Best of
Best FHA 203(k) Mortgage Lenders of 2019
NerdWalletAugust 15, 2019
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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.
at New American
at New American
Min. Credit Score
620
Min. Down Payment
3%
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 seeks 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.
Cons
- Services not available in all 50 states.
Min. Credit Score
620
Min. Down Payment
3%
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.
Min. Credit Score
600
Min. Down Payment
3%
Ideal for borrowers looking for a wide variety of mortgage options, including fixed-rate home loans, adjustable-rate mortgages and VA loans.
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.
National / Regional
National
Min. Down Payment
3%
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.
Min. Credit Score
620
Min. Down Payment
3%
Ideal for first-time home buyers, veterans and those who may have credit challenges to overcome.
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.
Min. Credit Score
620
Min. Down Payment
3%
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.
at LoanDepot
at LoanDepot
Min. Credit Score
620
National / Regional
National
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.
Min. Credit Score
620
Min. Down Payment
3%
Ideal for borrowers looking for help with closing costs: PrimeLending's proprietary program, NeighborhoodEdge, helps qualified low- to moderate-income borrowers with up to $2,000 in closing cost credits (certain restrictions are based on income and location).
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.
at BNC National Bank
at BNC National Bank
Min. Credit Score
620
Min. Down Payment
3%
Ideal for military members and others who want low-down-payment loan options.
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.
Min. Credit Score
620
Min. Down Payment
3%
Ideal for those who appreciate the full-service experience of a leading regional bank. Flagstar offers a full menu of fixed and adjustable home loans and mortgage refinancing, as well as jumbo loans and home equity financing.
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.
Summary of Best FHA 203(k) Mortgage Lenders of 2019
| Lender | Best For | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
New American Funding at New American | first-time home buyers | 620 | 3% | at New American |
 Wintrust Mortgage | first-time home buyers | 620 | 3% | Read review |
 J.G. Wentworth | digital convenience | 600 | 3% | Read review |
 Fairway | digital convenience | N/A | 3% | Read review |
 Caliber | borrowers with a low credit score | 620 | 3% | Read review |
 HomeBridge | borrowers with a low credit score | 620 | 3% | Read review |
loanDepot at LoanDepot | 203(k) refinancing | 620 | 3.5% | at LoanDepot |
 PrimeLending | 203(k) refinancing | 620 | 3% | Read review |
BNC National Bank at BNC National Bank | borrowers with limited credit history | 620 | 3% | at BNC National Bank |
 Flagstar | borrowers with limited credit history | 620 | 3% | Read review |
| Lender | Best For | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
New American Funding at New American | first-time home buyers | 620 | 3% | at New American |
Wintrust Mortgage | first-time home buyers | 620 | 3% | Read review |
J.G. Wentworth | digital convenience | 600 | 3% | Read review |
Fairway | digital convenience | N/A | 3% | Read review |
Caliber | borrowers with a low credit score | 620 | 3% | Read review |
HomeBridge | borrowers with a low credit score | 620 | 3% | Read review |
loanDepot at LoanDepot | 203(k) refinancing | 620 | 3.5% | at LoanDepot |
PrimeLending | 203(k) refinancing | 620 | 3% | Read review |
BNC National Bank at BNC National Bank | borrowers with limited credit history | 620 | 3% | at BNC National Bank |
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
- New American Funding: Best for first-time home buyers
- Wintrust Mortgage: Best for first-time home buyers
- J.G. Wentworth: Best for digital convenience
- Fairway: Best for digital convenience
- Caliber: Best for borrowers with a low credit score
- HomeBridge: Best for borrowers with a low credit score
- loanDepot: Best for 203(k) refinancing
- PrimeLending: Best for 203(k) refinancing
- BNC National Bank: Best for borrowers with limited credit history
- Flagstar: Best for borrowers with limited credit history
