Best Online Mortgage Lenders: Today, there are more online mortgage lenders than ever before. Because borrowers have different needs and financial profiles, Forbes Advisor compiled a list of online mortgage lenders that excel in various areas. So whether speed is a top priority or you want an online lender that specializes in a niche (for example, if you’re a first-time home buyer), there’s something here for everyone.
8 Best Online Mortgage Lenders List in 2024
Our editors are committed to providing you with unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies so that everyone is measured equally. You can read more about our editorial guidelines and mortgage methodology for ratings below.
01. Better Mortgage Lenders
Best for Solid Online Loans
Rating: 5.0
# Minimum credit score: 620
# Mortgage rates: Between 1 and 3 basis points above or below the national average
# Minimum down payment: 3% to 10%
Editor’s opinion: Better offers a robust online lending experience nationwide. Applicants can expect to get a rate quote and pre-approval in approximately 20 minutes. It has also developed technology to automatically search for discounts that customers might be eligible for, without any additional effort or cost on the part of the borrower. Better also does not charge application, subscription, or origination fees.
Pros and Cron
Pros:
# Verified loan pre-approval time is as fast as 20 minutes
# Alternative credit information, such as utility and rent payments, is considered
# No application, subscription, or origination fees
Cons:
# Lender does not offer USDA loans
# There are no physical locations
Lender details
# General description: Better Mortgage is available throughout the United States. Additionally, it does not charge as many fees as some competitors, as it does not charge application, underwriting, or origination fees. According to a Better spokesperson, its business model saves approximately 1% of the loan amount.
# How to apply: The application process is 100% online. Because there are no in-person branches, customers must rely on email and phone correspondence with loan professionals. Better offers 24/7 live support via phone and email. Pre-approval takes approximately 20 minutes.
# Speed: The average lender closing time is 32 days, which is 10 days faster than the industry average.
# Eligibility: Minimum credit score of 620. Minimum down payment amount of 3% for some conventional loans 3.5% for FHA loans and 10% for jumbo loans.
# Types of loans: Better offers conventional and jumbo fixed # and adjustable-rate mortgages and FHA loans. Does not offer USDA loans.
Loan types:
# Conventional: ✓
# FHA: ✓
# VA: ✓
# USDA: ✗
# Jumbo: ✓
# ARM: ✓
# Home equity loan: ✓
# Specialty: ✓
Also Read: The All Best Mortgage Lenders
02. Guaranteed Rate Mortgage Lenders
Best for First-Time Homebuyers
Rating: 5.0
# Minimum credit score: 600
# Mortgage rates: Below the national average
# Minimum down payment: 0% to 3.5%
Editor’s opinion: The minimum Guaranteed Rate credit score for VA and FHA loans is 600. For conventional loans, it is 620. These scores are lower than the average for most lenders, which can be helpful for first-time loan applicants who may not have a bad credit history.
Well established. VA loans also do not require a down payment, while some conventional loans require only 3% down.
FHA borrowers are required to make a minimum down payment of 3.5%. These no or low-down payment options can help cash-strapped first-time homebuyers, who can also combine these loans with local or state financial assistance programs that help pay for closing or property costs. initial payment.
Pros and Cron
Pros:
# In some cases, alternative credit information is considered, such as utility and rent payments
# Operates in all 50 states
# Competitive interest rates
# No lender fees for VA loan borrowers
Cons:
# Some other lenders have faster pre-approval times
Lender details
# General description: Guaranteed Rate is available online throughout the United States and has more than 300 locations nationwide. Mortgage borrowers can count on average rates and competitive interest rates, which sit just below the national average.
Borrowers can also get a pre-approval letter within 24 to 48 hours and get pre-qualified online in 15 minutes. And if you’re a VA borrower, there are no loan fees.
# How to apply: Borrowers can apply online or in person at one of Guaranteed Rate’s branches. Customer service is available by phone Monday through Friday, 8:30 a.m. to 5:30 p.m. (Central United States time). Pre-approval letters take one to two days.
