For over 125 years, Capitol Federal Bank has provided a wide range of banking services. Established in 1893 and headquartered in Topeka, Kansas, it is dedicated to sound lending policies, quality customer service, and community outreach efforts.
It operates 49 traditional branches across Kansas and parts of Missouri. Capitol Federal is considered a leading residential leader within its region and possesses more than $9 billion in assets.
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Background of CapFed
In its 125 Bank, also known as CapFed, has provided exceptional banking services with a focus on customer service and community outreach. Its residential lending solutions have helped thousands of families purchase a home or finance a renovation project.
While most of Capitol Federal’s mortgages are provided to Kansas residents, the bank’s steady growth has allowed it to branch out into certain regions of Missouri over the past few decades.
Capitol Federal and is an FDIC member and Equal Housing Lender. The Bank also regularly updates its website with useful information about the mortgage application process.
Homebuyers looking to build or renovate a home can take advantage of Capitol Federal’s Purchase + Improvement mortgages, apply for the Construction-to-Permanent program, which offers monthly payments rather than conventional home improvement loans, or apply to Home-at-last for Renting No More, which is tailored for low- to moderate-income individuals.
Capitol Federal is ideally suited for borrowers that want a personalized home loan experience. Moreover, digital applicants can also benefit from the bank’s online application process.
Current Capitol Federal Mortgage Rates
Capitol Federal Loan Specifics
Capitol Federal offers a wide array of conventional mortgages tailored for a variety of borrower needs, including standard fixed- and adjustable-rate loans. Federal does not provide any government-backed loan options, which may make it difficult for borrowers with low credit scores to qualify for competitive mortgage rates.
Homebuyers looking for stable and predictable interest rates and monthly payments may benefit from this mortgage type, as it guarantees a consistent rate for the full life of the loan. Capitol Federal’s fixed-rate home loans come with several repayment options, including 10, 15, 20, and 30-year terms.
Longer repayment terms typically feature higher interest rates but may enable lower monthly payments. Borrowers that plan to stay in one place for several years may prefer the security offered by this type of mortgage.
This conventional mortgage type is great for homebuyers that are unsure about their long-term plans, as it features lower initial interest rates and monthly payments than most fixed-rate alternatives.
Capitol Federal’s adjustable-rate home loans start with a fixed period of 3, 5, or 7 years, after which interest rates and monthly payments may fluctuate based on market index performance. This variable loan type is a bit less secure, but all rate and payment increases are capped to prevent runaway inflation.
Borrowers interested in purchasing a high-cost property can take advantage of this if you live in Federal’s lending region.
Purchase + Improvement Loans
This specialty mortgage allows borrowers to buy a home and make renovations without having to apply for separate loans. Homebuyers submit bids for their planned improvements along with their loan application, which Capitol Federal will consider during the property appraisal process.
This program benefits more from lower monthly payments than conventional home improvement loans, making it a solid choice for borrowers that plan to buy a fixer-upper or build permanent additions.
Building a dream home can be expensive, which is why Capitol Federal offers this specialty loan program to help borrowers reduce the long-term costs and streamline the application process.
This convenient mortgage program allows homebuyers to set up a single loan that will cover the construction project and automatically convert to a permanent loan with no change to the interest rate. Borrowers only pay one set of closing costs and benefit from a secure fixed-rate loan term, though certain restrictions may apply.
This loan program is specially designed to meet the needs of low-to-moderate income homebuyers, featuring low down payment requirements and flexible financing options. Qualified borrowers are not subject to minimum loan amounts and may be able to use gifts or grants to cover closing costs.
The Home-At-Last mortgage is meant for single-family homes that are occupied as a primary residence, though the property must be located within one of Capitol Federal’s designated local communities. Borrowers are required to participate in homeownership and personal finance counseling programs to qualify.
Homebuyers that may not be eligible for a conventional mortgage on their own can take advantage of this unique loan program, which allows family members to assist in the application process. This mortgage can be secured with down payments as low as 25% and features lower rates than most standard investment property loans.
Capitol Federal offers loan terms of up to 30 years on this fixed-rate mortgage program.
