NOTE:
First founded in California in 1995, Ditech has changed both its primary ownership and location since coming to prominence in the late nineties, with five years spent away from the marketplace following the subprime housing crisis.
Today the lender is headquartered in Fort Worth, Pennsylvania, providing both conventional and government-backed mortgage loans to borrowers nationwide.
Table of Contents
Ditech Mortgage Rate Facts
- Founded in 1995, but disappeared from the marketplace for five years during the subprime mortgage crisis before being reopened in 2015.
- Originally based in Orange County and now headquartered in the Philadelphia area, but available nationwide.
- The company name is derived from a portmanteau of “direct technology”.
- Provides fixed-rate mortgages, adjustable-rate mortgages, FHA, loans, and VA loans, with plans to add jumbo loan options in the near future.
- Accepts down-payment assistance programs and gift funds from family.
Overall
Ditech was established in 1995 in Costa Mesa, California, quickly expanding its operating territory from seven to 46 states by the end of 1996.
The company offered mortgages to the public online and via a toll-free phone number.
They became popular through a series of ubiquitous television commercials that featured a frustrated rival loan officer grumbling the catchphrase, “Lost another loan to Ditech.”
GMAC Mortgage acquired the company in 1998. Eventually, GMAC changed its name to Ally Financial and moved Ditech from Orange County to Fort Washington, Pennsylvania, a suburb of Philadelphia.
In 2010, Ditech closed, becoming one of the casualties of the housing market collapse. Five years later, the Walter Investment Management Company brought Ditech back to the market, after acquiring it in 2013.
Shortly afterward, Ditech was merged with Green Tree Servicing, another Walter subsidiary mortgage company.
Today, Ditech continues to allow customers to apply for mortgages online or over the phone, which is available to borrowers in all 50 states and the District of Columbia.
The company offers a reasonably comprehensive portfolio of loan types, including fixed and adjustable-rate loans and government-backed FHA and VA loans.
Ditech offers a relatively comprehensive selection of mortgage products but has received poor customer satisfaction ratings.
Current Rocket Mortgage Rates
Ditech Mortgage Loan Specifics
Though Ditech has not yet begun offering jumbo loans, the company provides borrowers with an otherwise fairly comprehensive selection of conventional and government-backed mortgages, including fixed and adjustable-rate loans, as well as FHA and VA loans.
Fixed-Rate Mortgage Loans
A fixed-rate mortgage allows borrowers to set the interest rate and monthly principal and interest to remain the same over the entire life of the loan.
Ditech offers the choice of a 15-year or 30-year fixed-rate mortgage, which requires borrowers to pay off the loan by making fixed monthly payments over 15 or 30 years, respectively.
Fixed-rate mortgages are typically recommended to those who plan to stay in their home for seven years or longer, and who prefer the stability of fixed payments.
Adjustable-Rate Mortgage Loans
An adjustable-rate mortgage features an initial lower interest rate, which remains fixed for a certain number of years, after which it resets, based on prevailing interest rates, at a set interval, usually monthly or annually.
Ditech offers 5/1, 7/1, and 10/1 ARMs, in which the interest rate remains fixed for the first five, seven, or ten years of the loan term, respectively. This loan type is ideal for borrowers who anticipate relocating or refinancing before the end of the loan.
FHA Loans
Ditech also offers loans insured by the Federal Housing Administration, which have less strict requirements than conventional loans, including lower credit scores and down payment minimums.
Because of those reduced barriers, FHA loans are especially popular with many first-time homebuyers and millennials.
VA Loans
Another type of government-backed mortgage option, Veterans Affairs (VA) loans are exclusively available to veterans, service members, and certain surviving military spouses.
The advantages of VA loans include a $0 down payment mortgage option and the ability to refinance up to 100 percent of your primary home’s value.
This Makes VA Loans very popular with the select group of men and women who qualify. The Department of Veterans Affairs guarantees all VA loans issued by Ditech.
