Best Mortgage Lenders: Not all mortgages are created equal. Some lenders excel at fast pre-approval processes, while others offer attractive interest rate discounts or lower closing costs. We’ve compared dozens of lenders to bring you a comprehensive list of the best mortgage options.
10 Best Mortgage Lenders in 2024
We compared dozens of lenders to create this comprehensive list of the best mortgage lenders to make your mortgage comparison easier, whether you’re looking to buy a home or wondering if 2024 will be a good time to refinance an existing mortgage.
Also Read: The All Best Mortgage Lenders
01. Flagstar Bank Mortgage
Rating: 5.0
- Minimum Credit Score: 620
- Mortgage Rates: Below the national average
- Minimum Down Payment: 0% to 3.5%
Compare Rates: Compare rates from participating lenders in your area through Bankrate.com.
Editor’s Opinion: Flagstar Bank Mortgage excels with a broad range of mortgage options, including conventional, jumbo, construction, and government-backed loans. They offer several discount programs, such as those for borrowers whose employers are affiliated with Flagstar, returning customers, first responders, active military, and veterans. Flagstar considers alternative credit data like rent, utility payments, and regular savings deposits for certain products.
Pros and Cons:
Pros:
- # Available online and in branches (in select states)
- # Convenient customer service hours
- # Acceptance of alternative data, such as utility and rent payments
- # Low minimum credit score mortgages
Cons:
- Branches are not available in all states
Who is it Best For?
Flagstar is ideal for borrowers who may need alternative credit data to qualify for a mortgage and reside in one of the nine states with physical branches.
Lender Details:
- How to Apply: Apply online or in person at a branch in Indiana, Michigan, Ohio, or Wisconsin. Customer service is available Monday through Friday, 7:30 a.m. to 9:00 p.m. ET, and Saturdays from 8:30 a.m. to 6:00 p.m. ET. Pre-approval takes less than three days.
- Speed: The average closing time is 35 days, which is shorter than the industry average. Closing can occur in as little as 11 days.
- Eligibility: Minimum credit score of 620. Minimum down payment: 0% for VA and USDA loans, 3% for conventional loans, and 3.5% for FHA loans. Alternative credit information is accepted.
- Types of Loans: Conventional, jumbo, FHA, VA, USDA, construction, renovation, specialty loans, and home equity loans (limited areas).
Also Read: The All Best Mortgage Lenders
02. Bank of America Mortgage
Rating: 4.7
- Minimum Credit Score: 620
- Mortgage Rates: Below the national average
- Minimum Down Payment: 0% to 3.5%
Compare Rates: Compare rates from participating lenders in your area through Bankrate.com.
Editor’s Opinion: As the second largest bank in the U.S., Bank of America offers a comprehensive online and in-person mortgage experience with branches in 38 states and Washington, DC. Their Digital Mortgage Experience features online applications, electronic signatures, and online rate locking.
Pros and Cons:
Pros:
- # Potentially qualify for a mortgage with no PMI and low down payment
- # Acceptance of alternative credit information
- # Option to apply online or in person
- # Several mortgage discount programs are available
Cons:
- # Does not offer USDA loans
- # Pre-approval letters may take up to 10 business days
Who is it Best For?
Ideal for borrowers seeking a large bank with a robust online application process and access to physical branches.
Lender Details:
- How to Apply: Apply online or in person. Customer service is available Monday through Friday, 8:00 a.m. to 10:00 p.m. ET, and Saturdays, 8:00 a.m. to 6:30 p.m. ET.
- Speed: The average closing time is between 30 and 45 days, about the industry average.
- Eligibility: Minimum credit score of 620. Minimum down payment: 0% for VA loans, 3% for Affordable Solution Mortgage, and 3.5% for FHA loans. Alternative credit information is accepted.
- Types of Loans: Conventional, jumbo, FHA, VA, and Affordable Solution Mortgage (no PMI). USDA loans are not offered.
03. Chase Mortgage
Rating: 4.6
- Minimum Credit Score: 620
- Mortgage Rates: Below the national average
- Minimum Down Payment: 0% to 15%
Compare Rates: Compare rates from participating lenders in your area through Bankrate.com.
Editor’s Opinion: Chase stands out as one of the largest mortgage lenders, offering significant discounts to existing clients. Customers with at least $500,000 in deposits or investments enjoy reduced rates and processing fees.
