5 best mortgage lenders of July 2024

The home-buying process is notoriously stressful and oftentimes confusing, especially if you’re taking on a mortgage to finance your purchase. There’s a lot to learn when it comes to the home loan application process, so CNBC Select rounded up a list of five of the best mortgage lenders to help you streamline the process and find a lender that best suits your needs. We evaluated home loan lenders based on the types of loans offered, customer support and minimum down payment amount, among others (see our methodology below.)

Who’s this for? If your credit history isn’t squeaky clean, Rocket Mortgage might be the lender that can give you the best deal. While most mortgage lenders look for a minimum credit score of 620, Rocket Mortgage accepts applicants with lower credit scores at 580 for some loan options.

The lender even has a program called the Fresh Start program that’s aimed at helping potential applicants boost their credit scores before applying. Keep in mind, though, that if you apply for a mortgage with a lower credit score, you may be subject to interest rates on the higher end of the lender’s APR range.

This lender offers conventional loans, FHA loans, VA loans and jumbo loans but not USDA loans, which means this lender may not be the most appealing if you want to purchase a home with a 0% down payment for property in a rural area. Rocket Mortgage doesn’t offer construction loans (if you want to build a brand new custom home) or HELOCs, but if you’re a homebuyer who only plans to purchase a single-family home, a second home, or a condo that’s already on the market, this shouldn’t be a drawback for you.

This lender offers flexible loan repayment terms of up to 30 years.

Who’s this for? Anyone losing sleep at night worrying about a down payment should consider Chase Bank. While the traditional advice has been to put down 20% of your home’s price, Chase offers a loan option called the DreaMaker that would allow you to make a down payment that’s as low as 3% (by comparison, the FHA loan requires you to make a 3.5% down payment).

This option is made for those who can only afford a smaller down payment, but it also comes with stricter income requirements compared to their other loans (the annual income used to qualify the customer must not exceed 80% of the Area Median Income (AMI), according to the Chase team). If you meet the income requirements for the DreaMaker loan, this option could be very attractive if you would prefer to make a down payment that’s as small as possible so you can have more money reserved for other homebuying expenses.

In addition to the DreaMaker loan, Chase also offers a conventional loan, FHA loan, VA loan and jumbo loan (USDA loans and HELOCs are not offered by this lender). Much like other lenders, Chase has a minimum credit score requirement of 620 for their mortgage options.

Chase offers mortgage terms that range from 10 years to 30 years, as well as fixed-rate and adjustable-rate mortgages (ARM). This lender also offers discounts for existing customers, but the requirements are rather high: For $500 off your mortgage processing fee, you need to have $150,000–$499,999 between Chase deposit accounts and Chase investment accounts; $500,000 or more in these accounts can get you up to $1,150 off the processing fee.

On top of this, Chase provides a number of resources to help their customers navigate the process and feel comfortable managing their mortgage, including online customer support, mortgage calculators and educational articles.

Who’s this for? If you’re allergic to fees, check out Ally Bank. This lender doesn’t charge any application, origination, processing and underwriting fees (though it may charge an appraisal fee and recording fee, as well as title search and insurance).

Ally offers a HomeReady mortgage program geared toward low- to mid-income homebuyers (regardless of whether it’s their first time or if they’re a repeat buyer) that would allow them to put down as little as 3% for a down payment. When applying, you must also have a debt-to-income ratio of no more than 50%, your income must be equal to or less than 80% of your area’s median income and at least one borrower must take a homeowner education course.

In addition to this loan option, you can also apply for a jumbo loan (FHA loans, VA and USDA loans are not available through this lender). You can also choose between fixed-rate and adjustable-rate mortgages, and 15-year, 20-year and 30-year loan terms.

Who’s this for? Homebuyers who want as many options as possible. It’s sometimes tough to find lenders that offer USDA loans, for example, in addition to other standard mortgage options, but PNC Bank includes them in their lineup. This lender also offers conventional loans, FHA loans, VA loans, jumbo loans and a PNC Bank Community Loan, which is a special program that allows homebuyers to put down as little as 3% (without paying private mortgage insurance) while still choosing between fixed-rate and adjustable-rate mortgage terms.

