Best Lenders for FHA Loans in February 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.
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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 February 2023
Lender | NerdWallet rating | Min. credit score | Min. down payment | Learn more |
---|---|---|---|---|
![]() Pennymac: NMLS#35953 Learn more at Pennymac | Best for overall FHA loan experience | 580 | 3.5% | Learn more at Pennymac |
![]() Guaranteed Rate: NMLS#2611 Learn more at Guaranteed Rate | Best for rate transparency | 600 | N/A | Learn more at Guaranteed Rate |
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 |
![]() PNC: NMLS#446303 Learn more at PNC | Best for low origination fees | 620 | 3.5% | Learn more at PNC |
![]() Better: NMLS#330511 Learn more at Better | Best for ease of application | 500 | 3.5% | Learn more at Better |
![]() 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 |
![]() 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 |
![]() Carrington: NMLS#2600 | Best for nontraditional credit histories | 500 | 3.5% | Read review |
![]() Mr. Cooper: NMLS#2119 | Best for nontraditional credit histories | 580 | N/A | Read review |
![]() Wells Fargo: NMLS#399801 | Best for first-time home buyers | 620 | 3.5% | Read review |
![]() Freedom Mortgage: NMLS#2767 | Best for ease of application | 500 | 3.5% | Read review |
![]() Wintrust Mortgage: NMLS#449042 | Best for variety of loan types | N/A | 3.5% | Read review |

at Pennymac
Pennymac: NMLS#35953

Min. credit score
580Min. down payment
3.5%at Pennymac

at Guaranteed Rate
Guaranteed Rate: NMLS#2611

Min. credit score
600National / regional
Nationalat Guaranteed Rate

at New American Funding
New American Funding: NMLS#6606

Min. credit score
500Min. down payment
3.5%at New American Funding

at Bethpage Federal Credit Union
Bethpage Federal Credit Union: NMLS#449104

Min. credit score
580Min. down payment
3.5%at Bethpage Federal Credit Union

at Rocket Mortgage, LLC
Rocket Mortgage, LLC: NMLS#3030

Min. credit score
580Min. down payment
3.5%at Rocket Mortgage, LLC
Veterans United: NMLS#1907

Min. credit score
620Min. down payment
3.5%Carrington: NMLS#2600

Min. credit score
500Min. down payment
3.5%Mr. Cooper: NMLS#2119

Min. credit score
580National / regional
RegionalWells Fargo: NMLS#399801

Min. credit score
620Min. down payment
3.5%Freedom Mortgage: NMLS#2767

Min. credit score
500Min. down payment
3.5%Wintrust Mortgage: NMLS#449042

Min. credit score
N/AMin. down payment
3.5%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 January 3, 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 February 2023
- Pennymac: Best for overall FHA loan experience
- Guaranteed Rate: Best for rate transparency
- NBKC: Best for low origination fees
- New American Funding: Best for rate transparency
- PNC: Best for low origination fees
- Better: Best for ease of application
- Bethpage Federal Credit Union: Best for credit union lending
- Rocket Mortgage, LLC: Best for digital convenience
- Veterans United: Best for low origination fees
- Carrington: Best for nontraditional credit histories
- Mr. Cooper: Best for nontraditional credit histories
- Wells Fargo: Best for first-time home buyers
- Freedom Mortgage: Best for ease of application
- 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.