Comprehensive Overview of Ditech Mortgage Options
| Ditech Mortgage Options | Key Features |
|---|---|
| Conventional & Govt-Backed Mortgages | • Conventional, Fha, VA Options Available • No Jumbo Loans Currently Offered |
| Fixed-Rate Mortgages (15/30 Years) | • Stable Monthly Payments • Ideal for Long-Term Homeownership. |
| Adjustable-Rate Mortgages (5/7/10 Years) | • Initial Lower Rates • Suitable for Short-Term Plans or Refinancing |
| FHA Loans | • Insured by FHA • Lower Credit Score and Down Payment Requirements • Popular Among First-Time Buyers and Millennials |
| VA Loans | • Exclusively for Veterans, Service Members, and Spouses • $0 Down Payment Option • Guaranteed by the Department of Veterans Affairs |
Ditech Mortgage Customer Experience
J.D. Power’s 2017 U.S. Primary Mortgage Origination Satisfaction Study ranked various mortgage companies based on customer satisfaction and placed Ditech eighteenth out of twenty-three lenders with 806 out of 1,000 points.
Ditech originates mortgages in all 50 states and the District of Columbia but does not have physical locations nationwide. This means many customers will find it challenging to have a traditional in-person customer service experience.
Ditech’s website is easy to navigate and informative, with explanations of each available loan type, a display of current home loan rates, personal finance, and monthly payment calculators, and a list of frequently asked questions.
Potential borrowers also have the ability to chat with a loan specialist on the website or over the phone and can apply for a mortgage online or by calling.
Ditech Lender Reputation
Ditech’s reputation has suffered over the years, in part because of its complicated history and because of the relatively high number of customer complaints the company has received in recent years.
After vanishing from the marketplace for a few years as a result of the subprime housing crisis, in 2013 Ditech was acquired by the Walter Investment Management Co.
In 2015, one of Walter’s other subsidiary mortgage companies, Green Tree Lending, agreed to a $63 million settlement, after a lawsuit brought against the company alleged it had employed abusive practices to collect from borrowers.
Later that year, Green Tree was merged with sister company Ditech and rebranded under the Ditech name.
Ditech is not accredited by the Better Business Bureau but has received an A+ rating from the nonprofit consumer protection organization.
However, Ditech’s BBB customer rating is one out of five stars, based on an average of 94 customer reviews.
Additionally, there have been 1,053 customer complaints closed in the last three years, 260 of which were closed in the last 12 months.
- Information collected on Jan. 3, 2019
Ditech Mortgage Qualifications
| Loan Type | Down Payment Requirement | Minimum Credit Score | Debt-to-Income Requirement | Can You Use Gift Funds or Down Payment Assistance Programs to Make a Down Payment? |
|---|---|---|---|---|
| Fixed-Rate Loans | 5% | 620 | 40%-50% | Yes |
| Adjustable-Rate Loans | 5% | 620 | 40%-50% | Yes |
| FHA Loans | 3.5% | 580 | 40%-50% | Yes |
| VA Loans | 0% | 620 | 40% | Yes |
Both adjustable and fixed-rate conventional loans offered by Ditech require a five percent down payment. FHA loans can be obtained for as little as 3.5 percent money down, while VA loans can be obtained by a highly exclusive group of qualified borrowers for no money down.
Most loans offered by the company require a minimum credit score of 620, with the lone exception of the FHA loan, which can be approved with a credit score as low as 580 credit.
Debt-to-income ratio requirements for loans vary but typically fall somewhere between 40 and 50 percent. VA loans come with the strictest DTI requirement, with Ditech requiring applicants to have a ratio that is 40 percent or less.
Ditech shows flexibility in allowing borrowers to use down payment assistance programs or gift funds from family members to make a down payment for any loan product offered by the company.
Ditech Phone Number & Additional Details
- Homepage URL: https://www.ditech.com/
- Company Phone: 1-800-700-9212
- Headquarters Address: 1100 Virginia Drive Suite 100A, Fort Washington, PA 19034
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Ditech Review
