Best Mortgage Lenders of May 2025
Before buying a home, tapping equity or refinancing a mortgage, shop around to find some of the best mortgage lenders for your circumstances.
Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
When you buy a home or tap into home equity, it's a big financial decision, so it makes sense to find the best mortgage lender you can. To do that, shop for offers from at least three lenders.
Compare mortgage rates and other loan elements such as fees, terms, time to close, the availability of online application and loan tracking, and customer service offerings. Taking the time to make an informed decision can save you thousands of dollars over the life of your loan.
To help you choose a mortgage lender, NerdWallet’s editorial team has picked some of the best out there in a variety of categories to help you find the home loan that's right for you.
Here are more of our picks for best mortgage lenders.
For homeowners who want to tap into home equity:
For borrowers who have credit challenges:
For borrowers who want to refinance:
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.
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.
Our 2025 Best-Of Award Winner
NMLS#3030
Best Mortgage Lenders of May 2025
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
 Pennymac: NMLS#35953 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
620 | 3% | |||
620 | 3% | |||
 FourLeaf Federal Credit Union: NMLS#449104 See Offers at FourLeaf Federal Credit Union | 670 | N/A | See Offers at FourLeaf Federal Credit Union | |
 Freedom Mortgage: NMLS#2767 Compare More Lenders on NerdWallet | 550 | 3.5% | Compare More Lenders on NerdWallet |
Explore all of our lender picks by category
- Why we like itPennymac, known for its government loans, stands out for a transparent digital experience. Interest rates tend to be low, but origination fees may be a bit high.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 home equity lines of credit or renovation loans.
- Why we like itNBKC has a user-friendly website and low average rates, but the mobile app is not aimed at mortgage borrowers and browsing customized mortgage rates requires supplying your name and contact information.Pros
- Mortgage rates are on the low side compared to other lenders, according to the latest federal data.
- VA loans represent more than a quarter of purchase volume, a larger share than many lenders NerdWallet reviews.
- Offers a variety of loan types for purchase and refinance, including fixed- and adjustable-rate loans and government options
ConsRead full review- HELOCs and no-down-payment loans are available only in the Kansas City metro area.
- Mobile app focuses on online banking, not mortgages.
- You’ll need to share contact information to see customized mortgage rates.
- Why we like itRate boasts a streamlined application process, with full underwriting in as little as one business day, though average fees are higher than many competitors’.Pros
- Fully underwritten mortgage approval in as little as one day for qualified borrowers.
- Generous selection of loans, including government-backed, interest-only, jumbo and renovation.
- Advertises a HELOC that can be funded in as few as five business days.
ConsRead full review- Origination fees are on the high side, according to the latest federal data.
- HELOC requires immediate, full withdrawal of funds.
- Why we like itFourLeaf HELOC borrowers don’t pay closing costs (as long as the line is open for more than three years) and can get an introductory rate below the prime rate.Pros
- No closing costs
- Easy-to-join credit union.
- Fixed introductory rate is below the prime rate.
ConsRead full review- Must pay back closing costs if the line is open for three years or less.
- 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 itFlagstar Bank stands out for its range of accessible loans and programs, including loans with flexible requirements and down payment grant options. Its mortgage operations were acquired by Mr. Cooper in 2024.Pros
- Conventional loan terms extend to 40 years, which is unusually flexible.
- Offers options for high-balance mortgages.
- Offers specialized mortgages for professionals, such as doctors and lawyers, starting their careers.
- Reported average time to close (20-30 days) is faster than industry standard.
ConsRead full review- The lender’s mobile app is focused on banking, not mortgages.
- Conventional fixed-rate mortgages require a 5% minimum down payment, higher than some competitors.
- Why we like itVeterans United is the largest VA loan originator in the country by far, according to the latest federal data.Pros
- Specializes in working with military borrowers.
- Offers VA refinancing.
- Sample interest rates are posted online.
ConsRead full review- Interest rates are on the higher end compared to other VA lenders.
- Does not offer VA renovation loans.