# Speed: Closing takes as little as 10 days with Guaranteed Rate’s same-day mortgage.
# Eligibility: Minimum credit score of 620. 0% minimum down payment for VA loans, 3% for some conventional loans, and 3.5% for FHA loans.
# Types of loans: Guaranteed Rate offers fixed and adjustable rate mortgages, including conventional and jumbo mortgages, FHA and VA loans, and interest-only mortgages. Guaranteed Rate also offers home equity lines of credit (HELOC).
Loan types:
# Conventional: ✓
# FHA: ✓
# VA: ✓
# USDA: ✗
# Jumbo: ✓
# ARM: ✓
# Home equity loan: ✓
# Specialty: ✓
Also Read: The All Best Mortgage Lenders
03. PNC Bank Mortgage Lenders
Best for an In-Person Experience
Rating: 5.0
# Minimum credit score: 620
# Mortgage rates: Below the national average
# Minimum down payment: 0% to 3.5%
Editor’s opinion: PNC Bank is one of the few online mortgage lenders that has physical branches, and lots of them.
You can apply in person at one of PNC’s 2,600 bank branches in the following 28 states and the District of Columbia: Alabama, Arizona, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, and Wisconsin.
Pros and Cron
Pros:
# Low minimum credit score requirements
# Fast pre-approval time
# Online and in-person services available
# Various discount programs available
# Extensive digital support for existing customers
Cons:
# Does not offer renovation loans
Lender details
# General description: PNC Bank operates in all 50 states and offers a wide range of mortgage products, including specialty loans for low # and moderate-income borrowers. PNC offers an innovative online experience called Home Insight, which provides an in-depth analysis of the home buying process, allowing customers to determine the mortgage payment they can afford and begin searching for homes with rate quotes and products. loan in real-time. It also allows customers who have applied for a loan to follow the approval process and upload supporting documents.
# How to apply: Borrowers can apply online or in person at a bank branch in the following states and Washington DC: Alabama, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, and Wisconsin. Customer support by phone is available Monday through Thursday from 8:00 a.m. to 9:00 p.m. ET, Friday from 8:00 a.m. to 5:00 p.m. ET, and Saturday from 9:00 a.m. to 2:00 p.m. ET. Pre-approval can take as little as 30 minutes or up to a day.
# Speed: The average closing time is 45 days, approximately the industry average. In some cases, closing may take as little 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 (PNC does not publish its down payment requirements for other types of loans).
# Types of loans: PNC Bank offers a wide selection of home loans, including conventional, FHA, VA, USDA, and jumbo loans, home equity loans, and specialty loans for medical professionals.
Loan types:
# Conventional: ✓
# FHA: ✓
# VA: ✓
# USDA: ✓
# Jumbo: ✓
# ARM: ✓
# Home equity loan: ✓
# Specialty: ✓ – Community loan (no PMI), loan for medical professionals
Also Read: The All Best Mortgage Lenders
04. Ally Mortgage Lenders
Best for Quick Pre-Approvals
Rating: 4.5
# Minimum credit score: 620
# Mortgage rates: Between 1 and 3 basis points of the national average
# Minimum down payment: 3% to 10%
Editor’s opinion: Ally provides qualified borrowers with a pre-approval letter as quickly as possible, within three minutes. This is a significant advantage in a competitive real estate market where time is of the essence. Many lenders may take a day or two to approve your home loan. Borrowers can also lock in their mortgage rate within 10 minutes of pre-approval. This protects them from rising borrowing costs if mortgage rates rise before closing on a home purchase.
Pros and Cron
Pros:
# Loan pre-approval takes only three minutes
# In some cases, alternative credit information is considered, such as utility and rent payments
# Borrowers can set their rate in minutes
# There are PMI-free loans for jumbo borrowers who pay 10% down
# First-time homebuyers have a HomeReady loan option available
# Ally customers will get a discount that will be applied to closing costs
Cons:
# Lender does not offer FHA,
USDA, or VA loans
Lender details
# General description: Ally Mortgage offers nationwide online service but has no branches. Borrowers can pre-qualify for a mortgage in minutes and get a pre-approval letter in about three minutes. Borrowers can also lock in their interest rates within 10 minutes of pre-qualification. Ally mortgage rates are competitive and can be adjusted on a case-by-case basis to help applicants save money. If borrowers have an Ally bank account, they can get a $500 discount on closing costs.
