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.
Here’s an overview of some of the top mortgage lenders, offering a variety of products, competitive rates, and flexible options to meet your needs. Whether you’re a first-time homebuyer or refinancing, these lenders stand out in the industry for their customer service, competitive rates, and diverse loan options.
01. Flagstar Bank Mortgage
- Rating: 5.0
- Minimum Credit Score: 620
- Mortgage Rates: Below the national average
- Minimum Down Payment: 0% to 3.5%
Overview: Flagstar Bank stands out with a wide range of mortgage options, including conventional, jumbo, construction, and government-backed loans. The bank offers attractive discount programs for employees of affiliated companies, first responders, veterans, and returning customers. Flagstar also accepts alternative credit data, such as rent and utility payments, for certain mortgage products.
Pros:
- Available online and in select branches across nine states
- Convenient customer service hours
- Acceptance of alternative credit data
- Low minimum credit score mortgages
Cons:
- Branches are not available in all states
Best For: Flagstar is ideal for borrowers looking for alternative credit data options and those who live in states with Flagstar branches.
How to Apply: Apply online or at a branch in Indiana, Michigan, Ohio, or Wisconsin. Pre-approval takes less than three days.
Speed: The average closing time is 35 days, faster than the industry average.
Loan Types: Conventional, jumbo, FHA, VA, USDA, construction, renovation, specialty loans, and home equity loans (limited areas).
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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%
Overview: As one of the largest banks in the U.S., Bank of America provides a seamless online and in-person mortgage experience. They offer a Digital Mortgage Experience with online applications, electronic signatures, and rate locking. However, they do not offer USDA loans.
Pros:
- No PMI options and low down payments
- Acceptance of alternative credit information
- Several mortgage discount programs are available
Cons:
- Does not offer USDA loans
- Pre-approval may take up to 10 business days
Best For: Ideal for borrowers who prefer a robust online process and access to physical branches in 38 states and DC.
How to Apply: Apply online or in person. Pre-approval takes 1-10 business days.
Speed: Closing takes between 30-45 days, in line with the industry average.
Loan Types: Conventional, jumbo, FHA, VA, and Affordable Solution Mortgage (no PMI).
03. Chase Mortgage
- Rating: 4.6
- Minimum Credit Score: 620
- Mortgage Rates: Below the national average
- Minimum Down Payment: 0% to 15%
Overview: Chase is a major mortgage lender offering competitive rates and a variety of loan options. Existing customers can receive discounts on rates and fees, and Chase guarantees the closing of conventional loans in 21 days or less.
Pros:
- Discounts for existing Chase customers
- Low down payment options
- Flexible credit and income requirements for specific loans
- Closing guarantee with compensation if the date is missed
Cons:
- Discounts are only available to existing customers
- Does not offer USDA loans
- Limited availability in Hawaii and Alaska
Best For: Existing Chase customers seeking relationship discounts and fast, reliable service.
How to Apply: Apply online. Pre-approval may take up to two days.
Speed: Chase offers a closing guarantee within 21 calendar days for conventional loans.
Loan Types: Conventional, jumbo, FHA, VA, and low down payment loans.
04. Guaranteed Rate Mortgage
- Rating: 4.6
- Minimum Credit Score: 620
- Mortgage Rates: Below the national average
- Minimum Down Payment: 0% to 3.5%
Overview: Guaranteed Rate offers fast closing times, with the potential for same-day approval and closings in as little as 10 days. They operate nationwide and offer a variety of mortgage options, including interest-only loans.
Pros:
- Operates in all 50 states
- Offers no lender fees for VA loans
- Fast closing times, with some options for same-day approval
Cons:
- Cannot guarantee same-day closing or approval
- Other lenders may have faster pre-approval times
Best For: Borrowers who prefer an online application process and need to close quickly.
How to Apply: Apply online or at a Guaranteed Rate branch. Customer service is available weekdays.
Speed: Closing can take as little as 10 days with the same-day mortgage option.
Loan Types: Fixed and adjustable rate mortgages, including conventional, jumbo, FHA, VA, and interest-only loans.
05. PenFed Credit Union Mortgage
- Rating: 4.4
- Minimum Credit Score: 650
- Mortgage Rates: Below the national average
- Minimum Down Payment: 0% to 3%
Editor’s Opinion:
PenFed Credit Union is known for its low lender fees, particularly for VA loans, offering 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
- Does not consider alternative data
Who is it Best For?
Borrowers seeking a VA loan and wanting to save on lender fees.
Lender Details:
- How to Apply: Apply online or at branches in Maryland, Virginia, and Washington, DC. Customer service 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, 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. Does not offer FHA or USDA loans.
