Residential Mortgage Loans And Consumer Loans
As of August 2011, H&R Block offers three types of residential mortgage loans. Consumers can apply for a home equity loan, an adjustable-rate mortgage or a fixed-rate mortgage. For consumer loans, H&R Block offers a line of credit that can be added to your checking account with H&R Block bank. Other consumer loans, such as personal loans and auto loans, are available.
Qualifications For Mortgage and Consumer Loans
A down payment is required for all of the mortgage loans offered by H&R Block bank. This is true regardless of your credit score. Down payment requirements vary from 5 to 20 percent, depending on your credit rating, type of loan and amount borrowed. When you complete an application for a loan, you are required to provide supplemental materials. This documentation includes W-2s, paycheck stubs, bank statements, list of creditors, investment statements or records and tax returns from previous years. If you are applying for a personal loan or car loan, you do not need as much documentation as with a mortgage. In fact, three recent paycheck stubs or a recent tax return are sufficient for a consumer loan with H&R Block bank. When you apply for a mortgage or other consumer loan with H&R Block, your credit report will be pulled by the bank. To qualify, you must have good credit. While H&R Block does not disclose the exact credit score required for loan approval, a good credit score is at least 700, according to Experian. According to mortgage officer Andrew Gomez, the economic downturn has made if more difficult for consumers to secure loans with the company and says that 720 is the minimum credit score required as of August 2011.
Certificate Of Deposit Loans
If you have a certificate of deposit with H&R Block bank, you may be able to take out a loan on it. This fixed-rate loan uses the certificate of deposit as collateral for the loan, which makes qualification easier than other consumer loans. To qualify for this loan, you need a certificate of deposit with at least the amount you want to borrow in it. You also need to be able to show proof of employment and have good credit. Good credit is a clean credit report that is free of missed or late payments, collection accounts, bankruptcy or charged-off debts. Traditionally this is a credit score of 700 or above.
Refund Anticipation Loans
Traditionally, refund anticipation loans are offered to taxpayers who file federal income taxes through H&R Block and are due a refund. The other qualifying factor is recent paycheck stubs to prove current employment. As of early 2011, H&R Block discontinued refund anticipation loans. The discontinuation occurred because the federal Office of the Comptroller of the Currency prohibited HSBC bank, the actual provider of the loans, from offering them through H&R Block.