Review
Updated
Our Mortgages Experts
Fact Checked
Nathan Alderman
Before you start the fun parts of home shopping (like testing out freshly-baked cookies at open houses), you'll need to do some of the boring parts (like getting pre-qualified for a home loan). To start, you'll need to choose a mortgage lender. Comparing mortgage lenders can feel intimidating. That's why we've spent hundreds of hours researching lenders: We're here to help de-mystify the process of getting a home loan, whether you're buying your first home, refinancing, or otherwise.
TIP
Quick picks
- Great for all, including refinancing: Rocket Mortgage
Rocket Mortgage offers competitive mortgage rates, award-winning customer service, and a seamless digital experience. - Great for first time homebuyers:
Better states applicants can be pre-approved in minutes. More perks: no lender fees, low mortgage rates.
How to choose the best mortgage lender
Once you've found a few mortgage lenders you love, it's time to compare them. There are a few factors that are important to compare to make sure you find a home loan that fits your situation:
- How quickly do you need to be pre-approved? Some mortgage lenders specialize in quick mortgage pre-approval, while others may take a little longer.
- Does the mortgage lender offer specialized loans, like FHA loans or VA loans? If you're looking for a specific loan type, make sure the lenders you're comparing offer those loans.
- Does the lender charge any fees? Most lenders charge some fees; some charge low or no fees. Make sure you read the fine print to understand what you'll pay.
Compare the best mortgage lenders
| Lender | Best For | Next Steps |
|---|---|---|
 2023 Award Winner
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForNo lender fees and 100% online application |
On Better's Secure Website. |
Axos Bank Mortgage
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForDiverse loan products and cash back rewards |
Check Rates for Axos Bank Mortgage
On Axos Bank's Secure Website. |
2023 Award Winner
Rocket Mortgage
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForTop customer service and streamlined online app. |
Check Rates for Rocket Mortgage
On Rocket Mortgage/Quicken Loans' Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForDiverse loan types and terms | |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForDigital experience & down payment assistance | |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForRefinancing and FHA/VA options | |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForVA loans |
On Veterans United's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForHigh loan amounts and relationship discounts | |
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForDiverse loan options | |
2023 Award Winner
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForNo mortgage insurance option | |
2023 Award Winner
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForDiverse loan offerings | |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForEasy online application | |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForFirst-time buyers | |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForOnline experience | |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Best ForSelf-employed borrowers |
Reviews of the best mortgage lenders
2023 Award Winner
On Better's Secure Website.
Best for: No lender fees and 100% online application
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
Better has the right combination of features and perks, including no unnecessary fees, low mortgage rates, and a fast 100% application process. Better Mortgage does not charge lender fees such as those for origination, application, processing, and underwriting. As a result, Better states that new home buyers save $8,200 and customers who refinance save $8,200 over the life of their loans. In addition, Better states that applicants can get a personalized rate quote in under five seconds and a pre-approval in minutes. This can help homeowners cut their costs while saving time. The lender also offers $150 off closing costs when applying through The Ascent site.
Min. Credit Score
Min. Down Payment
- 620
- 3%
Key Features
- One Day Mortgage. Lock a rate, get a Commitment Letter in 24 hrs. .
- Close 10-17 days faster than industry average
- Apply 100% online, entirely on your schedule
- $100 billion in online home loans
- Better Price Guarantee: Better will match any valid competitor's offer, and credit you an extra $100. If Better can't, the $100 is yours to keep.
Loan Types
- Conventional
- FHA
- Jumbo
Fixed Rate Terms
Adjustable Rate Terms
- 10y, 20y, 30y
- 10/6, 7/6, 5/6
Best for: Diverse loan products and cash back rewards
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
No lender fees for existing customers, along with a fully online experience make it a top pick. One of the rare lenders to offer jumbo loans up to $30 million. Axos also offers a mortgage with rewards, giving up to 3% cash back every year.
Min. Credit Score 580 FHA loans 620 other mortgage products
- 620
- 3%
Key Features
- Lender fee waiver for existing customers
- Jumbo and super jumbo loans
- HELOC and home equity line of credit offerings
Loan Types
- Conventional
- FHA
- VA
- Jumbo
- Interest Only
Fixed Rate Terms
Adjustable Rate Terms
- 30y, 20y, 15y, 10y
- 10/6, 7/6, 5/6
Best for: Top customer service and streamlined online app.
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
Rocket Mortgage, originally known as Quicken Loans, led the transition to a full digital experience and online-only applications. Its seamless process is one reason why it has become the largest U.S. lender. It is consistently ranked No. 1 on J.D. Power’s customer service rankings and has a robust and high-quality app that makes it easy to use.
Min. Credit Score 580 FHA 620 other mortgage products
- 580 - 680
Min. Down Payment 0%-3.5% (FHA & VA loans) 3% (conventional loans)
- 0% - 3.5%
Key Features
- Online-only
- High allowable debt-to-income
- Low down payment options
- Opportunities to get cash towards closing
- High customer satisfaction ratings
Loan Types
- Conventional
- FHA
- VA
- Jumbo
Fixed Rate Terms
Adjustable Rate Terms
- Customizable (8 -30 years)
- 10/6, 7/6
Best for: Diverse loan types and terms
New American Funding
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
New American Funding is one of the largest privately owned direct mortgage lenders in the country. The lender offers competitive rates and a wide variety of loans and customizable loan terms. The lender also has a highly efficient lending process that allows for quicker closing times. What's more, New American can be a good solution for people building credit and wanting a good mortgage. It focuses on lending to underserved communities.
Min. Credit Score 580 FHA 620 other mortgage products
- 580 - 620
Min. Down Payment 0%-3.5% (FHA and VA loans) 3% (conventional loans)
- 0% - 3.5%
Key Features
- Fast service
- One of the top lenders to Hispanic and Black borrowers.
- Offer customizable loans, including home addition loans
- High customer satisfaction, A+ BBB rating
Loan Types
- Conventional
- FHA
- VA
- USDA
- Jumbo
- Interest Only
- Reverse
Fixed Rate Terms
Adjustable Rate Terms
- Customizable (8 - 30 years)
- 10/1, 7/1, 5/1
Best for: Digital experience & down payment assistance
Guaranteed Rate Mortgage
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
Guaranteed Rate does a great job with ease of usability, offering comprehensive loan information during your research phase, plus the option to securely upload and digitally sign loan documents when you're ready to apply. The lender publishes its rates for their different loans online, making it easy to compare options.
Min. Credit Score 580 FHA 600 VA and FHA 620 Conventional
- 550-680
- 3%
Key Features
- Customer-friendly website
- Technology to ease the process
- Neighborhood data
Loan Types
- Conventional
- FHA
- VA
- USDA
- Jumbo
- Interest Only
Fixed Rate Terms
Adjustable Rate Terms
- 30y, 15y
- 5/1, 7/1 10/1
Best for: Refinancing and FHA/VA options
loanDepot
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
Among the most popular refinance and FHA/VA lenders in the market. Its mello smartloan™ platform eases the refinance process by digitally hooking up to confirm your assets, employment, and income. Its proprietary loan engines quickly determine the loan options that will give applicants the greatest potential cost and/or time savings based on the information it collects.
Min. Credit Score 580 FHA 620 other mortgage products
- 580 - 620
- 0%-3.5%
Key Features
- Digital loan technology
- Branch network
- Customer discounts
Loan Types
- Conventional
- FHA
- VA
- Jumbo
Fixed Rate Terms
Adjustable Rate Terms
- 30y, 20y, 15y, 10y
- 10/1, 7/1, 5/1, 3/1
On Veterans United's Secure Website.
Best for: VA loans
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
The fact that it is the largest VA home lender speaks volumes. Veterans United specializes in VA loans for military members, and offers 24/7 customer service over the phone as well as free credit counseling service. But Veterans United also offers an array of terms and loan products, in addition to competitive rates.
Min. Credit Score
Min. Down Payment
- 620
- 0%-5.0%
Key Features
- Online approval process
- No required down payment
Loan Types
- VA
Fixed Rate Terms
Adjustable Rate Terms
- 30y, 25y, 20y
- N/A
Best for: High loan amounts and relationship discounts
SoFi Mortgage
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
SoFi has a complete digital mortgage and refinance application process. It offers fast prequalification, membership discounts, and a modern experience. A potential fit for self-employed borrowers, based on SoFi’s nontraditional underwriting process that focuses on a combination of credit history, income, and assets.