06. Rocket Mortgage
- Rating: 4.4
- Minimum Credit Score: 580
- Mortgage Rates: Higher than the national average
- Minimum Down Payment: 0% to 3.5%
Editor’s Opinion:
Rocket Mortgage stands out as an online lender with a broad range of home purchase and refinance loans, offering flexible products like YOURgage, which allows borrowers to select loan terms from 8 to 29 years.
What We Like:
- Flexible term mortgages available, from 8 to 29 years
- Completely digital mortgage experience
- Extensive customer service hours
What We Don’t Like:
- Higher-than-average interest rates
- Longer average closing time (36 days for purchase loans)
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
- 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: Apply online or through the Rocket Mortgage app. Pre-approval can be completed in 8 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.
- Speed: Average closing time of 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 (e.g., rent and utility payments).
- Types of Loans: Fixed and adjustable-rate mortgages, conventional, jumbo, FHA, and VA loans. Includes YOURgage for custom terms.
07. New American Funding Mortgage
- Rating: 4.4
- Minimum Credit Score: 500
- Mortgage Rates: Below the national average
- Minimum Down Payment: 0% to 10%
Editor’s Opinion:
New American Funding is a major direct mortgage lender offering fast closing times and customizable terms, including the I CAN mortgage for unique needs.
What We Like:
- Low credit score requirements, starting at 500
- Wide range of loan options, including customizable terms and non-QM loans
- Strong focus on helping Black and Latino borrowers
What We Don’t Like:
- Fees are not disclosed online, requiring you to inquire with the loan officer
Who Is It Best For?
Borrowers with less-than-perfect credit profiles.
Pros and Cons:
Pros:
- Fast pre-approval times
- Variety of loan options
- Commitment to helping underserved communities
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 (varies by loan type)
- Minimum down payment: 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, USDA, and the I CAN mortgage. Also offers adjustable-rate mortgages and reverse mortgages.
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%
Editor’s Opinion:
PNC offers a wide variety of mortgage products, including specialized loans for medical professionals and low- to moderate-income borrowers.
What We Like:
- Specialized loans for medical professionals (interns, residents, etc.)
- Use of gift funds for down payments
- No PMI on community loan
What We Don’t Like:
- Does not offer renovation loans or home equity loans in some states
Who Is It Best For?
Medical professionals starting their careers and low- to moderate-income borrowers.
Pros and Cons:
Pros:
- Low minimum credit score requirements
- Fast pre-approval times
- Offers specialized programs for medical professionals
Cons:
- Does not offer renovation loans
Lender Details:
- How to Apply: Apply online or in person at branches. Pre-approval can take 30 minutes to a day.
- Speed: Average closing time of 45 days, with some cases taking as little as 30 days.
- Eligibility:
- Minimum credit score of 620; 700 for jumbo loans
- 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.
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%
Editor’s Opinion:
Mr. Cooper offers competitive mortgage rates and a range of loan options.
Pros:
Interest rate discounts available
Cons:
- Specific cons not listed
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:
- Conventional, FHA, VA, USDA, Jumbo, ARM, Home Equity, Specialty Loans
10. Trust Mortgage
- Rating: 3.8
- Minimum Credit Score: 620
- Mortgage Rates: Higher than the national average
- Minimum Down Payment: 0% to 3.5%
Editor’s Opinion:
Truist offers a variety of mortgage products with a streamlined digital app experience.
Pros:
- Special loans available (medical and permanent construction loans)
- Same-day pre-approval available
- Over 2,500 branches
Cons:
- Higher advertised mortgage rates
- Not available in all states
- Does not offer USDA loans
Lender Details:
- How to Apply: Apply online or iin personat one of 2,500+ branches. Pre-approval is available on the same day.
- Speed: Closing can take up to 30 days.
- Eligibility:
- Minimum credit score: 620
- Minimum down payment: 0% for VA and USDA loans, 3% for some conventional loans, and 3.5% for FHA loans.
- Types of Loans:
- Conventional, FHA, VA, Jumbo, ARM, Home Equity, Medical loans, Construction loans
11. Ally Mortgage
- Rating: 3.6
- Minimum Credit Score: 620
- Mortgage Rates: Higher than the national average
- Minimum Down Payment: 3% to 10%
Editor’s Opinion:
Ally Mortgage offers fast pre-approval and rate locking within minutes.
Pros:
- Quick pre-approval (within three minutes)
- Rate locking available quickly after pre-approval
- PMI-free loans for jumbo borrowers with 10% down
- HomeReady loans 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: 620
- Minimum down payment: 3% for some conventional programs and 10% for jumbo loans
- Types of Loans:
- Conventional, Jumbo, ARM, HomeReady Loans (No FHA, VA, USDA loans)
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These options differ in loan products, speed of approval, and eligibility requirements. Each has its unique features and drawbacks, so you can compare which works best based on your specific needs.
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.
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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.
