North American Savings Bank (NASB) VA Loan Review

NASB – A Leading National Mortgage Lender

North American Savings Bank, F.S.B. (NASB) was founded in 1923 and is based in Grandview, Missouri.  It is the 10th largest bank in Missouri and, as of its most recent ranking,  it is the 415th largest bank in the country. Today, North American Savings Bank is a wholly-owned subsidiary of NASB Financial, Inc.

NASB offers its customers a comprehensive selection of commercial and retail banking products and services, including checking and savings accounts, as well as certificates of deposit. The company also offers a wide range of loan products, including home mortgage, reverse mortgage, loss mitigation, commercial real estate loans, self-directed IRA loans, and construction and development loans.

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Since its inception, NASB has been recognized for providing strong and stable financial management on behalf of its members. Most of their nine branch offices are located in the greater Kansas City metropolitan area, in addition to three residential loan origination offices, and one residential construction loan origination office.

Considered to be one of the top real estate lenders on the Internet, NASB also offers home mortgages in all 50 states and the District of Columbia. Since 2010, NASB has made it possible for over 46,000 customers  to realize their dream of home ownership, providing loans in excess of $12 billion dollars.  Currently, the company has a total of $1.2 billion in assets under its control.

NASB is also renowned for its efficient, courteous and professional service, and for offering customers very competitive interest rates and nominal lender fees.

Whether you’re in the market for a VA, FHA or conventional loan, NASB and their experienced loan officers can help you determine which type of loan best suits your needs.

Multiple Ways to Apply for Loan

If a customer lives near a NASB branch office in the Kansas City area, applying for a mortgage loan can be conducted in person. But the company also offers the opportunity to initiate the loan application process online, or to make contact with a loan officer by phone.

NASB began its internet lending operations in 1999, making it one of the very first banks to establish an online presence. If a customer should go online to the NASB website, they have the option to fill out a very simple form and submit it to the company. An experienced loan officer will then personally contact them to facilitate next steps.

Also, the company makes it possible to establish an online account which allows customers to sign and submit loan documents electronically. In addition, with an NASB account, it is possible to make mortgage payments online with a debit or credit card.

One minor drawback is that NASB does not provide an online tracker that allows customers to track the step-by-step status of their loan application; however, that information can be provided by an NASB loan officer who will routinely update you throughout the process.

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A VA Loan Powerhouse

NASB ranks as one of the top VA lenders in the country and the company is proud to serve the military community. Nearly 70% of NASB’s mortgages originate through their participation in the VA loan program and in the past six years,

NASB has made loans to 15,000 military and veteran customers, generating more than  $4.5 billion in mortgage loans. 

NASB makes the VA loan process efficient, easy, and economical for veterans, active-duty military, and other eligible applicants.  And whether they are interested in a purchase or refinance loan (including a cash-out refinance), NASB can fulfill their needs.

Other cost-saving advantages available to NASB’s VA customers include no origination or lender fees, and the company does not require private mortgage insurance either. The absence of these fees help prospective VA loan home owners to save thousands of dollars during the life of their loan.

NASB loan officers are also available to assist borrowers through every step of the loan process – from getting pre-qualified to closing on their VA loan.

Like most VA lenders, NASB is able to lend up to 100% of a home’s purchase price. In most areas of the country, the maximum loan amount is $424,100 but in higher cost regions of the country, the maximum loan amount is $729,750. 

Qualified veterans can borrow up to 100% of the home’s value which means no down payment is required. And as mentioned above, private mortgage insurance is also not required. Compared to the costs of obtaining a conventional loan, those borrowers who are eligible for a VA loan from NASB will save a considerable amount of money.   

NASB considers several factors when evaluating loan applications. These include:

  • Employment verification
  • 2 years of verified  income
  • A minimum credit score of 620
  • Any bankruptcy or foreclosure proceedings

When applying for a VA loan, a pending bankruptcy action may not be disqualifying. It is possible to be in the middle of Chapter 13 bankruptcy and still be approved for a loan. In addition, as part of its loan application process, NASB will conduct a home inspection to ascertain the property’s fair market value.

Typically, NASB charges an origination fee of $995 on all its loans but that fee is waived on its VA loans, saving VA borrowers even more money.

LendingTree Names NASB a Top VA Lender

Recently, LendingTree,  a leading online loan marketplace, designated NASB as a top VA lender. The basis for determining this award included NASB’s overall loan volume and quality customer service.  Specifically, LendingTree mentioned that NASB offers its VA loan customers quick and efficient loan processing, competitive interest rates, and exceptional customer service. LendingTree also acknowledged that NASB has a reputation for conducting its business in a professional manner, and for its willingness to go the extra mile in order to get the job done.

As an approved VA lender, NASB maintains the highest financial standards and practices, and the entire company works hard on behalf of veterans and military personnel to promote an efficient and positive loan experience for them.

Also, every NASB loan officer is tested and trained annually in VA lending practices and regulatory compliance, in order to maintain their eligibility to serve veteran and active duty customers.

NASB Offers IRA Non-Recourse Loans

In addition to its successful VA lending program, NASB also offers IRA non-recourse loans for use in investment properties. A Self-directed Individual Retirement Account is an IRA with fewer restrictions and permits investments in real estate. Investors can utilize funds from their IRAs to pay for a real estate  investment property. Money from an IRA account can be used to pay for all expenses related to buying and owning a home – including property taxes, maintenance costs, and insurance.

If a borrower should default and the home enters foreclosure, the investor’s IRA account is protected from creditors; the investment property itself is the only collateral. This is what defines this type of mortgage as a non-recourse loan.

These kinds of loans are for investment purposes only — the property cannot serve as the borrower’s primary residence. Also, the IRA must be self-directed; investments in real estate are not typically part of IRAs that are managed by  larger brokerage firms. 

In addition, these loans have higher interest rates than traditional mortgages and a minimum down payment of 30% is required by NASB. As with all the expenses on this kind of loan, the down payment must also come from the borrower’s IRA account.

The costs incurred in this kind of loan are not considered a distribution from the IRA account, so they are not taxed. Also, there are no limits on the amount of the loan, and IRA funds can be used to either purchase or refinance properties, and both fixed and adjustable rates are available.

If an investor owns more than four units in their name and they are experiencing obstacles due to limitations on conforming loans, then a non-recourse loan might be a suitable option for them.

NASB’s Good Neighbor Program

NASB is actively involved in a community program which they call the Good Neighbor Home Loan Program. It is a loan program which targets low-to moderate-income borrowers, and/or borrowers who live in low-to moderate-income areas in and around Kansas City, Missouri.

The Good Neighbor program makes loans available in order to purchase or refinance a home, and the loans can be used for either owner-occupied or investment properties. NASB charges no lender fees and they also provide assistance with closing costs. To qualify, a borrower must have a minimum credit score of 580.

NASB’s Sterling Reputation

NASB is a fully accredited company with the Better Business Bureau and maintains an A+ rating with that organization.

The Federal Savings Bank supervises NASB and annually conducts on-site examinations to ensure safety, soundness and compliance. These examinations also guarantee that the bank is in full compliance with all applicable law and regulations governing financial services.

In addition, all NASB loan consultants are registered under the S.A.F.E. Act and trained in VA home mortgage lending and compliance.

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