The best mortgage lenders don’t just cater to one type of homeowner. So if you struggle to qualify for a traditional mortgage, you still have plenty of options. Maybe you don’t have the best credit or much of a down payment saved — either way, there’s a mortgage for almost every situation.
We did the work to help you narrow down your choices. Here are the best lenders for home loans in 2024.
Best mortgage lenders
- Ally: Best on a budget.
- Better: Best for FHA loans.
- Bank of America: Best for closing cost assistance.
- USAA: Best for low origination fees.
- Veterans United: Best for VA loans.
- New American Funding: Best for custom mortgages.
- Chase: Best for discounts.
- SoFi: Best for quick closings.
- Navy Federal Credit Union: Best for military.
- Wells Fargo: Best for thin credit.
Why trust our mortgage experts
Our team of experts evaluated hundreds of mortgage products and analyzed thousands of data points to help you find the best fit for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 18 mortgage lenders reviewed.
- 180 data points analyzed.
- 6-stage fact-checking process.
Our top picks for mortgage lenders in 2024
Best on a budget
Ally
Blueprint Rating
Interest rates
Above national average
DTI ratio
Up to 50%
What you should know
Ally doesn’t charge lender fees — such as application, origination, processing, and underwriting fees — that big banks are more likely to collect. Traditional fixed- and adjustable-rate mortgages as well as jumbo loans are available through Ally.
First-time homebuyers can apply for the Fannie Mae HomeReady Mortgage program, which may only require a 3% down payment. Additionally, an Ally jumbo loan may only require a 10% down payment.
Pros and cons
Pros
- No lender fees.
- HomeReady loan only requires a 3% down payment.
- Can get preapproved within a few minutes.
Cons
- Doesn’t offer FHA, VA or USDA loans.
- Online only.
- Doesn’t offers home equity loan products.
More details
- Interest rates: Above national average.
- DTI ratio: 50%.
- Perks: No lender fees, down payments as low as 3%.
- Preapproval time: Initial preapproval within a few minutes.
- Time to close: A few weeks to a few months, depending on the situation.
Best for FHA loans
Better
Blueprint Rating
Interest rates
Below national average
DTI ratio
Up to 50%
What you should know
Buying a home or refinancing through Better.com can minimize your home loan APR as you won’t pay an origination fee, which usually ranges from 0.5% to 1% of the loan value. The platform also offers a real estate agent service that could save you as much as $2,000 on closing costs.
Since you’ll pay fewer fees, Better can be one of the best FHA lenders—requiring only 3.5% down and a minimum credit score of 580.
In addition to FHA loans, Better offers conventional, jumbo and VA home purchase loans. Home improvement loans and cash-out refinancing are available as well. First-time homebuyers may also be able to take advantage of flexible terms and minimal fees.
Pros and cons
Pros
- No origination fees.
- Many different loan options (including FHA and VA).
- Live chat and phone support.
Cons
- Online only.
- Doesn’t offer USDA loans.
- Better Real Estate discount not available in all states.
More details
- Interest rates: Below national average.
- DTI ratio: 50%.
- Perks: No origination fees, up to $2,000 in closing cost savings with real estate agent service.
- Preapproval time: As little as 3 minutes.
- Time to close: Typically 30 to 45 days.
Best for closing cost assistance
Bank of America
Blueprint Rating
Interest rates
Below national average
DTI ratio
No maximum
What you should know
Bank of America is the best overall option for many existing homeowners and first-time homebuyers since they offer many fixed-rate, low-down-payment, and government-backed home loans. Doctor loans are also available for medical professionals with a high student loan balance.
This lender doesn’t publicize traditional credit score and DTI ratio requirements as they analyze several borrower factors. Some include your ability to pay, banking relationships, and current home equity (if applicable).
In addition to loan programs that may accept a down payment as low as 3% of the home purchase price, the lender also offers grants to reduce a borrower’s down payment and closing costs.
Pros and cons
Pros
- Many different loan options.
- Down payment and closing cost assistance.
- Flexible borrower requirements.
Cons
- Doesn’t offer USDA loans.
- FHA and VA refinance loans only available to existing customers.
- Preapproval can take up to 10 days.
More details
- Interest rates: Below national average.
