BB&T Mortgage Review: Great for Low Down Payments and New Home Construction Loans

BB&T Mortgage offers conventional mortgage loans and a wide range of low down payment home loan programs. This lender could be a great fit for borrowers who don't have a large down payment but are otherwise ready to buy a home. Also, BB&T offers multiple options for homeowners who want to leverage the equity in their home. Take a look at our complete BB&T Mortgage review to see if this is the best mortgage lender for you.

This mortgage lender is a good fit for: Borrowers who need a low down payment mortgage -- BB&T offers several mortgage loan options that require anywhere from 0% to 3% down.

Top perks

Accessible mortgage rates

It's easy to plug in your loan amount and a few basic details (loan type, property type, and expected down payment) to see the mortgage rate you might qualify for.  

Zero down payment and low down payment options

If you aren't able to put 20% down, BB&T has five different mortgage programs with low or zero down payment requirements:

1. CHIP (Community Homeownership Incentive Program): 3% down payment, no mortgage insurance required, income limits apply
2. HomeNow: 3% down payment, income limits apply
3. First-Time Home Buyer: 3% down payment, reduced mortgage insurance, no income limits
4. VA loan: 0% down payment, borrower must be VA loan eligible (service members and some spouses)
5. USDA loan: 0% down payment, property must be USDA loan eligible (usually rural), income limits apply

Down payment assistance programs

BB&T Mortgage works with down payment assistance programs. It won't give you down payment assistance directly, but may steer you in the right direction.

Non-occupant co-applicant

BB&T allows you to apply with a co-applicant who will not live with you. This is useful for families who want to pool resources, children getting help from their parents, and others who might not qualify for the mortgage on their own.

Construction loans

If you want to build your own home, BB&T Mortgage lets you combine the cost of land and construction in one loan. You can make interest-only payments during construction when you'll likely still be paying for housing elsewhere. When construction is complete, the loan converts to a permanent mortgage.

Home equity products

BB&T offers home equity loans and home equity lines of credit (HELOCs) to help you tap your equity. A HELOC is typically subject to a variable interest rate, but a fixed-rate option may be available on all or a portion of a home equity loan from BB&T.

What could be improved

Nationwide reach

BB&T makes mortgage loans where it has a physical presence. The bank currently operates in:

Borrowers in other states may not apply.

Application fee

Borrowers in some states will pay an application fee. Other fees and closing costs vary as well, and there is no way to find out exactly what they will be until you submit a formal application and are approved for a mortgage.

Non-QM loans

BB&T doesn't offer a wide variety of non-qualified mortgage (non-QM) loans for borrowers who need more flexible underwriting. For example, business owners who want to prove their income using profit and loss statements instead of tax returns might need to look elsewhere.

Conventional loan applicants with BB&T Mortgage need a credit score of at least 620, which is standard. If your credit score is lower, you might qualify for one of BB&T's special home loan programs. 

For a government-backed loan, BB&T follows federal underwriting guidelines. In 2021, your debt-to-income ratio (DTI) can be up to 50% (and in some cases higher) provided you meet other criteria. 

If you know your income is low for your area, or you think it might be, talk to a BB&T mortgage loan officer about special mortgage loans that you might qualify for. Income limits are typically based on the ZIP code where you live (or where you will buy the home).

BB&T's refinance rates are in line with national averages, and you'll have to pay for mortgage discount points to get the lowest rates (that's standard). Refinance rates are a little bit higher than purchase loan rates (about two-tenths of a percent), which is also common.

BB&T's mortgage rates trend about the same as the national average. You can't get a custom rate online without applying, but sample rates for applicants with excellent credit are on BB&T's website.

BB&T Mortgage is a good fit for first-time home buyers with limited cash on hand for a down payment. It's especially well suited to low- and moderate-income borrowers who can qualify for one of the bank's special mortgage loan programs. If you think your savings account balance isn't quite big enough, or your credit score isn't quite high enough, include BB&T in your research.

BB&T Mortgage is also a great option if you want to finance an empty lot and build your own home.