BEST OF
10 Best Lenders for FHA Loans in April 2021
FHA loans offer several benefits including low rates and low down payments. Compare some of the best FHA lenders to find the right fit for your needs.
You might think all Federal Housing Administration lenders are the same. But even when you’re looking for an FHA loan, it’s always smart to shop at least three lenders. Their mortgage rates, fees and other costs to borrow can vary substantially.
NerdWallet has picked some of the best FHA lenders in a variety of categories so you can quickly determine which one is right for you.
» MORE: Compare FHA mortgage rates
You might think all Federal Housing Administration lenders are the same. But even when you’re looking for an FHA loan, it’s always smart to shop at least three lenders. Their mortgage rates, fees and other costs to borrow can vary substantially.
NerdWallet has picked some of the best FHA lenders in a variety of categories so you can quickly determine which one is right for you.
» MORE: Compare FHA mortgage rates
Summary of Best Lenders for FHA Loans in April 2021
Lender | NerdWallet Rating | Minimum Credit Score | Minimum Down Payment | Learn More |
---|---|---|---|---|
Best for online experience | 580 | 3.5% | at Quicken Loans | |
Best for lower credit score borrowers | 600 | 3.5% | at AmeriSave | |
Best for online FHA loan experience | 580 | 3.5% | Read review | |
Best for nontraditional credit histories | 500 | 3.5% | Read review | |
Best for veterans seeking FHA loans | 580 | 3.5% | Read review | |
Best for overall FHA loan experience | N/A | 3.5% | Read review | |
Best for overall FHA loan experience | 580 | 3.5% | Read review | |
Best for FHA 203k renovation loans | 580 | 3.5% | Read review | |
Best for lower credit score borrowers | 580 | 3.5% | Read review | |
Best for veterans seeking FHA loans | 500 | 3.5% | Read review |
at Quicken Loans
Quicken Loans: NMLS#3030
Min. Credit Score
Min. Down Payment
at Quicken Loans
at AmeriSave
AmeriSave: NMLS#1168

Min. Credit Score
Min. Down Payment
at AmeriSave
PennyMac: NMLS#35953

Min. Credit Score
Min. Down Payment
Carrington: NMLS#2600

Min. Credit Score
Min. Down Payment
Caliber: NMLS#15622

Min. Credit Score
Min. Down Payment
Alterra: NMLS#133739

Min. Down Payment
National / Regional
PrimeLending: NMLS#13649

Min. Credit Score
Min. Down Payment
Stearns Lending: NMLS#1854

Min. Credit Score
Min. Down Payment
Mr. Cooper: NMLS#2119

Min. Credit Score
Min. Down Payment
Freedom Mortgage: NMLS#2767

Min. Credit Score
Min. Down Payment
Qualifying for an FHA loan
To qualify for an FHA loan, you'll need a credit score of at least 500 with a 10% down payment. To determine if you’re eligible for the lowest FHA down payment — just 3.5% — underwriters will look for a score of 580 or higher. You’ll also need to have a debt-to-income ratio of 50% or less.
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 insurance premium and the closing costs can be rolled into the total amount of the mortgage.
Bear in mind that these are the FHA's qualification guidelines; individual lenders may impose additional rules. That's just one reason it's worth comparing several lenders.
» MORE: Debt-to-income ratio calculator
Are FHA loans only for first-time home buyers?
No, you do not need to be a first-time home buyer to use an FHA loan. Lower credit score minimums and down payments certainly make FHA loans attractive to first-time home buyers, but current homeowners are eligible, too. In fiscal year 2020, about 83% of FHA purchase loans were made to first-time home buyers — which means 17% went to borrowers who were already homeowners.
Can you get an FHA loan if you have student loans?
Yes, you can get an FHA loan if you have student loan debt, though you'll still have to 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 1% of your total student loan balance.
More from NerdWallet
Last updated on March 31, 2021
Methodology
NerdWallet's star ratings for mortgage lenders are awarded based on our evaluation of the products and services each lender offers to consumers who are actively shopping for the best mortgage. The five key areas we evaluated include the variety of loan types and products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available Home Mortgage Disclosure Act data. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.
To recap our selections...
NerdWallet's Best Lenders for FHA Loans in April 2021
- Quicken Loans: Best for online experience
- AmeriSave: Best for lower credit score borrowers
- PennyMac: Best for online FHA loan experience
- Carrington: Best for nontraditional credit histories
- Caliber: Best for veterans seeking FHA loans
- Alterra: Best for overall FHA loan experience
- PrimeLending: Best for overall FHA loan experience
- Stearns Lending: Best for FHA 203k renovation loans
- Mr. Cooper: Best for lower credit score borrowers
- Freedom Mortgage: Best for veterans seeking FHA loans
Frequently asked questions
Getting an FHA loan isn't especially different from what you'd do to get a conventional mortgage. You don't apply to the Federal Housing Administration itself; you’ll work with an FHA-approved mortgage lender that likely offers other types of home loans in addition to FHA loans.
FHA loan preapproval is similar to preapproval for other mortgage types, though you'll need to work with an FHA-approved lender. You'll need to provide documentation of your financial status, which can include employment history, bank account info and any current loan payments. Getting a mortgage preapproval from more than one lender lets you compare not only rates but also all the fees and conditions each lender would apply.
Compare at least three FHA lenders when you're looking for an FHA loan. While the FHA sets minimum qualification guidelines, lenders can ask for higher credit scores or lower debt-to-income ratios. Lender fees can also vary. But FHA mortgage rates may make the biggest difference, both in how much you'll pay each month and how much interest you'll pay over the life of the loan. Run the numbers with an FHA mortgage calculator to estimate your payments.