- DTI ratio: No maximum.
- Perks: Income-based grants and Bank of America Preferred Rewards discounts.
- Preapproval time: Up to 10 days.
- Time to close: Typically 4 to 6 weeks.
Best for low origination fees
USAA
Blueprint Rating
Interest rates
Below national average
DTI ratio
Up to 50%
What you should know
USAA currently doesn’t charge origination fees for VA-backed purchase or refinance loans. The fee is low for conventional loans at 1% of the loan amount ($1,295 maximum fee).
Most loan options are for VA home loans although the lender offers conventional loans that require as little as 3% down. Applicants can apply online or by phone.
A potential roadblock is the institution’s strict membership eligibility standards. Membership is only available to U.S. military members, veterans, precommissioned officers, spouses and children.
Pros and cons
Pros
- No origination fee on VA-backed loans.
- Provides first-time homebuyer loans.
- Specializes in VA home loans.
Cons
- Does not offer home equity loans or HELOCs.
- Can only apply online or by phone.
- Strict membership requirements.
More details
- Interest rates: Below national average.
- DTI ratio: 50%.
- Perks: Low down payment options for military and first-time homebuyers.
- Preapproval time: Get online preapproval in a few minutes.
- Time to close: 30 to 45 days.
Best for VA loans
Veterans United
Blueprint Rating
Via Veterans United's website
Interest rates
Below national average
DTI ratio
Does not disclose
What you should know
Veterans United Home Loans specializes in VA loans — in fact, it’s one of the largest VA lenders by volume. Eligible borrowers can put 0% down thanks to this loan program’s benefits, and most loans close within 40 and 50 days, which is the typical speed for VA-backed loans.
Online applications are available in all 50 states in addition to physical branches in approximately 15 states, and phone-based support is offered 24/7. There is also a free credit consulting service that helps aspiring borrowers improve their credit score to more likely receive mortgage preapproval.
While this lender focuses on VA loans, it’s possible to compare other financing options as well to find the best option. The lender charges a flat 1% fee that’s capped at $3,500, in addition to loan program costs such as a VA funding fee.
Pros and cons
Pros
- Specializes in VA home loans.
- Can apply online or locally.
- Free credit consulting.
Cons
- Fewer loan options for non-military borrowers.
- Lender fees apply.
- Physical branches in select states only.
More details
- Interest rates: Below national average.
- DTI ratio: Does not disclose.
- Perks: Local branches, free credit consulting and educational courses.
- Preapproval time: Determine loan eligibility within minutes.
- Time to close: 40 to 50 days.
Best for custom mortgages
New American Funding
Blueprint Rating
Via New American Funding's website
Interest rates
Below national average
DTI ratio
Up to 45%
What you should know
New American Funding can help eligible buyers submit cash offers in competitive housing markets. The NAF Cash program secures initial financing and sells the house back to the buyer at the original price plus a small convenience fee. This program can help the buyer move in sooner while having up to 90 days to sell an existing home with minimal contingencies.
In addition to this program, this mortgage lender offers several specialty loan programs. Another option is the I CAN mortgage which lets borrowers choose a loan term in one-year increments between eight and 30 years to find the best rate and monthly payment outside of a traditional 15 or 30-year term.
Along with custom mortgages, New American Funding offers conventional, FHA, VA, USDA, jumbo and HELOC loan options. It’s possible to apply online or at physical branches nationwide. Further, loans can be eligible for a 14-business day guarantee or receive $250 in lender credits.
Pros and cons
Pros
- Many loan options.
- Can apply online or locally.
- On-time closing guarantee.
Cons
- Must speak with an agent to prequalify.
- Doesn’t disclose lender fees online.
- Doesn’t offer home equity loans.
More details
- Interest rates: Below national average.
- DTI ratio: 45% (varies by program).
- Perks: 14 business day closing guarantee and custom mortgages.
- Preapproval time: Receive approval in as little as 24 to 48 hours.
- Time to close: 14 to 30 days.
Best for discounts
Chase
Blueprint Rating
Interest rates
Below national average
DTI ratio
Up to 43%
What you should know
Chase is one of the better big banks to get a home loan from as you can qualify for a relationship discount up to 0.50%. Your total interest rate discount depends on your Chase banking and J.P. Morgan investment balances.
