Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
The bottom line: Third Federal Savings and Loan Mortgage – Product Name Only is a really unique mortgage lender that offers an impressive number of perks compared to other lenders we’ve reviewed. Though its loan options are somewhat limited, there are many ways for borrowers to get an affordable mortgage — including its low-closing-cost mortgages, down payment assistance, and PMI-free mortgages with as little as 5% down. This makes it one of the best mortgage lenders for for first-time buyers.
About Third Federal Savings and Loan Mortgages
Third Federal Savings and Loan offers mortgages in California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, Virginia, Washington, and Washington, DC. It has physical branches in Ohio and Florida.
Third Federal Savings and Loan offers the following types of mortgages:
Conforming loansJumbo loansBridge loans Home equity loansHELOCsSmart Rate Adjustable Mortgage: A unique adjustable-rate mortgage product that comes with the ability to re-lock your rate to the lender’s current rate for up to five years if you want to keep your rate fixed rather than have it adjust each year. To re-lock your rate, you’ll pay a $295 fee ($595 in New York). You can use this feature as many times as you want, whenever you want.
Third Federal also offers a Low Cost Mortgage option on some of its mortgages. With this option, you’ll pay just $295 at closing in exchange for a higher mortgage rate. The Low Cost Mortgage option is available on 10-, 15-, and 30-year fixed-rate mortgages, Smart Rate mortgages, and jumbo mortgages.
Third Federal Savings and Loan doesn’t set a minimum credit score for its mortgages. In general, we recommend borrowers aim to have a credit score of at least 620 before applying for a conforming mortgage.
To get started with this lender, submit an application or get preapproved online. When you’re preapproved, you can lock your rate for up to 60 days while you shop for a home.
Is Third Federal Savings and Loan Mortgage Trustworthy?
Third Federal Savings and Loan has an A- rating from the Better Business Bureau. A strong BBB grade indicates a company advertises honestly, responds effectively to customer complaints, and is transparent about business practices.
On its Zillow lender page, Third Federal Savings and Loan has a 4.58 out of 5-star rating, based on 137 online customer reviews.
Third Federal Savings and Loan Interest Rates and Fees
Third Federal Savings and Loan offers a wealth of information for borrowers looking to explore its mortgage rates. At the top of its website, click on “Featured Rates” to see the lender’s sample mortgage rates. From there, you can scroll down and click “More Rates + Details” to see customized rates based on your loan amount and where the home is located.
The customized rates page will show you the costs of a variety of rate scenarios, so you can see how your rate and monthly payment would change with different levels of discount points added to the loan.
This page also shows you the estimated closing costs you might pay with each scenario. When you view the details on a specific situation, you can see how those costs break down. When we used this tool, all of the loan options we were given, except for the lender’s Low Cost Mortgages, included a $1,370 origination fee and a $325 application fee. If you get a mortgage with this lender, you should expect to incur similar costs.
If you get a Low Cost Mortgage, you’ll pay just $295 in closing costs, and Third Federal will cover the rest. You will, however, take on a slightly higher interest rate as a result.
In 2022, borrowers paid an average of $1,127 when getting a conventional mortgage with Third Federal, according to Home Mortgage Disclosure Act data. However, because many borrowers utilized Third Federal’s Low Cost Mortgage option, this likely isn’t an accurate picture of how much you’d pay if you got a regular mortgage with this lender.
Third Federal Savings and Loan Mortgage: Overall Rating
FeatureInsider rating (out of 5)Loan types4Affordability4Customer satisfaction4.58Trustworthiness4.5Total4.27
Third Federal Savings and Loan Mortgage: Pros and Cons
ProsCons
Offers a Low Cost Mortgage option where you pay only $295 in closing costs (in exchange for a higher rate)
First-time homebuyers can put down as little as 5% on any Third Federal mortgage without paying for private mortgage insurance
Borrowers could get up to $13,000 in down payment assistance with this lender
Get a 60-day rate lock while you shop for a home
Services all of its loans, so you won’t be transferred to a new lender after closing
Only available in 21 US states and Washington, DCThis lender only has physical branches in Ohio and FloridaDoesn’t offer government-backed mortgages, such as FHA or VA loansDepending on your loan, you may have to pay an application fee and an origination fee
Third Federal Savings and Loan Mortgage FAQs
Is Third Federal Savings and Loan legit?
Yes, Third Federal Savings and Loan is a legitimate bank to get a mortgage from. It has strong customer reviews and a high rating from the BBB. It’s also been in business since 1938.
Is Third Federal a good mortgage lender?
Third Federal is an overall strong mortgage lender, especially for first-time homebuyers. If you’re looking to keep your costs low, you might like Third Federal’s Low Cost Mortgage, where you’ll pay only $295 in closing costs in exchange for a higher rate.
What is the minimum credit score for Third Federal Savings and Loan?
Third Federal Savings and Loan doesn’t set a minimum credit score, but you should aim to have a score of at least 620 to improve your chances of getting approved for a mortgage.
What are Third Federal’s mortgage interest rates?
You can view Third Federal’s current mortgage interest rates on its website; just click “Featured Rates” to see some sample rates. You can also view customized rates without having to apply for preapproval.
Who owns Third Federal bank?
Third Federal is a subsidiary of TFS Financial Corporation. Marc Stefanski is the current Chairman and CEO of Third Federal Savings and Loan.
How Third Federal Savings and Loan Mortgages Compare
Third Federal Savings and Loan vs. Carrington Mortgage Services
Carrington Mortgage Services – Product Name Only is one of the best lenders for borrowers with low credit scores. It accepts scores as low as 500 on its FHA and VA mortgages, and its Carrington Flexible Advantage mortgage has flexible credit requirements for borrowers who have experienced recent negative credit events, such as bankruptcy.
Third Federal and Carrington are both extremely affordable lenders, but for different types of borrowers. If you have a stronger credit score but are having trouble saving up the cash needed for a home purchase, you’ll probably like Third Federal better. But if you have a low score and need a lender that offers a lot of flexibility, Carrington is likely the better fit.
Third Federal Savings and Loan Mortgage vs. Guild Mortgage
If you’re looking for a lender that offers a huge range of mortgage programs to choose from, Guild Mortgage – Product Name Only might be a good choice for you.
Guild’s Complete Rate Program lets you use non-traditional credit, such as rent payment history, to qualify for a mortgage if you don’t have a traditional credit score. But if you’re looking for more cash assistance at closing or you want to avoid PMI with a low down payment, you might prefer Third Federal.
Why You Should Trust Us: How We Reviewed Third Federal Savings and Loan Mortgages
To review Third Federal Savings and Loan, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a high number of loan types with affordable features, have positive customer reviews, and don’t have any recent public controversies.