Min. Credit Score
600
Min. Down Payment
- 3%-5%
Key Features
- Named the Best Mortgage Lender for Saving Money in 2023 by CNBC Select
- No cost, fully underwritten mortgage pre-approval letters
- Extended rate lock option allows to you lock in today’s rate for more than 90 days
- Our on-time close guarantee offer is backed by $5,000
- A dedicated mortgage loan officer to help you through the process
Loan Types
- Conventional
- FHA
- VA
- Jumbo
Fixed Rate Terms
Adjustable Rate Terms
- 30y, 20y, 15y, 10y
- 10/6, 7/6, 5/6
Best for: Diverse loan options
Bank of America Mortgage
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Best
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= Excellent
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Bottom Line
Bank of America is one of the largest banks in the U.S., offering a wide variety of financial products in addition to its mortgages. Few lenders can match the lineup of loan products and terms. Bank of America offers a Preferred Rewards program for borrowers who have bank accounts at the bank and investment accounts at Merrill. Borrowers can qualify for an origination fee or interest rate reduction based on their eligible tier at the time of application.
Min. Credit Score 620 FHA 620 Other mortgage products 640 Affordable Loan Solution® 680 Jumbo Loans
- 620
Min. Down Payment 0% VA loans 3.5% FHA 3% Conventional loans, Affordable Loan Solution® mortgage, Freddie Mac Home Possible® mortgage 5% Other loans
- 0%-3%
Key Features
- Wide range of financial products
- Preferred Rewards program
- Ability to apply entirely online
- No PMI offering
- Loans up to $5 million
Loan Types
- Conventional
- FHA
- VA
- Jumbo
Fixed Rate Terms
Adjustable Rate Terms
- 30y, 20y, 15y
- 10/6, 7/6, 5/6
Best for: No mortgage insurance option
Navy Federal Credit Union Mortgage
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
Navy Federal offers its members a wide range of loans, including the Military Choice Loan for those who have already exhausted their VA loan benefit. Navy Federal offers a rate match guarantee, and if it can't match an offered rate, applicants will receive $1,000.
Min. Credit Score 580 FHA
- 580
- 0%
Key Features
- High customer satisfaction
- Up to 100% financing
- Mortgage with no PMI
- Rate match guarantee
Loan Types
- Conventional
- VA
- Jumbo
- Interest Only
Fixed Rate Terms
Adjustable Rate Terms
- 10 - 30 years
- 5/5, 3/5
Best for: Diverse loan offerings
PNC Mortgage
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
PNC is a large bank with a wide range of financial products. It offers an online tool called Home Insight Planner to help borrowers find a home that fits their budget and needs. It then matches a borrower to its diverse loan products and terms. PNC can accommodate many borrowers, including those looking for mortgage options with no PMI.
Min. Credit Score 580 FHA 620 other mortgage products
- 580-620
Min. Down Payment 0% VA and USDA 3% conventional 3.5% FHA
- 0% - 3.5%
Key Features
- 3% down no PMI offering
- HELOCs
- Home equity loans
- Considers nontraditional credit history
Loan Types
- Conventional
- FHA
- VA
- USDA
- Jumbo
Fixed Rate Terms
Adjustable Rate Terms
- 30y, 25y, 20y, 15y, 10y
- 10/1, 7/1, 5/1
Best for: Easy online application
PennyMac Mortgage
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
PennyMac specializes in government mortgages like VA and FHA loans. PennyMac offers rate transparency, online only help, flexible loan terms, and a rate guaranteed to beat competitors. PennyMac is a great place for people to start looking for a mortgage.
Min. Credit Score 500 FHA 620 other mortgage products
- 500-620
- 3%
Key Features
- 100% online application
- Instant rate estimates
- Flexible terms
- No lender fee
Loan Types
- Conventional
- FHA
- VA
- USDA
- Jumbo
Fixed Rate Terms
Adjustable Rate Terms
- 30y, 20y, 15y (some customized terms are available)
- 10/6, 7/6, 5/6
Best for: First-time buyers
Flagstar Bank Mortgage
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
Flagstar Bank offers a wide variety of mortgage options to match your individual needs. It offers personally tailored mortgage options, specialty loans, renovation and new home construction loans, professional loans, and many other personalized financing solutions.
Min. Credit Score Conventional - 600 FHA - 580 VA - 580 to 600 Construction - 680 to 700 USDA - 580 minimum Jumbo - 680 to 740
- 580-740
Min. Down Payment 0%-3.5% (FHA and VA loans) 3% (conventional)
- 0% - 3.5%
Key Features
- Wide-range of specialty, professional, and community loan types
- Available in all 50 states
- Online application and rate comparison
Loan Types
- Conventional
- FHA
- VA
- USDA
- Jumbo
Fixed Rate Terms
Adjustable Rate Terms
- 8y - 30y
- 5/6, 7/6, 10/6
Best for: Online experience
Ally Mortgage
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
Ally is limited in loan options compared to competitors, but it's all about efficiency and a speedy online experience. Ally states that applicants can get pre-approved in as little as three minutes and loans close up to 10 days faster than the industry average. Applicants with credit scores as low as 500 can qualify for a FHA loan with a 10% down payment.
Min. Credit Score 620 Conventional 700 Jumbo
- 500-700
- 3%
Key Features
- Fast pre-approval
- Easy loan option comparison
- Fully online application
- Loans for first-time buyers
Loan Types
- Conventional
- Jumbo
- Interest Only
Fixed Rate Terms
Adjustable Rate Terms
- 15y, 20y, 30y
- 5/6, 7/6, 10/6
Best for: Self-employed borrowers
Caliber Home Loans
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line
Caliber is a great home loan option that offers more variety than some other lenders, which might make it easier to find what works best for you. It also offers fast closings and some assistance programs for certain borrowers. Caliber offers a Smart Series loan program, a program for self-employed individuals, those with credit issues, and experienced real estate investors with complex finances.
Min. Credit Score 580 FHA 620 Conventional
- 580-620
Min. Down Payment 3% Conventional 3.5% FHA
- 0%-3.5%
Key Features
- Smart Series program for self-employed borrowers, those with credit issues, and real estate investors
- Variety of loan options
- Fast closing
- Assistance for certain buyers
Loan Types
- Conventional
- FHA
- VA
- USDA
- Jumbo
Fixed Rate Terms
Adjustable Rate Terms
- 10y - 30y
- 3/1, 5/1, 7/1 and 10/1 ARMs, with a 5/5 ARM option.
- 5/6, 7/6, 10/6 for Smart Series ARMs
First-Hand Mortgage Lender Reviews by Experts
The mortgage market is crowded and competitive, which is great for consumers, but does require a keen eye on the shifting mortgage landscape. Our mortgage experts teamed up with our research department to provide you with reviews for the top mortgage lenders, that we've already highly rated based our rigorous Motley and mortgage-specific ratings methodology.
Your main Motley Fool expert on sourcing the best mortgage lenders is Matt Frankel, CFP® (Certified Financial Planner) who's been actively monitoring mortgage lenders and the ever-changing rate environment for decades.
Jump to a specific mortgage lender review:
- Rocket Mortgage (our award winner)
- Better
- PNC Mortgage
- Navy Federal Credit Union Mortgage
- loanDepot
- Veterans United
- Bank of America Mortgage
- New American Funding
- Axos Bank Mortgage
- Caliber Home Loans
- Flagstar Bank Mortgage
- Guaranteed Rate Mortgage
- PennyMac Mortgage
- Ally Mortgage
- SoFi Mortgage
Expert Review
Our rating: 4.5/5.00 stars.Better is a fully online lender that aims to speed up and simplify the mortgage process. For example, Better's One Day Mortgage program doesn't exactly complete the entire loan process in a day, but it allows qualified borrowers who submit their paperwork quickly to apply, get a pre-approval, lock their rate, and get a loan commitment -- all within 24 hours. This is much quicker than the typical lender can offer, and Better also aims to provide quicker pre-approval letters for borrowers who haven't picked a home to submit with their offers.
Not only is Better very transparent about its current mortgage rates, but the company guarantees that it will beat its competitors. Better offers to match a competitor's rate offer and will give you $100 if they can't do it.
The company also generally charges lower fees than the competition, which can make a big difference to your closing costs. Plus, Better offers discounts of as much as $2,000 in lender credits and a refund of 1% of the purchase price if you use a real estate agent that was referred by Better.
In addition to being fast, Better offers a user-friendly application process that can be completed almost entirely online (signing the final closing documents is the only part that can't). However, Better's system also assigns buyers a home advisor who can be contacted anytime during business hours if you run into trouble or have any questions during the process. The company will also match buyers with a local attorney to help with closing, and bundle adjacent services such as title insurance, home insurance, and settlement services.
