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Homebuyers have faced a number of ongoing challenges over the past few years, including mortgage interest rateshome supplies are scarce and high home prices. The combination of negative forces has priced many buyers out of the market and left the hope of homeownership in doubt.
Thankfully, the housing market is starting to turn a corner, with good news spreading to the sector. Inflation has been cooling, and The Federal Reserve is expected to start cutting rates this week. These developments could lead to better home loan rates.
If you’re in the market for a new mortgage loan, take the time to research the best mortgage lenders. Below, we have outlined the best options for top lenders that can benefit you, depending on your situation.
Start by seeing how low a mortgage interest rate you can secure here today.
Best mortgage lenders 2024
Here are six of the best mortgage lenders on the market today, divided into six categories:
Best overall: Veterans United Home Loans
Low rates are great, but find the best balance of competitive rates, the right terms, and speed pre-approval and exceptional customer service won the day. United Veterans Home Loans checks all the boxes and is our pick for the best mortgage lender. As the name suggests, Veterans United specializes Veterans Affairs (VA) loans. but also offers conventional loans – with down payments as low as 3% – and other government-backed mortgages including FHA and USDA mortgages. Veterans United has a rating of 4.8 (out of 5) on their website with nearly 400,000 customer reviews.
Learn more about United Veterans Home Loans here.
Best for first-time home buyers: PenFed Credit Union
PenFed Credit Union is a great choice for first-time buyers because it offers conventional loan rates as low as 5.5% and the option of down payment or no down payment, depending on your loan type. The credit union also offers a First Home Buyer Advantage mortgage with a 3% down payment option and no income limit.
Qualified borrowers can secure a conventional mortgage loan with a 3% down payment, an FHA loan with 3.5% down or a VA loan with no down payment. PenFed also offers jumbo loans, home equity line of credit and refinances.
If you are interested in a PenFed mortgage, you must be a member to qualify. Fortunately, credit unions are open to anyone who wants to join.
Best for good credit: US Bank
US Bank is a great bank that is available to borrowers nationwide. You may prefer this bank if you prefer to apply for a loan at a local branch. The bank also offers an online application process with shorter approval times. US Bank offers competitive rates to borrowers with a minimum credit score of 620, but higher scores may result in lower rates.
In 2023, US Bank launched its Access Home Loan program to increase homeownership opportunities for communities of color. This Special Purpose Credit Program (SPCP) provides eligible buyers with up to $12,500 in down payment assistance and a $5,000 lender credit.
Best for bad credit: New American Funding
New American Funding offers three government-backed mortgage programs: FHA, VA and USDA. The program provides an affordable mortgage option for homebuyers who might otherwise have trouble getting a conventional loan.
With a 10% down payment, you may qualify for an FHA loan with a minimum credit score of 500. With a smaller down payment of just 3.5%, you can qualify for a score of 580 or higher.
If you’re looking for more than a government-backed loan, New American Funding provides a wide variety of options, with more than 16 different mortgage products to choose from.
Start New American Funding online today.
Best for quick funding: Better
A better One Day Mortgage option may be worth considering if you need it fast close or quick rate lock. This program provides qualified borrowers with rates and loan commitments within 24 hours, rather than the days or weeks required by traditional banks. Better also claims to close mortgages up to 17 days faster than the industry average. And if you find a lower rate with another lender, the better the match. However, this option is not available for FHA and VA loans. It enjoys a 4.4 rating on Trustpilot with over 1,700 reviews, 76% giving it a 5 star rating.
Best for low fees or closing costs: Alliant Credit Union
Alliant is a popular credit union that provides low-cost, no-down payment options to help borrowers achieve their dreams of homeownership. Alliant offers a broad portfolio of mortgage options, including purchase, refinance and construction loans. As a credit union, rates are often lower than their traditional bank counterparts. Alliant’s website is also superior to its competitors, making it easy to explore your options, estimate payments or get pre-approved.
Bottom line
Mortgage rates and terms vary from one lender to another, so it’s worth checking out several quotes to find the best deal. Most lenders allow you to prequalify in minutes without affecting your credit score, so you can see the loan amounts and mortgage rates that apply.
