Best Lenders for FHA Loans in August 2023
FHA loans have down payment requirements as low as 3.5%. Compare some of the top FHA lenders to find the right fit for your needs.
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You might think all Federal Housing Administration-approved lenders are the same. But when you’re looking for an FHA loan, it’s smart to compare at least three lenders to find the best deal. Mortgage rates and fees vary among lenders, as do requirements for borrowers.
NerdWallet has picked some of the best FHA lenders in a variety of categories to help you get started.
» MORE: Compare FHA mortgage rates
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Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
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Best Lenders for FHA Loans in August 2023
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Lender | NerdWallet Rating | Min. credit score | Min. down payment | Learn more |
|---|---|---|---|---|
 Pennymac: NMLS#35953 | 580 | 3.5% | ||
 Rate: NMLS#2611 | 580 | 3.5% | ||
 Freedom Mortgage: NMLS#2767 | 550 | 3.5% | ||
 Wintrust Mortgage: NMLS#449042 | N/A | 3.5% | ||
 Wells Fargo: NMLS#399801 | 640 | 3.5% |
Explore all of our lender picks by category
- Why we like itPennymac, known for its government loans, stands out for a refreshingly transparent digital experience. Competitive perks and cash back ease the cost of borrowing, too.Pros
- Easy to personalize a quote and apply online.
- Can lock in a rate before you’re under contract, earlier than most lenders.
- Perks include a 1% interest rate buydown and “refinance later” cash bonus.
ConsRead full review- Origination fees are on the higher end, according to the latest federal data.
- Online chat is available only in the logged-in experience.
- No renovation loans.
- Why we like itRate boasts a streamlined application process, with full underwriting in as little as one business day.Pros
- Fully underwritten mortgage approval in as little as one day for qualified borrowers.
- Generous selection of mortgages, including renovation loans.
ConsRead full review- Doesn't offer customer service chat with a live agent.
- Why we like itFreedom offers a typical range of home loan options, but rates are not available on its website.Pros
- Offers conventional, FHA, VA, USDA and jumbo loans.
- Multiple customer service options, including brick-and-mortar branches, online message center and phone.
- Low average mortgage interest rates and origination fees, according to the latest federal data.
ConsRead full review- No mortgage rates displayed online.
- Does not offer home equity loans or lines of credit.
- Why we like itWintrust has a highly rated mobile app and also offers in-person service at local community banks.Pros
- Highly rated mobile app.
- Offers FHA renovation loans.
- Offers up to $6,000 in down payment assistance to borrowers in Illinois and Wisconsin.
ConsRead full review- Can’t customize sample rates online.
- No chatbot or live chat for customer service.
- Doesn't offer FHA streamline or cash-out refinance loans.
- Why we like itWhile Wells Fargo earns solid scores in our rankings, its consumer trust track record is rough. The lender focuses its mortgage lending on banking customers and borrowers in underserved communities.Pros
- Low average FHA interest rates compared to other lenders.
- Sample rates and details are shown for various loan products.
- Offers generous down payment and closing cost assistance programs for qualified borrowers.
ConsRead full review- Home loans business is broadly focused on existing bank customers.
- Scandals and government actions have damaged consumer trust in recent years.
- Why we like itGood for: veterans, active-duty service members and eligible reservists looking for VA loans.Pros
- Offers 24/7 customer service over the phone.
- Offers a free credit counseling service.
- Mortgage rates are on the low side, according to the latest federal data.
ConsRead full review- Doesn’t offer home equity loans or HELOCs.
- Veterans United has physical branch offices in only 17 states.
- Focus on VA loans, so may not be the strongest choice for those seeking other loan types.
- Why we like itRocket Mortgage, the largest mortgage lender by volume, offers a seamless digital experience and fast closings.Pros
- Reported average time to close is 15 days faster than industry average.
- FHA loans make up more than 20% of Rocket Mortgage’s total loan volume.
- Borrowers can apply via mobile app.
ConsRead full review- Origination fees are on the higher end, according to the latest federal data.
- No construction or renovation loans.
- Physical branches are only available in Detroit, Cleveland, and Phoenix.
- Why we like itPNC Bank has a variety of appealing mortgage options, including programs for first-time home buyers. It’s simple to browse rates and apply online.Pros
- Offers multiple low-down-payment loan options.
- Customizable mortgage rates are posted online.
ConsRead full review- In-person service is not available in every state.
- You’ll have to supply personal data or account info to get answers by phone.
- Why we like itNew American Funding offers a large menu of loan products, including FHA 203(k) loans, as well as programs like first-time home buyer assistance.Pros
- Offers a wide variety of purchase and refinance mortgages.
- Has unique buyer assistance programs.
ConsRead full review- Average origination fees are on the high side, according to the latest federal data.
- Personalized mortgage rates are not available on the website without providing contact information.
- Why we like itCommunity bank NBKC has a user-friendly website and low average rates.Pros
- Mortgage rates are on the low side compared to other lenders, according to the latest federal data.
