Best Lenders for FHA Loans in April 2023
FHA loans have down payment requirements as low as 3.5%. Compare some of the top FHA lenders to find the right fit for your needs.
Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
You might think all Federal Housing Administration-approved lenders are the same. But when you’re looking for an FHA loan, it’s smart to compare at least three lenders to find the best deal. Mortgage rates and fees vary among lenders, as do requirements for borrowers.
NerdWallet has picked some of the best FHA lenders in a variety of categories to help you get started.
» MORE: Compare FHA mortgage rates
You might think all Federal Housing Administration-approved lenders are the same. But when you’re looking for an FHA loan, it’s smart to compare at least three lenders to find the best deal. Mortgage rates and fees vary among lenders, as do requirements for borrowers.
NerdWallet has picked some of the best FHA lenders in a variety of categories to help you get started.
» MORE: Compare FHA mortgage rates
Best Lenders for FHA Loans in April 2023
Lender | NerdWallet rating | Min. credit score | Min. down payment | Learn more |
|---|---|---|---|---|
 Bethpage Federal Credit Union: NMLS#449104 Learn more at Bethpage Federal Credit Union | Best for credit union lending | 580 | 3.5% | Learn more at Bethpage Federal Credit Union |
 Better: NMLS#330511 | Best for ease of application | 500 | 3.5% | Read review |
 Carrington: NMLS#2600 | Best for nontraditional credit histories | 500 | 3.5% | Read review |
 Freedom Mortgage: NMLS#2767 | Best for ease of application | 500 | 3.5% | Read review |
 Guaranteed Rate: NMLS#2611 | Best for rate transparency | 600 | 3.5% | Read review |
 Mr. Cooper: NMLS#2119 | Best for nontraditional credit histories | 580 | 3.5% | Read review |
 NBKC: NMLS#409631 Learn more at NBKC | Best for low origination fees | 620 | 3.5% | Learn more at NBKC |
 New American Funding: NMLS#6606 Learn more at New American Funding | Best for rate transparency | 500 | 3.5% | Learn more at New American Funding |
 Pennymac: NMLS#35953 Learn more at Pennymac | Best for overall FHA loan experience | 580 | 3.5% | Learn more at Pennymac |
 PNC: NMLS#446303 | Best for low origination fees | 620 | 3.5% | Read review |
 Rocket Mortgage, LLC: NMLS#3030 Learn more at Rocket Mortgage, LLC | Best for digital convenience | 580 | 3.5% | Learn more at Rocket Mortgage, LLC |
 Veterans United: NMLS#1907 | Best for low origination fees | 620 | 3.5% | Read review |
 Wells Fargo: NMLS#399801 | Best for first-time home buyers | 620 | 3.5% | Read review |
 Wintrust Mortgage: NMLS#449042 | Best for variety of loan types | N/A | 3.5% | Read review |
Qualifying for an FHA loan
To qualify for an FHA loan, you'll need a credit score of at least 580 for the lowest FHA down payment of 3.5% and a score of 500 with a 10% down payment. FHA loans allow a debt-to-income ratio of up to 43%, and in some cases there may be a bit more flexibility.
In addition to money for your down payment, you'll also need funds to cover FHA closing costs and an upfront mortgage insurance premium, which for FHA borrowers is 1.75% of the loan amount. Both the upfront mortgage insurance premium and the closing costs can be rolled into the total amount of the mortgage.
Bear in mind that these are the Federal Housing Administration's qualification guidelines; individual lenders can impose stricter rules. That's one reason it's worth comparing several lenders. You can start with the lenders we have here, but you can also browse the U.S. Department of Housing and Urban Development's searchable list of approved FHA lenders.
Are FHA loans only for first-time home buyers?
You do not need to be a first-time home buyer to use an FHA loan. Lower minimum credit score and down payment requirements make FHA loans attractive to first-time home buyers, but current homeowners are eligible, too.
Can you get an FHA loan if you have student loans?
You can get an FHA loan if you have student loan debt, as long as you meet FHA debt-to-income requirements. FHA student loan guidelines state that lenders must include all student loans when calculating a borrower's debt-to-income ratio. If your payments are currently deferred, your lender will consider your "monthly obligation" to be 0.5% of your total student loan balance.
More from NerdWallet
Last updated on March 1, 2023
Methodology
The star ratings on this page reflect each lender's performance in NerdWallet’s FHA loans category. We scored the category and chose lenders for this page using the following methodology:
NerdWallet reviewed more than 50 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country. We rated them on criteria including rate transparency, loan types offered, ease of application and more.
Some of the providers are NerdWallet partners, but this did not influence our selections.
All reviewed mortgage lenders that offer FHA loans were evaluated based on (1) the portion of their business dedicated to FHA lending, (2) their FHA origination fees, (3) the range of FHA loans offered, (4) their rate transparency and (5) the ease of their online application. The highest scoring lenders appear on this page.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2021 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
To recap our selections...
NerdWallet's Best Lenders for FHA Loans in April 2023
- Bethpage Federal Credit Union: Best for credit union lending
- Better: Best for ease of application
- Carrington: Best for nontraditional credit histories
- Freedom Mortgage: Best for ease of application
- Guaranteed Rate: Best for rate transparency
- Mr. Cooper: Best for nontraditional credit histories
- NBKC: Best for low origination fees
- New American Funding: Best for rate transparency
- Pennymac: Best for overall FHA loan experience
- PNC: Best for low origination fees
- Rocket Mortgage, LLC: Best for digital convenience
- Veterans United: Best for low origination fees
- Wells Fargo: Best for first-time home buyers
- Wintrust Mortgage: Best for variety of loan types
Frequently asked questions
To apply, you'll work with a Federal Housing Administration-approved lender. Many banks, credit unions and mortgage lenders offer FHA loans.
FHA loan preapproval is similar to preapproval for other mortgage types, though you have to work with an FHA-approved lender. You'll need to provide documentation of your financial status, which can include employment history, bank account information and any current loan payments. Getting a mortgage preapproval from more than one FHA lender lets you compare not only rates but also all the fees and conditions each lender would apply.
FHA mortgage rates and fees vary by lender, so compare at least three FHA lenders to find the best deal. Then run the numbers with an FHA mortgage calculator to estimate your monthly payments. It's also important to remember that while the FHA sets minimum qualifications, lenders can require higher credit scores or lower debt-to-income ratios.
