The best mortgage lenders cater to a wide variety of homeowners. Whether you have excellent credit, limited down payment funds, or are a first-time homebuyer, there’s a mortgage option tailored for you. With numerous lenders offering various products, choosing the right mortgage can be challenging. To simplify your decision-making, we’ve analyzed the top mortgage lenders in the USA for 2024.
Best on a Budget: Ally
Interest Rates: Below national average
DTI Ratio: Up to 50%
What You Should Know:
Ally offers traditional fixed-rate and adjustable-rate mortgages, as well as jumbo loans. One of its key advantages is the absence of lender fees, which include application, origination, processing, and underwriting fees. For first-time homebuyers, Ally offers the Fannie Mae HomeReady Mortgage program, which may require only a 3% down payment. Additionally, an Ally jumbo loan may require only a 10% down payment.
Pros:
- No lender fees.
- HomeReady loan requires only a 3% down payment.
- Quick preapproval process.
Cons:
- No FHA, VA, or USDA loans.
- Online-only service.
- No home equity loan products.
More Details:
- Preapproval Time: Within a few minutes.
- Time to Close: A few weeks to a few months.
Best for FHA Loans: Better
Interest Rates: Below national average
DTI Ratio: Up to 50%
What You Should Know:
Better minimizes your home loan APR by not charging an origination fee, which typically ranges from 0.5% to 1% of the loan value. They also offer a real estate agent service that could save you up to $2,000 on closing costs. With a minimum down payment of 3.5% and a credit score requirement of 580, Better is an excellent choice for FHA loans. They also offer conventional, jumbo, and VA home purchase loans.
Pros:
- No origination fees.
- Variety of loan options, including FHA and VA.
- Live chat and phone support.
Cons:
- Online-only service.
- No USDA loans.
- Real estate discounts not available in all states.
More Details:
- Preapproval Time: As little as 3 minutes.
- Time to Close: Typically 30 to 45 days.
Best for Closing Cost Assistance: Bank of America
Interest Rates: Below national average
DTI Ratio: No maximum
What You Should Know:
Bank of America offers a variety of fixed-rate, low-down-payment, and government-backed home loans. They provide specific programs for medical professionals and offer grants to reduce a borrower’s down payment and closing costs. Bank of America evaluates several borrower factors, including ability to pay, banking relationships, and current home equity, rather than just credit score and DTI ratio.
Pros:
- Variety of loan options.
- Down payment and closing cost assistance.
- Flexible borrower requirements.
Cons:
- No USDA loans.
- FHA and VA refinance loans are only available to existing customers.
- Preapproval can take up to 10 days.
More Details:
- Preapproval Time: Up to 10 days.
- Time to Close: Typically 4 to 6 weeks.
Best for Low Origination Fees: USAA
Interest Rates: Below national average
DTI Ratio: Up to 50%
What You Should Know:
USAA doesn’t charge origination fees for VA-backed purchase or refinance loans. For conventional loans, the fee is capped at 1% of the loan amount ($1,295 maximum fee). However, membership is limited to U.S. military members, veterans, precommissioned officers, spouses, and children. USAA specializes in VA home loans but also offers conventional loans with as little as 3% down.
Pros:
- No origination fee on VA-backed loans.
- First-time homebuyer loans available.
- Specializes in VA home loans.
Cons:
- No home equity loans or HELOCs.
- Strict membership requirements.
- Online or phone application only.
More Details:
- Preapproval Time: Within a few minutes.
- Time to Close: 30 to 45 days.
Best for VA Loans: Veterans United
Interest Rates: Below national average
DTI Ratio: Does not disclose
What You Should Know:
Veterans United is one of the largest VA lenders by volume, specializing in VA loans. They offer 0% down payment options for eligible borrowers, and most loans close within 40 to 50 days. Veterans United provides online applications in all 50 states, physical branches in approximately 15 states, and 24/7 phone-based support. They also offer free credit consulting services to help improve your credit score.
Pros:
- Specializes in VA home loans.
- Can apply online or in person.
- Free credit consulting.
Cons:
- Limited loan options for non-military borrowers.
- Lender fees apply.
- Physical branches in select states only.
More Details:
- Preapproval Time: Within minutes.
- Time to Close: 40 to 50 days.
Best for Custom Mortgages: New American Funding
Interest Rates: Below national average
DTI Ratio: Up to 45%
What You Should Know:
New American Funding offers a variety of specialty loan programs, including the NAF Cash program, which helps eligible buyers submit cash offers in competitive housing markets. They also provide the I CAN mortgage, allowing borrowers to choose a loan term in one-year increments between eight and 30 years. Their product range includes conventional, FHA, VA, USDA, jumbo, and HELOC loan options.
Pros:
- Numerous loan options.
- Online and local applications.
- On-time closing guarantee.
Cons:
- Must speak with an agent to prequalify.
- Doesn’t disclose lender fees online.
- No home equity loans.
More Details:
- Preapproval Time: 24 to 48 hours.
