8 Best Nonbank Mortgage Lenders of 2022 - NerdWallet Advertiser disclosure
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See NerdWallet's picks for the best nonbank mortgage lenders of 2022 across different categories. NerdWallet Apr 4, 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. Gone are the days when buying a home meant getting dressed up to visit the loan officer at your local bank. Nonbank lenders provide a welcome alternative to traditional banks, especially for credit-challenged borrowers or those looking for a more streamlined mortgage experience. NerdWallet picked some of the best nonbank mortgage lenders in a variety of categories so you can determine which one is right for you. Gone are the days when buying a home meant getting dressed up to visit the loan officer at your local bank. Nonbank lenders provide a welcome alternative to traditional banks, especially for credit-challenged borrowers or those looking for a more streamlined mortgage experience. NerdWallet picked some of the best nonbank mortgage lenders in a variety of categories so you can determine which one is right for you. Best Nonbank Mortgage Lenders
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 Better NMLS#330511Learn more at Better 5.0/5 Best for refinancing620 FHA:500CONVENTIONAL:620JUMBO:N/A3%Better offers 3% down payments on conventional loans.Learn more at Better Pennymac NMLS#35953Learn more at Pennymac 4.5/5 Best for FHA loans620 VA:620USDA:620JUMBO:N/AFHA:580CONVENTIONAL:6203%Pennymac offers several different home loan options for borrowers with less than a 20% down payment.Learn more at Pennymac New American Funding NMLS#6606Learn more at New American Funding 4.5/5 Best for nontraditional credit histories620 FHA:500JUMBO:N/AUSDA:640VA:500CONVENTIONAL:6203%New American Funding works with down payment assistance programs in 14 states, including California, Texas, Florida and Illinois.Learn more at New American Funding Guaranteed Rate NMLS#2611Learn more at Guaranteed Rate 5.0/5 Best for digital convenience620 VA:580USDA:620JUMBO:N/AFHA:600CONVENTIONAL:6203%Guaranteed Rate offers conventional loans with as little as 3% down.Learn more at Guaranteed Rate Veterans United NMLS#1907Learn more at Veterans United 4.0/5 Best for VA loans620 CONVENTIONAL:620FHA:620JUMBO:620USDA:620VA:6200%Veterans United offers VA loans for as little as 0% down.Learn more at Veterans United Network Capital NMLS#11712Learn more at Network Capital 4.0/5 Best for variety of loan types620 CONVENTIONAL:620FHA:640JUMBO:N/AUSDA:640VA:5803%Network Capital offers conventional loans with as little as 3% downLearn more at Network Capital Watermark Home Loans NMLS#1838Read review 4.5/5 Best for refinancing620 VA:580USDA:N/AJUMBO:N/AFHA:580CONVENTIONAL:6203%Watermark offers conventional loans with as little as 3% down.Read review Carrington NMLS#2600Read review 4.5/5 Best for first-time home buyers620 VA:500CONVENTIONAL:620FHA:500JUMBO:N/AUSDA:5505%Carrington Mortgage Services offers conventional loans for as little as 5% down.Read reviewLearn more at Better Better NMLS#330511
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 FHA:500CONVENTIONAL:620JUMBO:N/A Min. down payment3% Better offers 3% down payments on conventional loans. View details Learn moreat Better View details Why we like it Good for: tech-savvy borrowers who prefer an online experience. Pros Offers a cash guarantee that qualifying mortgages will close on time. Makes it easy to see customized mortgage rates. Average interest rates are on the low end compared to other lenders, according to the latest federal data. Allows qualifying buyers to make cash offers. Cons Doesn't offer VA or USDA loans. Doesn't offer home equity loans or HELOCs.Read Full ReviewLearn more at Pennymac Pennymac NMLS#35953
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 score620 VA:620USDA:620JUMBO:N/AFHA:580CONVENTIONAL:620 Min. down payment3% 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 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 score620 FHA:500JUMBO:N/AUSDA:640VA:500CONVENTIONAL:620 Min. down payment3% 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 Guaranteed Rate Guaranteed Rate NMLS#2611
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:580USDA:620JUMBO:N/AFHA:600CONVENTIONAL:620 Min. down payment3% Guaranteed Rate offers conventional loans with as little as 3% down. View details Learn moreat Guaranteed Rate View details Why we like it Good for: borrowers seeking a solid variety of loan types, including jumbo and interest-only options, and a totally online experience. Pros Displays detailed sample rates for many of its loan products. Offers a wide variety of loans, including jumbo and interest-only products. Offers low rates compared with other lenders, according to the latest federal data. Cons Doesn't offer home equity loans.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 payment0% 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 Network Capital Network Capital NMLS#11712
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:640JUMBO:N/AUSDA:640VA:580 Min. down payment3% Network Capital offers conventional loans with as little as 3% down View details Learn moreat Network Capital View details Why we like it Good for: borrowers looking for a lender with online convenience and mortgage banker assistance. Pros A good selection of loan products, including government-backed FHA and VA mortgages. Provides “same-as-cash” loan that allows borrowers to compete with cash offers. Online application process is clear and simple to follow. Cons Doesn't lend in all states. Website doesn’t provide customized mortgage rates. Lender fees are on the high side, according to the latest federal data.Read Full ReviewRead review Watermark Home Loans NMLS#1838
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 score620 VA:580USDA:N/AJUMBO:N/AFHA:580CONVENTIONAL:620 Min. down payment3% Watermark offers conventional loans with as little as 3% down. View details Read reviewView details Why we like it Good for: borrowers looking for a decent selection of loan types with some not-so-standard options, such as reverse mortgages for seniors. Pros Offers reverse mortgages and interest-only loans for certain borrowers. Online capabilities include a full application, as well as loan process updates. Cons Does not offer home improvement loans. Fully customized mortgage rates not available without providing contact information.Read Full ReviewRead review Carrington NMLS#2600
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 score620 VA:500CONVENTIONAL:620FHA:500JUMBO:N/AUSDA:550 Min. down payment5% Carrington Mortgage Services offers conventional loans for as little as 5% down. View details Read reviewView details Why we like it Good for: first-time home buyers or credit-challenged borrowers interested in government loan products. Pros Offers multiple low-down-payment loan programs. May consider alternative credit data, such as bank statements. You can view customized rates for purchasing a home and apply online. Cons Doesn't offer home equity lines of credit. Lender fees are on the high side, according to the latest Federal data.Read Full ReviewMore from NerdWallet Choosing an ethical mortgage lender Calculate your mortgage payment How much home can you afford? Last updated on April 4, 2022 Methodology
The star ratings on this page reflect each lender's overall star ratings. Read more about how we determine those ratings. The lenders on this page are chosen using this 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. For inclusion on this roundup, nonbank lenders must score a 4.5 or above according to our overall methodology. 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 2020 HMDA data for origination volume, origination fee, rate spread and share-of-product data. To recap our selections... NerdWallet' s Best Nonbank Mortgage Lenders of 2022
Better: Best for refinancingPennymac: Best for FHA loansNew American Funding: Best for nontraditional credit historiesGuaranteed Rate: Best for digital convenienceVeterans United: Best for VA loansNetwork Capital: Best for variety of loan typesWatermark Home Loans: Best for refinancingCarrington: Best for first-time home buyers About the author
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