Best Mortgage Lenders of August 2024
Applying for a mortgage is a major financial decision, but it shouldn’t be overly complicated. The best mortgage lenders have a variety of affordable home loans, top-notch customer service, and a simple lending process. They offer speed, convenience, and competitive rates.
No matter which lender you choose, it’s important to find one that will work with you from the initial application to approval and beyond. Learn more about the best mortgage lenders of 2024 and how to choose the best one for your homebuying needs.
Not all mortgage lenders are created equal. The best ones tend to have competitive mortgage interest rates, minimal fees, and an array of home loan options. They may also have mortgage options for first-time buyers or down payment assistance programs.
- NBKC Bank: Best mortgage lender for closing cost guarantees
- Allied Mortgage Group: Best mortgage lender for industry experience
- Northpointe Bank: Best mortgage lender for flexible down payment options
- Mutual of Omaha: Best mortgage lender for customer reputation
- Better Mortgage: Best mortgage lender for online applications
Best for closing cost guarantees
NBKC Bank
Fox Money rating
Min. Credit Score
620
Days to Close
30
Pros and cons
Available in all 50 states
Offers personalized rate quotes online
$5,000 close-on-time guarantee
Strong customer service reviews
No renovation, home improvement or USDA loans
Charges a lender fee
No down payment assistance programs in most areas
More details
Overview
NBKC Bank is based in Kansas City, Missouri, but lends in all 50 states. The bank offers conventional loans, FHA loans, VA loans, and jumbo loans for up to $1.5 million. When you want to get a rate quote, ask questions, or apply for a home loan, you can get help via phone, email, online chat, and mobile app. There’s even in-person assistance at a few local branches in Kansas and Missouri.
Who it's best for: Home loans from NBKC are best for borrowers who want a guaranteed closing cost estimate.
Shows rates
Origination fee
Availability
All 50 states
Customer service
Live chat, email, phone
Mobile app
Online review score
4.6/5 Trustpilot score
Online prequalification
Min. down payment
Loan Type
Conventional
Yes
FHA
Yes
VA
Yes
USDA
No
Jumbo
Yes
ARM
No
Best for industry experience
Allied Mortgage Group
Fox Money rating
Min. Credit Score
620
Days to Close
30
Pros and cons
Strong customer service reviews
Special mortgage programs
Great for first-time homebuyers with little or no down payment
Charges a lender fee
No live-chat feature
No mobile app
Only available in 37 states
More details
Overview
With nearly 30 years of experience in the mortgage industry, Allied Mortgage Group offers purchase loans for just about any buyer. The lender offers conventional loans, jumbo loans, VA loans, FHA loans, USDA loans, and several niche mortgage options. For instance, Allied Mortgage Group offers manufactured-home loans and flexible “non-agency” loan options for borrowers with unique financial situations, such as self-employed borrowers. However, the lender only offers mortgages in 37 states — so you’ll have to check whether you can apply.
Who it's best for: Home loans from Allied Mortgage Group are best for borrowers who want a lender with decades of industry experience.
Shows rates
Origination fee
Availability
Customer service
Email, phone
Mobile app
Online review score
Undisclosed
Online prequalification
Min. down payment
Loan Type
Conventional
Yes
FHA
Yes
VA
Yes
USDA
Yes
Jumbo
Yes
ARM
No
Best for flexible down payment options
Northpointe Bank
Fox Money rating
Min. Credit Score
620
Days to Close
34
Pros and cons
Offers conventional and government-backed loans
Has renovation and refinancing loans available
Licensed in all 50 states
Doesn't have branches in all 50 states
Doesn't provide mortgage rates online
Borrower must speak to a loan officer to finish application
More details
Overview
Northpointe Bank boasts a wide range of loan products for borrowers in all 50 states. It also provides information and support on its user-friendly website, and borrowers can get pre-approved in as little as a day.