Additionally, borrowers in select areas can qualify for a Chase Homebuyer Grant worth up to $5,000. This assistance can be helpful to first-time homebuyers.
You may also prefer Chase as you can apply online or through a local branch.
Pros and cons
Pros
- Can apply online or in person.
- Offers relationship rate discounts.
- Homebuyer grants worth up to $5,000.
Cons
- Best relationship discount requires a high deposit balance.
- Doesn’t offer USDA loans.
- Certain loans have strict requirements.
More details
- Interest rates: Below national average.
- DTI ratio: 43%.
- Perks: Homebuyer grants, relationship discounts, closing guarantee.
- Preapproval time: Not disclosed.
- Time to close: Within 3 weeks (or you’ll get $5,000 through Chase’s closing guarantee).
Best for quick closings
SoFi
Blueprint Rating
Interest rates
Below national average
DTI ratio
Up to 50%
What you should know
SoFi closes many home loan applications within 30 days. In the event of lender-responsible delays, homebuyers can receive a $5,000 credit towards closing costs and additional expenses.
The online mortgage lender offers many purchase loan options including FHA and VA loans with low down payment requirements. It’s also possible to access up to 90% of your home equity with a HELOC.
In addition to home loans, SoFi has several member benefits including fee-free banking accounts and financial planning services.
Pros and cons
Pros
- Offers conventional, jumbo, FHA and VA loans.
- $5,000 on-time closing guarantee.
- Dedicated mortgage loan officers.
Cons
- Lender fees apply.
- Doesn’t accept USDA loan applications.
- Online only.
More details
- Interest rates: Below national average.
- DTI ratio: 50%.
- Perks: $5,000 on-time closing guarantee and no admin fee on qualifying refinances.
- Preapproval time: Can receive personalized rates within minutes.
- Time to close: Usually within 30 days.
Best for military
Navy Federal Credit Union
Blueprint Rating
Interest rates
Below national average
DTI ratio
Does not disclose
What you should know
Eligible service members, veterans and their spouses can qualify for several Navy Federal Credit Union home loan programs that don’t require a down payment. These include federally-backed VA loans as well as a Military Choice loan for borrowers who have exhausted their VA loan benefits.
Additionally, a Homebuyers Choice loan is available that doesn’t require a down payment or PMI. You may consider this option if you’re ineligible for the Military Choice program, which has similar benefits and a lower interest rate.
If you satisfy the credit union’s membership requirements, you can then apply online or through a local loan officer.
Pros and cons
Pros
- Military-friendly loan programs.
- Offers 0% down payment loans.
- Online and local branch access.
Cons
- Strict membership eligibility.
- No first-time homebuyer program.
- Doesn’t offer FHA or USDA loans.
More details
- Interest rates: Below national average.
- DTI ratio: Does not disclose.
- Perks: 0% down payment loans, $1,000 rate match guarantee, up to $9,000 cash back through their RealtyPlus homebuying service in most states.
- Preapproval time: Can be instant (could take longer in some cases).
- Time to close: Up to 30 days for purchase loans (up to 45 days for refinancing).
Best for thin credit
Wells Fargo
Blueprint Rating
Interest rates
Below national average
DTI ratio
Does not disclose
What you should know
Homebuyers needing flexible credit and financial requirements may benefit from the Dream. Plan. Home. closing cost credit which can be worth up to $5,000. Applicants with an income at or below 80% of the area’s median income are eligible. This credit can combine with other down payment assistance for extra savings.
Existing Wells Fargo customers may have an easier time researching listings with an exclusive real estate tool. This online platform can save searches, email listing updates, track prices and receive neighborhood scores.
It’s possible to review the lender’s current mortgage rates online and begin the application online or at a local branch. The bank lender offers purchase, refinance and construction loans but no home equity products.
Pros and cons
Pros
- Many purchase and refinance options.
- Down payment assistance programs.
- Can apply online or in-branch.
Cons
- No home equity loans or HELOCs.
- Must inquire about lender fees.
- Home search tools for current customers only.
More details
- Interest rates: Below national average.
- DTI ratio: Does not disclose.
