Better has the right combination of features and perks, including no unnecessary fees, low mortgage rates, and a fast, 100% online application process. Better Mortgage does not charge lender fees such as those for origination, application, processing, and underwriting. As a result, Better states that 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 and a pre-approval in minutes. This can help buyers cut their costs while saving time. The lender also offers $150 off closing costs when applying through The Ascent site.
Min. Credit Score 580 FHA 620 Conventional 680 Jumbo
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. Down Payment 0% VA loans 3.5% FHA 3% Conventional loans, Affordable Loan Solution® mortgage, Freddie Mac Home Possible® mortgage 5% Other loans
On Rocket Mortgage/Quicken Loans' Secure Website.
Rocket Mortgage led the transition to a full digital experience and online-only applications. Its seamless process is one reason Rocket Mortgage is consistently ranked in the top two on J.D. Power's customer service rankings. Rocket Mortgage has a robust and high-quality app that makes it easy to use.
Min. Credit Score 580 FHA 620 other mortgage products
Min. Down Payment 0%-3.5% (FHA & VA loans) 3% (conventional loans)
The diverse set of loan products and terms and relationship discounts make it a top pick, particularly for first-time home buyers and people interested in FHA loans. The high customer satisfaction ratings are the cherry on top.
Min. Credit Score 580 FHA 620 other mortgage products
First-time home buyers will benefit from access to several low down payment loans and down payment assistance programs.
Min. Credit Score 580 FHA 620 other mortgage products
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. Down Payment 0% VA and USDA 3% conventional 3.5% FHA
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
Min. Down Payment 0% VA 3% Conventional 3.5% FHA
Many billion casino royal:first-time home buyers don't have excellent credit historie𝄹s, and many others don't have large down payments available. Some have served in the Armed Forces and can access VA loans, while others might be able to explore USDA financing if their homes are in certain rural areas.
With that in mind, here's a quick overview of the four major billion casino royal:mortgage types first-time home buyers can use.
The majority of purchase billion casino royal:mortgage loans in the United States are known as conventional loans. This is a broad term that refers to loans that aren't guaranteed by a government agency. The lack of a guarantee means that billion casino royal:conventional mortgages generally have stricter qualification requirements than the other loan types listed here. But they could still be excellent options for first-time buyers with strong billion casino royal:credit scores. There are several conv🤡entional mortgage programs for first-time buyers that allow for down payments as low as 3% of the purchase price.
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billion casino royal:FHA mortgage loans are guaranteed, or insured, by the Federal Housing Administration (FHA). Because of this guarantee, credit requirements are generally looser than oth🔜er types of mortgages, and down payments can be as low as 3.5%, even with a relatively low credit score. What's more, most closing costs can be rolled into the loan, further reducing your out-of-pocket cash requirement. While there are a few drawbacks to FHA loans, especially when it comes to costs, they can be a great way for buyers who don't have stellar qualifications to become homeowners.
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A VA loan is a mortgage that is backed by the U.S. De💙partment of Veterans Affairs, and these are available to certain military members, both past and present. VA loans have no down payment requirement, low interest rates, and flexible credit qualifications, and are generally designed to help qualified veterans purchase a property, so they are definitely worth looking into if you qualify.
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A billion casino royal:USDA loan is a mortgage that is guaranteed by the U.S. Department of Agricuꦰlture. To qualify, a home must be in an eligible rural area, and the borroweౠr's income must be below certain limits. If both borrower and property qualify, USDA loans don't require any down payment whatsoever.
It's also important to mention that in addition to these types of loans, many lenders have their own proprietary mortgage products, and some are specifically designed for first-time home buyers. For example, some lenders offer low-down-payment conventional loans with no mortgage insurance requirement. So it could also be a great idea to research the options offered by some of the best mortgage lenders as well as your local and regional financial institutions.Compare lenders: billion casino royal:Best USDA Mortgage Lenders
Before verifying any of your other qualifications, lenders will typically run a credit check. Virtually all mortgage lenders use the billion casino royal:FICO credit scoring model, and most will pull your scores from all three major credit bureaus and use the middle number for qualification purposes. Federal Housing Administration (or FHA) loans require a minimum 580 FICO® Score for a 3.5% down payment, while billion casino royal:conventional loans have a minimum of 620.
Unless you're using a VA or USDA loan to finance your home, you'll need a billion casino royal:down payment. FHA and conventional loans have low down payment options, and funds can usually come from a gift. But you'll need to document what funds you have for your down payment and where they came from, as well as how you plan to pay for anybillion casino royal: closing costs.
Simply put, lenders want to make sure you'll be able to afford your mortgage payments, so they'll look at your debt obligations as a percentage of your income, a metric known as your billion casino royal:debt-to-income ratio, or DTI ratio. Methods of calculating DTI and lending standards cꦡan vary, but a good rule of thumb is that your total monthly debt obligations (including your new mortgage payment) should be no more than 45% of your pre-tax income. However, there are exceptions, and borrowers have different costs of living to deal with, so if you feel you can comfortably afford to have a higher DTI ratio, don't be discouraged. In fact, FHA lenders will allow you to have a DTI as high as 57% in some cases!