- Why we like itNavy Federal Credit Union stands out for having exceptionally low VA interest rates and fees.Pros
- Best-scoring VA lender for interest rates and fees.
- Offers VA refinancing.
- Specializes in working with military borrowers.
ConsRead full review- Does not offer VA renovation loans.
- Why we like itGood for: low- to moderate-income buyers who qualify for down payment or closing cost assistance programs and homeowners interested in a home equity line of credit.Pros
- Offers down payment and closing cost assistance programs.
- Existing customers who meet certain qualifications can receive a discount on mortgage lender origination fees and HELOC interest rates.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
ConsRead full review- Doesn't offer renovation or construction-to-permanent mortgage loans.
- Must enroll in online banking to access Home Loan Navigator.
- Fined $12 million for reporting inaccurate mortgage applicant info to the federal government.
- Why we like itGood for: eligible borrowers who are open to joining a credit union and want a conventional mortgage from an online lender.Pros
- Borrowers can apply entirely online. The lender is also very transparent about what borrowers can expect from the process, including nontraditional customers.
- Borrowers do not need to become members of the credit union until they’ve reached the closing process, meaning that interested home buyers can apply and get rate offers without committing to membership.
- Offers customized rate quotes, including a detailed breakdown of estimated closing costs.
ConsRead full review- Does not offer VA, FHA or USDA loans.
- Membership is contingent on belonging to or joining a partner organization, or living in an eligible Chicago-area community.
- Why we like itPNC does a significant amount of business in jumbo loans and will finance a larger loan amount than many other lenders we review, but access to customer service requires supplying personal information.Pros
- Average jumbo origination fees are on the low side, according to the latest federal data.
- Jumbo loans made up almost 20% of purchase originations in 2023.
- Jumbo financing available for up to $5M.
ConsRead full review- Getting customer service over the phone requires sharing personal data if you don't already have an account.
- In-person service is not available in every state.
- Online rate quotes are only available for loans up to $2.5M.
How does a mortgage work?
A mortgage is a loan to purchase a home. The loan is repaid with interest in monthly payments over a certain number of years, such as 15, 20 or 30. If the mortgage isn't repaid, the borrower may lose the home in a multistage process known as foreclosure.
Banks, credit unions and other lenders offer mortgages. To apply, fill out an application and provide documentation about your finances. Lenders consider your income, debts and credit score to decide whether you qualify and the terms to offer.
» MORE: What is a mortgage?
Types of mortgages
There are a variety of mortgages and home loan programs. Here are some of your choices.
Fixed vs. adjustable rates
There are fixed-rate and adjustable-rate mortgages. The interest rate stays the same for the entire loan term of a fixed-rate mortgage. With an adjustable-rate mortgage, or ARM, the interest rate stays the same for a certain period, up to 10 years, and then adjusts at a specified interval, usually every six months.
15-, 20- and 30-year mortgages
The most popular mortgage term is 30 years, but 15- and 20-year mortgages are also available. Mortgage payments are spread out monthly through the term. At the end, the loan is paid off and the borrower owns the property free and clear.
Government-backed mortgages
These loans are backed by the federal government:
FHA mortgages are backed by the Federal Housing Administration. They allow down payments as low as 3.5% and have more lenient credit score requirements than other loan programs. Borrowers must pay for mortgage insurance.
USDA mortgages, backed by the U.S. Department of Agriculture and meant for rural home buyers, do not require a down payment, but borrowers must pay an upfront and annual guarantee fee, similar to mortgage insurance for FHA loans.
VA loans, backed by the U.S. Department of Veterans Affairs, are for veterans and active military members. VA mortgages require no down payment, but borrowers pay a one-time VA funding fee, which can be rolled into the loan.
Conventional loans
Conventional loans are mortgages that are not backed by the federal government. Some conventional loans have down payment requirements as low as 3% — but typically, borrowers must pay for private mortgage insurance if they put down less than 20%.
