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8 Best FHA 203(k) Mortgage Lenders of 2020

NerdWalletJuly 10, 2020

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Buying a fixer-upper or remodeling your current home? NerdWallet has selected some top FHA 203(k) lenders to make your loan search easier.

Home buyers can use an FHA 203(k) loan to purchase and renovate a house with the same mortgage. Homeowners can use an FHA 203(k) refinance loan to roll the cost of home improvements into their monthly mortgage payment.

To take advantage of this versatile mortgage product, you’ll need an FHA 203(k) lender. NerdWallet has identified some of the top FHA 203(k) lenders across several categories to help you get started.

Summary of Best FHA 203(k) Mortgage Lenders of 2020

LenderNerdWallet Rating Minimum Credit Score Minimum Down PaymentNational / RegionalLearn More

New American Funding: NMLS#6606

at New American

Best for first-time home buyers

700

3%

National

at New American

Fairway Independent Mortgage: NMLS#2289

at Fairway

Best for digital convenience

620

3%

National

at Fairway

Northpointe: NMLS#447490

at Northpointe

Best for best for low down payment options

620

3%

N/A

at Northpointe

loanDepot: NMLS#174457

at LoanDepot

Best for 203(k) refinancing

620

3.5%

National

at LoanDepot

Wintrust Mortgage: NMLS#449042

Best for first-time home buyers

620

3%

N/A

Read review

Caliber: NMLS#15622

Best for borrowers with a low credit score

620

3%

National

Read review

HomeBridge: NMLS#6521

Best for borrowers with a low credit score

620

3%

National

Read review

PrimeLending: NMLS#13649

Best for 203(k) refinancing

620

3%

National

Read review
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at New American

New American Funding: NMLS#6606

Logo

Min. Credit Score

700

Min. Down Payment

3%

National / Regional

National

at New American


Why we like it

Ideal for borrowers who need to be evaluated on the basis of nontraditional credit. New American Funding offers FHA and VA loans, works with down payment assistance programs, and helps borrowers whose credit histories don't fit the mold of traditional banking.

Pros

  • Uses manual underwriting to evaluate creditworthiness.

  • Offers full online mortgage application, rate quotes, document upload and loan tracking.

  • Home equity lending sets it apart from most non-bank lenders.

Cons

  • Services not available in all 50 states.

Read Full Review
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at Fairway

Fairway Independent Mortgage: NMLS#2289

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Min. Credit Score

620

Min. Down Payment

3%

at Fairway


Why we like it

Ideal for borrowers who want lots of options and a quick turn time. Fairway Independent Mortgage offers a full selection of home loans along with a comprehensive mobile app for a fast and easy application process.

Pros

  • A robust suite of loan products.

  • Licensed in all 50 states.

  • Close in as little as 10 days using the Fairway app.

Cons

  • Limited branch locations.

  • Mortgage rates not posted on website.

Read Full Review
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at Northpointe

Northpointe: NMLS#447490

Logo

Min. Credit Score

620

Min. Down Payment

3%

at Northpointe


Why we like it

Ideal for those seeking the expanded loan offerings of a bank — or a no-down-payment loan that helps accelerate home equity accumulation.

Pros

  • A full slate of loan offerings.

  • Offers a no-down-payment loan with shorter repayment terms that helps accelerate home equity accumulation.

  • Serves all 50 states plus the District of Columbia.

Cons

  • Typically charges a $1,195 origination fee.

  • Online capabilities lacking until a new mobile app gets wide distribution.

Read Full Review
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at LoanDepot

loanDepot: NMLS#174457

Logo

Min. Credit Score

620

National / Regional

National

at LoanDepot


Why we like it

Ideal for anyone who wants online convenience with face-to-face options. Loan Depot has affiliated locations nationwide and is well-rated for low customer complaint volume.

Pros

  • Offers conventional and government-backed refinance mortgages.

  • Offers a “lifetime guarantee” on future refinances: no lender fees and reimbursal of appraisal cost.

  • Advertises a "no steering" policy for refinance loans.

Cons

  • Must provide personal information to get a customized refinance rate quote.

  • Has fewer high-tech refinance tools than other lenders, such as no mobile app.

Read Full Review

Wintrust Mortgage: NMLS#449042

Logo

Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Ideal for first-time home buyers and those seeking specialty mortgages such as construction or condo loans.

Pros

  • Offers specialty loans, such as construction, renovation and reverse mortgages.

  • Online application and progress tracking available.

  • Condo lending specialists on staff.

  • Participates in five first-time home buyer assistance programs.

Cons

  • Mortgage rates are available only by contacting a loan officer.

  • Physical locations not available in all states.

Read Full Review

Caliber: NMLS#15622

Logo

Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Good for: first-time home buyers, veterans and those who may have credit challenges to overcome.

Pros

  • Offers extensive educational resources for military borrowers.

  • Provides digital tools for a streamlined application process.

  • Participates in some state down payment assistance and first-time homebuyer programs.

Cons

  • No mortgage rates displayed online.

  • Doesn't offer home equity loans or lines of credit.

Read Full Review

HomeBridge: NMLS#6521

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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Ideal for borrowers who prefer an online experience. Homebridge offers a variety of home loan options and an online application.

Pros

  • A wide variety of loan types.

  • Low credit score requirements for government-backed loans.

  • A wealth of educational material on its website.

  • Licensed in all 50 states.

Cons

  • Mortgage application can't be tracked online.

  • Charges origination fees on some loans.

  • Limited branch locations.

Read Full Review

PrimeLending: NMLS#13649

Logo

Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Good for: borrowers looking for closing cost assistance, as well as those seeking to renovate or to build a new home.

Pros

  • Full online application includes document uploads and automated loan updates.

  • Offers a "float-down" interest rate lock.

  • Offers a proprietary closing-cost assistance program.

Cons

  • No online mortgage rates — you have to contact the lender for info.

  • Doesn't offer home equity products.

Read Full Review

Last updated on July 10, 2020

Methodology

NerdWallet's selection of mortgage lenders for inclusion here was made based on our evaluation of the products and services that lenders offer to consumers who are actively shopping for the best mortgage. The six key areas we evaluated include the loan types and loan products offered, online capabilities, online mortgage rate information, customer service and the number of complaints filed with the Consumer Financial Protection Bureau as a percentage of loans issued. We also awarded lenders up to one bonus star for a unique program or borrower focus that set them apart from other lenders. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.

To recap our selections...

NerdWallet's Best FHA 203(k) Mortgage Lenders of 2020

Frequently asked questions