Best Mortgage Lenders for First-Time Home Buyers in 2025
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If you're buying your first home, low down payment loan options, first-time home buyer programs and top-notch customer care can make getting a mortgage easier. To help you find the right lender, NerdWallet has researched and selected the best mortgage lenders for first-time home buyers.
Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Our 2025 Best-Of Award Winner
NMLS#3030
Best Mortgage Lenders for First-Time Home Buyers in 2025
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Lender | NerdWallet Rating | Min. credit score | Min. down payment | Learn more |
|---|---|---|---|---|
620 | 1% | See Offers at Rocket Mortgage, LLC | ||
620 | 0% | |||
620 | 3% | |||
N/A | 3.5% | See Offers at First Federal Bank | ||
620 | 3% | See Offers at Northpointe | ||
 Truist: NMLS#399803 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
 CrossCountry Mortgage: NMLS#3029 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
 Flagstar: NMLS#417490 Compare More Lenders on NerdWallet | 580 | 3.5% | Compare More Lenders on NerdWallet | |
 PNC Bank: NMLS#446303 Compare More Lenders on NerdWallet | 620 | 5% | Compare More Lenders on NerdWallet | |
 Wells Fargo: NMLS#399801 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
 Guild Mortgage: NMLS#3274 Compare More Lenders on NerdWallet | N/A | 3% | Compare More Lenders on NerdWallet | |
 U.S. Bank: NMLS#402761 Compare More Lenders on NerdWallet | N/A | N/A | Compare More Lenders on NerdWallet | |
 PrimeLending: NMLS#13649 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet |
Explore all of our lender picks by category
- Why we like itRocket Mortgage is the largest mortgage lender by volume, standing out for its range of affordable borrowing options, down payment assistance and closing cost credits.Pros
- Reported average time to close is 15 days faster than industry average.
- FHA and VA loans make up 40% of Rocket Mortgage’s total loan volume.
- Borrowers can apply via mobile app.
ConsRead full review- Origination fees are on the higher end, according to the latest federal data.
- No construction or renovation loans.
- Physical branches are only available in Detroit, Cleveland, and Phoenix.
- Why we like itNBKC stands out for offering low VA rates and origination fees, as well as energy-efficient mortgages.Pros
- Interest rates and origination fees are on the lower side compared to other VA lenders.
- Offers energy-efficient mortgages.
- Offers VA refinancing.
ConsRead full review- Does not offer VA renovation loans.
- Why we like itRate boasts a streamlined application process, with full underwriting in as little as one business day, though average fees are higher than many competitors’.Pros
- Fully underwritten mortgage approval in as little as one day for qualified borrowers.
- Generous selection of loans, including government-backed, interest-only, jumbo and renovation.
- Advertises a HELOC that can be funded in as few as five business days.
ConsRead full review- Origination fees are on the high side, according to the latest federal data.
- HELOC requires immediate, full withdrawal of funds.
- Why we like itFirst Federal Bank Mortgage Lenders, an online-only lender, stands out for its focus on government loan lending and low average mortgage rates.Pros
- Almost a quarter of all loans last year were FHA loans.
- Average mortgage rates are on the lower side, according to the latest federal data.
- Offers 15-, 20-, 25-, and 30-year repayment terms, which is unusually flexible.
ConsRead full review- No dedicated mobile app for mortgage borrowers.
- Some loans are geographically limited.
- Why we like itIn addition to standard options like conventional and government-backed loans, including FHA loans, Northpointe Bank’s mortgage portfolio includes rarer offerings like doctor loans, condominium loans, investment property loans and loans for borrowers with credit challenges.Pros
- Closing may be available within 15 business days.
- Offers loans and programs aimed at making homeownership more accessible.
- Offers mortgages for investment properties, including jumbo loans.
ConsRead full review- Average mortgage origination fees are on the high side, according to the latest data.
- Bank’s mobile app isn’t useful for mortgage borrowers.
- Why we like itTruist stands out for its range of accessible mortgage products, including government or conventional loans with flexible credit and down payment requirements.Pros
- Offers mortgage options focused on affordability.
- Convenient online application.
- Offers a HELOC and construction loans.
ConsRead full review- HELOCs are not available in every state.
- Borrowers must reach out for customized rates.
- Why we like itCrossCountry Mortgage has an impressive selection of grants and loans for first-time buyers, and customer service receives high praise, but it doesn’t post rates online or offer a mobile app.Pros
- Qualified borrowers can receive up to $6,500 in down payment assistance.
- Average time to close is 21 days, which is faster than the industry standard.
- Offers conventional loans for manufactured homes.
ConsRead full review- Doesn’t post rates online.
- No mobile app.
- Fees are on the high side, according to the latest federal data.
- Why we like itFlagstar Bank, recently acquired by Mr. Cooper, stands out for its range of accessible loans and programs, including no-down-payment loans, localized loans with flexible requirements and a number of down payment grant options.Pros
- Reported average time to close (20-30 days) is faster than industry standard.
- Offers down payment assistance to first-time home buyers.
ConsRead full review- The lender’s mobile app is focused on banking, not mortgages.
- Some loans and programs are restricted by area.
- Why we like itPNC does a significant amount of business in jumbo loans and will finance a larger loan amount than many other lenders we review, but access to customer service requires supplying personal information.Pros
- Average jumbo origination fees are on the low side, according to the latest federal data.
