DG Funding Review: A Direct Lender That Also Operates as a Mortgage Broker

Today we’ll check out a SoCal direct lender and mortgage broker that goes by the name “DG Funding.”

You may have come across them from a snail mail advertisement, as they tend to be active in that channel, especially if you’ve applied for a home loan elsewhere.

What makes them unique is that they operate as an independent mortgage bank, but also have access to wholesale and correspondent loan programs from their partners.

This means they can shop your interest rate for you, even though they’re just one entity. And they have a wider array of loan programs available.

So if you’ve had trouble finding a lender to work with, or simply don’t have the time to shop around with a bunch of mortgage companies, they could be worth looking into.

DG Funding Fast Facts

Direct-to-consumer independent mortgage banker
Founded in 2012, located in Carlsbad, CA
Offers home purchase financing and refinance loans
Also has access to wholesale and correspondent loan programs
Licensed to do business in CA, CO, and WA only
Has funded over $1 billion in home loans since inception

DG Funding is a direct-to-consumer mortgage lender based out of Carlsbad, California, located just north of San Diego.

The name DG is short for Dolan Gaddi Lending, Inc., which are the last names of the two founders of the company, Chris Dolan and Peter Gaddi.

Despite being a small company operating out of a single location, they have managed to close over $1 billion in home loans since their founding in 2012.

As noted, they identify as an independent mortgage bank, but also have access to loan programs and rates from wholesale, correspondent, and portfolio lenders.

So if you’re looking for a unique loan program, such as an interest-only loan or a stated income loan, DG might be able to help.

At the moment, they’re licensed in just a few states, including California, Colorado, and Washington.

How to Apply with DG Funding

To begin, simply head over to their website or give them a call on the phone.

If you don’t want to call them directly, you can fill out their so-called “Home Purchase Qualifier” or “Refinance Rate Checker” and a loan officer will reach out.

Once you’ve discussed loan pricing and checked eligibility, you can apply via their digital mortgage application.

It allows you to fill out the app electronically, link your financials, upload documents, eSign disclosures, order the appraisal, and more.

Most loan tasks can be completed from your smartphone or computer without the need to print out paperwork or fumble around with a fax machine.

And their lending team is hands-on, so if you need help or have questions along the way, they should be pretty responsive.

This may counter a large bank that is more bureaucratic and a lot less available on a day-to-day basis.

In terms of speed, they say the average processing time is 23 days, meaning they can close loans pretty quickly in most cases.

Loan Programs Offered by DG Funding

Home purchase loans
Home renovation loans
Refinance loans: rate and term, cash out, streamline
Conforming loans backed by Fannie/Freddie
FHA loans
VA loans
Jumbo loans
Super jumbo loans up to $10 million
Non-QM loans: alt-doc, interest-only, asset

One area where DG Funding shines is their loan program menu. Because they partner with other wholesale lenders and correspondents, they can provide a ton of options.

This includes all the usual stuff like conforming, FHA, and VA, along with jumbo loans, stated income loans, interest-only loans, and even HELOCs and home equity loans.

They also seem to have pretty liberal underwriting criteria, meaning you might be able to get a cash out refinance with no seasoning requirement, or financing on a non-warrantable condo.

The list goes on, but basically if you have a hard-to-place loan scenario, they might be able to find financing.

But even those with plain vanilla loan scenarios could benefit from a quote, as they appear to be a low-cost mortgage lender.

The only real question mark is if they offer USDA loans. Inquire within if you need such a loan.

DG Funding Mortgage Rates

One area where we could benefit from more information is mortgage rates. In order to see their rates, you have to call or fill out an online form.

This differs from some mortgage lenders and mortgage brokers that slap their rates right on their homepage for all to see.

Of course, those rates are typically just sample rates based on a loan scenario that may be nothing like yours.

And it’s important to speak to someone or get the interest rate in writing anyway.

In terms of lender fees, those are also unclear, but they do send out advertisements with $0 underwriting, $0 loan origination fee, and even $0 appraisal fee.

This is probably due to a lender credit, which bumps your interest rate up slightly, but covers all closing costs in the process, even some third-party fees.

As always, take the time to get second opinions from other banks, lenders, and brokers if you speak to DG.

It’s important to gather multiple quotes if you want to see how competitive your offers are. And with only one, you won’t have much to go on.

DG Funding Reviews

On Zillow, DG Funding has a remarkable 4.97-star rating out of 5 from over 300 customer reviews.

A good portion of those reviews indicate that the customer received an interest rate and/or closing costs lower than anticipated.

They also have a 4.9-star rating on Google from nearly 250 reviews, and a 4.5-star rating on Yelp from about 100 reviews.

Lastly, they hold an ‘A+’ rating with the Better Business Bureau based on complaint history, though they are not an accredited business.

To sum up, DG Funding has advantages over traditional banks and lenders in that they can shop your loan like a mortgage broker.

This means they might be able to get you a lower interest rate than the competition, and also find a home for a loan scenario that’s difficult to close.

Because they’re a smaller shop, you should get a more boutique mortgage experience and hands-on service.

If they can give you excellent, personalized service and a great rate with low or no closing costs, DG Funding could be hard to beat.

DG Funding Pros and Cons

The Good

Can apply for a home loan online in minutes
Offer a digital mortgage application that is mostly paperless
Operate as a direct lender and mortgage broker (can shop your rate on your behalf)
Tons of loan programs to choose from including jumbo, non-QM, alt-doc, etc.
Excellent customer reviews across all major ratings websites
A+ BBB rating
Free mortgage glossary and mortgage calculator on their website

The Maybe Not

Only licensed in CA, CO, and WA
Do not publicize mortgage rates or fees
Will transfer your mortgage to a loan servicer after closing