- Time to Close: 14 to 30 days.
Best for Discounts: Chase
Interest Rates: Below national average
DTI Ratio: Up to 43%
What You Should Know:
Chase offers relationship discounts up to 0.50% based on your Chase banking and J.P. Morgan investment balances. Additionally, they provide a Homebuyer Grant of up to $5,000 in select areas. Chase allows applications online or at local branches and offers a closing guarantee where if they don’t close on time, you get $5,000.
Pros:
- Online or in-person applications.
- Relationship rate discounts.
- Homebuyer grants.
Cons:
- Best discounts require high deposit balances.
- No USDA loans.
- Some loans have strict requirements.
More Details:
- Preapproval Time: Not disclosed.
- Time to Close: Within 3 weeks (or $5,000 through the closing guarantee).
Best for Quick Closings: SoFi
Interest Rates: Below national average
DTI Ratio: Up to 50%
What You Should Know:
SoFi aims to close many home loan applications within 30 days, offering a $5,000 credit towards closing costs if delays are lender-responsible. They provide various purchase loan options, including FHA and VA loans with low down payments, and allow access to up to 90% of home equity with a HELOC. SoFi also offers fee-free banking accounts and financial planning services.
Pros:
- Conventional, jumbo, FHA, and VA loans.
- $5,000 on-time closing guarantee.
- Dedicated mortgage loan officers.
Cons:
- Lender fees apply.
- No USDA loans.
- Online-only service.
More Details:
- Preapproval Time: Personalized rates within minutes.
- Time to Close: Usually within 30 days.
Best for Military: Navy Federal Credit Union
Interest Rates: Below national average
DTI Ratio: Does not disclose
What You Should Know:
Navy Federal Credit Union offers several home loan programs for eligible service members, veterans, and their spouses that don’t require a down payment. They provide VA loans, Military Choice loans for those who have exhausted VA benefits, and Homebuyers Choice loans that don’t require PMI. They offer online and local branch access for applications.
Pros:
- Military-friendly loan programs.
- 0% down payment loans.
- Online and local access.
Cons:
- Strict membership eligibility.
- No FHA or USDA loans.
- No first-time homebuyer program.
More Details:
- Preapproval Time: Can be instant (longer in some cases).
- Time to Close: Up to 30 days for purchase loans, up to 45 days for refinancing.
Best for Thin Credit: Wells Fargo
Interest Rates: Below national average
DTI Ratio: Does not disclose
What You Should Know:
Wells Fargo offers flexible credit and financial requirements through their Dream. Plan. Home. closing cost credit, worth up to $5,000 for applicants with an income at or below 80% of the area’s median income. Existing customers can benefit from exclusive real estate tools to help search and track property listings. Wells Fargo offers various purchase, refinance, and construction loans.
Pros:
- Flexible credit requirements.
- Down payment assistance programs.
- Online or in-branch applications.
Cons:
- No home equity loans or HELOCs.
- Must inquire about lender fees.
- Home search tools for current customers only.
More Details:
- Preapproval Time: Initial prequalification in as little as three minutes.
- Time to Close: 30 to 90 days.
Comparison Table
| Lender | Minimum Rate | Max DTI Ratio | Time to Close |
|---|---|---|---|
| Ally | Below average | 50% | Few weeks to a few months |
| Better | Below average | 50% | 30 to 45 days |
| Bank of America | Below average | No maximum | 4 to 6 weeks |
| USAA | Below average | Up to 50% | 30 to 45 days |
| Veterans United | Below average | Does not disclose | 40 to 50 days |
| New American Funding | Below average | Up to 45% | 14 to 30 days |
| Chase | Below average | 43% | 3 weeks |
| SoFi | Below average | Up to 50% | Usually within 30 days |
| Navy Federal Credit Union | Below average | Does not disclose | Up to 30 days (purchase loans) |
| Wells Fargo | Below average | Does not disclose | 30 to 90 days |
Choosing the right mortgage lender involves considering various factors such as interest rates, DTI ratios, loan types, preapproval times, and additional perks. Here’s a recap of the key points for each lender:
- Ally: Ideal for those on a budget with no lender fees and low down payment options.
- Better: Excellent for FHA loans with no origination fees and quick preapproval.
- Bank of America: Offers extensive closing cost assistance and flexible borrower requirements.
- USAA: Best for military members with no origination fees on VA loans and low membership fees.
- Veterans United: Specializes in VA loans with comprehensive support and credit consulting.
- New American Funding: Offers custom mortgage options with a quick closing guarantee.
- Chase: Provides relationship rate discounts and homebuyer grants.
- SoFi: Ideal for quick closings with a $5,000 on-time closing guarantee.
- Navy Federal Credit Union: Military-friendly loans with 0% down payment options.
- Wells Fargo: Suitable for those with thin credit needing down payment assistance and flexible loan options.
By thoroughly evaluating the features, rates, and benefits of these top mortgage lenders, you can make an informed decision to select the best mortgage for your needs in 2024.
