Cardinal Financial is recognized as a solid mortgage lender for those exploring various loan options and seeking down payment assistance, earning accolades as one of the best USDA mortgage lenders. Based in Charlotte, North Carolina, Cardinal Financial caters to borrowers across all 50 states. It boasts a diverse selection of products, including government-backed loans, conventional loans, and loans for construction and renovation. While its services are extensive, potential borrowers may find its total loan costs comparatively higher than those of competitors, which necessitates a closer look at the financial implications when choosing this lender.
One of Cardinal’s key offerings is its various home loan programs, which include down payment assistance and aid with appraisal and closing costs. Borrowers have access to numerous online tools and resources, enhancing their experience when searching for home financing options. However, borrowers should be aware that Cardinal Financial does not provide home equity loans or home equity lines of credit (HELOCs). Moreover, the lender does not publish online rates, requiring prospective clients to get a rate quote through conversations with a loan specialist, making transparency in pricing a focal point of discussion.
FHA lending is a significant component of Cardinal Financial’s services, with data indicating that over 44% of its origination volume in 2023 consisted of FHA loans. The lender allows for both FHA loan purchases and refinancing, including the FHA Streamline Refinance option. The FHA Rate Protect program is advantageous for borrowers as it offers a 90-day period to lock in an interest rate at a favorable level. With a minimum credit score requirement of 580, Cardinal Financial aims to assist a wider range of borrowers looking for affordable financing solutions.
While Cardinal Financial does not offer home equity loans or HELOCs, it facilitates cash-out refinancing, which allows homeowners to borrow against their equity. This method involves taking out a loan larger than the existing one, allowing the borrower to pay off the previous balance and receive the difference in cash. This cash can then be allocated toward various expenditures, such as home renovations or repairs. Although the process for obtaining a personalized rate from Cardinal may appear opaque, the lender provides an online form that captures essential information needed for a quote, which a loan specialist later reviews with the borrower.
In assessing Cardinal Financial’s performance relative to the competition, certain standout features emerge. The lender scores highly in affordability, thanks to its extensive array of low-down-payment and government-backed loan products. However, its interest rates are deemed average compared to competitors. Cardinal fares worse when it comes to transparency, receiving only a middle-of-the-road score due to the lack of publicly available rates. Its total loan costs are also highlighted as a concern, ranking higher than its rivals, which could be a crucial factor for borrowers focused on the overall cost of obtaining a mortgage.
While Cardinal Financial’s product portfolio outshines some of its competitors in breadth, it faces challenges in areas such as customer experience and transparency. The absence of a mobile app adds to its limitations, as borrowers cannot conveniently manage their accounts on-the-go. Despite its robust online tools, including calculators and educational resources, Cardinal Financial’s customer engagement via phone and email lacks the immediacy many borrowers may desire. Additionally, the lender has recently faced legal challenges, including a lawsuit concerning its telemarketing practices, which might affect potential borrowers’ comfort levels. Overall, while Cardinal Financial offers valuable services and a diverse range of loan products, prospective borrowers would do well to weigh the total loan costs and rate processes before making a choice.