Better offers conventional, jumbo, and FHA mortgages. It also offers home equity lines of credit ranging from $50,000 to $500,000. Its mortgages can be originated for purchases or refinancing, and can come with fixed or adjustable rates.Of course, no lender is perfect, and Better is no exception. For example, it doesn't offer VA or USDA loans, or construction loans. It doesn't offer alternative loan programs for self-employed borrowers. And while Better's mortgage professionals are generally excellent, for some buyers there is simply no substitute for face-to-face help in a branch.Pros:
- Fully online mortgage process
- Faster pre-approval and closing than competitors
- Rate transparency
- HELOCs available
Cons:
- No VA or USDA loans
- No branch locations
- No construction loans
Axos Bank Mortgage Expert Review
Our rating: 5.0/5.00 stars.Axos Bank Mortgage is an online financial institution that offers a variety of consumer banking products such as high-yield savings and online checking accounts and is also a top-rated home loan originator. Its banking products are important for mortgage customers to know about because Axos waives its standard $995 lender fee for customers with at least $500 in an Axos Bank account (and you can open one at the same time you apply for a mortgage).
In addition, one of the biggest differentiators between Axos and its competitors is its cash back mortgage feature. Axos offers its banking customers who meet certain requirements 3% annualized cash back on mortgage payments (principal and interest), up to $100 per month.
Axos offers several different mortgage products, including conventional, FHA, and VA mortgages. It also offers jumbo loans, which happens to be a specialty of the bank, and is one of the few lenders to offer mortgages of as much as $30 million, and with loan-to-value (LTV) ratios as high as 90%. In addition to these rather standard mortgage types, Axos offers a wide variety of unusual loan types, such as portfolio loans, investment property loans, interest-only mortgages, and more.
and has been in business for more than 20 years. The bank's application process is fully online, except for closing, which typically occurs in person, even with fully online lenders. It is rather easy to check the bank's current mortgage rates, although you'll need to give your email and phone number to do it.There are a few negatives to consider. Axos is not a standout when it comes to customer support. Unlike many online lenders, Axos doesn't have 24/7 phone support for home loans, and while it offers chat support, it's through a virtual assistant (not a real-live person). Plus, Axos doesn't offer USDA mortgages, and the requirement of being an Axos banking customer to unlock the best features is a drawback for people who have banking relationships elsewhere.
Pros:
- Lots of loan types
- Lender fee can be waived
- Cash back feature
- High-balance jumbo loans
Cons:
- Best benefits require an Axos bank account
- No branch locations
- No USDA mortgages
- Customer support is lacking
Learn more about Axos Bank Mortgage
Expert Review
Our rating: 4.0/5.00 stars.Veterans United is a good choice if you're looking for a VA loan. It is the number one VA lender in the U.S. and exclusively originates this particular type of mortgage, and that's the primary reason it earns a spot on our top mortgage lenders list.
Veterans United has an online application process that makes it easy to request a rate quote for either a purchase or refinancing loan. However, while the lender is primarily online, Veterans United Home Loans does have a network of 25 physical branches throughout the United States. This is one reason why Veterans United gets top marks for customer service, and there is also 24/7 live phone support available, making Veterans United a great choice for qualified military personnel, even if they're stationed overseas.
The company provides credit counseling services to help borrowers get their scores up to the lender's 620 minimum and its staff are experts in the VA loan process.
As with other VA lenders, borrowers are not required to make a down payment, and have the ability to roll the VA funding fee into their loan, keeping out-of-pocket costs to a minimum.
The main drawback is that Veterans United only offers VA loans. If you are not qualified for a VA loan, Veterans United will match you with a lending partner to help you. But , as well as a 4.84 out of five star rating based on nearly 2,700 customer reviews on the BBB platform. This is among the highest of any financial services business on our radar.
Pros:
- VA loan experts
- Online application process
- Top-notch customer service
Cons:
- Only offers VA loans
Learn more about Veterans United
Caliber Home Loans Expert Review
Our rating: 4.5/5.00 stars.Caliber Home Loans offers a variety of mortgages through a user-friendly digital application process. One of Caliber's biggest strengths is that it offers a wide variety of home loans. In addition to conventional, FHA, VA, and USDA loans, Caliber also offers jumbo loans, home renovation loans, and several programs designed to provide low-down-payment financing, especially to lower-income and first-time home buyers.
It also offers a Smart Series loan program for self-employed individuals and real estate investors, and this is the primary reason it earns a spot on our list.
Speed is also a big strength of Caliber Home Loans. It claims to be able to close purchase mortgages in as little as 10 days for borrowers who quickly submit the required documentation. Plus, Caliber is a mortgage servicer unlike many lenders who sell the rights to service their loans after closing, and this can make it easier to transition from closing to repayment.
There are certainly a few downsides that borrowers need to be aware of. Rate transparency is a major drawback. While many of the other companies included on our top mortgage lenders list make it easy to view their current rates, or even get personalized rate quotes, Caliber does not. You'll need to make a formal loan application to see what your rates will be.
Caliber also doesn't offer home equity loans or HELOCs, so if you want those, you'll need to look elsewhere. And customer satisfaction is a mixed bag. It has below-average marks in the , but also holds an , which indicates that customer complaints are addressed quickly. In a nutshell, Caliber can be a great choice if you want a quick and efficient closing process, especially if you're a first-time buyer.
Pros:
- Wide variety of loan types
- First-time home buyer programs
- Loans for self-employed borrowers
- Quick closings available
Cons:
- No HELOCs or home equity loans
- Lack of rate transparency
Learn more about Caliber Home Loans
loanDepot Expert Review
Our rating: 4.5/5.00 stars.loanDepot is a mortgage lender that is a combination of an online lender and a branch-based mortgage originator. While the entire mortgage process (other than closing) can be handled digitally, there are some branches for people who might benefit from in-person help.loanDepot offers some of the most popular mortgage products, such as conventional loans, FHA loans, and jumbo loans, and the company is one of the largest VA lenders in the market. It also offers renovation loans for buyers who want fixer-uppers.The company's smartloan platform enables loandepot to expedite the mortgage process by digitally verifying assets, income, and employment. And it finds unique ways to make the process faster, such as waiving appraisal requirements if there are enough recent comps in the area. loanDepot claims that borrowers can close on loans as many as 17 days faster than competing platforms. The company has been in business for 13 years and has an , which indicates that customer issues get addressed in a timely manner.There are some potential downsides to loanDepot that you should be aware of. It doesn't offer home equity loans or HELOCs, and it doesn't have USDA loans for rural buyers. Plus, its rate transparency isn't great -- you need to fill out an application to get any personalized rate offers.In short, loanDepot is a solid option if you want one of the standard loan types they offer, especially if you're closing on a tight timetable.Pros:
- Specializes in VA loans
- Efficient online platform
Cons:
- No USDA loans
- No home equity loans or HELOCs
- Lack of rate transparency
New American Funding Expert Review
Our rating: 4.5/5.00 stars.New American Funding offers a wide variety of mortgage products, but focuses on helping minorities and other underserved parts of the population achieve homeownership.First, the variety in mortgage products, New American offers standard conventional loans as well as all three main government-backed loan programs (VA, FHA, and USDA loans). In addition, the company offers non-standard loans such as stated income loans for self-employed borrowers whose tax returns don't reflect their true income, home improvement loans, and even reverse mortgages for older homeowners. One unique feature is that New American's mortgages aren't in just the standard 15, 20 and 30-year terms -- borrowers can choose a custom loan term ranging from eight to 30 years. In other words, if you want a 27-year mortgage, New American deserves a spot on your short list.In addition, New American does a great job of helping borrowers find down payment assistance, and can approve some borrowers with higher debt-to-income (DTI) ratios than the industry's standard 45% maximum. Plus, unlike some of its peers, New American publishes its current mortgage rates right on its website.There's no such thing as a perfect lender, and New American isn't an exception. Its application process is not fully digital, unlike some competitors, and it doesn't offer home equity loans or HELOCs.New American Funding has an and has been in business for 24 years. It is one of our top mortgage lenders for first-time home buyers, thanks to its focus on lending to underserved communities and customizable loan terms.Pros:
- Wide variety of loan types
- Focus on underserved and first-time borrowers
- Flexible loan terms
- Rate transparency
Cons:
- No home equity loans or HELOCs
Learn more about New American Funding
Guaranteed Rate Mortgage Expert Review
Our rating: 4.0/5.00 stars.Guaranteed Rate Mortgage is a technology-focused mortgage company that aims to make the home-buying process as efficient and easy as possible.The experience starts with Guaranteed Rate's website, which is extremely user-friendly. The lender's current mortgage rates are readily available, and not only can you see the current rates, but you can see how much your rates and monthly payments could change if you choose to pay discount points. Plus. you can easily navigate through the various loan types offered by the company. Once you apply, nearly the entire mortgage process can be completed online (other than a brief in-person closing at the location of your choice). Plus, it's worth noting that Guaranteed Rate has physical branches in most states, so if you want in-person help, it's there.
