Based in the Kansas City metro area, NASB (North American Savings Bank) is an FDIC-insured bank operating since 1927. In addition to its banking services, NASB offers a variety of home loan and mortgage refinance products. These offerings include conventional, FHA, jumbo and VA loans as well as unique products such as FLEX and bank statement loans.
Whether you’re searching for VA loan tips, already looking for the best VA loans or want to find out how to refinance a VA loan, you can weigh several factors before deciding on a final lender. This comprehensive review explores how NASB’s loans, pricing, customer experience and accessibility measure up against other lenders. Discover if NASB VA loans are the right fit for your financial needs.
Best VA Loan for Competitive Rates (Runner-up)
VA loans through NASB have no origination fees, though a funding fee might apply.
If you’re self-employed, obtaining a mortgage or refinance loan can be a headache. Most conventional home loans require tax returns and W-2s from the past two years to verify income. Because self-employed individuals don’t typically have W-2s to verify their income, it may be difficult to qualify for a loan. NASB offers a welcome solution for these borrowers in the form of a bank statement loan.
NASB’s bank statement loan allows you to use 12 consecutive months of personal or business bank statements to verify your income.
NASB VA loans pros and cons
- Available to self-employed borrowers
- No origination fees for VA loans
- No costs for VA loan applications
- Credit score required for bank statement loans
- No home equity loans or lines of credit
- Physical branches only in Missouri
Loans for self-employed borrowers
The bank statement loan from NASB can be beneficial if you’re self-employed because you can use your personal or business bank statements as a means of income verification.
No origination fees for VA loans
NASB doesn’t charge origination fees on VA loans. Waiving fees makes an NASB loan an attractive choice if you’re a veteran or service member looking to lower overall borrowing costs.
No costs for VA loan applications
While NASB doesn’t charge lender fees, you may still need to pay fees to a third party, such as a VA funding fee. But not having to pay an initial cost to apply could be helpful if you’re on a budget.
Credit score required for bank statement loans
NASB’s bank statement loan can help you qualify for a mortgage if you’re self-employed. However, you’ll still need a credit score of at least 660 to qualify.
No home equity loans and lines of credit
NASB doesn’t offer any type of home equity loan or line-of-credit products. Lacking these offerings may be a drawback if you want to tap into your home equity.
Physical branches only in Missouri
NASB only has physical branches located in Missouri. Consider another lender if you live outside the state and prefer to manage loans in person.
NASB loan offerings
NASB offers a fairly strong lineup of home loan products including purchasing and refinancing loans, cash-out refinances and jumbo loans. All of these loans come in either 15- or 30-year terms. Notably, the lender doesn’t offer home equity loans or lines of credit. Here’s a summary of what NASB offers:
A VA loan is a government-backed mortgage that can be used to purchase a primary residence with no down payment (in most cases). NASB offers VA loans to eligible members of the military, veterans and their surviving spouses. NASB doesn’t charge any lender fees (e.g., origination fees and application costs) for its VA home loans. You can also roll your funding fee (a mandatory fee charged by the VA) into the loan amount to reduce out-of-pocket costs.
In addition to VA home loans, NASB provides VA jumbo and streamline refinance loans. VA jumbo loans can be helpful if you need to borrow more than the conforming loan limits set by Fannie Mae and Freddie Mac (varies by region). VA streamline loans, also known as interest rate reduction refinance loans, can help you refinance your existing VA loan at a lower interest rate.
To qualify for a NASB VA loan, you must have a minimum credit score of 620 and less than two 30-day late payments in the last two years on your credit report. You’ll also need to provide the following documentation:
- A copy of your driver’s license
- Two years of your tax returns
- Two of your most recent asset statements
- Two of your most recent pay stubs with year-to-date pay
- A copy of your mortgage statement (if you’re currently a homeowner)
- Any bankruptcy and discharge papers
- A certificate of eligibility (COE)
- Form 28-1880 (a request for COE)
- Form DD-214
Conventional loans from NASB are available as fixed- or adjustable-rate loans. A minimum down payment of 3% is required for fixed-rate loans and 10% for adjustable-rate loans. NASB states that borrowers should expect closing costs between 3% and 5% of the home's purchase price for most loans.
The company requires you to submit W-2s for the past two years, complete bank statements for the past two months, pay stubs covering the most recent 30-day pay period and a copy of your driver’s license to qualify.