This lender also offers a special loan option catered to medical professionals who are looking to buy a primary residence only. With this loan, medical professionals can apply for as much as $1 million and won’t have to pay private mortgage insurance (PMI), regardless of their down payment amount. They can also choose between fixed-rate and adjustable-rate terms.

PNC Bank offers online and in-person mortgage application processes, which can be a plus if you don’t live near a PNC Bank location but still want to apply for a loan. You can get online pre-qualifications in as little as 30 minutes as long as you have all the documentation on hand and similar to most other lenders, PNC Bank has a minimum credit score requirement of 620.

Who’s this for? SoFi offers homebuyers many discounts that can help them save as much money as possible throughout their home-buying process. When you lock in a 30-year rate for a conventional loan, you can receive a 0.25% discount. And when you purchase a home through the SoFi Real Estate Center, which is powered by HomeStory, you can receive up to $9,500 in cash back.

This lender offers an online-only experience for those looking to qualify for a conventional loan, jumbo loan, VA loan, FHA loan, fixed and adjustable-rate loan and a closed-end second mortgage. Terms range from 10 to 30 years. SoFi also offers both fixed-rate and adjustable mortgages. Similar to most other lenders, SoFi considers applicants with a minimum credit score of 600.

You can also take advantage of SoFi’s other resources, like a home affordability calculator, a mortgage calculator and a home improvement cost calculator, which can come in handy if you’re purchasing a home that needs some work done and you need to figure out ahead of time how much to budget for renovations.

Pre-approval is a statement or letter from a lender that details how much money you can borrow to purchase a home and what your interest rate might be. To get pre-approved, you may have to provide bank statements, pay stubs, tax forms and employment verification, to name a few. Once you’re pre-approved, you’ll receive a mortgage pre-approval letter, which you can use to begin viewing homes and start making offers. It’s best to get pre-approved at the start of your home-buying journey before you start looking at homes.

A mortgage is a type of loan that you can use to purchase a home. It’s also an agreement between you and the lender that essentially says that you can purchase a home without paying for it in full upfront — you’ll just put some of the money down upfront (usually between 3% and 20% of the home price) and pay smaller, fixed equal monthly payments for a certain number of years plus interest.

For example, you probably can’t pay $400,000 for a home upfront, however, maybe you can afford to pay $30,000 upfront; a mortgage would allow you to make that $30,000 payment while a lender gives you a loan for $370,000 (the remaining amount) and you agree to repay that amount plus interest to the lender over 15 or 30 years.

Keep in mind that if you choose to put down less than 20%, you’ll be subject to private mortgage insurance (PMI) payments in addition to your monthly mortgage payments. However, you can usually have the PMI waived after you’ve made enough payments to build 20% equity in your home.

There are a variety of mortgage brokers out there offering an array of loan products for financing a home purchase. You can consider mortgages from credit unions, in-person banks and even an online lender. Because there are so many options, it can take some time to decide which financial institutions offer loans that are best fit for you.

There are also different kinds of mortgages you may qualify for, like conventional mortgages, which are not backed by any government programs. FHA loans, which are another type of mortgage, are one of the many government-backed loans borrowers can consider.

You can visit lender websites or jump on the phone with representatives to see if you’re a qualifying borrower and to get an idea of what loan estimates might suit your needs. You may also discuss whether fixed-rate mortgages or adjustable-rate mortgages are best for you, though, some lenders may only offer one or the other. Be sure to also inquire about any loan programs you may qualify for to help save some money.

Mortgage companies may also offer other products aimed at assisting you with homeownership. Some lenders also offer home equity lines of credit, which is a revolving credit line that is secured by your home and can be used for big expenses or debt consolidation. Refinancing is another popular loan product some homeowners inquire about, which can lower the interest rate of your current mortgage.

Mortgage rates change almost daily and can depend on market forces such as inflation and the overall economy. While the Federal Reserve doesn’t set mortgage rates, mortgage rates tend to move in reaction to actions taken by the Federal Reserve on its interest rates.