- Jumbo loans made up almost 20% of purchase originations in 2023.
- Jumbo financing available for up to $5M.
ConsRead full review- Getting customer service over the phone requires sharing personal data if you don't already have an account.
- In-person service is not available in every state.
- Online rate quotes are only available for loans up to $2.5M.
- Why we like itWells Fargo has significant upsides and shortcomings. Sample rates are easy to view, assistance programs may apply and the lender earns solid scores in our rankings, but its consumer trust track record is rough.Pros
- Sample rates are shown for various loan products, along with the type of borrower and loan that would get them.
- Offers generous down payment and closing cost assistance programs for qualified borrowers.
- Market leader in number of jumbo loans and refinances originated, according to the latest federal data.
- Rate-and-term refinance interest rates offered are lower than average, according to the latest federal data.
ConsRead full review- Home loans business is broadly focused on existing bank customers.
- Doesn’t offer specialty home loans or equity borrowing (home equity loans or HELOC).
- Scandals and government actions have damaged consumer trust in recent years.
- Why we like itGuild offers a number of loans and programs that stand out, including renovation loans and home equity products. However, Guild does not have a mobile app, and interest rates aren’t published online.Pros
- Offers several programs to make homeownership more accessible.
- Offers loans for manufactured homes.
- Renovation loan options are available.
ConsRead full review- Does not publish interest rates online.
- No mortgage mobile app.
- Loans are not available in every state.
- Why we like itU.S. Bank stands out for online convenience and impressive mortgage options, from government-backed loans to boutique mortgages. Home improvement loans and borrower assistance are available.Pros
- Offers up to $17,500 in down payment and closing cost assistance.
- Wide variety of mortgage types.
- Experienced with construction-to-permanent and renovation loans.
ConsRead full review- Assistance programs limited to select cities and states.
- Online rate tool doesn’t customize by credit score.
- Why we like itPrimeLending stands out for its wide variety of loan types, including non-QM loans and renovation and construction options, but lacks some technical features like online rates or a mobile app.Pros
- Offers closing cost assistance.
- Wide variety of loan types, including non-QM loans.
- Mortgages are available for manufactured homes, including 3D-printed houses.
ConsRead full review- Loans are not available in all states.
- Rates are not posted online.
- Does not have a mobile app.
How do I choose a mortgage lender?
Once you know what type of mortgage you want, finding the right lender may be easier than you expect. Don't want to do the research? A mortgage broker can give you a personalized list of options.
Applying for mortgage preapproval with multiple lenders can give you an idea of how much you could borrow, what interest rate you'd get and what it's like to work with each lender. Most lenders charge a fee to apply for a mortgage, but preapprovals can help narrow down your options for free.
To see actual interest rates and fees, you'll need to apply for a mortgage with more than one lender. Once you apply, you'll receive a Loan Estimate within three business days. This standard form makes it easy to compare lenders side by side.
How much do I need to save for a down payment?
The amount you need for a down payment depends on the type of home loan you choose. Some conventional loans offer down payments as low as 3%, but a down payment below 20% requires paying private mortgage insurance. FHA loan down payments can be as low as 3.5%, depending on your credit score. VA loans and USDA loans don't require down payments.
Can I get help making a down payment?
As a first-time home buyer, you may qualify for down payment assistance or other first-time home buyer benefits. These programs are usually run by state housing authorities, though some cities and counties offer them as well. You may need to meet income or residency requirements. Many programs also require a first-time home buyer class.
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Fact-checked as of June 2, 2025
Last updated on June 2, 2025
Frequently asked questions
The best mortgage for you as a first-time home buyer is the loan you're qualified for that meets your needs. It depends on a number of factors, including your credit score.
If your score is at least 580, an FHA loan is your best option. With a credit score of 620 or higher, a conventional loan could be a better choice.
If you have a military connection, you might qualify for a VA loan. The Department of Veterans Affairs doesn't require a minimum credit score, though lenders can set their own requirements.
There are many grants, special loans and down payment assistance programs for borrowers looking to buy their first home. Check out our list of first-time home buyer programs by state to get started.
The easiest loan to qualify for is an FHA loan, because FHA requirements allow lower credit scores and are more flexible on debt-to-income ratios. However, if you have strong credit, a conventional loan may offer a lower down payment.
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 more than 50 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with 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 programs for first-time home buyers were evaluated based on (1) the portion of their business dedicated to FHA and VA lending, (2) their ability to offer conventional loans with a down payment as low as 3%, (3) their origination fees, (4) their proprietary first-time home buyer loans or assistance (e.g. grants or loans to cover down payment and closing costs), (5) mortgage rate transparency, and (6) 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 2022 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Mortgage Lenders for First-Time Home Buyers in 2025
- Rocket Mortgage, LLC: Best for first-time home buyers overall
- NBKC: Best for VA loans
- Rate: Best for lower credit scores
- First Federal Bank: Best for government loans
- Northpointe: Best for first-time home buyers overall
- Truist: Best for variety of loan types
- CrossCountry Mortgage: Best for fast closing
- Flagstar: Best for FHA loans
- PNC Bank: Best for jumbo loans
- Wells Fargo: Best for Wells Fargo banking customers
- Guild Mortgage: Best for borrower assistance programs
- U.S. Bank: Best for home loans overall
- PrimeLending: Best for construction loans