FHA loans are government-backed loans designed to help first-time homebuyers or those with limited funds make a down payment to purchase a home. These loans are backed by the Federal Housing Administration (FHA) to encourage FHA-approved lenders to be lenient with criteria when it comes to credit scores, income and down payment requirements. NASB’s FHA loans require a minimum credit score of 580 and a minimum down payment of 3.5% of the purchase price.
You’ll need to know your front-end ratio, which is your mortgage payment plus your homeowners’ association fees, property taxes, mortgage insurance and home insurance. These loans require your front-end ratio to be less than 31% of your gross monthly income and your debt-to-income (DTI) ratio to be less than 43%. This means your monthly debt service for credit cards, car loans and student loans must require less than 43% of your gross monthly income.
When the purchase price of a home exceeds the maximum loan limit for an area as set by Fannie Mae or Freddie Mac, you may need a jumbo loan to finance the purchase. NASB has a general limit of $1,250,000 for these loans, with higher limits possible upon qualification. The company also requires:
- 20% down payment (or 10% down payment with mortgage insurance)
- Maximum debt-to-income ratio of 43%
- Six months of principal, interest, taxes and insurance in reserves
- Full home appraisal
- Two-year waiting period for bankruptcies (four years for a short sale or foreclosure)
Cash-out refinance loans
Cash-out refinance loans allow homeowners to tap into the equity in their homes to cover the costs of home improvements, debt consolidation, college tuition and other expenses. NASB offers these loans with a minimum borrowing amount of $175,000.
Bank statement loans
NASB’s bank statement loans are designed for self-employed borrowers who experience difficulty providing traditional income documents, like W-2s. For these loans, NASB asks for:
- 12 months of consecutive bank statements from the same account
- 10% down payment with mortgage insurance
- Up to 90% max loan-to-value ratio
- Minimum credit score of 680
- 45% maximum debt-to-income ratio
- Minimum loan amount of $175,000 and maximum loan amount of $1,250,000
- 30-year fixed or 5/1 adjustable-rate mortgage
- Escrow for taxes and insurance
- Two-year minimum for self-employment or 1099 contract work with a one-year exception if you did the same line of work previously
NASB VA loan pricing
Interest rates are competitive with lenders selling similar loan products. NASB positions itself as unique by waiving origination and application fees.
NASB VA loan financial stability
None of the major business credit rating services (Moody’s, Standard & Poor’s and Fitch) have rated NASB, making it difficult to accurately evaluate its financial stability. Even with NASB saying it provided $30 billion of loans to 100,000 customers during the past 10 years, we can’t make a definitive statement about the company’s financial stability. That said, the company does release annual financial statements.
NASB VA loan accessibility
Not all NASB loan products are available in all 50 states or at the full loan amount.
The company makes it relatively easy to contact its loan officers and customer service reps by choosing from two primary options. You can contact the NASB through the form on its website or by calling the company directly at the following numbers:
- All departments: 816-943-8000
- Mortgage support: 800-677-6272
NASB makes it very easy to apply for a VA loan online. The website is clean and user-friendly, and the process is straightforward. You can also access several helpful FAQ pages and educational resources online.
NASB VA loan customer satisfaction
NASB features a mix of positive and negative customer reviews. The company received some praise for its variety of loans and competitive rates as well as negative remarks about lengthy closing times and poor customer service. Overall, the company was awarded an A+ rating by the Better Business Bureau (BBB) and regularly responds to customer complaints in a timely fashion.
NASB VA loan FAQ
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How we evaluated NASB VA loans
To evaluate NASB’s VA loan offering, we looked at a variety of factors ranging from customer reviews and fees to the application process and customer service. In our review, we evaluated:
- Past and present customer reviews of the company to get an idea of the overall customer experience
- Fees related to its VA loans to check if it’s in line with other lenders
- Application process, such as how long it takes to apply for a loan and the ease of doing so
- Customer service, including how responsive the lender’s support team is and how easy it is to get in touch with a representative
- Types of VA loans it offers
Summary of Money’s NASB VA loan review
NASB has competitive rates and fewer fees compared to many other lenders. The application is also easy and can be completed online. The lender’s bank statement loans make it a great option if you’re a self-employed veteran who may have trouble meeting other lenders’ eligibility requirements.