Alterra Home Loans Review 2024
580 to 640
0% to 3.5%
Conventional, FHA, VA, USDA, ITIN loans
- Geared toward underserved borrowers
- Offers loans with no SSN required
- Easy-to-navigate website
- Only available in 40 states
- Does not offer home equity loans
- No rates published online
Alterra Home Loans overview
Alterra Home Loans is a national mortgage company that has been in business since 2007 and is geared toward first-time homebuyers in underserved markets. The company strives to help close the homeownership gap between non-minority and minority households by offering a variety of loan products, including loans for U.S. residents who don’t have a Social Security number. Here is some basic information about this lender:
- Areas of service: 40 U.S. states
- Digital service: Yes, you can begin the mortgage application process online and, after you’re a customer, make mortgage payments online.
- Headquarters: 6111 S. Buffalo Drive, Suite 240, Las Vegas, NV 89113
- Website: GoAlterra.com
Alterra Home Loans rates, terms and fees
Rates
Alterra Home Loans doesn’t publish mortgage rates on its website, so buyers can’t easily compare its rates with those of other lenders. However, Alterra’s average interest rate for all loan types in 2023 was 6.64%, according to data from the Federal Financial Institutions Examination Council (FFIEC). Alterra’s interest rates are competitive with other home lenders we surveyed.
National mortgage data shows that in 2023, Alterra offered mortgage rates across all loan types that were 0.57 percentage points above the average prime offer rate (APOR). This difference, known as the rate spread, decreased from 0.86 percentage points in 2022. A larger rate spread means a more expensive loan.
Fees
The average total cost of taking out a home loan with Alterra in 2023 was $12,234. That amount includes origination fees and other closing costs and fees that are rolled into the cost of the loan. Alterra Home Loans fees are not competitive when compared with other lenders. In fact, Alterra had the highest total loan costs of all 33 lenders we compared in 2023. Other lenders’ total loan costs ranged from $2,403 to $11,690.
Alterra Home Loans offers virtually no information on its website about the exact types of fees it charges or the cost of each of those fees. If you apply for a mortgage with Alterra, fees will be disclosed to you in writing during the loan process.
What discounts does Alterra Home Loans offer?
Alterra doesn’t disclose or advertise any discounts on its website. However, it may be a good idea to ask about discounts when you speak with a mortgage loan officer. Some lenders offer different types of discounts, such as a certain percentage off your rate, which can save a significant amount over the life of the loan.
What types of mortgage loans does Alterra Home Loans offer?
Alterra offers a variety of home loans including:
Conventional loans
Alterra offers conventional loans to purchase or refinance a home. If you make a down payment of 20% or more, you can get a conventional home loan without having to pay private mortgage insurance (PMI). Conventional loans are generally designed for buyers with higher credit and more savings.
Conventional loan qualification requirements
- Minimum credit score of 640
- Minimum down payment not disclosed (20% needed to avoid PMI)
FHA loans
Alterra Home Loans offers FHA loans, which are backed by the Federal Housing Administration, to purchase or refinance a home. These loans allow lower credit scores and down payments than conventional loans.
FHA loan qualification requirements
- Minimum credit score of 580
- Minimum down payment of 3.5%
VA loans
Alterra Home Loans offers VA loans backed by the U.S. Department of Veterans Affairs to purchase or refinance a home. These loans are available to active service members and honorably discharged U.S. military veterans.
VA loan qualification requirements
- Minimum credit score of 580
- No minimum down payment
- Discharge documents DD214 for proof of service
USDA loans
Alterra Home Loans offers USDA loans backed by the U.S. Department of Agriculture for borrowers who wish to buy a home in a rural area. The minimum credit score requirement for USDA loans is a bit higher than for other types of government loans.
USDA loan qualification requirements
- Minimum credit score of 640
- No minimum down payment
- Must buy in a rural area (population of less than 50,000)
Alterra Home Loans mortgage qualifications
| Credit score minimum | 580 to 640 |
| DTI ratio Debt-to-income (DTI) ratio compares your monthly gross income to your monthly debt payments. maximum | Conventional: Not disclosedFHA: Not disclosedVA: Not disclosedUSDA: Not disclosed |
| Down payment minimum | Conventional: Not disclosedFHA: 3.5%VA: 0%USDA: 0% |
Don’t know your credit score? Get your free score on LendingTree Spring today.
How to boost your loan approval odds
Alterra Home Loans doesn’t disclose the specific criteria that it uses to make decisions on loan applications. However, 2023 national mortgage lending data from the Home Mortgage Disclosure Act (HMDA) shows that Alterra had an average loan-to-value (LTV) ratio of 84% for approved applicants. Over half (52.4%) of approved applicants had a debt-to-income (DTI) ratio greater than 43%.Alterra Home Loans approved 93.6% of applications across all types of home loans in 2023. That is an exceptionally high approval rate compared with many other mortgage lenders. For example, some large mortgage lenders reject 25% or more of their applicants.
How to apply for an Alterra mortgage
1. Choose your loan type
Click on the blue “Apply Now” button on the Alterra Home Loans home page. Then choose one of three options: purchase, refinance or renovation. To purchase a loan, choose your state, the type of property you plan to buy (single- or multi-family) and whether you’re a first-time homebuyer. Then enter your estimated purchase price, down payment and contact information. An Alterra Home Loans representative will reach out to you to complete your application.