Market forces may influence the general range of mortgage rates but your specific mortgage rate will depend on your location, credit report and credit score. The higher your credit score, the more likely you are to be qualified for a lower mortgage interest rate.

You can get quotes from multiple lenders to compare and even potentially negotiate your mortgage rate down.

Here are some of the most common types of mortgages you can apply for:

Conventional mortgage

A conventional mortgage is a very common type of home loan. It’s offered by private lenders like banks and credit unions and isn’t insured by the government. Conventional loans typically require a down payment between 5% and 20%.

FHA loan

Unlike a conventional loan, an FHA loan is insured by the government — specifically, it’s backed by the Federal Housing Administration. This type of loan requires a smaller minimum down payment of just 3.5% and considers borrowers with credit scores as low as 580.

Jumbo loan

A jumbo loan is a loan that exceeds funding limits on a conventional loan or FHA loan. In 2024, that means any loan exceeding $766,550. Most lenders require a minimum down payment of 10% on a jumbo loan.

VA loan

A VA loan is a type of mortgage that’s insured by the U.S. Department of Veterans Affairs and issued through lenders like banks and credit unions. They typically require a minimum down payment of 0%. In order to qualify for a VA loan, you must be a veteran, an active service member or a surviving spouse.

USDA loan

A USDA loan is a mortgage backed by the U.S. Department of Agriculture’s Rural Development Guaranteed Housing Loan Program. This loan has a 0% minimum down payment requirement, however, you must purchase a home in qualifying rural areas to be eligible.

The complexity of mortgages can make them tricky to compare, but here are the main things to look at when weighing your options:

• Down payment requirement
• Interest rate
• Repayment term offered
• Loan amount offered
• Monthly payment estimates
• Fees, including any prepayment penalties
• Estimated total cash to close

The best offer for you will ultimately depend on your personal needs and goals, but generally, you want a mortgage with the lowest interest rates and the least amount of fees.

When you make it to the end of your loan term and you’ve made your last mortgage payment, you should receive a document from your lender indicating that you’ve fully paid off the loan. While you’ll no longer be responsible for a mortgage payment with interest, you’ll still need to pay your property taxes and homeowner’s insurance (though insurance isn’t required by law, it can still come in handy if your home sustains damage from a natural disaster or some other unexpected event).

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best mortgages.

To determine which mortgage lenders are the best, CNBC Select analyzed dozens of U.S. mortgages offered by both online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.

When narrowing down and ranking the best mortgages, we focused on the following features:

• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
• Types of loans offered: The most common kinds of mortgage loans include conventional loans, FHA loans and VA loans. In addition to these loans, lenders may also offer USDA loans and jumbo loans. Having more options available means the lender can cater to a wider range of applicant needs. We have also considered loans that would suit the needs of borrowers who plan to purchase their second home or a rental property. 
• Closing timeline: The lenders on our list can offer closing timelines that vary from as promptly as two weeks after the home purchase agreement has been signed to as many as 45 days after the agreement has been signed. Specific closing timelines have been noted for each lender.
• Fees: Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. We evaluate these fees in addition to other features when determining the overall offer from each lender. Though some lenders on this list do not charge these fees, we have noted any instances where a lender does charge such fees. 
• Flexible minimum and maximum loan amounts/terms: Each mortgage lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The mortgage lenders on our list do not charge borrowers for paying off the loan early. 
• Streamlined application process: We considered whether lenders offered a convenient, fast online application process and/or an in-person procedure at local branches. 
• Customer support: Every mortgage lender on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Minimum down payment: Although minimum down payment amounts depend on the type of loan a borrower applies for, we noted lenders that offer additional specialty loans that come with a lower minimum down payment amount. 

After reviewing the above features, we sorted our recommendations by best for overall financing needs, quick closing timeline, lower interest rates and flexible terms.

Note that the rates and fee structures advertised for mortgages are subject to fluctuate in accordance with the Fed rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.

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