Pros and Cons
Pros:
- # Low down payment loans available
- # Flexible credit and income requirements for certain loans
- # Discounts for existing Chase customers
- # Chase Closing Guarantee with up to $20,000 compensation if the closing date is missed
Cons:
- # Discounts apply only to existing customers
- # No USDA loans offered
- # Mortgages not available in Hawaii or Alaska
- # Home equity loan applications are currently paused
Who is it Best For?
Existing Chase customers who qualify for relationship discounts.
Lender Details:
- How to Apply: Apply online. Pre-approval may take up to two days.
- Speed: Chase offers a closing guarantee for conventional loans within 21 calendar days of receiving a complete application package.
- Eligibility: Minimum credit score of 620. Minimum down payment: 0% for VA loans, 3% for some conventional and DreaMaker loans, 3.5% for FHA loans, and 15% for jumbo loans.
- Types of Loans: Conventional, jumbo, FHA, VA, and low down payment loans. USDA loans are not available.
04. Guaranteed Rate Mortgage
Rating: 4.6
- Minimum Credit Score: 620
- Mortgage Rates: Below the national average
- Minimum Down Payment: 0% to 3.5%
Compare Rates: Compare rates from participating lenders in your area through Bankrate.com.
Editor’s Opinion: Guaranteed Rate offers the fastest closing times among the lenders listed, with the potential for same-day approval and closing in as little as 10 days. They provide a variety of mortgage products, including interest-only loans.
Pros and Cons:
Pros:
- # Operates in all 50 states
- # Shows current rates online
- # No lender fees for VA loan borrowers
Cons:
- # Cannot guarantee same-day closing or approval
- # Other lenders may have faster pre-approval times
Who is it Best For?
Borrowers who prefer an online application process and need to close quickly.
Lender Details:
- How to Apply: Apply online or in person at a Guaranteed Rate branch. Customer service is available by phone Monday through Friday, 8:30 a.m. to 5:30 p.m. CT.
- Speed: Closing can take as little as 10 days with the same-day mortgage option.
- Eligibility: Minimum credit score of 620. Minimum down payment: 0% for VA loans, 3% for some conventional loans, and 3.5% for FHA loans.
- Types of Loans: Fixed and adjustable rate mortgages, including conventional, jumbo, FHA, VA, and interest-only mortgages. Home equity lines of credit (HELOC) are also available.
05. PenFed Credit Union Mortgage
Rating: 4.4
- Minimum Credit Score: 650
- Mortgage Rates: Below the national average
- Minimum Down Payment: 0% to 3%
Compare Rates: Compare rates from participating lenders in your area through Bankrate.com.
Editor’s Opinion: PenFed Credit Union is renowned for its low lender fees, especially for VA loans. They charge a flat origination fee of $995, which is lower than many competitors.
Pros and Cons:
Pros:
- # Low advertised rates
- # Reasonable lender fees
- # Low or no down payment options
Cons:
- # Limited range of mortgage products
- Alternative data is not considered# Alternative data is not considered
Who is it Best For?
Borrowers seeking a VA loan and wanting to save on lender upfront fees.
Lender Details:
- How to Apply: Apply online or at branches in Maryland, Virginia, and Washington, DC. Customer service by phone is available Monday through Friday, 8 a.m. to 8 p.m. ET and Saturdays, 8 a.m. to 5 p.m. ET.
- Speed: Average closing time is 35 days, with some cases closing in as little as 11 days.
- Eligibility: Minimum credit score of 650 for conventional and VA loans, and 700 for jumbo loans. Minimum down payment: 0% for VA loans and 3% for some conventional loans.
- Types of Loans: Conventional, Jumbo, VA fixed loans, home equity loans, and refinancing. FHA and USDA loans are not offered.
Also Read: The All Best Mortgage Lenders
06. Rocket Mortgage
Rating: 4.4
- Minimum Credit Score: 580
- Mortgage Rates: Higher than the national average
- Minimum Down Payment: 0% to 3.5%
Learn More: On the Rocket Mortgage website
Editor’s Opinion:
Rocket Mortgage stands out as an online mortgage lender with a broad range of home purchase and refinance loans.
Why We Like It:
Rocket Mortgage offers flexible products like YOURgage, which allows borrowers to select loan terms from eight to 29 years. Their One+ By Rocket Mortgage is a low down payment option where you pay just 1%, and Rocket Mortgage covers an additional 2%.
What We Don’t Like:
Interest rates at Rocket Mortgage tend to be higher than the national average. Additionally, the average closing time for a purchase loan is 36 days, which is a bit longer compared to other lenders.
