What Is Discover MTG & Are Mortgages Still Available?
Explore your home financing options with Discover Bank. This guide details their mortgage solutions and how to secure your loan.
“Discover MTG” refers to mortgage products previously offered by Discover Bank, a financial institution known for its credit cards and online banking services. Discover Bank has since ceased accepting new applications for these products. Discover Financial Services, the parent company, made a strategic decision to exit new mortgage originations to concentrate on other profitable direct banking products.
Discover Mortgage Products and Features
Historically, Discover Bank offered several types of home loan products, primarily focusing on mortgage refinances and home equity loans. These offerings included both rate-and-term refinance options and cash-out refinances, allowing homeowners to convert a portion of their home equity into liquid funds. Discover’s home equity loans were available as either first or second liens, providing flexibility for homeowners with or without an existing primary mortgage.
When these products were available, Discover was noted for features such as zero origination fees and no cash due at closing for its home equity loans. Loan terms varied, with options that could extend for several years to accommodate different repayment strategies.
Eligibility and Qualification Requirements
When Discover Bank was actively originating home loans, specific criteria determined eligibility for their mortgage products. Borrowers were typically required to have a FICO credit score of at least 680 to qualify.
Income verification was another important aspect, with lenders generally requiring documentation such as recent pay stubs, W-2s, and tax returns to confirm employment stability and income levels. A maximum debt-to-income (DTI) ratio, often around 43 percent, was usually expected, ensuring that a borrower’s monthly debt payments did not exceed a certain percentage of their gross income. Furthermore, property-related restrictions meant Discover did not lend on certain types of properties, including cooperatives, condotels, investment properties, log homes, manufactured homes, mobile homes, or secondary homes.
The Discover Mortgage Application Process
The application process for a Discover home loan, when it was available, typically began with an online inquiry or phone call. Borrowers would provide initial personal, income, and property information to review potential loan options. This initial step allowed for a preliminary eligibility assessment before proceeding with a full application.
Upon moving forward, applicants would submit required documents, which included government-issued photo identification, current mortgage statements, homeowners insurance policies, and financial records like pay stubs and tax returns. For self-employed individuals, profit and loss statements or balance sheets were also necessary. After documentation submission, the application entered the processing and underwriting phase, where Discover would verify information, order a home appraisal, and conduct a title search. The typical funding timeline for a home equity loan, from application to closing, averaged between five to seven weeks.