Best Lenders for FHA Loans in October 2022 - NerdWallet Advertiser disclosure
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FHA loans offer several benefits including lower down payments and more lenient requirements. Compare some of the top FHA lenders to find the right fit for your needs.Barbara Marquand Oct 3, 2022 Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. You might think all Federal Housing Administration lenders are the same. But when you’re looking for an FHA loan, it’s always smart to shop at least three lenders. Their mortgage rates and fees can differ substantially, plus lenders' requirements for approval for an FHA loan vary. NerdWallet has picked some of the best FHA lenders in a variety of categories so you can quickly determine which one is right for you. » MORE: Compare FHA mortgage rates You might think all Federal Housing Administration lenders are the same. But when you’re looking for an FHA loan, it’s always smart to shop at least three lenders. Their mortgage rates and fees can differ substantially, plus lenders' requirements for approval for an FHA loan vary. NerdWallet has picked some of the best FHA lenders in a variety of categories so you can quickly determine which one is right for you. » MORE: Compare FHA mortgage rates Best Lenders for FHA Loans in October 2022 From Our Partners
LenderNerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.Min. credit score Minimum credit score on top loans; other loan types or factors may selectively influence minimum credit score standardsMin. down paymentLearn more Pennymac NMLS#35953Learn more at Pennymac 5.0/5 Best for overall FHA loan experience580 VA:620USDA:620JUMBO:N/AFHA:580CONVENTIONAL:6203.5%Pennymac offers several different home loan options for borrowers with less than a 20% down payment.Learn more at Pennymac NBKC NMLS#409631Learn more at NBKC 4.0/5 Best for low origination fees620 CONVENTIONAL:620FHA:620JUMBO:N/AVA:5803.5%NBKC offers conventional loans for as little as 3% down.Learn more at NBKC Veterans United NMLS#1907Learn more at Veterans United 4.0/5 Best for low origination fees620 CONVENTIONAL:620FHA:620JUMBO:620USDA:620VA:6203.5%Veterans United offers VA loans for as little as 0% down.Learn more at Veterans United NASB NMLS#400039Learn more at NASB 4.0/5 Best for first-time home buyers580 CONVENTIONAL:620VA:580JUMBO:620FHA:5803.5%NASB offers conventional loans for as little as 3% down.Learn more at NASB New American Funding NMLS#6606Learn more at New American Funding 4.5/5 Best for rate transparency500 FHA:500JUMBO:N/AUSDA:640VA:500CONVENTIONAL:6203.5%New American Funding works with down payment assistance programs in 14 states, including California, Texas, Florida and Illinois.Learn more at New American Funding PNC NMLS#446303Learn more at PNC 5.0/5 Best for low origination fees620 VA:VariesUSDA:640JUMBO:680FHA:620CONVENTIONAL:6203.5%Minimum down payment varies by mortgage loan type.Learn more at PNC Bethpage Federal Credit Union NMLS#449104Learn more at Bethpage Federal Credit Union 4.5/5 Best for credit union lending580 VA:N/ACONVENTIONAL:620FHA:580JUMBO:6203.5%Bethpage FCU offers conventional loans with as little as 3% down.Learn more at Bethpage Federal Credit Union Rocket Mortgage LLC NMLS#3030Learn more at Rocket Mortgage, LLC 4.0/5 Best for digital convenience580 VA:580JUMBO:N/AFHA:580CONVENTIONAL:6203.5%First-time home buyers may qualify for 3% down mortgages at Rocket.Learn more at Rocket Mortgage, LLC BNC National Bank NMLS#418467Learn more at BNC National Bank 4.0/5 Best for digital convenience580 FHA:580USDA:640CONVENTIONAL:620VA:620JUMBO:N/A3.5%BNC National Bank offers conventional loans for as little as 3% down.Learn more at BNC National BankLearn more at Pennymac Pennymac NMLS#35953
5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score580 VA:620USDA:620JUMBO:N/AFHA:580CONVENTIONAL:620 Min. down payment3.5% Pennymac offers several different home loan options for borrowers with less than a 20% down payment. View details Learn moreat Pennymac View details Why we like it Good for: borrowers seeking a government-backed mortgage who want to rate-shop online. Pros Offers a wide variety of loan products, including government-backed and refinance options. Displays custom rate quotes based on home value, down payment or equity, ZIP code and credit score range. “Lock & Shop” lets you secure a rate for up to 60 days, even if you don’t have a purchase contract yet. Cons Origination fees are on the higher end, according to the latest federal data. Doesn't offer home equity products or renovation loans.Read Full ReviewLearn more at NBKC NBKC NMLS#409631
4.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 CONVENTIONAL:620FHA:620JUMBO:N/AVA:580 Min. down payment3.5% NBKC offers conventional loans for as little as 3% down. View details Learn moreat NBKC View details Why we like it Good for: borrowers who want low rates and fees and an online experience with phone support. VA loans are an emphasis. Pros Offers government-backed loans and some harder-to-find products, such as construction loans and specialty mortgages for pilots. Offers low rates and fees compared with other lenders, according to the latest Federal data. Displays customized rates, with fee estimates, without requiring contact information. Cons HELOCs and construction-to-permanent loans are available only in the Kansas City metro area.Read Full ReviewLearn more at Veterans United Veterans United NMLS#1907
