Best of

6 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.

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

620

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

620

3%

Read review

Guaranteed Rate: NMLS#2611

Logo

Min. Credit Score

620

Min. Down Payment

3%


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.

Read Full Review
Logo

at SoFi

SoFi: NMLS#1484615

4.0

NerdWallet rating 
Logo

National / Regional

Regional

Min. Down Payment

10%

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.

Logo

at New American

New American Funding: NMLS#6606

Logo

Min. Credit Score

620

Min. Down Payment

3%

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.

Read Full Review

Navy Federal: NMLS#399807

Logo

National / Regional

National

Min. Down Payment

0%


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.

Read Full Review

Wintrust Mortgage: NMLS#449042

Logo

Min. Credit Score

620

Min. Down Payment

3%


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.

Read Full Review

HomeBridge: NMLS#6521

Logo

Min. Credit Score

620

Min. Down Payment

3%


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

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