Best of

Best Interest-Only Mortgage Lenders of 2019

NerdWalletJuly 2, 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.

An interest-only mortgage is a niche product that can be difficult to find these days. See NerdWallet's picks for some of the best interest-only mortgage lenders in 2019.

Min. Credit Score

620

Min. Down Payment

3%

Pros

  • Works with most borrowers as long as they have good credit scores and incomes.
  • Provides a user-friendly digital platform that’s thorough in covering all types of borrowing scenarios.
  • Has a 95% customer satisfaction rate, according to company data.

Cons

  • Charges some fees, such as a $1,290 lender fee that includes a $150 application fee.
  • Offers many products, which might confuse or overwhelm borrowers.
  • Several click-throughs required for personalized rates.
Read full review
SoFi

at SoFi

4.0

NerdWallet rating 

at SoFi

National / Regional

Regional

Min. Down Payment

10%

Pros

  • Provides an entirely digital mortgage application to make the process easier for borrowers.
  • Considers non-traditional income, such as restricted stock units, and works with self-employed borrowers.

Cons

  • Doesn't offer government-backed loans, like FHA or VA.
  • Does not offer home equity loans or HELOCs.
New American Funding

at New American

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
National / Regional

National

Min. Down Payment

0%

Pros

  • Wide range of affordable mortgage products designed for military members.
  • Willing to look at nontraditional credit data, such as rent payments, as part of its credit evaluation for certain products.
  • Lower minimum loan amounts than many other lenders.
  • Online application for preapproval with quick decision.
  • $1,000 mortgage rate match program.
  • Operates nationwide.

Cons

  • Charges application and underwriting fees.
  • Origination charge on a typical conventional loan is 1% of the loan amount.
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

550

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

Summary of Best Interest-Only Mortgage Lenders of 2019

LenderBest For

Minimum Credit Score

Minimum Down PaymentLearn More
Guaranteed Rate

Guaranteed Rate

online experience

620

3%

Read review
SoFi

SoFi

NerdWallet rating 

at SoFi

online experience

N/A

10%

at SoFi

New American Funding

New American Funding

at New American

face-to-face service

620

3%

at New American

Navy Federal

Navy Federal

face-to-face service

N/A

0%

Read review
Wintrust Mortgage

Wintrust Mortgage

jumbo loans

620

3%

Read review
HomeBridge

HomeBridge

jumbo loans

550

3%

Read review
LenderBest For

Minimum Credit Score

Minimum Down PaymentLearn More
Guaranteed Rate

Guaranteed Rate

online experience

620

3%

Read review
SoFi

SoFi

NerdWallet rating 

at SoFi

online experience

N/A

10%

at SoFi

New American Funding

New American Funding

at New American

face-to-face service

620

3%

at New American

Navy Federal

Navy Federal

face-to-face service

N/A

0%

Read review
Wintrust Mortgage

Wintrust Mortgage

jumbo loans

620

3%

Read review
HomeBridge

HomeBridge

jumbo loans

550

3%

Read review

Last updated on July 2, 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 Interest-Only Mortgage Lenders of 2019