4.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 CONVENTIONAL:620FHA:620JUMBO:620USDA:620VA:620 Min. down payment3.5% Veterans United offers VA loans for as little as 0% down. View details Learn moreat Veterans United View details Why we like it Good for: veterans, active-duty service members and eligible reservists looking for VA loans. Pros Offers 24/7 customer service over the phone. Offers a free credit counseling service. Mortgage rates are on the low side, according to the latest federal data. Cons Doesn’t offer home equity loans or HELOCs. Veterans United has physical branch offices in only 17 states. Focus on VA loans, so may not be the strongest choice for those seeking other loan types.Read Full ReviewLearn more at NASB NASB NMLS#400039
4.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score580 CONVENTIONAL:620VA:580JUMBO:620FHA:580 Min. down payment3.5% NASB offers conventional loans for as little as 3% down. View details Learn moreat NASB View details Why we like it Good for: active military members and veterans and first-time home buyers. Pros Devotes much of its business to serving military families with VA loans. Offers a mortgage tailored to self-employed borrowers. Offers low rates and fees compared with other lenders, according to the latest federal data. Cons Doesn’t offer home improvement mortgages. Doesn't offer home equity loans or lines of credit.Read Full ReviewLearn more at New American Funding New American Funding NMLS#6606
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score500 FHA:500JUMBO:N/AUSDA:640VA:500CONVENTIONAL:620 Min. down payment3.5% New American Funding works with down payment assistance programs in 14 states, including California, Texas, Florida and Illinois. View details Learn moreat New American Funding View details Why we like it Good for: First-time home buyers and other borrowers looking for a broad array of loan choices. Pros Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities. Its home equity line of credit can be used for an owner-occupied or second home. Offers a program to enable buyers to make cash offers. Cons Mortgage origination fees tend to be on the high end, according to the latest federal data.Read Full ReviewLearn more at PNC PNC NMLS#446303
5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 VA:VariesUSDA:640JUMBO:680FHA:620CONVENTIONAL:620 Min. down payment3.5% Minimum down payment varies by mortgage loan type. View details Learn moreat PNC View details Why we like it Good for: borrowers with low-to-moderate incomes or limited down payments. PNC offers several low-down-payment loans, including one with no mortgage insurance. Pros Posts current mortgage rates on its website. Has an online application for mortgage preapproval and a digital tool to track application progress. Offers several affordable loan options, including FHA, VA, USDA and the PNC Community Loan. Cons Doesn't offer renovation mortgages. In-person service is not available in every state.Read Full ReviewLearn more at Bethpage Federal Credit Union Bethpage Federal Credit Union NMLS#449104
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score580 VA:N/ACONVENTIONAL:620FHA:580JUMBO:620 Min. down payment3.5% Bethpage FCU offers conventional loans with as little as 3% down. View details Learn moreat Bethpage Federal Credit Union View details Why we like it Bethpage has a good selection of loan options but no USDA mortgages or renovation loans. And while it offers multiple online conveniences, you have to contact the lender for customized rates. Pros Offers a full array of online conveniences, including loan process updates. Offers financing for cooperatives, a type of home that’s common on the East Coast. Sample mortgage rates available for a variety of loan products. Cons In-person service available only in Queens and on Long Island, New York. USDA loans are not available. Customized rates not available online.Read Full ReviewLearn more at Rocket Mortgage, LLC Rocket Mortgage LLC NMLS#3030
4.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score580 VA:580JUMBO:N/AFHA:580CONVENTIONAL:620 Min. down payment3.5% First-time home buyers may qualify for 3% down mortgages at Rocket. View details Learn moreat Rocket Mortgage, LLC View details Why we like it Good for: borrowers who appreciate convenience online and on the go for a fully digital home loan experience with consistently acclaimed customer service. Pros Caters to self-service users who want to apply for a home loan online and talk to a human only as necessary. Estimates the loan amount you’ll qualify for within minutes. Streamlines the online process with document and asset retrieval capabilities, including the ability to edit your preapproval letter. Cons Getting a customized interest rate requires a credit check, which can affect your credit score. Doesn't offer home equity loans or lines of credit. Lender fees are on the high side and the fees aren't offset by particularly low mortgage rates, according to the latest data.Read Full ReviewLearn more at BNC National Bank BNC National Bank NMLS#418467
4.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score580 FHA:580USDA:640CONVENTIONAL:620VA:620JUMBO:N/A Min. down payment3.5% BNC National Bank offers conventional loans for as little as 3% down. View details Learn moreat BNC National Bank View details Why we like it BNC National Bank offers a robust variety of loans, but you have to reach out to a loan officer to get customized interest rates. Pros Offers a wide variety of loan types and products. Has robust online capabilities, and an app for iOS and Android. Mortgage interest rates are lower than typical, according to the latest data. Cons Has a limited number of physical mortgage offices. No rate information is available without starting an application or speaking with a loan officer. Does not offer home equity loans or lines of credit.Read Full Review More of NerdWallet' s best lenders for FHA loans