Who Is It Best For?
Ideal for borrowers who prefer a fully digital mortgage experience and flexible loan terms.
Pros and Cons
Pros:
- # Flexible term mortgages available, from eight to 29 years; also offers standard 30- and 15-year fixed-rate options.
- # Completely digital mortgage experience.
- # Extensive customer service hours.
Cons:
- # Does not offer USDA loans.
- # No home equity lines of credit (HELOC).
- # Does not offer land loans or foreclosure purchase loans.
Lender Details:
- How to Apply: Online or through the Rocket Mortgage app. Pre-approval can be completed in eight minutes.
- Customer Support: Phone support is available Monday through Friday from 8:30 a.m. to 9 p.m. ET, and Saturdays from 9 a.m. to 4 p.m. ET. For new loans, call (888) 452-8179. Chat support is available seven days a week.
Speed:
As of February 2024, the average closing time is 21 days for a conventional refinance and 36 days for a conventional purchase loan.
Eligibility:
- # Minimum credit score of 580 for FHA and VA loans, 620 for conventional mortgages, and 680 for jumbo loans.
- # Minimum down payment of 0% for VA loans, 3% for some conventional loans, and 3.5% for FHA loans.
- # Alternative credit information accepted, such as rent and utility payments.
Types of Loans:
Fixed and adjustable rate mortgages, conventional, jumbo, FHA, and VA loans. Includes YOURgage for a custom term and simplified FHA refinancing.
Loan Type:
- # Conventional: ✓
- # FHA: ✓
- # VA: ✓
- # USDA: ✗
- # Jumbo: ✓
- # ARM: ✓
- # Home Equity Loan: ✗
- # Specialty: YOURgage flexible term mortgage
07. New American Funding Mortgage
Rating: 4.4
- Minimum Credit Score: 500
- Mortgage Rates: Below the national average
- Minimum Down Payment: 0% to 10%
Learn More: On the New American Funding website
Editor’s Opinion:
New American Funding is one of the largest private direct mortgage lenders in the U.S., known for fast closing times and customizable terms through its I CAN mortgage.
Why We Like It:
With minimum credit score requirements as low as 500 for some loan types (and 620 for others), it’s a strong option for those with limited credit.
What We Don’t Like:
Fees are not disclosed online; you’ll need to ask for a detailed breakdown from your loan officer.
Who Is It Best For?
Borrowers with less than stellar credit profiles.
Pros and Cons
Pros:
- # Wide range of loan options, including customizable terms and non-QM loans.
- # Commitment to helping Black and Latino borrowers access homeownership.
- # Fast pre-approval times.
Cons:
- # Does not offer a fully online application process.
Lender Details:
- How to Apply: Apply online; pre-approval may take one day.
- Speed: Closing can take up to 30 days.
Eligibility:
- # Minimum credit score of 500.
- # Minimum down payment of 0% for USDA and VA loans, 3% for conventional loans, 3.5% for FHA loans, 5% for I CAN mortgages, and 10% for jumbo loans.
Types of Loans:
15- and 30-year fixed-rate mortgages, including conventional, FHA, VA, and the exclusive I CAN mortgage, along with adjustable rate mortgages and reverse mortgages.
Loan Type:
- # Conventional: ✓
- # FHA: ✓
- # VA: ✓
- # USDA: ✓
- # Jumbo: ✓
- # ARM: ✓
- # Home Equity Loan: ✗
- # Specialty: I CAN Loans
Also Read: The All Best Mortgage Lenders
08. PNC Bank Mortgage
Rating: 4.2
- Minimum Credit Score: 620
- Mortgage Rates: Similar to the national average
- Minimum Down Payment: 0% to 3.5%
Compare Rates: Compare rates from participating lenders in your area through Bankrate.com
Editor’s Opinion:
PNC Bank Mortgage operates nationwide and offers a wide array of mortgage products, including specialized loans for medical professionals and low- to moderate-income borrowers.
Why We Like It:
Generous loan options for medical professionals, such as interns and residents, including up to $1 million loans for primary residences, use of gift funds for down payments, and no private mortgage insurance.
What We Don’t Like:
PNC Bank does not offer renovation loans or home equity loans, and HELOC products are not available in all states.
Who Is It Best For?
Medical professionals starting their careers and low- to moderate-income borrowers qualifying for specialized programs and grants.
Pros and Cons
Pros:
- # Low minimum credit score requirements.
- # Fast pre-approval time.
- # Online and in-person service available.
