to get approved. In addition, the lender’s site includes various calculators that can help you do the math on APR, refinance break-even point and more.

• Transparency: Watermark Home Loans’ current mortgage rates aren’t disclosed on its website. To see what rate the lender might offer you, you’ll need to submit a rate quote request with some personal details. You can also sign up for a free rate watch tool to track rate movement.

• Customer service: You can reach the lender by filling out an online form or by calling or emailing.

Watermark Home Loans reputation

Watermark Home Loans is accredited by the Better Business Bureau and holds an A+ rating with the organization. The lender has an "Average" rating from the review site Trustpilot and was not included in J.D. Power's 2024 mortgage origination satisfaction study.

Refinancing with Watermark Home Loans

Watermark Home Loans offers both rate-and-term and cash-out refinancing options. However, the lender doesn’t list any information about fees or closing time expectations online. You’ll need to fill out a rate quote form to learn your options and compare refinance rates.

How to apply for a mortgage with Watermark Home Loans

You can apply for a mortgage with Watermark Home Loans online or by phone at 800-896-9374. Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
3. Provide details about the property. You’ll need to provide the address of the home and submit to a home appraisal.