Founded 132 years ago in Grand Rapids, Michigan, Chemical Financial Corporation is the largest financial institution headquartered in its state.
Its subsidiary banking arm, Chemical Bank, has been in operation since 1917. Alongside personal and corporate banking, as well as wealth management, the bank offers a variety of loan products for individuals hoping to become homeowners or refinance their properties.
Update
In this review, we will discuss the various home loan products offered by Chemical Bank and see how they compare to other top mortgage lenders in the U.S.
Chemical Bank Mortgage Highlights
- Offers home loans and banking services in Michigan and Ohio
- Participates in FHA, USDA, and VA programs
- Has specialized products such as the Heart and Home loan
- Oversees financial literacy programs and free mortgage consultations
- Enables online pre-qualification and loan applications for registered users
- Allows borrowing for new construction, cash-out refinancing, and more
History of Chemical Bank
Founded in 1917, Chemical Bank is a subsidiary of Chemical Financial Corporation. The bank serves borrowers in Michigan and Ohio and offers a number of personal and commercial banking products alongside its loans. The lender has many government-backed mortgages, such as USDA, FHA, and VA offerings, in addition to specialized programs such as Detroit’s Heart and Home.
The bank has an A+ rating from the Michigan BBB but is not accredited and has no user reviews.
Chemical Bank Loan Specifics
Chemical Banks offers the following types of loans to its customers:
Fixed-Rate Loans
A conventional fixed-rate loan is great for borrowers who want to pay the same rate throughout the life of the loan. These are available at different term lengths, with differing interest rates based on what the borrowers have chosen. Chemical Bank offers multiple repayment options for its fixed-rate mortgages.
Adjustable-Rate Loans
In contrast to fixed-rate loans, lenders (including Chemical Bank) offer adjustable-rate mortgages. These ARMs act like fixed-rate counterparts for an initial term, and then the rates adjust every year. The initial rates are usually lower than those available for fixed-rate products, but when they begin readjusting, can get considerably more expensive.
Chemical Bank suggests ARMs for borrowers who intend to spend five or fewer years in their new homes, want to make extra principal payments, or are interested in lower payments, to begin with while anticipating increased income later.
Construction Loans
There are specialized loan products available for borrowers who want to purchase land and build on it, rather than buying a home that already exists. These mortgages from Chemical Bank are designed to simplify the construction process, with only one closing instead of separate meetings to fund each step of building the home. While the primary offerings are ARMs, Chemical Bank does note that fixed rates may be offered.
Jumbo Loans
Jumbo loans are a category of loans larger than the maximum amount backed by federal lending agencies. These are necessary products when lenders want to purchase homes and property with higher market values. Chemical Bank’s jumbo offerings include construction loan programs, to help buyers turn a plot of land into a comfortable new home.
USDA Loans
The U.S. Department of Agriculture offers a category of loan, especially for individuals who are interested in buying homes in small towns and rural communities. Getting a rural development loan from Chemical Bank is an option for borrowers seeking to move into less populated areas in Michigan and Ohio. These loans’ advantages relative to more standard ones include simpler qualification terms, and potentially, 100 percent financing.
VA Loans
Current and former members of the military, as well as members of their immediate families, may qualify for VA loans backed by the Department of Veterans Affairs. Chemical Bank is one of the financial institutions that offer these products. There is no FICO credit score minimum to receive a VA loan from Chemical Bank, and borrowers don’t have to pay for mortgage insurance on these loans.
FHA Loans
The Federal Housing Authority backs loan programs that are intended for borrowers who don’t necessarily have the readily available funds to make a down payment. Receiving a loan to purchase a first home is a goal for many individuals whose income may not support a conventional loan, and Chemical Bank’s FHA offerings can suit these borrowers.
Cash-Out Refinancing
When homeowners refinance a home, taking out a new loan at a higher value and receiving the difference in equity, this is known as cashing out. It is an excellent way to pay off a large debt immediately with the money received or to pay for another large-scale and current expense. This is because interest rates on home loans are typically lower than for credit cards or other types of debt. Chemical Bank offers cash-out refinancing as a feature of some of its specialized loan products, such as VA loans.