Shows rates
Origination fee
Availability
All 50 states
Customer service
Live chat, email, phone
Mobile app
Online review score
3.3/5 Trustpilot score
Online prequalification
Min. down payment
Loan Type
Conventional
Yes
FHA
Yes
VA
Yes
USDA
Yes
Jumbo
Yes
ARM
No
Best for customer reputation
Mutual of Omaha
Fox Money rating
Min. Credit Score
620
Days to Close
40
Pros and cons
Available in 48 states and Washington, D.C.
Accepts a higher debt-to-income ratio (DTI)
Strong customer service reviews
Charges a lender fee
Loans not available in West Virginia and New York
Can’t get a personalized rate quote online
More details
Overview
Mutual of Omaha, based in Nebraska, has been selling insurance since 1909 and started funding home loans in 2016. The lender offers conventional mortgages, jumbo loans, VA loans, FHA loans, and USDA loans in 48 states and Washington, D.C. Borrowers can get help via the mobile app, an online chat feature, and branch locations in 31 states and Puerto Rico.
Who it's best for: Home loans from Mutual of Omaha are best for those who want a mortgage lender with a great reputation.
Shows rates
Origination fee
Availability
Customer service
Live chat, email, phone
Mobile app
Online review score
4.5/5 Trustpilot score
Online prequalification
No; offers pre-approval
Min. down payment
Loan Type
Conventional
Yes
FHA
Yes
VA
Yes
USDA
Yes
Jumbo
Yes
ARM
No
Best for online application
Better.com Mortgage
Fox Money rating
Min. Credit Score
620
Days to Close
3-6 weeks
Pros and cons
No lender fees
Strong customer service reviews
24/7 live support
Available in all 50 states
May be able to close in three weeks
No mobile app
No in-person help available
No VA loans, USDA loans, or construction loans
More details
Overview
Better.com Mortgage is an online lender that offers conventional mortgages, jumbo loans, VA loans, and FHA loans in all 50 states and Washington, D.C. The lender says you’ll never pay lender fees and offers a competitor price-match program, which can help you save money right out of the gate. While the loan process is completely online, you can get live customer service help any time of the day or night.
Borrowers can also get pre-approved in just minutes and close on a loan in three weeks, which is faster than the industry average.
Who it's best for: Home loans from Better.com Mortgage are best for borrowers who want to apply with an online application.
Shows rates
Origination fee
Availability
All 50 states
Customer service
Live chat, email, phone
Mobile app
Online review score
4.3/5 Trustpilot score
Online prequalification
Min. down payment
Loan Type
Conventional
Yes
FHA
Yes
VA
Yes
USDA
No
Jumbo
Yes
ARM
No
Lender | NBKC Bank | Allied Mortgage Group | Northpointe Bank | Mutual of Omaha | Better Mortgage |
|---|---|---|---|---|---|
Loan types offered |
|
|
| Conventional |
|
Min. credit score | 620 | 620 | 580 | 620 | 620 |
Min. down payment | 3% for a conventional loan | 3% for a conventional loan | 3% for a conventional loan | 3% | 5% for a conventional loan |
Online prequalification | No | Yes | Yes | No | Yes |
NBKC Bank offers a variety of mortgage loans, including conventional loans, FHA loans, VA loans, and jumbo loans. While based in Kansas City, Missouri, this lender operates in all 50 states. Prospective borrowers can request a rate quote and apply online or visit a branch in Missouri or Kansas and complete the lending process in person.
This lender is best for borrowers who want a guaranteed closing cost estimate or the option for an entirely digital application process.
Pros
- Online, in person, live chat, and phone service
- Better Business Bureau (BBB) accredited with an A+ rating and 4.65/5 stars
- Multiple loan types available
- $5,000 close on-time guarantee
Cons
- No USDA loans
- No online prequalification
- Few physical branches available
Allied Mortgage Group has been offering home purchase loans to nearly any type of buyer for over 30 years. The lender even offers specialty loans, including self-employed loans for borrowers with nontraditional jobs. Other loans include conventional, jumbo, FHA, USDA, and VA loans.
Allied Mortgage Group is best for those seeking specialty loans from an experienced lender. However, the lender is not available in all states. You’ll need to verify whether it operates in your state before applying.