In addition to standard conventional mortgages, Guaranteed Rate offers FHA loans, VA loans, USDA loans, construction loans, as well as interest only loans and HELOCs. However, it isn't perfect. There is a $150 application fee that is nonrefundable, even if you choose not to proceed with the loan.Guaranteed Rate has been in business for 23 years, so it has been through several ups and downs in the real estate market. It has an , indicating that the company handles customer issues in a timely manner.To sum it up, Guaranteed Rate is a solid mortgage lender with a lot to like. If you're looking for a mostly automated mortgage application and closing process, and a variety of loan options to consider, Guaranteed Rate could be worth a closer look.Pros:
- User-friendly website and mobile app
- Lots of loan options to choose from
- Mostly online process
- Physical branches in most states
Cons:
- Non-refundable application fee
Learn more about Guaranteed Rate Mortgage
PennyMac Mortgage Expert Review
Our rating: 4.5/5.00 stars.PennyMac Mortgage is the second-largest mortgage lender in the U.S. and is one of the top servicers. It has served more than 4 million customers. Its loan process is online-based and there is a lot to like about it.For one thing, it offers an impressive level of rate transparency. Not only can you easily view the lender's current mortgage rates online, but you can even see how paying discount points could help your interest rate and monthly payments. The company also allows customers to lock their rates before they start shopping, and take advantage of a lower rate if they fall before the borrower closes on their home. The mortgage process is completed through PennyMac's user-friendly online portal, known as its Mortgage Access Center.
PennyMac has some unique features, such as flexible-term loans that can have term lengths other than the standard 15, 20, and 30-year lengths. It is very transparent about its lender fees, and often offers promotions and credits that make it lower. Plus, as one of the largest mortgage servicers, PennyMac continues to service all of its own loans after closing. If you've ever bought a home and had your mortgage shuffled between banks, you know that this can be quite a pain point.There are some negatives to keep in mind. PennyMac offers flexible term loans but doesn't offer any loan types that aren't the standards that many other lenders offer as well. Plus, PennyMac has a few physical branches, but not in many markets, so if you want in-person help, it might not be ideal.PennyMac has been in business for 15 years and has an , as well as mostly positive customer reviews on the platform. In a nutshell, PennyMac is one of the biggest lenders in the nation for a reason. As long as you're looking for one of the standard mortgage types, it could be a good fit for you.Pros:
- Great rate transparency
- Flexible mortgage terms
- Fee transparency
- Services its own loans
- User-friendly mortgage process
Cons:
- No proprietary mortgage products
- Few physical locations
Learn more about PennyMac Mortgage
SoFi Mortgage Expert Review
Our rating: 4.0/5.00 stars.SoFi Mortgage offers a full range of banking products, and is designed to be a fully-online one-stop shop for its members financial needs, and this includes mortgages. SoFi offers conventional, FHA, VA, and jumbo mortgages, as well as HELOCs, and is likely to add more products over time. For example, VA loans are new to the platform.One of the best things about SoFi is its relationship benefits. If you have another account with SoFI, such as an investment account or personal loan, you can get a discount on your mortgage fees. And even if you don't already have a relationship with SoFi, having a mortgage with the company can get you discounts on other financial products you may eventually need.
One somewhat rare feature is that SoFi will allow you to check your personalized mortgage rates without a hard credit check and just a quick pre-qualification form. And SoFi is one of the few mortgage lenders that offers a $0 origination fee. And if your loan doesn't close on time (and it isn't your fault), SoFi will pay as much as $5,000.There are a few drawbacks to SoFi Mortgage. As mentioned, it only offers a few different loan types right now. For example, if you're looking for a USDA mortgage, SoFi isn't right for you. And it offers a rate lock program, but it has an expensive fee if you don't go through with a loan.Although SoFi has grown rapidly in recent years, it has actually been in business for well over a decade and has an . The bottom line is that SoFi is a solid mortgage option if you're looking for one of the standard mortgage types, especially if you're already a SoFi customer.Pros:
- Tons of financial products in one place
- Relationship discounts and benefits
- Top-notch mobile app
- View rates with no credit check
Cons:
- Few loan types
- High fee for rate lock if you don't close
Learn more about SoFi Mortgage
Bank of America Mortgage Expert Review
Our rating: 5.0/5.00 stars.Bank of America is one of the largest banks in the United States, and as such, has a wide range of mortgage products available. It offers most of the standard types (USDA loans are a big exception), as well as a few proprietary loan products, including programs for lower-income doctors and medical professionals. The bank also offers HELOCs with competitive interest rates. Existing Bank of America customers in the bank's Preferred Rewards program can qualify for discounts of as much as $600 on their origination fee, as well as interest rate discounts on certain loan products.Bank of America specializes in low-down-payment mortgages. Its Affordable Loan Solution® offers mortgages with just 3% down and no mortgage insurance requirement for qualified borrowers, and it also offers other common low-down options such as VA and FHA loans. In addition, it offers down payment assistance grants of as much as $10,000, and the Bank of America Down Payment Center is a tremendous resource for borrowers worried about how they're going to come up with money for a down payment and/or closing costs.Because of its branch-based nature, you might not expect Bank of America mortgage to be technologically competitive with some of the leading online-based mortgage companies, but it is. The company's Digital Mortgage Experience mobile app offers a fully online application process, and with mortgage experts in many of the bank's thousands of branches, Bank of America Mortgage offers a rare combination of an efficient online process and in-person help when you need it.Bank of America Mortgage has been making home loans for decades and has an . Based on more than , Bank of America mortgage has an average rating of 4.8 out of 5 stars, with many reviews praising the bank's customer service and help with the mortgage process. The bank also scored well above average in the latest .Like any mortgage lender, there are potential drawbacks to Bank of America Mortgage. We already mentioned the lack of USDA loans, and there aren't programs designed for self-employed borrowers or real estate investors like some of its competitors offer.Pros:
- Fully online mortgage process
- Lots of branches and great relationship benefits
- Great low-down-payment programs
Cons:
- No USDA loans
- No alternative loans for self-employed
Learn more about Bank of America Mortgage
Flagstar Bank Mortgage Expert Review
Our rating: 4.5/5.00 stars.Flagstar Bank could be an excellent mortgage choice for borrowers who prefer to keep all of their finances in one place, as it is a full-service financial institution. Flagstar has a large branch network, mostly in the Midwest, so it could be an especially attractive choice for people who live where the bank has a physical presence, as not all of its loan products are available in all areas.One quality that makes Flagstar stand out is that while it offers all of the standard mortgage types, it also offers some that are quite rare. For example, Flagstar has several mortgage programs that help first-time buyers become homeowners, such as with lower mortgage insurance rates than a low-down-payment loan would typically have. In certain areas, Flagstar offers its Destination Home mortgage, which has a 0% down payment requirement. It also has renovation and construction loans, as well as loans that can be used to buy more than one property.Flagstar also offers several different down payment assistance grants for low- to moderate-income borrowers, and its website is filled with easy-to-digest educational resources in its Mortgage Information Center.There are a few potential drawbacks. For example, Flagstar only offers HELOCs in a few locations, and it has earned below-average ratings for customer satisfaction on both the servicing and origination sides. For example, in J.D. Power's 2023 U.S. Mortgage Servicer Satisfaction Study, Flagstar was slightly below average. However, the bank does have an A+ rating with the Better Business Bureau, which tells us that it does resolve customer issues in a timely manner.Pros:
- Lots of mortgage types
- Down payment assistance programs
- Full-service bank
Cons:
- Some loans available in few areas
- Customer service ratings are below average
Learn more about Flagstar Bank Mortgage
Ally Mortgage Expert Review
Our rating: 4.0/5.00 stars.Ally Financial is a fully online bank. It was formerly the financial services arm of General Motors, so its focus is naturally auto lending, but it also offers a full range of financial products, including mortgages.There are a few perks to using Ally. For one thing, the lender is very transparent about its current mortgage rates. Its mortgage rates for borrowers with strong credit are clearly listed on its website, with a variety of fixed and adjustable-rate mortgage options. It also shows the rates for different "points" if you're willing to pay a little more at closing in exchange for a lower rate.