Chemical Bank Loan Types and Features
| Loan Type | Description |
|---|---|
| Fixed-Rate Loans | • Consistent Interest Rate Throughout the Loan Term • Various Term Lengths and Repayment Options Available |
| Adjustable-Rate Loans (ARMs) | • Lower Initial Rates, Which Adjust Annually • Ideal for Short-Term Homeowners or Lower Initial Payments |
| Construction Loans | • Simplified One-Closing Process for Land and Home Construction • Options for Both ARMs and Fixed Rates |
| Jumbo Loans | • For High-Value Property Purchases Exceeding Federal Limits • Includes Construction Loan Programs |
| USDA Loans | • Suitable for Rural Homebuyers in Michigan and Ohio • Easier Qualification and Potential 100% Financing |
| VA Loans | • For Veterans, Military Members, and Their Families • No FICO Score Minimum and No Mortgage Insurance Required |
| FHA Loans | • Backed by the Federal Housing Authority • Ideal for First-Time Homebuyers With Limited Down Payment Funds |
| Cash-Out Refinancing | • Refinance to Access Home Equity for Various Purposes • Lower Interest Rates Make It Suitable for Large Expenses |
Chemical Bank Customer Experience
Chemical Bank offers an online qualification form for mortgages, whether they are seeking a loan with or without a mortgage loan offer. The bank also has financial literacy programs available. Some of the special loans offered through the bank have online APR rates listed while acknowledging that the actual rates offered will be based on the credit scores of the borrower in question.
The bank does offer free pre-qualification processes to determine how much a person is eligible to borrow, as well as free mortgage consultations. There is information about all of the many loan types offered by the bank, including specialized programs such as the Heart and Home Program, which is aimed at individuals in the city of Detroit and provides assistance with closing costs. As the bank does not list its average closing time, it’s unclear how it compares to Ellie Mae’s national average of 47 days.
Unlike some other financial institutions, the online features offered by Chemical Bank don’t include loan rate calculators for its mortgage products, though consumer and auto loans are explained in greater detail. Speaking with loan officers directly appears to be the primary way to receive comprehensive information.
Chemical Bank Lender Reputation
The Better Business Bureau in Michigan, reviewing the headquarters location of Chemical Bank, has not registered any consumer reviews for the institution. Therefore, there is no average user score available for the bank. While Chemical Bank has a BBB rating of A+ based on its responses to consumers, it should be noted that the organization does not accredit the bank.
There have been four registered consumer complaints against the bank, with three answered and one resolved. These are mainly related to Chemical Bank’s consumer checking products instead of its mortgages and home loans. It is difficult to ascertain the general customer attitude toward the institution with such a small group of reviews, many fewer than are typically available for larger banks.
Mortgage Qualifications
Qualifying for a loan from Chemical Bank depends on the kind of product in question. The bank offers a variety of financial products, including multiple versions specifically designed for individuals who do not meet the standard mortgage qualification requirements like credit score. Due to the lack of information publicly available on the loan products, it’s clear that potential borrowers will have to speak directly to representatives for more details.
| Income and debt-to-income requirements | Down payment requirement | Gift funds available? | Minimum FICO credit score |
| None Specified | None specified | Unspecified | Depends on Loan Type (None for VA Loans) |
Chemical Bank Phone Number & Additional Details
- Homepage URL: https://www.huntington.com/
- Company Phone: (800) 867-9757
- Headquarters Address: 2185 3 Mile Rd NW, Grand Rapids, MI, 49544
Chemical Bank Review
Product Name: Chemical Bank
Product Description: Chemical Bank is a well-established financial institution offering a comprehensive range of banking services, including personal, business, and wealth management solutions. With a legacy rooted in community involvement and customer-centric service, the bank has positioned itself as a trusted banking partner for many. Their suite of products is designed to meet the varied financial needs of their clientele.
Summary of Chemical Bank
With a rich history that spans several decades, Chemical Bank has built a strong reputation in the financial sector. Catering to a wide range of clients, from individual account holders to large corporations, the bank provides everything from simple savings accounts to intricate commercial loans and investment services. Their emphasis on community involvement has led to a strong bond with local businesses and residents, reinforcing their commitment to economic growth and community welfare. Through continuous innovation and adaptation to changing financial landscapes, Chemical Bank has maintained its relevance, offering digital banking solutions alongside traditional banking services to ensure they meet the contemporary needs of their clients.
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Overall
Pros
- Diverse Product Offerings: Chemical Bank offers a comprehensive range of financial services, catering to both individuals and businesses.
- Community Involvement: Their strong emphasis on local communities gives them an edge in understanding and serving regional needs.
- Long-standing Reputation: With a history that goes back decades, they have built trust and reliability in the banking sector.
- Digital Integration: Recognizing the need for modern banking solutions, Chemical Bank provides digital banking options for the convenience of its users.
Cons
- Limited Geographic Presence: Their primary focus is on specific regions, which might not cater to clients seeking national or global banking services.
- Competitive Landscape: Being in a saturated banking industry means they face stiff competition, which can affect growth opportunities.
- Service Fees: Like many banks, they may have fees associated with certain products or services which can be a deterrent for some potential clients.
- Digital Transition Hiccups: While they are integrating digital solutions, there might be occasional hitches or learning curves for traditional clients adapting to these platforms.