Pros
- Multiple home loan types, including self-employed and other specialty loans
- First-time homebuyer loans
- BBB accredited with A+ rating and 4.87/5 stars
- Online prequalification available
Cons
- Current interest rates not available online
- Must complete an initial form to learn more about options
- Only available in 34 states plus Washington, D.C.
Northpointe Bank offers a variety of home financing options, including conventional, FHA, VA, USDA, and jumbo loans. The lender also has a temporary buydown program, delayed financing option, mortgage refinancing, and up to a 90-day rate lock.
Northpointe Bank's process is simple and completely digital. The lender also has a unique underwriting process that starts on day one, meaning faster approval and closing times.
Pros
- Provides a variety of mortgage financing and refinancing solutions
- Streamlined application process with fast closing times
- Offers up to $12,000 in down payment assistance, as well as first-time buyer programs
Cons
- Interest rates not specified
- Eligibility requirements not clearly indicated online
- BBB Accredited but with 1.59/5 stars
Based in Nebraska, Mutual of Omaha Mortgage offers home financing and refinancing solutions to borrowers in 49 states and Washington, D.C. The application process is digital, but prospective borrowers can also visit branch locations in 30 states and Puerto Rico.
Mutual of Omaha Mortgage also offers online pre-approval, low-down-payment loans, online chat, and an intuitive mortgage app.
Pros
- Accepts applicants with a higher debt-to-income ratio (DTI)
- Convenient lending process and intuitive mobile app
- Low-down-payment loans available
- BBB accredited with a 4.8/5 rating
Cons
- Not available in New York
- No prequalification or personalized rate quote online
- Specific eligibility requirements not available online
Because it's a fully digital lender, Better Mortgage offers a speedy online application process. You can get a mortgage pre-approval online within three minutes and a commitment letter within 24 hours. It also boasts a quick underwriting turnaround: Better says it can close home loans in 10 to 15 days, which is faster than the industry average.
Better Mortgage also offers conventional, FHA, VA, and jumbo loans, as well as refinance options.
Pros
- Offers conventional, FHA, VA, and jumbo loans
- Can give you an approval decision in 24 hours
- No origination fee or application fee
Cons
- Doesn't offer USDA loans
- No in-person branches available
- No mobile app
To determine the best mortgage companies, Fox Money evaluated lenders based on several different categories: rates and fees, reputation, eligibility, efficiency, customer experience, and discounts and perks. We also looked at the types of loans offered by each lender for research purposes only, they did not factor into the overall score. We assigned a score out of five stars to each lender based on our findings.
Learn more about how Fox Money rates lenders by checking out Mortgage Lender Rating Methodology.
After hitting its peak at 7.79% in November 2023, 30-year fixed-rate mortgages have dropped, hovering just below 7%, according to Freddie Mac.
While there appears to be a downward trend, rates aren't likely to see a significant drop unless the Federal Reserve lowers its benchmark interest rate. On July 31, 2024, the Federal Open Market Committee announced it would keep the effective federal funds rate between 5.25% and 5.5%. The rate is likely to remain in this range until inflation moves closer to 2%, though Federal Reserve Chairman Jerome Powell said a cut could be considered in September 2024.
Note:
While the Federal Reserve doesn’t set mortgage interest rates, it does control the effective federal funds rate. A higher federal funds rate slows borrowing to keep inflation from skyrocketing, while a lower rate stimulates economic growth.
The leading mortgage lending companies have different types of home loans to choose from. While some lenders have their own specialty loans, most offer these major types of mortgages:
- Conventional loans: These loans are funded by banks, credit unions, and online lenders. Conventional loans must follow guidelines set by Fannie Mae or Freddie Mac. They may be harder to qualify for than government-backed loans, but they’re usually cheaper. If you put less than 20% down, many lenders will require private mortgage insurance (PMI).
- Jumbo loans: These loans have higher borrowing limits than conventional loans, ranging from $766,550 to $1,149,825 in most counties. Because of the higher amounts, jumbo loans generally have more stringent requirements — such as a higher credit score, lower DTI, or larger down payment.