- Perks: Up to $5,000 in closing cost credits and offers construction loans.
- Preapproval time: Initial prequalification in as little as three minutes.
- Time to close: 30 to 90 days.
Compare the best mortgage lenders
| LENDER | MINIMUM RATE | MAX DTI RATIO | TIME TO CLOSE |
|---|---|---|---|
Ally | Above national average | 50% | Few weeks to a few months |
Better | Below national average | 50% | 30 to 45 days |
Bank of America | Below national average | No maximum | 4 to 6 weeks |
USAA | Below national average | Up to 50% | 30 to 45 days |
Veterans United | Below national average | Does not disclose | 40 to 50 days |
New American Funding | Below national average | Up to 45% | 14 to 30 days |
Chase | Below national average | 43% | 3 weeks |
SoFi | Below national average | Up to 50% | Usually within 30 days |
Navy Federal Credit Union | Below national average | Does not disclose | 30 to 45 days |
Wells Fargo | Below national average | Does not disclose | 30 to 90 days |
Methodology
Our expert writers and editors have reviewed and researched multiple lenders to help you find the best mortgage. Out of all the lenders considered, those that made our list excelled in areas across the following categories (with weightings):
- Loan cost: 30%
- Eligibility and accessibility: 20%
- Customer experience: 20%
- Application process: 30%
Within each major category, we considered several characteristics, including minimum APR, maximum allowed DTI ratio, minimum credit score requirements and applicable fees. We also evaluated each provider’s customer support options, borrower perks and features that simplify the borrowing process — like time to close and preapproval time.
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Current mortgage rates
Mortgage rates are constantly fluctuating, so it’s a good idea to check them regularly when you’re preparing to take out a mortgage. Here are the current mortgage rates to give you an idea of what to expect as you compare your options.
Mortgage rates forecast for 2024
As a result of the Federal Reserve hiking the federal funds rate — which has been between 5.25% and 5.50% since July 2023 — mortgage lenders have increased their rates to generational highs. With current 30-year mortgage rates closing in on 8%, the purchasing power of both first-time and repeat homebuyers has been impacted.
Experts expect mortgage interest rates to peak near 8% in 2024 before gradually trending lower — possibly landing between 5% to 6% before the end of the year. However, what will happen will ultimately depend on the future actions of the Fed and how fast rates might drop if the Fed’s current trend of higher-for-longer rates reverses.
Here’s how mortgage rates have trended over time and where they stand currently:
What is a mortgage and how does it work?
A mortgage finances a home purchase and is repaid over a specified number of years through monthly payments. Most home loans have a repayment period from 10 to 30 years and a fixed interest rate.
Your interest rate depends on several factors including your loan term, mortgage type, credit history and debt-to-income (DTI) ratio. You will keep the same rate, term and monthly payment unless you decide to apply for a mortgage refinance and replace your existing loan.
Borrowers with a fixed-rate mortgage enjoy the same monthly payment amount for the life of the loan. As the remaining loan balance decreases, more of the payment reduces the principal as less interest accrues.
Longer-term mortgages, such as a 30-year term, have the lowest monthly payments but your total interest costs are higher than shorter terms as it takes longer to pay off the loan. In contrast, shorter terms, like a 15-year mortgage, usually have less total interest and better interest rates although your monthly payment is higher due to the more aggressive payoff date.
Different types of mortgages
While some lenders specialize in certain kinds of loans, many of the best home loan lenders provide several types of mortgages that you can apply for. In many cases, you can also choose between a fixed- or adjustable-rate mortgage (ARM).
Any of these loans can help you buy a home, but there are different borrower requirements and fees. Here are the different types of mortgages:
- Conventional mortgage: A conventional mortgage is a non-government loan issued by a private lender. This loan can have lower fees than federally-backed loans. Additionally, most are conforming loans with county-specific loan limits set by the Federal Housing Finance Agency (FHFA) and have lower interest rates than non-conforming loans.
- Jumbo loan: A non-conforming loan to buy properties exceeding the conforming loan limit. This option is more common in high-cost housing markets. The interest rate for jumbo loans is usually higher than conforming loans.