# How to apply: The application process is 100% online. Because there are no in-person branches, customers must rely on email and phone correspondence with loan professionals. Pre-qualification can take just three minutes, and locking in your rate takes about 10 minutes.
# Speed: The average closing time is 36 days, approximately the industry average.
# Eligibility: Minimum credit score of 620. Minimum down payment of 3% for some conventional loans and 10% for jumbo loans.
# Types of loans: Ally offers conventional fixed-rate and adjustable-rate mortgages and jumbo loans. Ally does not offer FHA, VA, or USDA loans.
Loan types:
# Conventional: ✓
# FHA: ✗
# VA: ✗
# USDA: ✗
# Jumbo: ✓
# ARM: ✓
# Home equity loan: ✓
# Specialty: ✓
05. Northpointe Bank Mortgage Lenders
Best for Diverse Loan Options
Rating: 4.5
# Minimum credit score: 620
# Mortgage rates: Competitive with larger banks
# Minimum down payment: 0% to 5%
Editor’s opinion: Northpointe Bank has the best loan program options in our survey, as it is the only one to offer all loan types. If you’re looking for a specific type of loan, such as a reverse mortgage, Northpointe is the only bank that offers it. Other types of specialty loans available from Northpointe Bank include 0% down payment VA loans, jumbo loans with PMI-free options, and reverse mortgages.
Pros and Cron:
Pros:
# Wide variety of loan programs
# Fast pre-qualification process
# Offers FHA 203(k) renovation loans
# Reverse mortgage loans available
# 0% down payment for VA loans and some specialty loans
# Offers home equity loans
Cons:
# Some lenders have faster closing times
Lender details:
# General description: Northpointe Bank offers online and in-person mortgage services in all 50 states. Northpointe Bank has the broadest selection of loan options in our survey, including reverse mortgages. These are usually harder to find than other types of loans, and if you’re interested in this product, Northpointe is your best bet. With a minimum credit score of 620 and minimum down payment requirements of 0% to 5%, Northpointe’s loan requirements are flexible and in line with the other lenders in our survey. Its pre-qualification process can take as little as 15 minutes.
# How to apply: Borrowers can apply online or in person. Customer service by phone is available Monday through Friday from 8:00 a.m. to 5:00 p.m. ET. Pre-qualification can take as little as 15 minutes.
# Speed: The average closing time is 45 days, approximately the industry average. In some cases, closing may take as little as 30 days.
# Eligibility: Minimum credit score of 620. Minimum down payment of 0% for VA loans, 3% for some conventional loans, and 3.5% for FHA loans (Northpointe Bank does not publish its down payment requirements for other types of loans).
# Types of loans: Northpointe Bank offers conventional, FHA, VA, USDA, and jumbo loans, including specialty loans, renovation loans, home equity loans, and reverse mortgages.
Loan types:
# Conventional: ✓
# FHA: ✓
# VA: ✓
# USDA: ✓
# Jumbo: ✓
# ARM: ✓
# Home equity loan: ✓
# Specialty: ✓
06. New American Funding Mortgage Lenders
Best for Low Credit Scores
Rating: 4.5
# Minimum credit score: 580
# Mortgage rates: Competitive with larger banks
# Minimum down payment: 3% to 5%
Editor’s opinion: New American Funding has the lowest credit score requirement among our top picks, accepting a minimum credit score of 580 for FHA loans. Additionally, New American Funding works to increase homeownership opportunities for underserved communities through its Latino and Black Lending initiatives. As part of these initiatives, the lender commits to providing community education and hiring staff who reflect the diversity of the communities they serve.
