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Best FHA 203(k) Mortgage Lenders of 2019

NerdWalletAugust 15, 2019

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

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

New American Funding

at New American

Min. Credit Score

620

Min. Down Payment

3%

Pros

  • Uses manual underwriting to evaluate creditworthiness.
  • Offers full online mortgage application, rate quotes, document upload and loan tracking.

Cons

  • Services not available in all 50 states.
Read full review
Min. Credit Score

620

Min. Down Payment

3%

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
Min. Credit Score

600

Min. Down Payment

3%

Pros

  • Wide variety of terms, including 10-, 15-, 20-, 25- and 30-year fixed-rate mortgages and ARMs with 3/1, 5/1, 7/1 and 10/1 terms.
  • Offers Fannie Mae and Freddie Mac programs for low- to moderate-income home buyers.
  • VA lending is one-third of J.G. Wentworth’s business. A number of loan officers and other employees are former service members.
  • Focus on automation includes an entirely online loan application process, digital document uploads, loan tracking and signatures as well as pre-qualification letters by email.
  • Licensed in all states except for Hawaii, Missouri, Montana, Nevada and New York.

Cons

  • Does not offer home equity loans or lines of credit.
  • Physical locations in 14 states only.
  • Not licensed in Hawaii, Missouri, Montana, Nevada or New York.
Read full review
National / Regional

National

Min. Down Payment

3%

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
Min. Credit Score

620

Min. Down Payment

3%

Pros

  • Participates in some down payment assistance programs.
  • Offers educational resources for military borrowers.
  • Provides digital tools for a streamlined application process.

Cons

  • No mortgage rates displayed online.
  • Must work with a loan officer for pre-qualification and preapproval.
Read full review
Min. Credit Score

620

Min. Down Payment

3%

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
loanDepot

at LoanDepot

Min. Credit Score

620

National / Regional

National

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
Min. Credit Score

620

Min. Down Payment

3%

Pros

  • Low rate of consumer complaints filed with the Consumer Financial Protection Bureau.
  • Request a pre-qualification through PrimeLending’s secure system from a phone, tablet or computer.
  • Niche mortgage products include energy-efficient mortgages, FHA 203(k) renovation and remodeling loans, manufactured home mortgages and home construction loans.
  • Free “float down” interest rate option lets borrowers choose the lower rate if interest rates fall, even with a rate lock.
  • NeighborhoodEdge closing cost assistance program for low- to moderate-income borrowers allows qualified borrowers $2,000 in closing cost credits (restrictions on income and location).
  • “Alternative doc” program lets borrowers qualify for mortgage based on bank statements rather than tax returns.

Cons

  • No live chat online.
  • No online mortgage rate quotes.
Read full review
BNC National Bank

at BNC National Bank

Min. Credit Score

620

Min. Down Payment

3%

Pros

  • Loan officers are well-versed in VA loan process.
  • Low minimum credit score for government loans.
  • Down payments as low as 3% on conventional loans.
  • Considers alternative credit data, like cell phone payments.

Cons

  • No online preapproval.
  • Typically charges a $1,095 lender fee.
  • Limited number of physical mortgage offices.
Read full review
Min. Credit Score

620

Min. Down Payment

3%

Pros

  • Embraces FHA-backed home loans.
  • Offers three construction loans.
  • A professional loan package is tailored for the needs of doctors, lawyers, architects and certified public accountants.
  • Flagstar reps are familiar with low-down-payment state bond programs for first-time home buyers and income-limited households, as well as the areas that qualify for USDA loans.
  • Offers home equity loans and home equity lines of credit.

Cons

  • Charges an average $1,000 origination fee.
Read full review

Summary of Best FHA 203(k) Mortgage Lenders of 2019

LenderBest For

Minimum Credit Score

Minimum Down PaymentLearn More
New American Funding

New American Funding

at New American

first-time home buyers

620

3%

at New American

Wintrust Mortgage

Wintrust Mortgage

first-time home buyers

620

3%

Read review
J.G. Wentworth

J.G. Wentworth

digital convenience

600

3%

Read review
Fairway

Fairway

digital convenience

N/A

3%

Read review
Caliber

Caliber

borrowers with a low credit score

620

3%

Read review
HomeBridge

HomeBridge

borrowers with a low credit score

620

3%

Read review
loanDepot

loanDepot

at LoanDepot

203(k) refinancing

620

3.5%

at LoanDepot

PrimeLending

PrimeLending

203(k) refinancing

620

3%

Read review
BNC National Bank

BNC National Bank

at BNC National Bank

borrowers with limited credit history

620

3%

at BNC National Bank

Flagstar

Flagstar

borrowers with limited credit history

620

3%

Read review
LenderBest For

Minimum Credit Score

Minimum Down PaymentLearn More
New American Funding

New American Funding

at New American

first-time home buyers

620

3%

at New American

Wintrust Mortgage

Wintrust Mortgage

first-time home buyers

620

3%

Read review
J.G. Wentworth

J.G. Wentworth

digital convenience

600

3%

Read review
Fairway

Fairway

digital convenience

N/A

3%

Read review
Caliber

Caliber

borrowers with a low credit score

620

3%

Read review
HomeBridge

HomeBridge

borrowers with a low credit score

620

3%

Read review
loanDepot

loanDepot

at LoanDepot

203(k) refinancing

620

3.5%

at LoanDepot

PrimeLending

PrimeLending

203(k) refinancing

620

3%

Read review
BNC National Bank

BNC National Bank

at BNC National Bank

borrowers with limited credit history

620

3%

at BNC National Bank

Flagstar

Flagstar

borrowers with limited credit history

620

3%

Read review

Last updated on August 15, 2019

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 2019