Best of
Best Interest-Only Mortgage Lenders of 2019
NerdWalletJuly 2, 2019
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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%
Ideal for borrowers who are looking to apply for a mortgage and manage the process through online tools, whether buying or refinancing. Guaranteed Rate offers FHA, VA and USDA loans for borrowers who are well-qualified.
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.
at SoFi
4.0
NerdWallet ratingat SoFi
National / Regional
Regional
Min. Down Payment
10%
Ideal for young professionals and self-employed borrowers looking for a lender that considers non-traditional income.
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.
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.
National / Regional
National
Min. Down Payment
0%
Ideal for military members and their families. Navy Federal Credit Union offers a wide range of mortgage products, an online application and considers alternative credit data for certain loan types.
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.
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
550
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.
Summary of Best Interest-Only Mortgage Lenders of 2019
| Lender | Best For | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
 Guaranteed Rate | online experience | 620 | 3% | Read review |
SoFi NerdWallet rating at SoFi | online experience | N/A | 10% | at SoFi |
New American Funding at New American | face-to-face service | 620 | 3% | at New American |
 Navy Federal | face-to-face service | N/A | 0% | Read review |
 Wintrust Mortgage | jumbo loans | 620 | 3% | Read review |
 HomeBridge | jumbo loans | 550 | 3% | Read review |
| Lender | Best For | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
Guaranteed Rate | online experience | 620 | 3% | Read review |
SoFi NerdWallet rating at SoFi | online experience | N/A | 10% | at SoFi |
New American Funding at New American | face-to-face service | 620 | 3% | at New American |
Navy Federal | face-to-face service | N/A | 0% | Read review |
Wintrust Mortgage | jumbo loans | 620 | 3% | Read review |
HomeBridge | jumbo loans | 550 | 3% | Read review |
More from NerdWallet
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
- Guaranteed Rate: Best for online experience
- : Best for online experience
- New American Funding: Best for face-to-face service
- Navy Federal: Best for face-to-face service
- Wintrust Mortgage: Best for jumbo loans
- HomeBridge: Best for jumbo loans