- Offers a strong variety of loan types for purchase and refinance, including fixed- and adjustable-rate loans.
ConsRead full review- Mobile app focuses on online banking, not mortgages.
- You’ll need to share contact information to see customized mortgage rates.
- Why we like itGood for: borrowers seeking an online FHA lender with lower than average rates.Pros
- Has a robust digital experience and mobile app.
- FHA mortgage rates are lower than average, according to the latest federal data.
- Offers FHA streamline refinance loans.
ConsRead full review- Requires a call or email for personalized rates.
- FHA origination fees are on the higher end, according to the latest federal data.
- Why we like itCarrington Mortgage dedicates a large portion of its business to FHA loans and is experienced working with self-employed borrowers and those with heavy debt.Pros
- Considers borrowers with bad credit, foreclosure or bankruptcy.
- Accepts self-employed borrowers.
- FHA interest rates are on the low side, according to the latest federal data.
ConsRead full review- FHA origination fees are on the high side, according to the latest federal data.
- Doesn’t post interest rates online.
- No online chat for customer service.
- Why we like itGood for: tech-savvy borrowers who prefer an online experience.Pros
- Offers a program allowing qualifying buyers to make cash offers.
- Makes it easy to see customized mortgage rates.
- Average interest rates are on the low end compared to other lenders, according to the latest federal data.
ConsRead full review- Doesn’t offer USDA loans.
- VA loans are not available in every state.
- Doesn't offer home equity loans.
- Why we like itFourLeaf offers some specialty loans, like financing for co-ops and nonwarrantable condos, with the community-minded spirit of an easy-to-join credit union.Pros
- Low average FHA origination fees compared to other lenders.
- Specialty loans include financing for co-ops and nonwarrantable condos.
- Highly rated mobile app.
ConsRead full review- Doesn’t offer renovation or construction loans.
- Can’t get a preapproval online.
Qualifying for an FHA loan
To qualify for an FHA loan, you'll need a credit score of at least 580 for the lowest FHA down payment of 3.5% and a score of 500 with a 10% down payment. FHA loans allow a debt-to-income ratio of up to 43%, and in some cases there may be a bit more flexibility.
In addition to money for your down payment, you'll also need funds to cover FHA closing costs and an upfront mortgage insurance premium, which for FHA borrowers is 1.75% of the loan amount. Both the upfront mortgage insurance premium and the closing costs can be rolled into the total amount of the mortgage.
Bear in mind that these are the Federal Housing Administration's qualification guidelines; individual lenders can impose stricter rules. That's one reason it's worth comparing several lenders. You can start with the lenders we have here, but you can also browse the U.S. Department of Housing and Urban Development's searchable list of approved FHA lenders.
Are FHA loans only for first-time home buyers?
You do not need to be a first-time home buyer to use an FHA loan. Lower minimum credit score and down payment requirements make FHA loans attractive to first-time home buyers, but current homeowners are eligible, too.
Can you get an FHA loan if you have student loans?
You can get an FHA loan if you have student loan debt, as long as you meet FHA debt-to-income requirements. FHA student loan guidelines state that lenders must include all student loans when calculating a borrower's debt-to-income ratio. If your payments are currently deferred, your lender will consider your "monthly obligation" to be 0.5% of your total student loan balance.
More from NerdWallet
Last updated on August 1, 2023
Frequently asked questions
There are multiple reasons to refinance your mortgage. Saving money is a big one: Getting a lower rate brings down your monthly payments, while shortening the term means you'll pay less total interest. A mortgage refinance calculator can help you see how much you'll save and when you'll break even.
Not necessarily. Even though it might be easy to refinance with your current mortgage lender, it may not offer the best deal. Shop at least three mortgage refinance lenders and compare the interest rate and terms each lender offers.
Refinance rates are in constant flux and vary based on economic trends, like job growth and inflation. But the rate you're offered will also depend on your individual financial situation, and factors like your credit score and the loan-to-value ratio of your refinance. Get quotes from multiple lenders to find the best refinance rates.
Methodology
The star ratings on this page reflect each lender's performance in NerdWallet’s refinance category. We scored the category and chose lenders for this page using the following methodology:
NerdWallet reviewed nearly 60 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (lenders had to have at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
NerdWallet's Best Lenders for FHA Loans in August 2023
- Pennymac: Best for overall FHA loan experience
- Rate: Best for rate transparency
- Freedom Mortgage: Best for ease of application
- Wintrust Mortgage: Best for variety of loan types
- Wells Fargo: Best for first-time home buyers
- Veterans United: Best for low origination fees
- Rocket Mortgage, LLC: Best for digital convenience
- PNC Bank: Best for low origination fees
- New American Funding: Best for rate transparency
- NBKC: Best for low origination fees
- Mr. Cooper: Best for nontraditional credit histories
- Carrington: Best for nontraditional credit histories
- Better: Best for ease of application
- FourLeaf Federal Credit Union: Best for credit union lending