Conventional mortgages can be conforming or nonconforming. Conforming conventional mortgages fall within certain dollar amount limitations set every year by the Federal Housing Finance Agency. They also meet underwriting guidelines set by Fannie Mae and Freddie Mac, the government-sponsored entities that buy conforming loans.
Nonconforming loans don’t abide by those limits and guidelines. For example, jumbo loans are conventional mortgages that exceed the conforming loan limits. They also typically have stricter criteria for approval than other mortgages.
What’s the credit score needed for a home loan?
The credit score needed to buy a home depends on the type of loan and the lender. Most borrowers have scores in the high 600s to 700s. FHA loans generally have the most lenient credit score requirements.
How to compare mortgage rates
You can check current mortgage rates to see the average of what lenders are offering. Then get initial quotes online from some lenders based on your location, loan term, purchase price, down payment amount and other factors.
To get a firm quote, you'll need to apply for preapproval. During the preapproval process, the lender will check your credit and verify your financial information, such as income, assets and debts.
How to shop for a mortgage lender
The time to shop for a mortgage lender is before you start house hunting. Getting preapproved for a mortgage will show real estate agents and sellers that you're a serious buyer. It's smart to get preapproved and then get Loan Estimates from more than one lender. The Loan Estimate provides details about the loan terms, monthly payment and estimated closing costs. With those pieces of information, you can compare offers and choose the best deal.
Home equity loans and lines of credit
Homeowners who want to access their home equity without refinancing or selling can take out second mortgages. A home equity loan offers access to cash based on the value of the home for any expenses, although it is recommended homeowners use the funds for upgrades and repairs that add value to the home. This loan is paid out in a lump sum that is then repaid over a specific amount of time.
A home equity line of credit, or HELOC, also offers cash but works more like a credit card, allowing a homeowner to withdraw funds multiple times, up to the limit of their credit line, during a specific period and then pay it back.
Because both of these options use the home as collateral, a homeowner must understand that failure to make payments could result in loss of the home. As with purchase loans, it’s wise to compare offers from more than one home equity lender.
More from NerdWallet:
Last updated on February 4, 2025
Frequently asked questions
The answer depends on your needs. Lenders vary by the types of loans and services they offer as well as their credit score minimums and other requirements for borrowers. The best mortgage lender is the one that offers the products you need, has requirements you can meet and charges the lowest mortgage rates and fees.
Some lenders post mortgage rates on their websites and include tools to see how much your rate might be. But those are just estimates. You'll need to get preapproved for a mortgage to get a rate offer based on your credit score and other financial information.
Closing costs are the various fees and expenses you pay to finalize the mortgage. Closing costs typically run between about 2% and 5% of the loan amount. That means on a $300,000 home loan, you could pay $6,000 to $15,000 in closing costs.
Most state housing finance agencies offer first-time home buyer programs, which can include closing cost and down payment assistance. The assistance can come in the form of a grant, a forgivable loan or a deferred-payment loan. To qualify, you need to work with a lender approved by the state agency.
You should shop for a lender first and get preapproved for a mortgage before shopping for a house. A mortgage preapproval shows sellers and their real estate agents that you're a serious buyer. It also indicates how much you can borrow, which will help you determine how much home you can afford.
Methodology
NerdWallet's editorial team selected the mortgage lenders that appear on this page from our lists of best mortgage lenders for: first-time home buyers, jumbo loans, FHA loans, VA loans and home equity lines of credit. In each category, the highest-scoring lenders were selected. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.
NerdWallet's Best Mortgage Lenders of May 2025
- Pennymac: Best for online experience
- NBKC: Best for first-time buyers and VA loans
- Rate: Best for online experience
- FourLeaf Federal Credit Union: Best for HELOCs and jumbo loans
- Freedom Mortgage: Best for FHA loans
- Flagstar: Best for first-time buyers and jumbo loans
- Veterans United: Best for VA loans
- Navy Federal: Best for VA loans
- Bank of America: Best for jumbo loans
- Alliant: Best for jumbo loans
- PNC Bank: Best for first-time buyers, jumbo loans and HELOCs