- # Various discount programs available.
Cons:
- # Does not offer renovation loans.
Lender Details:
- How to Apply: Apply online or in person at a bank branch in select states. Pre-approval can take as little as 30 minutes or up to a day.
- Speed: Average closing time is 45 days, with some cases as quick as 30 days.
Eligibility:
- # Minimum credit score of 620; 700 for jumbo borrowers.
- # Minimum down payment of 0% for VA loans, 3% for conventional loans, and 3.5% for FHA loans.
Types of Loans:
Conventional, FHA, VA, USDA, jumbo loans, home equity loans, and specialty loans for medical professionals.
Loan Type:
- # Conventional: ✓
- # FHA: ✓
- # VA: ✓
- # USDA: ✓
- # Jumbo: ✓
- # ARM: ✓
- # Home Equity Loan: ✓
- # Specialty: Community loan (no PMI), loan for medical professionals
09. Mr. Cooper Mortgage
Rating: 4.1
- Minimum Credit Score: 580
- Mortgage Rates: Similar to the national average
- Minimum Down Payment: 0% to 3.5%
Compare Rates: Compare rates from participating lenders in your area through Bankrate.com
Editor’s Opinion:
Mr. Cooper offers competitive mortgage rates and a range of loan options.
Pros and Cons:
Pros:
- # Offers interest rate discounts.
Cons:
- # Not specified.
Lender Details:
- How to Apply: Application details not provided.
- Speed: Details not provided.
Eligibility:
- Minimum Credit Score: 580
- Minimum Down Payment: 0% to 3.5%
Types of Loans:
- # Loan details not specified.
Loan Type:
- # Conventional: ✓
- # FHA: ✓
- # VA: ✓
- # USDA: ✓
- # Jumbo: ✓
- # ARM: ✓
- # Home Equity Loan: ✓
- # Specialty: ✓
10. Truist Mortgage
Rating: 3.8
- Minimum Credit Score: 620
- Mortgage Rates: Higher than the national average
- Minimum Down Payment: 0% to 3.5%
Compare Rates: Compare rates from participating lenders in your area through Bankrate.com
Editor’s Opinion:
Truist Mortgage offers a variety of mortgage products with a streamlined digital app experience.
Why We Like It:
Provides a clear and intuitive online application with physical branches for in-person assistance.
What We Don’t Like:
Higher advertised mortgage rates and limited branch locations.
Who Is It Best For?
Borrowers who are comfortable with online applications and are in states with Trust branches.
Pros and Cons:
Pros:
- # Special loans available, including medical and permanent construction loans.
- # Same-day pre-approval is available.
- # Over 2,500 branches.
Cons:
- # Not available in all states.
- # Does not offer USDA loans.
Lender Details:
- How to Apply: Apply online or in person at one of over 2,500 branches. Pre-approval can be on the same day.
- Speed: Closing can take up to 30 days.
Eligibility:
- # Minimum credit score of 620.
- # Minimum down payment of 0% for VA and USDA loans, 3% for some conventional loans, and 3.5% for FHA loans.
Types of Loans:
Fixed and adjustable-rate mortgages, VA loans, FHA loans, conventional and jumbo mortgages, medical loans, construction, and permanent loans.
Loan Type:
- # Conventional: ✓
- # FHA: ✓
- # VA: ✓
- # USDA: ✗
- # Jumbo: ✓
- # ARM: ✓
- # Home Equity Loan: ✗
- # Specialty: Medical loans, construction, and permanent loans.
11. Ally Mortgage
Rating: 3.6
- Minimum Credit Score: 620
- Mortgage Rates: Higher than the national average
- Minimum Down Payment: 3% to 10%
Compare Rates: Compare rates from participating lenders in your area through Bankrate.com
Editor’s Opinion:
Ally Bank Mortgage provides fast pre-approval and rate locking within minutes.
Why We Like It:
Pre-approval is incredibly quick (within three minutes), and rate locking is available shortly after pre-approval.
What We Don’t Like:
No government-backed loans are offered; the average closing time is 36 days.
Who Is It Best For?
Borrowers need fast pre-approval for conventional or jumbo loans and prefer online processing.
Pros and Cons:
Pros:
- # Quick pre-approval (three minutes).
- # Rate locking within minutes.
- # PMI-free loans for jumbo borrowers with 10% down.
- # HomeReady loans are available for first-time homebuyers.
- # Discount on closing costs for Ally customers.
Cons:
- # No FHA, VA, or USDA loans.
