What 1st Step Financial Services, Inc. does

1st Step Financial Services, Inc. is a privately held, founder-owned mortgage brokerage founded in August 1997 by Jonathan P. Harris Sr. and headquartered in Largo/Ellicott City, Maryland. The firm originates residential and alternative mortgage products — including FHA, FHA 203k, VA, and Conventional loans as well as Low Credit Score Programs (FICO 500-580), Investor Fix & Flip, Investor Stated, Foreign National, and Limited Documentation loans — primarily for first-time homebuyers, credit-challenged borrowers, and real estate investors across the MD, DC, VA, and DE corridor. A secondary, recurring-revenue stream was added in 2024 with an in-house Credit Repair Service priced at $99/month for aspiring homeowners working to qualify for mortgage financing.

The business runs on a sales-led distribution model built around a network of 20+ licensed Mortgage Loan Originators and Commercial Loan Originators, supplemented by dually licensed Realtor/MLO team members who generate referrals from real estate transactions. Lead intake flows through a toll-free phone channel (800-583-3178), the company website (with Bankrate.com-powered amortization, borrowing-capacity, and payment calculators), and a Floify-powered online application portal. The firm holds NMLS #204295 and operates without a proprietary technology platform, instead relying on third-party integrations: Credit Repair Cloud for credit restoration, Bankrate.com for calculator widgets, and Floify for digital loan applications.

The revenue model is transaction-fee based — commissions on funded loans originated across multiple lenders — with a small recurring subscription layer from the credit repair offering. The firm has historically served the MD/DC/VA area for over 26 years, weathered the 2007 real estate downturn after peaking at more than 70 staff, and subsequently repositioned to focus on the MD, DC, and DE tri-state area with a leaner operating footprint of 11-50 employees today.

Name

1st Step Financial Services, Inc.

Legal name

1st Step Financial Services, Inc.

Website

https://1ststeponline.com

Company type

Private

Founded year

1997

Operating status

Operating

Headcount range

11–50 employees

Short description

1st Step Financial Services, Inc. is a Maryland-based, founder-owned mortgage brokerage founded in 1997 that originates FHA, VA, conventional, and alternative loans for first-time homebuyers, credit-challenged borrowers, and real estate investors across the MD, DC, VA, and DE markets.

Ownership category

akta.pro rank

Product category

Mortgage Brokerage

NAICS

Mortgage and Nonmortgage Loan Brokers (52231)

SIC

Loan Brokers (6163)

akta.pro primary industry

Residential Mortgage Brokerage (Purchase & Refinance) (FSAEAEAA)

akta.pro secondary industries

Retail Residential Mortgage Brokers (Purchase & Refinance) (FSALABAA), First-Time Homebuyer (FTHB) Mortgage Origination (FSALAAAG), Mortgage & Loan Introducers (Residential & Commercial) (FSAEAMAA)

Keywords

• Mortgage brokerage
• Residential lending
• Credit repair
• Loan origination
• Alternative financing

Headquarters

HQ city

Ellicott City

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D

Revenue model

1. Mortgage Loan Origination Fees: Revenue generated through transaction fees on mortgage loans originated. As a mortgage brokerage, the company earns commissions on funded loans including FHA loans, conventional loans, VA loans, investor loans, and alternative loan programs. The volume and type of loans originated (purchase vs. refinance) drives revenue.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels4 records

Core offering

1st Step Financial Services, Inc. is a mortgage brokerage that originates and brokers residential mortgage loans through a network of licensed Mortgage Loan Originators. The company offers a diverse portfolio including FHA, VA, Conventional, FHA 203k, low credit score (500-580+), Investor Fix & Flip, Investor Stated, Foreign National, and Limited Documentation loan programs, plus an in-house credit repair service to help borrowers qualify for home financing.

Product overview

1st Step Financial Services, Inc. is a mortgage brokerage offering a diverse portfolio of loan products and financial services. Their core offerings include Traditional Loan Programs (FHA, FHA 203k, VA, and Conventional loans), Low Credit Score Programs with varying LTV options for borrowers with scores from 500-580, and Alternative Loan Programs (Investor Fix & Flip Rehab Loans, Investor Stated Loans, Foreign National Loans, Limited Documentation Loans). The company also provides an add-on Credit Repair Service powered by Credit Repair Cloud for $99/month, and free financial calculator tools (Amortization Schedule, How Much Can I Borrow, and Payment Calculator) to help clients plan their mortgage decisions. The company serves the MD, DC, VA, and DE areas since 1997.

Differentiator

Problem solved

Functional benefit

Products and services

• FHA Loans

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

Partnerships

One partnership is on record.

• Credit Repair CloudcoreTechnology or IntegrationCredit Repair Cloud is the technology platform powering 1st Step Financial's in-house Credit Repair Service. The partnership enables the company to offer credit restoration services to clients, integrated with their mortgage offerings since 2002.

Scale indicators2 records

Recent moves5 records

Expansion highlights6 records

Broad incumbents

• Rocket Mortgage: Largest U.S. retail mortgage originator offering a full product suite including FHA, VA, conventional, and specialty programs. Competes with 1st Step in retail consumer-direct and via wholesale brokerage channels.
• United Wholesale Mortgage (UWM): Leading wholesale mortgage lender that works with independent mortgage brokers like 1st Step. Represents both a supplier (wholesale) and competitive threat in brokerage channels.
• Caliber Home Loans: Large-scale mortgage originator with extensive product set including non-QM. Comparable to 1st Step in product breadth but operates at significantly greater scale.

Direct peers

• Angel Oak Mortgage Solutions: Specialty non-QM lender focused on alternative documentation, investor, and non-conforming borrower programs — directly overlapping with 1st Step's alternative loan product set.
• loanDepot: Multi-channel mortgage lender with retail, wholesale (LDWholesale), and direct-to-consumer offerings. Comparable in product breadth including government, conventional, and non-QM programs.
• Paramount Residential Mortgage Group (PRMG): Privately held retail and wholesale mortgage lender offering a wide product set including government, conventional, and non-QM. Comparable in scale, channel mix, and product diversity to 1st Step.
• Homepoint: Wholesale mortgage lender serving independent brokers and correspondent channels. Comparable in business model as a partner/supplier to brokers like 1st Step, and a competitor for retail customers.
• Plaza Home Mortgage: Privately held wholesale and retail mortgage lender offering conventional, government, and non-QM products. Comparable in size and channel strategy to 1st Step.
• NewRez (New Residential Mortgage): National mortgage lender with retail, wholesale, and correspondent channels. Offers specialty and non-QM products similar to 1st Step's alternative loan programs.
• American Financial Resources (AFR): Wholesale mortgage lender offering government and specialty programs. Direct overlap with 1st Step's FHA, VA, and alternative product offerings.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat2 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/pub/jonathan-harris/56/b0a/277
• Xx.com/1ststepfinanci1
• Facebookfacebook.com/1ststepfinancial

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about 1st Step Financial Services, Inc.