- FHA loan: Backed by the Federal Housing Administration (FHA), these loans have more lenient credit and down payment requirements than conventional mortgages. Lenders may only require a minimum 580 credit score and a 3.5% down payment. However, mortgage insurance premiums can apply for the entire repayment period.
- VA loan: The Department of Veterans Affairs (VA) insures home loans to eligible service members, veterans and spouses. A VA-backed purchase loan doesn’t require a down payment or mortgage insurance, although a one-time funding fee applies.
- USDA loan: Available to borrowers in qualifying rural areas, the U.S. Department of Agriculture (USDA) may not require a down payment. However, income requirements apply along with annual mortgage insurance fees.
First-time homebuyer tip: You might be eligible for reduced down payment requirements of 3% or less on conventional loans. These specialized programs may not require private mortgage insurance (PMI) although your interest rate can be higher than putting at least 20% down. Lenders and government agencies might also offer down payment or closing cost grants and assistance to first-time homeowners.
- Home equity loan: This is a second mortgage for existing homeowners to receive a lump-sum distribution of their available equity. It’s an alternative to a cash-out refinance as it leaves the original mortgage intact and has a fixed interest rate.
- HELOC: With a home equity line of credit (HELOC), current homeowners can tap their available equity with multiple draws as cash is needed. Interest-only payments are required during the draw period and principal payments start when the draw period closes and the repayment period begins. HELOC rates are almost always variable.
- Construction loans: Finance building a new home from the ground up with multiple draws to minimize borrowing costs. You may be able to convert a construction loan into a permanent mortgage once your house is move-in ready.
- Interest-only mortgage: Only pay interest during the initial portion of the repayment period. Principal and interest payments are due after the introductory period ends.
- Balloon mortgage: A loan with low ongoing monthly payments yet requires a significant final lump-sum payment. The Consumer Financial Protection Bureau rarely considers this loan type a qualified mortgage due to its high level of risk.
- Piggyback loan: A second mortgage that helps cover the down payment so the loan-to-value ratio is 80% or lower for the first mortgage. As a result, the buyer doesn’t need to make private mortgage insurance premiums.
How to apply for a mortgage
Following these steps can help you qualify for a home loan:
- Review your credit history. Check your credit score to determine which mortgage programs you can be eligible for initially. Conventional home loans usually require a minimum 620 credit score while government-backed mortgages can be as low as 580 or even 500.
- Collect supporting documentation. Gathering your recent pay stubs, two years of income tax returns, two months of bank statements and government-issued ID cards can help you save time when it’s time to apply.
- Compare lenders. Applying for mortgage preapproval requires a hard credit check, but you can receive a personalized rate and loan limit for conventional and government-backed programs. Get rate quotes from several lenders to find the best home loan offer.
- Apply for a loan. After a seller accepts your offer, it’s time to apply for a mortgage through your desired lender. A loan officer can help compare your loan and down payment options to get the best rate and monthly payment.
- Complete the underwriting process. The application-to-close process usually takes 30 to 45 days. During this time, the lender will review your credit and income history and request supporting documentation as needed. Your new home will also be appraised to calculate your loan-to-value (LTV) ratio and minimum down payment.
- Sign closing documents. At the loan closing, you will sign the final documents to confirm the repayment agreement. Any upfront fees are due at this time. You can move into your home and will start making monthly payments.
Ready to buy your first home? Compare the top mortgage lenders for first-time buyers
Tips for choosing the best mortgage
These practices can help you find the best mortgage lender and loan type:
- Know how much house you can afford. A home affordability calculator estimates the monthly payment you can comfortably afford. Having a maximum purchase price in mind can also make it easier to get preapproval if you can find a house for less than your maximum borrowing power.
- Compare home loan options. Several of the best home mortgage lenders offer a variety of loan types — and the right one for your needs will depend on a variety of factors. For example, your credit score, annual income and geographic area may help you qualify for government-backed FHA, VA or USDA loans. These loans can have more lenient borrower requirements than conventional loans.
- Consider down payment requirements. First-time homebuyers may only have to put 5% down or less. These loans can be easier to qualify for than a traditional conventional loan, but you may consider a 20% down payment to avoid private mortgage insurance.
