6 Best Interest-Only Mortgage Lenders of 2020

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 2020.

Summary of Best Interest-Only Mortgage Lenders of 2020

Lender	Best For	Minimum Credit Score	Minimum Down Payment	Learn More
Guaranteed Rate NerdWallet rating Read review	online experience	620	3%	Read review
SoFi NerdWallet rating Learn More at SoFi	online experience	N/A	10%	Learn More at SoFi
New American Funding NerdWallet rating Learn more at New American	face-to-face service	620	3%	Learn more at New American
Navy Federal NerdWallet rating Read review	face-to-face service	N/A	0%	Read review
Wintrust Mortgage NerdWallet rating Read review	jumbo loans	620	3%	Read review
HomeBridge NerdWallet rating Read review	jumbo loans	620	3%	Read review

Lender	Best For	Minimum Credit Score	Minimum Down Payment	Learn More
Guaranteed Rate NerdWallet rating Read review	online experience	620	3%	Read review
SoFi NerdWallet rating Learn More at SoFi	online experience	N/A	10%	Learn More at SoFi
New American Funding NerdWallet rating Learn more at New American	face-to-face service	620	3%	Learn more at New American
Navy Federal NerdWallet rating Read review	face-to-face service	N/A	0%	Read review
Wintrust Mortgage NerdWallet rating Read review	jumbo loans	620	3%	Read review
HomeBridge NerdWallet rating Read review	jumbo loans	620	3%	Read review

Read review

Guaranteed Rate: NMLS#2611

4.5

NerdWallet rating

Min. Credit Score

620

Min. Down Payment

3%

Read review

Why we like it

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.

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at SoFi

SoFi: NMLS#1484615

4.0

NerdWallet rating

National / Regional

Regional

Min. Down Payment

10%

Learn More

at SoFi

Why we like it

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.
Does not require private mortgage insurance for jumbo loans.

Cons

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

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at New American

New American Funding: NMLS#6606

4.5

NerdWallet rating

Min. Credit Score

620

Min. Down Payment

3%

Learn more

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.

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Navy Federal: NMLS#399807

4.5

NerdWallet rating

National / Regional

National

Min. Down Payment

0%

Read review

Why we like it

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.
Online application for preapproval with quick decision.

Cons

Website does not provide customized mortgage rates based on credit score or other factors before you apply.

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Wintrust Mortgage: NMLS#449042

4.0

NerdWallet rating

Min. Credit Score

620

Min. Down Payment

3%

Read review

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.

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HomeBridge: NMLS#6521

3.5

NerdWallet rating

Min. Credit Score

620

Min. Down Payment

3%

Read review

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

More from NerdWallet

Last updated on January 2, 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 Interest-Only Mortgage Lenders of 2020

Guaranteed Rate: Best for online experience
SoFi: 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

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