Lenders want to know that not only can you afford your mortgage payments for now,♛ but that you'llꦫ also be able to keep paying your mortgage year after year. Most mortgage lenders want to see at least two years of steady employment in the same field (but not necessarily with the same employer). There are exceptions, however -- such as if you graduated from college less than two years ago.
Before you apply for a mortgage, it makes sense to ensure each of these are as good as possible. For example, taking some time to billion casino royal:raise your credit score and sav𓃲e a higher down payment could help you snag a better interest rate, which will save you money in the long run.
The first step in choosing the best mortgage lender for your first home purchase is to get a good bil🌠lion casino royal:understanding of how home loans w🌳ork. Then you'll need to narrow down a short list of a few (say, three or four) lenders with products and resources that meet your needs and that have strong customer service. Our best first-time mortgage lender list on this page is a good place to start, but it could also be a smart idea to check out your local and regional banks or credit unions so that you can billion casino royal:compare mortgage rates. If you're looking for a digital application process, be sure to check out our list of thebi🐻llion casino royal: best online mortgage lenders.
Once you have a short list, billion casino royal:apply for a mortgage with all of them to compare the specific loan terms and fees that you get offered. It won't billion casino royal:hurt your credit score to do this, as all mortgage-based credit inquiries that take place within a typical shopping period are counted as just a single inquiry. You'll see a range of interest rates, fees, and APRs from different lenders, and yo💞u'd be surprised at how much this can save or cost you over the life of a 30-year mortgage loan.
Lender | Best For | Next Steps |
---|---|---|
2024 Award Winner
Better
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4.5/5
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Best ForNo lender fees and online application |
Check Rates for Better
On Better's Secure Website. |
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5.0/5
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Best ForDiverse loan offerings and relationship discounts | |
2024 Award Winner
billion casino royal:Rocket Mortgage®
Rating image, 5.0 out of 5 stars.
5.0/5
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5.0/5
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= Best = Excellent = Good = Fair = Poor |
Best ForLoan options and online application |
Check Rates for Rocket Mortgage®
On Rocket Mortgage/Quicken Loans' Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
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5 stars equals Best.
4 stars equals Excellent.
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1 star equals Poor.
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= Best = Excellent = Good = Fair = Poor
Rating image, 4.5 out of 5 stars.
4.5/5
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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 home buyers | |
2024 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.
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= Best = Excellent = Good = Fair = Poor
Rating image, 4.5 out of 5 stars.
4.5/5
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5 stars equals Best.
4 stars equals Excellent.
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2 stars equals Fair.
1 star equals Poor.
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= Best = Excellent = Good = Fair = Poor |
Best ForNo mortgage insurance option | |
Rating image, 4.0 out of 5 stars.
4.0/5
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= Best = Excellent = Good = Fair = Poor
Rating image, 4.0 out of 5 stars.
4.0/5
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5 stars equals Best.
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1 star equals Poor.
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= Best = Excellent = Good = Fair = Poor |
Best ForNo income requirement offering | |
2024 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.
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= 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.
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2 stars equals Fair.
1 star equals Poor.
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= 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 offerings and home buyers building credit |
For most buyers, an FHA loan is ꦛthe easiest to get approved for. Borrowers with 10% down payments can get approved with credit scores as low as 500, and the down payment requirement drops to 3.5% for borrowers with FICO® Scores of 580 or higher. These are the lowest credit scoring requirements for the major types of mortgages. On the other hand, if you have a high credit score or have served in the Armed Forces, a conventional or VA loan can be just as "easy" to get.
Mortgage lenders we evaluated for consideration on this page include: billion casino royal:United Wholesale Mortgage, Alliant Credit Union Mortgage, Redfin, billion casino royal:Axos Bank Mortgage, billion casino royal:Fairway Independent Mortgage, billion casino royal:AmeriSave Mortgage Corpora༒tion, billion casino royal:Flagstar Bank Mortgage, billion casino royal:Guild Mortgage, billion casino royal:PNC Mortgage, billion casino royal:SoFi Mortgage, billion casino royal:Realtor.com, Homesnap, Trulia, Zillow, LoopNet, billion casino royal:Veterans United, billion casino royal:Veterans United, Alterra Home Loans, billion casino royal:Guaranteed Rate Mortgage, NASB Mortgage, billion casino royal:Mr. Cooper Mortgage, billion casino royal:Chase Mortgage, billion casino royal:Citi Mortgage, billion casino royal:The Loan Store, billion casino royal:Rocket Mortgage®, billion casino royal:Bank of America Mortgage, Churchill Mortgage, billion casino royal:USAA Bank Mortgage, billion casino royal:U.S. Bank Mortgage.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of billion casino royal:publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool bran🍰ds.