Founded 132 years ago in Grand Rapids, Michigan, Chemical Financial Corporation is the largest financial institution headquartered in its state.
Its subsidiary banking arm, Chemical Bank, has been in operation since 1917. Alongside personal and corporate banking, as well as wealth management, the bank offers a variety of loan products for individuals hoping to become homeowners or refinance their properties.
In this review, we will discuss the various home loan products offered by Chemical Bank and see how they compare to other top mortgage lenders in the U.S.
Chemical Bank Mortgage Highlights
- Offers home loans and banking services in Michigan and Ohio
- Participates in FHA, USDA, and VA programs
- Has specialized products such as the Heart and Home loan
- Oversees financial literacy programs and free mortgage consultations
- Enables online pre-qualification and loan applications for registered users
- Allows borrowing for new construction, cash-out refinancing, and more
History of Chemical Bank
Founded in 1917, Chemical Bank is a subsidiary of Chemical Financial Corporation. The bank serves borrowers in Michigan and Ohio and offers a number of personal and commercial banking products alongside its loans. The lender has many government-backed mortgages, such as USDA, FHA, and VA offerings, in addition to specialized programs such as Detroit’s Heart and Home.
The bank has an A+ rating from the Michigan BBB but is not accredited and has no user reviews.
Chemical Bank Loan Specifics
Chemical Banks offers the following types of loans to its customers:
A conventional fixed-rate loan is great for borrowers who want to pay the same rate throughout the life of the loan. These are available at different term lengths, with differing interest rates based on what the borrowers have chosen. Chemical Bank offers multiple repayment options for its fixed-rate mortgages.
As a contrast to fixed-rate loans, lenders (including Chemical Bank) offer adjustable-rate mortgages. These ARMs act like fixed-rate counterparts for an initial term, and then the rates adjust every year. The initial rates are usually lower than those available for fixed-rate products, but when they begin readjusting, can get considerably more expensive. Chemical Bank suggests ARMs for borrowers who intend to spend five or fewer years in their new homes, want to make extra principal payments, or are interested in lower payments to begin with while anticipating increased income later.
There are specialized loan products available for borrowers who want to purchase land and build on it, rather than buying a home that already exists. These mortgages from Chemical Bank are designed to simplify the construction process, with only one closing instead of separate meetings to fund each step of building the home. While the primary offerings are ARMs, Chemical Bank does note that fixed rates may be offered.
Jumbo loans are a category of loan larger than the maximum amount backed by federal lending agencies. These are necessary products when lenders want to purchase homes and property with higher market values. Chemical Bank’s jumbo offerings include construction loan programs, to help buyers turn a plot of land into a comfortable new home.
The U.S. Department of Agriculture offers a category of loan especially for individuals who are interested in buying homes in small towns and rural communities. Getting a rural development loan from Chemical Bank is an option for borrowers seeking to move into less populated areas in Michigan and Ohio. These loans’ advantages relative to more standard ones include simpler qualification terms, and potentially, 100 percent financing.
Current and former members of the military, as well as members of their immediate families, may qualify for VA loans backed by the Department of Veterans Affairs. Chemical Bank is one of the financial institutions that offer these products. There is no FICO credit score minimum to receive a VA loan from Chemical Bank, and borrowers don’t have to pay for mortgage insurance on these loans.
The Federal Housing Authority backs loan programs that are intended for borrowers who don’t necessarily have the readily available funds to make a down payment. Receiving a loan to purchase a first home is a goal for many individuals whose income may not support a conventional loan, and Chemical Bank’s FHA offerings can suit these borrowers.
When homeowners refinance a home, taking out a new loan at a higher value and receiving the difference in equity, this is known as cashing out. It is an excellent way to pay off a large debt immediately with the money received or to pay for another large-scale and current expense. This is because interest rates on home loans are typically lower than for credit cards or other types of debt. Chemical Bank offers cash-out refinancing as a feature of some of its specialized loan products, such as VA loans.
Chemical Bank Customer Experience
Chemical Bank offers an online qualification form for mortgages, whether they are seeking the loan with or without a mortgage loan offer. The bank also has financial literacy programs available. Some of the special loans offered through the bank have online APR rates listed while acknowledging that the actual rates offered will be based on the credit scores of the borrower in question.
The bank does offer free pre-qualification processes to determine how much a person is eligible to borrow, as well as free mortgage consultations. There is information about all of the many loan types offered by the bank, including specialized programs such as the Heart and Home Program, which is aimed at individuals in the city of Detroit and provides assistance with closing costs. As the bank does not list its average closing time, it’s unclear how it compares to Ellie Mae’s national average of 44 days.
Unlike some other financial institutions, the online features offered by Chemical Bank don’t include loan rate calculators for its mortgage products, though consumer and auto loans are explained in greater detail. Speaking with loan officers directly appears to be the primary way to receive comprehensive information.
Chemical Bank Lender Reputation
The Better Business Bureau in Michigan, reviewing the headquarters location of Chemical Bank, has not registered any consumer reviews for the institution. Therefore, there is no average user score available for the bank. While Chemical Bank has a BBB rating of A+ based on its responses to consumers, it should be noted that the organization does not accredit the bank.
There have been four registered consumer complaints against the bank, with three answered and one resolved. These are mainly related to Chemical Bank’s consumer checking products instead of its mortgages and home loans. It is difficult to ascertain the general customer attitude toward the institution with such a small group of reviews, many fewer than are typically available for larger banks.
Qualifying for a loan from Chemical Bank depends on the kind of product in question. The bank offers a variety of financial products, including multiple versions specifically designed for individuals who do not meet the standard mortgage qualification requirements like credit score. Due to the lack of information publicly available on the loan products, it’s clear that potential borrowers will have to speak directly to representatives for more details.
Income and debt-to-income requirements
Down payment requirement
Gift funds available?
Minimum FICO credit score
Depends on loan type (none for VA loans)
Chemical Bank Phone Number & Additional Details
- Homepage URL: https://www.chemicalbank.com/
- Company Phone: (800) 867-9757
- Headquarters Address: 2185 3 Mile Rd NW, Grand Rapids, MI, 49544