In addition, Ally's mortgage process (other than closing) can be completed entirely online and is rather easy to navigate. You can get a pre-approval in as little as three minutes, and Ally claims that its loans close up to 10 days faster than the industry average.Ally is also an excellent option for borrowers looking to avoid fees. Unlike most of the mortgage lenders we cover, Ally charges no origination, processing, underwriting, or application fees whatsoever. Plus, Ally's website has some excellent tools that can help you estimate how much your monthly payment will be and how much you can afford to spend on a home.Perhaps the biggest drawback is that Ally doesn't offer any of the government-backed loans -- or any specialty loan products for that matter. If you want a FHA, VA, or USDA loan, you'll have to look elsewhere. Ally does offer jumbo loans with down payments of as little as 10.01% and with loan amounts up to $4 million.As far as customer satisfaction goes, Ally has a 4.4 out of 5 star rating based on Zillow reviews, and Ally scored towards the top of the list -- well above the industry average -- in the latest J.D. Power U.S. Mortgage Origination Satisfaction Study.The bottom line is that if you're looking for a conventional mortgage loan with an easy application process and few fees, Ally could be a good lender to consider. But if you want a government-backed loan or a specialized type of financing, you'll probably be better off looking elsewhere.Pros:
- Rate transparency
- No origination fees
- No underwriting fees
- High customer satisfaction
- Fully online application process
Cons:
- No FHA, VA, or USDA loans
- Limited options for borrowers with lower credit scores
Learn more about Ally Mortgage
PNC Mortgage Expert Review
Our rating: 4.0/5.00 stars.PNC Mortgage originates loans across the United States and has some attractive features and loan programs, especially for first-time home buyers and those with less-than-stellar credit histories.First, PNC offers all of the standard mortgage types, including conventional loans and all of the common government-backed types (VA, FHA, USDA). It offers several proprietary loan products as well, such as its 80-10-10 piggyback loan, which lets buyers obtain a 10% down conventional mortgage with no PMI. It also has its PNC community loan program for qualified buyers. This one has no PMI and a requirement of just 3% down. In addition, PNC provides cash grants of up to $5,000 toward down payments or closing costs for eligible borrowers.For borrowers looking to tap into their existing home equity, PNC offers HELOCs, and the availability of both fixed- and variable-rate HELOCs is a differentiator from many competitors, as HELOCs typically only come with variable interest rates.PNC's mortgage process is mostly digital. You can electronically submit your application and documentation. There are also excellent educational tools available on PNC's website, and rate transparency is excellent. However, borrowers who want in-person guidance can visit a PNC Mortgage loan officer, who are located throughout the U.S.PNC has strong marks for customer service. It finished near the top of the pack in the J.D. Power 2022 U.S. Mortgage Origination Satisfaction Study. Plus, PNC Mortgage holds an A+ rating with the Better Business Bureau, which indicates that customer issues are resolved in a timely manner.Of course, no mortgage originator is perfect. For example, PNC Mortgage isn't transparent about the fees it charges for mortgage origination, estimating total closing costs at 3%-5% of the loan amount, but not providing specifics on origination and underwriting fees. However, PNC is a very solid mortgage lender, and if you're looking for a low-down-payment mortgage without the added cost of PMI, it could be an especially smart choice.Pros:
- Lots of mortgage types
- Low-down-payment options without PMI
- Fixed-rate HELOCs
- Digital process with physical locations
- Strong customer service
Cons:
- Lack of fee transparency
Navy Federal Credit Union Mortgage Expert Review
Our rating: 4.5/5.00 stars.As you might expect given its name, Navy Federal Credit Union Mortgage originates quite a lot of VA loans. But unlike some of the other military-specialty lenders, Navy Federal does much more than VA lending.Navy Federal is very transparent about its interest rates and fees, with both easily accessible on its website, and we've found that its conventional mortgage rates are some of the best in the industry. In fact, Navy Federal will match any other lender's rates or give you $1,000. Plus, the fee-free rate lock feature offered by Navy Federal is a key differentiator.In addition to offering several standard mortgage types to its members in addition to VA loans, there is also a proprietary mortgage product called the Military Choice loan that is designed for current and former military members who have exhausted their VA loan eligibility. The Military Choice loan has no down payment requirement and no PMI. Plus, there's also the Homebuyers Choice loan designed for first-time buyers that also has no down payment or PMI requirements for qualified borrowers.Perhaps the biggest downside to Navy Federal is that it only makes mortgage loans to members. And while many people are eligible beyond members of the U.S. Armed Forces, it isn't as easy to qualify for Navy Federal membership as some other major credit unions. And while it does much more than originate VA loans, Navy Federal doesn't offer FHA loans or loans for borrowers with alternative documentation situations.Customer service and satisfaction is an area where Navy Federal shines. In the latest J.D. Power U.S. Mortgage Origination Satisfaction Study, the lender scored better than every major non-military focused lender. The bottom line is that if you are eligible for membership to Navy Federal Credit Union, it is a solid lender that is worth a closer look, especially if you want to keep your down payment requirement to a minimum.
Pros:
- Several loan types
- 0% down, no PMI loan options
- Great customer satisfaction
- Rate and fee transparency
Cons:
- Only available for eligible members
- No FHA loans
Reveal Reviews [ + ]
Best mortgage lender for 2023: Rocket Mortgage
Best Overall Mortgage Lender for 2023
Rocket Mortgage
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Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Fair = PoorRocket Mortgage offers competitive rates that are comparably lower mortgage interest rates vs other lenders, has won multiple industry and customer satisfaction awards year after year, and it has great programs, like the current limited time offering below!
Rocket Mortgage has been rated #1 in mortgage origination for 12 years (since 2010), and also swept our 2023 mortgage lender awards with multiple nods:
- Best for Refinancing
- Best for Online Mortgage Experience
- Best Mortgage Lender App
Check out more about why they've won so many awards, and dive into their online and mobile app platform experiences below!'%3E%3CanimateTransform attributeName='transform' type='rotate' repeatCount='indefinite' dur='2s' values='0 375 139;360 375 139' keyTimes='0;1'/%3E%3C/circle%3E%3C/svg%3E)
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Buy a home with Rocket Homes℠ and Rocket Mortgage® and you could get 1.5% of the loan amount back as closing credit from Rocket Mortgage, up to $10,000.
Best Mortgage Loan Originator for Customer Satisfaction
According to the J.D. Power , Rocket Mortgage received the highest score in customers’ satisfaction with their mortgage origination process, with a score of 750 vs 29 other U.S. profiled brands. The study surveyed 5,915 customers who originated a new mortgage, or refinanced, within the past 12 months and measured the overall customer satisfaction based on performance in six factors (in alphabetical order): communication; digital channels; level of trust; loan offering meets needs; ease of doing business; and people.The Motley Fool Ascent's 2023 Mortgage Awards Earned for:
Best Mortgage Lender for Refinancing
Rocket Mortgage shines with its refinancing rate lock program, along with fee-free refinancing if rates continue to drop.As a note, Rocket Mortgage (previously Quicken Loans) does have multiple home loan options as well: Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, Home Equity.Best Mortgage Lender for Online Mortgage Experience
This online lender has streamlined their process online with easy to understand language and visuals, and, if a borrower needs extra help, Rocket offers excellent customer service via chat or phone - and you'll get a real person!
Source:Best Mortgage Lender App
The Rocket Mortgage app is visually appealing and technologically top tier. Their app store ratings receive a stellar 4.8/5 stars across almost every device, which is no surprise, given the ease of their app store experience from prequalification, through to tracking the progress of your mortgage payments.
Source: Rocket Mortgage Offer - Limited Time!
Buy a home with Rocket Homes℠ and Rocket Mortgage® and you could get 1.5% of the loan amount back as closing credit from Rocket Mortgage, up to $10,000.
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Considerations for choosing a mortgage lender
The right mortgage provider depends on you, the borrower's, unique financial credentials and what features you're looking for in a loan.Here are some considerations when researching the best mortgage lenders:- Rating the best mortgage companies & home loan lenders
- Do I need a mortgage lender?
- Types of mortgage loans
- Lower mortgage interest rates
- Qualifying requirements for a Home Loan
- How much down payment a mortgage lender needs
- Costs Associated with getting and closing a mortgage
- Approval time to close on your home loan
- Reputation of the mortgage company
Because rates and terms vary so much from person to person and company to company, it is important to shop around for a mortgage to compare rates, fees, payoff times, and total costs from multiple lenders.
Obtaining multiple rate quotes is the best path to choosing a mortgage lender.