Carrington Mortgage Services Best for nontraditional credit histories Mr. Cooper Best for nontraditional credit histories Caliber Home Loans Best for FHA loan options Citibank Best for FHA loan options Wells Fargo Best for first-time homebuyers Qualifying for an FHA loan
To qualify for an FHA loan, you'll need a credit score of at least 500 with a 10% down payment. To determine if you’re eligible for the lowest FHA down payment — just 3.5% — underwriters will look for a score of 580 or higher. You’ll also need to have a debt-to-income ratio of 50% or less. In addition to money for your down payment, you'll also need funds to cover FHA closing costs and an upfront mortgage insurance premium, which for FHA borrowers is 1.75% of the loan amount. Both the upfront insurance premium and the closing costs can be rolled into the total amount of the mortgage. Bear in mind that these are the FHA's qualification guidelines; individual lenders usually impose additional rules which can be stricter. That's just one reason it's worth comparing several lenders. You can start with the lenders we have here, but you can also look at the Department of Housing and Urban Development's searchable list of approved FHA lenders. Are FHA loans only for first-time home buyers
No, you do not need to be a first-time home buyer to use an FHA loan. Lower credit score minimums and down payments certainly make FHA loans attractive to first-time home buyers, but current homeowners are eligible, too. In fiscal year 2020, about 83% of FHA purchase loans were made to first-time home buyers — which means 17% went to borrowers who were already homeowners. » MORE: How to qualify for first-time home buyer benefits Can you get an FHA loan if you have student loans
Yes, you can get an FHA loan if you have student loan debt, though you'll still have to meet FHA debt-to-income requirements. FHA student loan guidelines state that lenders must include all student loans when calculating a borrower's debt-to-income ratio. If your payments are currently deferred, your lender will consider your "monthly obligation" to be 1% of your total student loan balance. » MORE: How student loans impact getting a mortgage More from NerdWallet See how much house you can afford Calculate FHA mortgage payments Review FHA loan requirements Last updated on October 3, 2022 Methodology
The star ratings on this page reflect each lender's performance in NerdWallet’s FHA loans category. We scored the category and chose lenders for this page using the following methodology: NerdWallet reviewed nearly 60 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (lenders had to have at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country. All reviewed mortgage lenders that offer FHA loans were evaluated based on (1) the portion of their business dedicated to FHA lending, (2) their FHA origination fees, (3) the range of FHA loans offered, (4) their rate transparency and (5) the ease of their online application. The highest scoring lenders appear on this page. NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2021 HMDA data for origination volume, origination fee, rate spread and share-of-product data. To recap our selections... NerdWallet' s Best Lenders for FHA Loans in October 2022
Pennymac: Best for overall FHA loan experienceNBKC: Best for low origination feesVeterans United: Best for low origination feesNASB: Best for first-time home buyersNew American Funding: Best for rate transparencyPNC: Best for low origination feesBethpage Federal Credit Union: Best for credit union lendingRocket Mortgage, LLC: Best for digital convenienceBNC National Bank: Best for digital convenience Frequently asked questions
Where do I get an FHA loan? Getting an FHA loan isn't especially different from what you'd do to get a conventional mortgage. You don't apply to the Federal Housing Administration itself; you’ll work with an FHA-approved mortgage lender that likely offers other types of home loans in addition to FHA loans.How do I get preapproved for an FHA loan? FHA loan preapproval is similar to preapproval for other mortgage types, though you have to work with an FHA-approved lender. You'll need to provide documentation of your financial status, which can include employment history, bank account info and any current loan payments. Getting a mortgage preapproval from more than one FHA lender lets you compare not only rates but also all the fees and conditions each lender would apply.How do I choose an FHA lender? Compare at least three FHA lenders when you're looking for an FHA loan, since FHA mortgage rates vary by lender. It's also important to remember that while the FHA sets minimum qualification guidelines, lenders can ask for higher credit scores or lower debt-to-income ratios. Lender fees can also vary, so try to look for the best combination of rates and fees. You can also run the numbers with an FHA mortgage calculator to estimate your monthly loan payments. About the author
Barbara Marquand
Barbara Marquand writes about mortgages, homebuying and homeownership. Read moreTwitterEmailLinkedIn