Pros and Cron:
Pros:
# Accepts low minimum credit score of 580 for FHA loans
# Offers loan options for borrowers with no credit score
# Physical locations in 32 states
# Fast pre-qualification process
# Low down payment requirements
# Offers renovation loans
Cons:
# Some lenders have faster closing times
Lender details:
# General description: New American Funding offers online and in-person mortgage services in all 50 states, with physical locations in 32 states. The lender has a low minimum credit score requirement of 580 for FHA loans, making it a good choice for borrowers with lower credit scores. New American Funding also works to increase homeownership opportunities for underserved communities through its Latino and Black Lending initiatives. These initiatives include community education and hiring staff who reflect the diversity of the communities they serve.
# How to apply: Borrowers can apply online or in person. Customer service by phone is available Monday through Friday from 8:00 a.m. to 5:00 p.m. ET. Pre-qualification can take as little as 15 minutes.
# Speed: The average closing time is 45 days, approximately the industry average. In some cases, closing may take as little as 30 days.
# Eligibility: Minimum credit score of 580 for FHA loans. Minimum down payment of 3% for some conventional loans and 3.5% for FHA loans.
# Types of loans: New American Funding offers conventional, FHA, VA, USDA, and jumbo loans, including renovation loans and specialty loans for low # and moderate-income borrowers.
Loan types:
# Conventional: ✓
# FHA: ✓
# VA: ✓
# USDA: ✓
# Jumbo: ✓
# ARM: ✓
# Home equity loan: ✓
# Specialty: ✓
07. Veterans United Home Loans Mortgage Lenders
Best for VA Loans
Rating: 4.5
# Minimum credit score: 620
# Mortgage rates: Competitive with larger banks
# Minimum down payment: 0%
Editor’s opinion: Veterans United Home Loans is our top pick for VA loans. The lender is the largest VA purchase lender in the United States, according to data from the Department of Veterans Affairs. Veterans United specializes in VA loans and offers a wide range of resources for military borrowers, including personalized loan advice and assistance with the VA home loan process.
Pros and Cron:
Pros:
# Specializes in VA loans
# Offers a wide range of resources for military borrowers
# Fast pre-qualification process
# 0% down payment for VA loans
Cons:
# Does not offer FHA, USDA, or conventional loans
Lender details:
# General description: Veterans United Home Loans specializes in VA loans and offers online and in-person mortgage services in all 50 states. The lender is the largest VA purchase lender in the United States, according to data from the Department of Veterans Affairs. Veterans United offers a wide range of resources for military borrowers, including personalized loan advice and assistance with the VA home loan process.
# How to apply: Borrowers can apply online or in person. Customer service by phone is available 24/7. Pre-qualification can take as little as 15 minutes.
# Speed: The average closing time is 45 days, approximately the industry average. In some cases, closing may take as little as 30 days.
# Eligibility: Minimum credit score of 620 for VA loans. Minimum down payment of 0% for VA loans.
# Types of loans: Veterans United offers VA loans. The lender does not offer FHA, USDA, or conventional loans.
Loan types:
# Conventional: ✗
# FHA: ✗
# VA: ✓
# USDA: ✗
# Jumbo: ✗
# ARM: ✗
# Home equity loan: ✗
# Specialty: ✗
08. Flagstar Bank Mortgage Lenders
Best for Jumbo Loans
Rating: 4.5
# Minimum credit score: 620
# Mortgage rates: Competitive with larger banks
# Minimum down payment: 10%
Editor’s opinion: Flagstar Bank is our top pick for jumbo loans. The lender offers competitive interest rates and flexible loan terms for jumbo loans, making it a good choice for borrowers who need a larger loan amount. Flagstar Bank also offers a wide range of mortgage products, including conventional, FHA, VA, and USDA loans.
Pros and Cron:
Pros:
# Specializes in jumbo loans
# Offers competitive interest rates
# Flexible loan terms for jumbo loans
# Offers a wide range of mortgage products
Cons:
# Some lenders have
Lender details:
# General description: Flagstar Bank offers online and in-person mortgage services in all 50 states. The lender specializes in jumbo loans and offers competitive interest rates and flexible loan terms for these types of loans. Flagstar Bank also offers a wide range of mortgage products, including conventional, FHA, VA, and USDA loans.