Mortgage Ratings Methodology
Our Motley promise: Unlike other sites, we will NOT EVER feature companies just for the sake of compensation.
Keeping that in mind, we take our ratings and picks very seriously. While it’s impossible for us to rate and review every offer on the market, we canvas as far as we can, reviewing the largest mortgage providers in the United States, and continuously reviewing the mortgage companies and mortgage lenders that enter, and exit, the space.
Our five-star rating system takes into account their ease of providing quotes to all borrowers, how comparatively competitive their mortgage rates and fees are, the quality of their online experience and customer support, as well as how versatile a loan is including finance flexibility, repayment terms, down payment options and ease of closing process.For rating mortgage lenders, and assigning mortgage provider award winners by category, we are keenly focused on industry factors and user benefits, including:
- Competitive rates and fees
- Customer service
- Online experience
- Loan options
- The application process
- Geographic availability
- Customer service channel options
- Down payment options
What is a mortgage lender?
A mortgage lender is a financial institution that lends money for home loans. Mortgage lenders can come in a few forms; your bank or credit union may offer mortgages, in addition to other bank accounts, or the company could specifically be focused on mortgage lending.
Remember, before signing any agreement, make sure you review all of the terms of the contract and completely understand each aspect, including what fees, known as closing costs, you will need to pay when you buy a home.Loan Types
Not all lenders offer all types of mortgage loans. If you need a larger "jumbo loan," or a government-backed loan, you'll need to find a mortgage lender that offers it.
What types of home loans should I consider?
Conventional and government-insured loans may only require a 3% down payment, while other loans require 20% down. If you’re buying rural, you may qualify for a USDA loan, while veterans should consider VA loans.Knowing the different mortgage options can help you understand which options are best for your lending needs.Mortgage lenders offer different types of loans, and knowing which type of mortgage loan is best for you to apply for, depends on your specific lending needs. Loan type, interest rate, and loan term can vary from one mortgage lender to another, so comparing multiple lenders is often the best move for home buyers.- Conventional mortgages are loans without a guarantee from any government agency, and could require a downpayment as low as 3-5%. Conventional loans are funded by private lenders, like the ones featured in our best mortgage lenders list»
What mortgage term is best?
First, let's talk about mortgage terms, which is simply just the time you have to pay off your mortgage and own your home! Here are the most common mortgage term lengths:Common Fixed Mortgage Term Lengths: The interest rate stays the same for the entirety of the loan term, so your monthly mortgage payments are spread out evenly through the term of the loan.
This option is great with low interest rate environments - make sure to ask about rate lock if you think rates may increase to secure that lower interest rate!Common Adjustable Rate Mortgages (ARM) Term Lengths: The interest rate stays the same for a certain period of time (sometimes up to 10 years), and then may change (adjust) at specified intervals (usually every six months).
So, why does that matter? Well, the longer your mortgage term, the longer you have to pay. This normally translates to a lower monthly mortgage payment. But which mortgage term is right for you can depend! .In this video, Dan Caplinger, The Motley Fool's director of investment planning, compares the rates and payback terms of a 15 year mortgage vs a 30 year mortgage.
Key video takeaways: A 30-year mortgage provides more payment option flexibility by allowing you to make lower monthly payments, but the ability to make larger payments, or more frequent payments when you can, to pay your mortgage off earlier. He also points out that you may have a better chance of getting a 30 year mortgage approved in tougher lending environments, since the lower monthly mortgage payment amount will be a smaller portion of your overall monthly income.
- Government-backed mortgage loans or conforming loans are backed by the Federal government and have different requirements, based on your scenario:
- VA mortgage loan (offered through the Veterans Administration) - VA loans do not require a down payment and are available to active duty and military veterans. Note: a one-time VA funding fee is required but it can be rolled into the mortgage loan payment and does not have to be paid upfront.
- USDA loan (offered through the U.S. Department of Agriculture Rural Development Housing Loan Program) - USDA mortgages do not require a down payment and are an option for homebuyers in rural areas, some eligible towns, and some borrowers with a lower income. Note: an annual guarantee fee must be paid upfront, but you do not have to pay for PMI.
- FHA loan (offered through private FHA-approved mortgage lenders, and insured by the Federal Housing Administration) - FHA mortgages are great for low down payment options (sometimes as low as 3.5% down) and often accommodate lower credit scores, or borrowers that have experienced bankruptcy. FHA loans can also be used for different types of homes from single and multi-family to condos and manufactured homes. Note: mortgage insurance is required.
Qualifying requirements to get a home loan
Mortgage lenders vary in terms of qualifying requirements: interest rates, fees charged, and a host of other factors. Some lenders have stricter standards than others for credit score, income, employment history, and other qualifying factors. For example, some lenders may offer better terms to borrowers with poor credit than other lenders do. Or some may be more forgiving of a low down payment or high debt balance.
Required down payment
- For conventional loans, lenders may require a 20% down payment to avoid private mortgage insurance. That's insurance homeowners pay for to protect against lender losses in the event of foreclosure. However, it's possible to find lenders willing to offer loans with less money down. That's especially true if you choose a government-backed loan.
Common fees when getting a home loan
- Home Loan fees, lender fees, and costs associated with a mortgage:
- Mortgage loan origination fees: It's common to see an origination fee that includes application costs, costs for a credit check, and underwriting fees. Most of these lender fees are paid as part of your closing costs. Some lenders charge more fees than others, but fees could total in the thousands.
- Interest rates: Interest is the cost of borrowing. The lower the rate, the lower the monthly payment and total costs. The best mortgage lenders offer a more competitive interest rate, but interest rates are also impacted by your credit score, credit report findings, and your location. See more about how mortgage interest rates are impacted by rate environments»
- PMI is Private Mortgage Insurance, which is required when the downpayment on your home is less than 20% of the home's value.
- Additional fees: You may also have appraisal and titling fees
Most common fees associated with home ownership
- Homeowners insurance is often a mortgage lender required policy that must be obtained when you purchase a new home as a protection if your house needs repairs. Since the lender technically owns the property until you've fully paid off the loan, they want to ensure insurance is in place to protect their investment, and so should you! Homeowners insurance policies can vary based on property type. Check out this guide to homeowners insurance premiums.
- HOA is short for homeowners association and is a governing body of some neighborhoods that often require a monthly, quarterly, or annual fee once you move in. Make sure you ask about HOA fees to ensure you pad that into your budget, and check out why it may be worth it to move into a development that has a home owners association. Learn more about homeowners association (HOA) fees
- Maintenance and repair costs
- Property taxes, which can vary by state
Underwriting process approval time
Find out how long it will take your mortgage provider to have a loan approved; some mortgage lenders are able to complete the loan approval process much more quickly. This could be a factor if you're on a tight deadline.Reputation
A lender's reputation for customer service does matter a little. You want the application process to be easy and pleasant. But be aware that many lenders resell mortgages. There's a chance the original lender you borrow from will not remain your loan servicer for long.Important mortgage terms and topics to know
- Home Equity also referred to "equity" is short, relates to the amount of your home you have already paid off.
- This is important because you can use your home equity as collateral to borrow against using a Home Equity Loan or HELOC (home equity line of credit). See the differences in these home loan and HELOC options»
Mortgage Industry Experts Weigh In
Brian Adams
Associate Dean of Graduate Programs, Pamplin School of Business at the University of PortlandHow can home buyers feel more confident when choosing a mortgage lender?
As with any large-ticket item purchase, the more information you have to make a decision the more confident you are with your choice. Due to the size of the mortgage industry in the U.S. there are many lending platforms and mortgage information sites on the internet. I searched for "mortgage rates" and ended up with 674 million results. For comparison purposes, searching for "NFL" brought up 496 million results. Granted, this could result in decision paralysis with this much information. I would recommend starting with your current bank/credit union, and include other lenders from [review] sites. It is likely the lender you choose will end up selling your loan through the mortgage-backed securitization process. So focus on lower rates and fees. Customer service is less under your control.How do changing interest rates affect mortgages in different communities?
The loan decision is standardized in the mortgage market due to the participation of Fannie Mae and Freddie Mac (two government-sponsored enterprises that buy and sell about half of U.S. mortgages). FICO® Score, current income, and availability of money for a down payment are the most important factors. The efficiency of the mortgage market works against underserved communities where the ability to build a prime FICO® Score (above 720) can be more difficult. If you do not have the opportunity to build a credit history then it is more difficult to obtain an affordable mortgage. Therefore, the issue for underserved communities is the opportunity to create a solid credit history.What's one tip you would give to members of underserved communities looking to get the best mortgage rate possible?