- Choose a mortgage term. Opting for a 15-year or a 20-year fixed-rate mortgage instead of a 30-year term lets you qualify for a lower interest rate if you can afford a higher loan payment and pay less interest overall. Be sure to estimate your monthly mortgage escrow payments to calculate your housing costs accurately.
- Compare several lenders. Prequalify with multiple lenders to compare mortgage rates and fees which can vary widely for a similar loan amount and repayment period. In addition to your upfront closing costs and monthly payment, see if the lender offers other perks such as waived lender fees if you refinance later.
How does it work? What is an adjustable-rate mortgage and is it right for you?
Frequently asked questions (FAQs)
Conventional loans require a minimum 620 credit score. Depending on the down payment amount, FHA loans require a 500 or 580 credit score.
Regarding VA-backed home loans, the Department of Veterans Affairs doesn’t have a minimum score requirement, although lenders typically require a score above 620.
Similarly, the USDA loan program doesn’t have credit score requirements, although many USDA lenders insist upon having a minimum 640 score to apply.
Typically, online mortgage lenders offer lower rates and fees and have faster closing times. However, if you have an existing relationship with a bank you might qualify for special financing or loyalty discounts that could make a bank a better deal. That’s why it’s always important to compare your options instead of just going with the first lender you consider.
Finding the best rates depends on several factors, including your banking relationship and if you want to qualify for a specialized loan program, such as a first-time homebuyer program or one with a low or no down payment.
Online mortgage lenders are more likely to charge lower lender fees for traditional home loans than brick-and-mortar locations as they have fewer operating expenses. However, you should still compare your loan APR and total estimated borrowing costs from multiple lenders.
Keep in mind that going with a big bank can be the better option if you’re eligible for a specialty program that offers low down payment requirements or income-based homebuyer grants. You may also qualify for a relationship discount if you’re a current banking customer.
Find out more about how to get a mortgage with a competitive rate.
FHA loans can be the easiest to qualify for as the minimum credit score is either 500 or 580 and has flexible down payment requirements. The down payment is 3.5% with a minimum 580 credit score and 10% with a score as low as 500.
A 30-year fixed interest rate could be a good option for many borrowers as it offers the lowest monthly payment and secures the same rate for the longest period. However, this term usually has higher interest rates than shorter loan terms and more lifetime interest costs.
If you can afford a higher monthly payment, a 15-year term can be an excellent option since you can qualify for a lower rate. You’ll also pay off your mortgage in half the time compared to a 30-year mortgage.
They can be. You can reach out to your lender and ask about reducing:
- Application fees.
- Discount points.
- Origination fees.
- Title insurance.
- Underwriting fees.
However, choosing a lender with lower origination fees and discount points in the first place can be more effective than asking for a fee reduction during the mortgage application process.
If you’re buying a home, see if the seller will pay a share of the closing costs. Your realtor can assist with this negotiation process.
Editor’s Note:This article contains updated information from previously published stories:
- Mortgage rates jump to a new high for 2016
- Homeowners hurt by COVID-19 can delay mortgage payments, but some say they’re anxious and confused about the real cost
- More than 6M households missed their rent or mortgage payment in September
- Mortgage rates jump again for 2nd week and hit 2017 highs
- Government shutdown 2019: Homebuyers with USDA mortgages can’t close on house sales
- Low down on new low down conventional loans
- Should you get a reverse mortgage? The reasons you should or shouldn’t
- Mortgage delinquencies surge by 1.6M in April, the biggest monthly jump ever
- Here’s how the Fed’s surprise interest-rate cut affects mortgages, credit cards and home equity lines
- Average 30-year mortgage rate jumps to 4.4%
- Mortgage interest rates 2018: Rates hit 7-year high, slow home sales
- Mortgage rates on 30-year home loan hit 5 percent, a nearly 8-year high
- Average 30-year mortgage rate tops 4%
- Mortgage rates: Nowhere to go but up?
- Mortgage rates dip as taper fears subside
- Mortgage applications surge on refinances as rates hit 21-month low
- Will mortgage rates keep dropping? Homeowners and buyers benefit from lower interest rates
- Average 30-year mortgage rate drops to 4.22%
- Mortgage closing costs are on the way up
- Amid surging COVID-19, Fed could take steps to lower mortgage rates, boost economy