2. Get prequalified
Getting prequalified or preapproved for a mortgage is an important step in the homebuying process because you learn how much house you can afford and can then go house hunting with confidence. Preapproval is a slightly more stringent process than prequalification.
3. Submit a loan application
Once you’ve found a home you wish to purchase, you submit your loan application. After you’re approved for a loan, you can get an interest rate lock for a set time period and make an offer on the home.
Documents you’ll need for prequalification or preapproval
- Identification
- Tax documents
- Bank statement
- Pay stubs
- Debt and asset statements
- Gift letters (if you’re using gifted funds)
Find out more about how to apply for a home loan.Is it safe to get prequalified with Alterra Home Loans?
Yes, it’s safe to get prequalified or preapproved with Alterra Home Loans. If you choose preapproval, Alterra will typically do a hard credit pull, which is a thorough credit check that can cause a slight dip in your score temporarily.
Getting prequalified or preapproved is an important part of the homebuying process that tells you what amount of home you can afford and the interest rate you are likely to qualify for when you formally apply. Doing so can also signal to real estate agents and sellers that you’re serious about buying a home.
Alterra’s customer service experience
You can contact Alterra Home Loans by phone, or you can fill out an online form with your contact information to have a representative contact you.
- Phone: 844-400-4565
If you prefer, you can click on your state to see a list of local Alterra loan officers. You can then click on a loan officer’s profile to go to a page with their bio, email, phone number and other information.
Alterra’s customer service may fall a bit short for homebuyers who are seeking a fully digital support experience as there is no way to chat with a customer service agent online, and no customer service email address is provided.
Some borrowers may find it frustrating to have to enter their information and wait to be contacted. However, those who prefer a personal touch will likely appreciate the ability to browse loan officers in your state, choose one who seems like a fit, and contact them directly to apply for a home loan.
How does Alterra Home Loans compare to other lenders?
|  |  |
|
|---|---|---|---|
| LendingTree’s rating | Back to our Alterra Home Loans summary |  Read our Alterra vs. Mr. Cooper comparison |
|
| Minimum credit score | 580 to 640 | 580 | Not published |
| Minimum down payment | 0% to 3.5% | 0% to 3% | 0% to 3.5% |
| Rate spread Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan. | 0.57% | 0.39% | 0.81% |
| Loan products and programs |
|
|
|
| Better for: | Borrowers in underserved communities looking for high approval odds. | Borrowers seeking a fully online mortgage experience and those seeking home equity loans. | Borrowers in a HCOL seeking a Jumbo mortgage or those drawn to special programs. |
Read our Alterra Home Loans vs. Lower Mortgage
Lower Mortgage is a fully online mortgage lender based in Ohio that offers a wide variety of products, including home equity loans and HELOCs, which Alterra Home Loans doesn’t offer. Lower Mortgage may be a better fit for those borrowers who are looking for a wider variety of loans and those who prefer a fully digital experience. However, homebuyers looking for better chances of approval might want to consider Alterra, which approved 94.4% of applications in 2023 compared with Lower Mortgage’s 83.9%.
→ Read more in our full Lower Mortgage review.
Alterra Home Loans vs. Mr. Cooper
Mr. Cooper is a Texas-based mortgage company that offers Jumbo mortgage loans for borrowers who need to borrow a larger amount, especially in high-cost-of-living areas, with loans available up to $2.5 million. Mr. Cooper also offers a number of guarantees and special programs, such as its Close on Time guarantee that covers a first payment if closing is late and its Zero Dollar Move Program, which covers moving costs for homebuyers relocating within 50 miles away. Alterra doesn’t offer these types of programs.
→ Read more in our full Mr. Cooper mortgage review.
Ready to compare lender offers on LendingTree? Get Your Rates TodayHow LendingTree rated Alterra Home Loans
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
Alterra Home Loans’s scorecard:
Publishes rates online
Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application
= 0 points = 0.5 points = 1 point
Frequently asked questions
Alterra Home Loans offers a user-friendly website that is easy to navigate with nice graphics but it does not offer a fully online experience. For example, its “online application” prompts you to make a few choices and enter your contact information so the company can contact you to begin the home loan application process. If you’re already an Alterra customer, the website does offer the option to pay your mortgage online.
Yes, Alterra is a legitimate mortgage lender that is a part of Panorama Mortgage Group. The company is based in Las Vegas and has been in business since 2007. Alterra aims to close the homeownership gap between minority and non-minority U.S. households by offering a variety of home loan products to underserved borrowers.
You can view more info about Alterra’s state licenses and registrations through the Nationwide Multistate Licensing System and Registry (NMLS) website.
Applying for an Alterra home loan affects your credit score because mortgage companies do a credit check known as a “hard pull” that can cause a temporary decline in your score. A LendingTree study found that getting a mortgage causes credit scores to fall by about 20 points, on average, but scores tend to recover within a year. This slight decrease in your credit score is a normal part of the homebuying process.
Alterra Mortgage has a rating of 4.2 (out of 5) stars on TrustPilot, which is considered a “great” rating. However, this rating comes from only seven reviews, which doesn’t offer enough information to get a true picture of customers’ experiences.
Borrowers who left positive reviews for Alterra cited smooth communication, quick preapproval and a streamlined process. On the other hand, one negative review mentioned poor communication and a loan rejection as reasons for their dissatisfaction with the lender.