Building a credit history is the key. This starts with on-time payment of bills (utilities, cable, cellphone) and then moves on to other opportunities like credit cards. Utilizing a credit card as a debit card, for only small-ticket purchases that can be paid off in full every month, also helps build credit. There are also programs through the U.S. Department of Housing and Urban Development's FHA program targeted directly at helping underserved communities become homeowners.
Clifford Rossi
Executive-in-Residence and Professor of the Practice at the Robert H. Smith School of Business at the University of MarylandHow can homebuyers feel more confident when choosing a mortgage lender?
First, ever since the financial crisis in 2008, a number of measures were taken to strengthen and improve oversight of mortgage lending practices in the industry. The Consumer Financial Protection Bureau (CFPB) was established in part to address many of the deficient and sometimes predatory lending practices that occurred at that time. As a result, mortgage lenders, even those nonbank mortgage entities that are not regulated as closely as commercial banks and other depositories at the federal level must comply with all applicable federal state and local laws regarding mortgage lending. Generally, in shopping around for a lender you can trust, I would look at their track record in terms of complaints which are available at the CFPB Consumer Complaint Database. References from friends and family are another good way of benchmarking lenders in terms of how they handled the loan process. Regulated depositories, according to my research, tend to have far less operational problems in loan origination than nonbank financial institutions in terms of how they follow the process required to underwrite borrowers for Fannie Mae or Freddie Mac-eligible loans. So that might be another factor to consider as well.How do changing interest rates affect mortgages in different communities?
We are approaching the end of a very long secular decline in interest rates that has spanned decades. At some point we expect the Fed to begin the process of taking measures that will start to raise interest rates including US Treasuries. Since the 10-year US Treasury yield is the benchmark for setting 30-year fixed-rate mortgage rates, we should expect that higher rates are going to dampen demand for mortgages at some point. Lower income borrowers, including minority borrowers, are going to feel the impact first of higher interest rates which will further put the dream of homeownership out of reach during a period of time when there are acute housing affordability issues already.What's one tip you would give to members of underserved communities looking to get the best mortgage rate possible?
I'll offer a few tips. The first is one that every borrower needs to do first. Check your credit score and credit history through one of the readily available credit reporting companies and services and find out if there are any issues that you can address prior to applying for a mortgage. The second tip is look at your current finances. Add up all your outstanding monthly debt including credit card, student debt and the like and divide that by your monthly income. The lower that debt-to-income ratio is, the better chance you have at getting a loan. Also, determine how much money you have to put down on a home. Make sure you leave yourself with enough cash or short-term assets that you can tap for an unexpected event and for home maintenance. If you are a first-time homebuyer, do some homework or take a class on what to expect in owning a home. These activities can really help put you in good shape to find the right home and mortgage for your family.
Chester S. Spatt
Professor of finance at Carnegie Mellon University's Tepper School of BusinessHow can home buyers feel more confident when choosing a mortgage lender?
It is important for home buyers to undertake sufficient search to obtain quotes from various prospective lenders before selecting one -- especially given the range of pricing that can arise. They also should try potentially to clarify the servicing process with the lender (or even check with other borrowers of the lender about their experience, if feasible).How do changing interest rates affect mortgages in different communities?
The decline in interest rates has contributed to high house prices and loan values, as buyers would bid more aggressively.What's one tip you would give to members of underserved communities looking to get the best mortgage rate possible?
I would reinforce my advice (above) -- it is very important for home buyers to undertake ample search so as to ensure that they are receiving favorable pricing on their loans as underserved communities are especially vulnerable to attempts to exercise market power. This may be at the heart of the meaning of a community being "underserved."
Michael Manahan
Lecturer at California State University Dominguez Hills, Author and ConsultantHow can home buyers feel more confident when choosing a mortgage lender?
The first thing to understand about home lenders is that many of the companies that advertise mortgage loans are not really lenders. They are brokers. The money is not coming from them -- it is coming from a lender (to whom the broker takes the loan). As an example, I financed my last mortgage through Right Choice Mortgage. However, the loan was made to me from Glendale Credit Union.
The second thing to understand is that even if you go directly to a lender, the lender may still act as a broker. A lender, such as Bank of America, could give you a mortgage. But they could just as easily "sell off" the mortgage to a group of investors in the mortgage aftermarket. Why? Because this frees up the bank's capital to make more loans.
Who you choose to help you obtain a mortgage really depends on two things: 1) Your personal financial situation and, 2) What sort of relationship you want with a mortgage lender. If you have a complex personal financial situation, such as having multiple sources of income, being self-employed, having investment properties, and owning LLCs, or previous bankruptcies, you may find that some mortgage companies don't want to bother working with you (because it will take more time and effort to get your mortgaged approved). Also, many of the large automated or semi-automated mortgage companies where you apply online don't have the right "boxes" on their application for you to explain everything. You can end up in a quagmire of endless frustration working with these companies.Even if you have a straightforward financial situation, you still must decide what sort of relationship you want with the mortgage company. Are you okay doing everything online or do you need to fill out forms by hand? Do you want to speak to the same person every time or are you okay with talking to whichever one of the hundreds of people in the call center answers the phone? Do you need someone who can walk you through the process and explain things to you, or are you an old "mortgage pro" who understands how the system works? Making the right decision will make your mortgage application process a whole lot easier.Whoever you choose to work with to get a mortgage, before getting in too deep, find out how they do business and if their style fits in with your needs. Finally, if you do use one of those online brokers, if you can't find the phone number on the home page, don't use them.How do changing interest rates affect mortgages in different communities?
Interest rate changes affect home buying. When interest rates drop, homes become more affordable because loan payments go down. As an example, if you purchased a home for $600,000 (the average price of a home in California) and put 20% down, you would have a $480,000 mortgage. At 3% interest your payment before taxes and insurance would be $2,024. At a 5% interest rate, your payment would be $2,577, or 27% higher. As lenders typically look for your cost of housing to be no more than 30% of your income, lower interest rates should allow more people to get mortgages, and higher interest rates will restrict mortgages.However, changes in mortgage interest rates do not affect all communities the same. Obviously very rich people, who may still mortgage their homes for tax or financial planning purposes, have few restraints on their ability to get a mortgage. At the lower end of the scale, the least expensive house may continue to sell well when interest rates rise because there are many programs to help underserved and first-time buyers. FHA loans are specifically intended for lower-income, lower-credit, and/or first-time home buyers. This program, which is backed by the Federal Housing Administration, makes it easier to become a homeowner by relaxing the standards borrowers must meet to get a mortgage.The communities that get hit hardest (or benefit the most) when interest rates change are those communities where the home prices are above average, but not high enough to be of interest to rich people. As an example, in California, that might include communities where the home prices are in the $1 million to $1.5 million range. I recall the recession of 2008, when the value of real estate dropped substantially, there was still demand for the least expensive houses and still demand for mega-mansions of the rich. But those million-dollar homes couldn't find many buyers.What's one tip you would give to members of underserved communities looking to get the best mortgage rate possible?
I offer three tips to members of underserved communities to get the best rates possible. First, do whatever you can to improve your credit score. Even in underserved communities credit scores are one of the primary indicators of credit worthiness used by our financial system.Second, work with a bank or lender that is familiar with all the programs that are available to underserved communities. Some mortgage companies may not want to use these programs because they may be extra work. Find a mortgage company who can talk frankly to you about those programs that are available and that you can use to your benefit.Finally, make sure the mortgage company knows that you are a member of an underserved community. Today when we do a lot of business online or on the phone, it may be difficult for the lender to know that you are member of an underserved community which under the broad-based definition recently provided by the White House is said to include "people of color and others who have been historically underserved, marginalized, and adversely affected by persistent poverty and inequality." That definition covers a lot of people.
Scott Deacle
Associate Professor of Business and Economics and Department Chair at Ursinus CollegeHow can home buyers feel more confident when choosing a mortgage lender?
The most effective way is to get quotes from multiple lenders. Time consuming as it is, the extra work pays off with leverage in your discussions with those lenders. If you know what other lenders are offering, each lender is likely to try to match or beat the rates you are getting with other lenders.Another way is to obtain a mortgage from the bank or credit union where you have your checking or savings accounts. Such lenders sometimes offer discounts to their account holders.You can also compare the rates lenders are offering to national benchmark rates, such as those published by Freddie Mac.How do changing interest rates affect mortgages in different communities?
I think changing interest rates have similar impacts across communities. When interest rates fall, they generally fall for all borrowers.What's one tip you would give to members of underserved communities looking to get the best mortgage rate possible?