- FHA loans: This is one of the most popular mortgage options for borrowers financing their first home — according to the Department of Housing and Urban Development, over 82% of FHA loans granted last year were taken out by first-time homebuyers. FHA loans are regulated and insured by the Federal Housing Administration. They typically have lower requirements for credit score and down payment. FHA loans may also have lower closing costs than conventional loans, but they do require mortgage insurance.
- USDA loans: Guaranteed through the U.S. Department of Agriculture (USDA), these home loans come with no down payment requirement. They’re geared toward low- to moderate-income borrowers, so you’d need to meet income limits for the area where you hope to buy. To qualify, you must purchase a home in a designated rural area. You can use the USDA’s website to check property and income eligibility.
- VA loans: Backed by the Department of Veterans Affairs, these are available to eligible service members, veterans, and surviving spouses. They may have lower interest rates and no down payment requirements. There’s no monthly mortgage insurance requirement, but there is a funding fee due at closing worth 1.25% to 3.3% of the loan amount.
Each major loan type comes with its own terms, requirements, fees, and limits. Before you start shopping for homes, find out which mortgages you qualify for. For example, if you’re a veteran, you might find a better interest rate through a VA loan vs. a conventional loan.
It’s important to choose the best mortgage lender for your goals and needs. This means finding one with competitive rates, low fees, solid customer service, and fast approval and closing times. But it also means choosing one with a variety of home purchase options.
Here are the key factors to consider when choosing a lender:
- Loan types: The best home loan providers offer the most common home loan programs, but many also have specialty programs — like mortgage options for first-time buyers and down payment assistance programs to help with upfront costs.
- Eligibility requirements: Each lender has its own credit score, down payment, DTI, and income requirements. Certain loan types have additional requirements.
- Repayment terms: Loan terms vary by lender and loan type. Most home loans come with 15- or 30-year terms. Longer terms generally mean lower monthly payments but higher overall interest charges.
- Rates and fees: The best lenders offer competitive mortgage interest rates. They’ll also have low fees — like origination, application, and closing fees.
- Availability: Some lenders are only licensed to operate in certain states. Contact your bank, credit union, or real estate agent for local and national lenders in the area you want to buy.
- Customer service and reputation: Your lender should have a solid reputation and a good track record of working with customers like you. For example, if your credit needs work, choose a trusted lender for lower credit scores. You can check lender ratings on sites like the Better Business Bureau (BBB), Trustpilot, and the Consumer Financial Protection Bureau’s Consumer Complaint Database.
Tip:
Request closing cost estimates and rate quotes from several lenders before you apply for a mortgage. If possible, choose lenders that offer prequalification so you can check your eligibility without affecting your credit score.
While every lender has its application process, these are the typical steps to getting a mortgage:
Mortgage rates depend on several factors, including your credit score, down payment amount, and the effective federal funds rate. To get the most competitive mortgage interest rate possible, save up for a larger down payment, work on your credit (if needed), and compare several lenders. You can also buy discount points, which lets you spend money upfront to get a lower rate.
Some lenders offer low-down-payment mortgages. For example, USDA loans come with a 0% down payment requirement. FHA loans, a popular mortgage option for first-time buyers, have lower down payment requirements. If your credit score is 580 or higher, you can put down as little as 3.5%. If your credit score is 500 to 579, you will need to put down 10%.
A local lender might be better if you’re looking for a more personalized, hands-on experience or have an existing relationship with that lender. However, national lenders may have more loan options, larger loan limits, or specialty programs available. The best option is ultimately up to you and what you need.
Online mortgage lenders typically offer a more streamlined lending process — from the initial application to approval. These lenders usually have an online portal where you can manage your loan, including repayment, from the comfort of your home. Some also have a convenient app for this purpose.
Meet the contributor:Angela Mae
Angela Mae is a Credible authority on personal finance. Her work has been featured by Credit Karma, Lendstart, and GoodRx.
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