# How to apply: Borrowers can apply online or in person. Customer service by phone is available Monday through Friday from 8:00 a.m. to 5:00 p.m. ET. Pre-qualification can take as little as 15 minutes.
# Speed: The average closing time is 45 days, approximately the industry average. In some cases, closing may take as little as 30 days.
# Eligibility: Minimum credit score of 620. Minimum down payment of 10% for jumbo loans. Minimum down payment of 3% for some conventional loans, 3.5% for FHA loans, and 0% for VA loans.
# Types of loans: Flagstar Bank offers conventional, FHA, VA, USDA, and jumbo loans, including specialty loans, renovation loans, and home equity loans.
Loan types:
# Conventional: ✓
# FHA: ✓
# VA: ✓
# USDA: ✓
# Jumbo: ✓
# ARM: ✓
# Home equity loan: ✓
# Specialty: ✓
What is an Online Mortgage?
An online mortgage is a loan obtained through online-only lenders or lenders that primarily focus on digital services. These lenders typically don’t offer traditional banking services like checking or savings accounts but specialize in providing loans, leading to faster approval times and streamlined application processes.
Pros and Cons of Online Mortgage Lenders
Advantages:
- Potential Savings: Lower overhead costs can translate to lower interest rates and fewer fees.
- More Options: Access to various loan types and the ability to choose lenders from across the country.
- Specialization: Focus on mortgages allows for a more efficient and specialized service.
Disadvantages:
- No Physical Branches: Lack of in-person support may be inconvenient for some borrowers.
- No Relationship Discounts: Online lenders typically don’t offer discounts for existing banking relationships.
- Advertised Rates May Vary: Not all borrowers qualify for the lowest advertised rates, especially those with less-than-excellent credit scores or higher DTI ratios.
Current Online Mortgage Rates
- 30-Year Fixed Mortgage: 7.12% (down from 7.24% the previous week)
- 5/1 Adjustable Rate Mortgage (ARM): 6.04% (up from 6.01% the previous week)
Rates advertised by online lenders are based on assumptions about the borrower’s credit score, loan amount, DTI ratio, and location. To get the most accurate rate, apply to multiple lenders and compare loan estimates.
How Does an Online Mortgage Work?
The online mortgage process is similar to applying through a traditional bank, with some variations depending on the lender. Generally, the steps are as follows:
- Complete an Online Pre-Approval Application: Submit necessary identification and financial documents.
- Receive and Review Loan Estimate: If acceptable, digitally sign the loan disclosures.
- Track Loan Progress: Use the lender’s digital app to monitor the process.
- Provide Additional Documents: As needed for underwriting.
- Arrange Home Inspection and Appraisal: The lender schedules an appraisal.
- Buy Homeowners Insurance: Provide proof to the lender.
- Close the Sale: Can be done online, a combination of online and in-person, or completely in-person.
How to Prepare for an Online Mortgage Application
- Review Credit History: Ensure accuracy and work on improving your credit score.
- Calculate Affordability: Use a housing affordability calculator and research different mortgage types.
- Gather Required Documents: Tax returns, pay stubs, asset and liability statements, etc.
- Search for Online Lenders: Compare reviews and offers from various lenders.
- Submit Mortgage Application: Apply to your chosen lender.
Getting Pre-Approved for an Online Mortgage
Pre-approval with an online lender can be quick if you are organized. You’ll need to provide identifying information, authorize a hard credit check, and submit supporting documents, such as income statements, tax returns, W-2 forms, proof of assets, job history, and monthly income and expenses.
Information Needed for Pre-Approval
- Income Statements and Tax Returns: Two years’ worth.
- Proof of Assets: Bank, investment, and retirement account statements.
- Job History and Monthly Income: Include base salary, bonuses, rental income, etc.
- Monthly Expenses and Debts: Revolving credit charges, loans, alimony, etc.
- Disclosure of Judgments: Liens, delinquencies, bankruptcies, foreclosures.
- Gift Letter: If a family member is financing your down payment.
- Divorce Papers: If applicable.
Pre-approval letters are typically valid for 30 to 60 days. If your pre-approval expires, you can update and resubmit documents for a new pre-approval letter.
