Explore: 2022 Real Estate Equity Review

Discover is a financial services company headquartered outside of Chicago in Riverwoods, Illinois, that offers different types of loans, as well as banking and credit cards.

You can apply for personal loans, student loans, and home loans with Discover. It offers home purchase loans and mortgage refinancing, but does not currently offer home purchase lines of credit, or HELOCs.

If you are looking for a loan to buy a home, the website has handy calculators that can help you determine the loan amount and interest rate you can qualify for in your personal financial situation. You can apply online or contact your bank to apply for a home loan. Discover says it offers low, fixed annual interest rates and extended repayment periods up to 30 years.

Explore: at a glance

Types of real estate loans

home equity loan

April range

From 7.49% to 13.99%

loan amounts

$35,000 to $300,000

Credit score requirements

Minimum 620

Terms of payment

Options 10-, 15-, 20- and 30

Average approval time


Homeowners with a credit score of 700 or higher will get the best rates for a Home Equity Loan from Discover, although you can qualify with a score as low as 620. Although your credit score is the most important factor that lenders use to assess Whether to repay your loan, you must also have enough credit accumulated in your home (the result of consistent mortgage payments over the years) in order to qualify.

The average customer can typically borrow up to 80% of their home’s combined loan-to-value ratio, or CLTV ratio, but eligible borrowers can borrow up to 90% CLTV in some cases, according to Discover. Your CLTV is the ratio of all your outstanding mortgage balances to the current assessed value of your property.

what we like

  • Without fees: Discover keeps the process simple by taking care of all additional fees such as construction fees, closing costs and home appraisals. This means that you do not have to worry about getting any cash during the loan application process or having to transfer additional costs to your loan. However, if you pay off your loan in full within 36 months, you will be required to reimburse Discover for closing costs of up to $500.
  • Fixed rate of interest: In today’s increasing interest environment, a fixed rate is attractive because your rate will not rise no matter what happens to the economy and financial markets.
  • Flexible payment terms: Discover offers loan terms of up to 30 years, which benefit homeowners who need to extend their financing over an extended period of time. You can repay your real estate loan in 10, 15, 20 and 30 year terms.

What we don’t like

  • Limited Loan Products: Discover only home purchase loans and mortgage refinancing. HELOCs, which are variable interest rate products, do not offer or purchase mortgages.
  • Minimum loan amount: You must withdraw at least $35,000 through a home equity purchase loan, which may be high for some homeowners, such as those who only need financing for a small business or to consolidate a moderate amount of debt.
  • Low maximum loan amount: You can only get a maximum loan amount of $300,000, which may be too small for homeowners who need to finance more expensive long-term projects, and it’s particularly restrictive compared to other lenders who offer mortgage equity loan limits of up to $3 million.

Home Loan Options

Discover currently offers home purchase loans and mortgage refinancing, but does not offer HELOCs or purchase mortgages. The lender also offers a variety of other types of loans such as personal loans and credit cards.


One of the advantages of the Discover Home Equity Loan is that it takes care of all the upfront fees normally associated with a home equity loan. Discover does not charge any application fees, and you will not be liable for construction fees, title fees, registration fees, mortgage taxes, or closing costs (unless you pay off your loan in full within 36 months, in which case you must pay closing costs up to $500).

Plus, as a borrower, no fees means you don’t have to pay any money when you place your application, saving you thousands of dollars instantly.

How do you qualify?

You must have a minimum credit score of 620 to qualify for a Discover home loan (although the lender would prefer to see a score of 700 or higher). In addition to your credit score – which is usually the most important factor that lenders consider when setting your interest rate – your rate will also depend on multiple factors such as your verifiable income, debt-to-income ratio, or DTI ratio, such as The amount of equity you have accumulated in your home.


Once you speak with a banker, the Discover website provides a detailed checklist of necessary documents to help you get started with your application. Be prepared to obtain the following documents such as a W-2 form, bank statements, and other personal financial information. Once you have collected all your documents, you can upload them using the Discover loan application portal, from which you can manage the rest of the loan process.

Discover says that if you upload your documents online (instead of mailing or faxing them), it will speed up processing time. You can expect to receive your money in full four days after your loan closes, according to Discover.

Customer service

To apply for a home purchase loan, you can contact a personal banker or submit your application online through the Discover website. Once your account is set up online, you can access the Discover loan portal to track your application. Homeowners can access customer support on weekdays from 8 a.m. to 12 a.m. ET and on weekends from 10 a.m. to 6 p.m. ET.

Direct phone support:

  • New loan applications and pending loan applications: 855-361-3435
  • Financed Home Loans: 855-295-2193
  • General Support: 855-361-3435

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