CapFed Mortgage Application
Capitol Federal’s small service region allows it to provide personalized lending solutions and outstanding customer support to homebuyers in Kansas and parts of Missouri. A large majority of the bank’s borrowers live in residential areas, which is why Capitol Federal operates with a focus on local communities.
Federal operates over 60 physical locations across Kansas and Missouri and can be contacted by phone, live chat, or email during normal business hours.
The bank’s website houses a variety of informative resources that homebuyers may find useful, including topical articles, mortgage calculators, rate estimates, and FAQ pages.
Users can sign up to receive bi-weekly rate updates and short blogs about Capitol Federal’s home loan products by email or browse through the bank’s extensive help center for general mortgage advice.
Borrowers that prefer face-to-face interactions can make use of the bank’s branch finder to locate the nearest lending office and get in touch with a lending agent directly.
For more digitally-minded users, Capitol Federal’s website possesses an online pre-approval process that is quick and easy to submit, though personal information like names, addresses, phone numbers, and even Social Security numbers are required.
Unfortunately, the bank’s website does not offer a robust rate quote tool, which may force users to initiate a pre-approval to obtain an accurate quote from this lender.
Homebuyers that are interested in applying for a Capitol Federal mortgage can begin the application process online by filling out a series of web forms, but it is unclear if the process can be performed entirely online.
Capitol Federal Lender Reputation
Capitol Federal Savings Bank has provided affordable lending solutions to homebuyers in Kansas for over 125 years and has earned the reputation as one of the most trusted financial institutions in the region. Capitol Federal operates 60 branches and over 200 ATMs throughout Kansas and Missouri.
Capitol Federal is also a recognized member of the FDIC and an Equal Housing Lender.
Capitol Federal is also BBB-accredited with an A+ rating, as well as all its branches. This is unusual for a banking institution, as most nationwide lenders do not have half as many BBB-accredited branches. This reflects a satisfactory reputation among customers.
- Information collected on Feb. 27, 2019
Capitol Federal Mortgage Qualifications
|Loan Type||Rate Type||Loan Terms|
|Fixed-Rate Loans||Fixed||10, 10, 15, 20,, 20, and 30 years|
|Adjustable-Rate Loans||Variable||3/1 ARM, 5/1 ARM, and 7/1 ARM|
|Jumbo Loans||Fixed or Variable||15 and 30 year Fixed|
|3/1 ARM, 5/1 ARM, and 7/1 ARM|
|Purchase + Improvement Loans||Not specified||Not specified|
|Construction-to-Permanent Loans||Fixed||Up to 30 years|
|Home-At-Last Loans||Not specified||Not specified|
|Parent-Child Loans||Fixed||Up to 30 years|
Although the qualification guidelines will certainly vary between Capitol Federal’s different mortgage products, there’s a surprising lack of specific information on the bank’s website.
This makes it quite difficult to compare its offerings and determine which home loan may suit a borrower’s unique financial needs. Additionally, several of the bank’s specialty programs lack significant details about loan terms and rate types, which may confuse homebuyers browsing through Capitol Federal’s website.
Credit score and credit history are two important factors that lenders use to determine eligibility and calculate interest rates, so it’s important for borrowers to review their information before applying.
Capitol Federal’s lack of available credit score criteria for its mortgage products is a bit worrying, especially since the bank only offers one specialty program aimed at low-to-moderate income homebuyers. The industry-standard score is 740, according to information provided by FICO, which may be too high for many borrowers to qualify.
Detailed down payment requirements are also absent from the majority of Capitol Federal’s home loan descriptions. The only mortgage product that explicitly discusses money down requirements is the Parent-Child loan, which speaks of a “low” 25% down payment threshold.
This is a bit concerning, as most conventional mortgages require a minimum down payment of 5 percent to qualify.
While this amount tends to fluctuate depending on the lender, lending region and mortgage type/term, a 25% down payment is markedly high, especially for a program that is meant to support homebuyers who are ineligible for conventional loan options.
It appears the only way to find out more about Capitol Federal’s qualification requirements is to contact a lending agent directly, either by phone or by visiting a branch in person.
Capitol Federal Phone Number & Additional Details
- Homepage URL: https://capfed.com/
- Company Phone: 1-888-822-7333
- Headquarters Address: 700 S Kansas Avenue, Topeka, Kansas 66603