Many issues surrounding loans to members of underserved communities stem from issues with credit scores and credit reports. My one tip is to obtain the free credit report to which you are entitled by law and review it for inaccuracies before applying for a mortgage. If there are errors in your credit report, correcting them will improve your credit score, which in turn could get you a lower interest rate.Compare Mortgage Rates
Understanding the Mortgage Loan Process
Mortgage lenders set the terms of your mortgage, including the mortgage interest rate, your creditworthiness, and home loan repayment schedule, based on their assessment of your ability to pay back the loan. All of this is determined in the "underwriting" process, before you are offered a unique loan option.Whether you are a first time homebuyer, considering buying a second home, or ready to get financing for an investment property, there are mortgage basics that you'll need to know for each scenario, and essential mortgage guides to help make getting a mortgage as seamless as possible. Understand how the mortgage process works»
Remember: you can switch mortgage lenders anytime before servicing begins (before your home loan is issued). If service has already started, or you've already made your first payment, you'll need to refinance your home to switch mortgage lenders.
Before Your Start Shopping for a Home
Selecting your mortgage financing company and terms may seem a bit overwhelming, but we're here to help!Preparing for Financing a Property
Get ready to gather some serious documentation! For mortgage lenders to decide how much they can lend you, they'll be taking a deep dive into your financial history, looking to understand your motivations for purchase, and ensuring that you will be able to afford your mortgage payment, as well as other common fees and costs associated with homeownership.
Getting a custom mortgage quote for mortgage preapproval
You should secure a mortgage preapproval before you start shopping for homes. A mortgage pre-approval is a letter stating how much money you can borrow to purchase your property, and what your interest rate might be.
This helps you, and the real estate agent, understand your price range when shopping for your new property. More importantly, mortgage preapprovals also go a long way when you’re ready to make an offer. Showing the seller that you've been pre-approved may make them more willing to accept your offer, as a sign that there won't be any financing issues.
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How to get preapproved for a home loan
The top mortgage lenders on this list can also help with understanding the advantages, and cautionary tales, of different mortgage financing options for your unique situation, to help you get approved for a mortgage.
Mortgage Underwriting Analysis
In order to qualify for a home loan, lenders will review several factors like your credit score, debt-to-income ratio, employment history, and the amount you'll be able to afford for your down payment on your home.
Learn more below!How is a monthly mortgage payment related to credit score?
The table below shows the APR and monthly mortgage payment based on FICO scores, assuming a 30-year fixed-rate mortgage loan for $300,000.
Does credit score matter for getting a mortgage?
Yes! Your credit score is one of the most important factors that determine if you'll be approved for a loan and what rate you'll be charged.
What Credit Score do you need to get a mortgage?
Most lenders set the minimum credit score for a mortgage at around 620. But some loans, including a VA loan, have no minimum credit score requirements at all. Other government-backed loans, such as FHA loans, are available with scores as low as 500 as long as you have a 10% down payment.
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| FICO Score | APR | Monthly Payment |
|---|---|---|
| 620-639 | 4.191% | $1,201 |
| 640-659 | 3.645% | $1,237 |
| 660-679 | 3.215% | $1,265 |
| 680-699 | 3.001% | $1,300 |
| 700-759 | 2.824$ | $1,372 |
| 760-850 | 2.602% | $1,465 |
Source: MyFICO
First Time Home Buyer Resources
The biggest hurdle for first-time homebuyers (FTHB) is understanding exactly how the mortgage loan process works from start to finish.Check out these FTHB guides, that will help with finding a realtor, through negotiating purchase price and options, and what to do after you've moved into your new home!
Mortgage Calculator: How Much House Can I Afford?
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Second Mortgages
Have a Home Already?
Did you know that you can take out multiple mortgages? In addition to your primary mortgage, you can also take out an additional mortgage if you need to borrow additional funds for other purposes like home renovations or for down payment assistance on another property. A second mortgage most often takes the form of a HELOC or a Home Equity Loan, and is typically a smaller loan amount than your first mortgage amount.Other common property financing scenarios:FAQs
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To find the best mortgage rates from the best mortgage lenders, obtain quotes from as many lenders as possible. Look for lenders that allow you to check rates with only a soft credit check. That allows you to avoid damaging your credit score. Compare rates and fees to assess total costs of borrowing.
If you want the best loan at the most competitive rate, the following can help:- Increase your credit score
- Pay down your debt
- Choose a shorter loan term
- Make a larger down payment
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Different lenders are right for different types of mortgage borrowers. The best mortgage lender for you is one that offers the most affordable overall borrowing costs. That's after taking fees and interest into account. You'll also want to make sure your lender offers the best loan term for you. And check that you can qualify for the loans they offer.
Since every borrower has a slightly different lending profile, there isn't one mortgage lender that's best in every situation. As a result, it's important to compare rates and quotes from numerous mortgage loan providers to see which is best for you. -
Most mortgage lenders set the minimum credit score for a mortgage at around 620. But some loans, including a VA loan, have no minimum credit score requirements at all. Other government-backed loans, such as FHA loans, are available with scores as low as 500 as long as you have a 10% down payment.
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Mortgage companies and mortgage lenders vary in terms of qualifying requirements: interest rates, fees charged, and a host of other factors. There's no one lender that's the best for every borrower. That's because your rates and costs are largely determined by your particular financial situation.
For example, some lenders may offer better terms to borrowers with poor credit than other lenders do. Or some may be more forgiving of a low down payment or high debt balance.To find the best terms for your home loan, shop around and compare mortgage rates, mortgage fees, payoff times, and total costs from multiple lenders. -
Different lenders are right for different types of mortgage borrowers. The best mortgage lender for you is one that offers the most affordable overall borrowing costs. That's after taking fees and interest into account. You'll also want to make sure your lender offers the best loan term for you. And check that you can qualify for the loans they offer.Since every borrower has a slightly different lending profile, there isn't one mortgage lender that's best in every situation. As a result, it's important to compare rates and quotes from numerous mortgage loan providers to see which is best for you.
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A mortgage lender is a bank, credit union, online lender, or other financial institution that provides a loan to purchase a home.
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Mortgage interest rates offered by mortgage lenders are typically below the rates on most other kinds of loans. And interest may be tax deductible. Use this mortgage calculator to estimate different mortgage scenarios.
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Home loans offered by mortgage providers are typically secured loans. That means your house acts as collateral, and can be taken by the lender if you don't pay the loan.
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Hard money lenders are generally private investors or private companies, not traditional mortgage lenders, that can help finance investment or commercial properties.
What's the difference between getting a mortgage and a hard money loan?
- Both hard money loans and traditional mortgages are secured loans which use your property as collateral, but hard money lenders are focused specifically on lending out hard money loans, using your property, or an asset, as collateral.
- A hard money loan is a short-term, non-conforming loan whereas a traditional mortgage is generally a longer term conforming loan
- Financing for a hard money loan is only applicable for investment or commercial properties vs traditional mortgages which can also cover primary & secondary residences and other property types.
- Hard money lenders aren’t subject to the same rules & regulations as traditional mortgage lenders (conforming loan lenders)
- Hard money lenders may require the borrower to prove a history of successful house flips or investing endeavors to get approved
- Hard money loans generally have higher interest rates vs traditional mortgage lenders because of the higher lending risk they are taking
- Hard money lenders generally require large down payments vs traditional mortgage lenders
- Hard money lenders have a smaller pay-back window vs traditional mortgage lenders. Repayment periods for hard money loans may just be a few years vs an option for a 15 or 30 year term with traditional mortgages.
Why would you get a hard money loan?
- Common reasons people look to hard money loans: financing for flipping houses, purchasing an investment property, financing a commercial property
- Hard money loans and lenders may have a faster approval process time (sometimes funding can be within days) vs traditional mortgage lenders (which may take a month or more within the underwriting process).
Why? It's based on the value of the property you want to purchase vs your own creditworthiness (less focus on debt-to-income DTI ratios, credit scores, credit history, etc.). - Hard money lenders may also promise to close and provide financing within just a few days.
- Investors may turn to hard money lenders if their application for a traditional mortgage loan is denied, though we always recommend improving your credit score to be able to take advantage of better financing options. Here's a guide on how to quickly improve your credit
Our Mortgages Experts
Writer, Analyst
Matt is a Certified Financial Planner® and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.
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Christy Bieber is a full-time personal finance and legal writer with more than a decade of experience. She has a JD from UCLA as well as a degree in English, Media and Communications with a Certificate in Business Management from the University of Rochester. In addition to writing for The Ascent and The Motley Fool, her work has also been featured regularly on MSN Money, CNBC, and USA Today. She also ghost writes textbooks, serves as a subject matter expert for online course design, and is a former college instructor.
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