- # No physical locations.
- # Does not offer land loans.
Lender Details:
- How to Apply: 100% online application process. Customer service by phone only.
- Speed: The average closing time is 36 days.
Eligibility:
- # Minimum credit score of 620.
- # Minimum down payment of 3% for some conventional programs and 10% for jumbo loans.
- # Alternative credit information accepted.
Types of Loans:
Conventional and jumbo fixed- and adjustable-rate mortgages, HomeReady loans. No government-backed loans are offered.
Loan Type:
- # Conventional: ✓
- # FHA: ✗
- # VA: ✗
- # USDA: ✗
- # Jumbo: ✓
- # ARM: ✓
- # Home Equity Loan: ✗
- # Specialty: HomeReady Loans
What is a Mortgage?
A mortgage is a loan used to purchase property. Most buyers can’t afford to pay for a home in full upfront, so they take out a mortgage that can last from a few years to over 30 years. In return, the lender has a lien on the property, which means they can foreclose on the house if you fail to make payments.
How Does a Mortgage Work?
A mortgage functions similarly to other loans. You borrow money from a lender to buy a home and repay it over a set period (typically 15 to 30 years). You must repay both the principal (the original loan amount) and the interest (the fee charged by the lender). The house serves as collateral, meaning the lender can seize it if you default on the loan.
Types of Mortgages
- Conventional Mortgage: The most common type, not insured by the government, and often requires higher credit scores and down payments than government loans.
- Jumbo Mortgage: For loans that exceed the Federal Housing Finance Agency (FHFA) limits. They are used for high-value properties and usually require higher credit scores and down payments. Limits for 2024 are $766,550, and up to $1,149,825 in high-cost areas.
- FHA Loan: Insured by the Federal Housing Administration, designed for low-to-moderate income buyers. Requires a lower credit score (580 with 3.5% down or 500 with 10% down) but includes mortgage insurance premiums.
- VA Loan: For U.S. veterans, active-duty service members, and certain spouses. Offers benefits like no down payment and no mortgage insurance. Eligibility depends on service history.
- USDA Loan: For low- to moderate-income buyers in rural areas. No down payment is required, but you must pay a one-time guarantee fee and an annual fee.
- 203(k) Loan: FHA-insured loan for buying and renovating a home. Covers both the purchase and repair costs, but cannot be used for vacation or investment properties.
- Non-QM Loan: For borrowers with unique financial situations (e.g., self-employed). These loans have more flexible credit and income requirements.
Credit Score Requirements
Typically, a minimum credit score of 620 is needed for a mortgage. Government-backed loans like FHA and VA loans often have lower credit requirements.
Will 2024 Be a Good Time for a Mortgage?
The Federal Reserve has kept its monetary policy steady, but there may be a possibility of rate cuts later in the year. If rates drop by 0.5 percentage points, it could result in significant savings on monthly mortgage payments. For example, on a $350,000 mortgage, a 0.5 percentage point reduction could lower your payment by $119 per month, saving nearly $43,000 over 30 years.
Steps to Obtain a Mortgage
- Check Your Credit: Ensure your credit report is accurate and improve your score if possible.
- Pay Debts: Reduce existing debt to improve your debt-to-income ratio.
- Prepare Documentation: Gather W-2 forms, tax returns, pay stubs, and account statements.
- Find a Lender: Shop around for the best lender and consider getting pre-approved to strengthen your buying position.
How to Compare Mortgage Rates
- Submit Applications Simultaneously: Rates change daily; apply to multiple lenders on the same day for accurate comparisons.
- Apply for the Same Loan Type: Ensure you compare the same types and terms of loans.
- Compare Points and Fees: Check if lenders charge points or fees and factor these into your decision.
- Consider Long-Term Costs: If you plan to keep the mortgage long-term, prioritize a lower interest rate. For shorter terms, fees may be more relevant.
How to Get Pre-Approved for a Mortgage
- Provide Personal Information: Share your name, address, Social Security number, and ID.
- Authorize Credit Check: Allow the lender to perform a hard credit check.
- Provide Proof of Income and Assets: Submit pay stubs, W-2s, tax returns, and bank statements.
- Receive Pre-Approval: The lender will determine how much you can borrow, giving you a pre-approval letter.
How to Choose a Mortgage Lender
You can choose from banks, credit unions, online lenders, or mortgage brokers. Shop around to understand your borrowing capacity and secure the best rates and terms. Compare lenders and their offers to find the best fit for your needs.
