Best of
Best Minnesota Housing Finance Agency Lenders of 2019
NerdWalletAugust 14, 2019
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These mortgage lenders rank among the top participants in Minnesota Housing Finance Agency loan programs.
at New American
at New American
Min. Credit Score
620
Min. Down Payment
3%
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 seeks 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.
Cons
- Services not available in all 50 states.
National / Regional
National
Min. Down Payment
3%
Ideal for borrowers who want lots of options and a quick turn time. Fairway Independent Mortgage offers a full selection of home loans along with a comprehensive mobile app for a fast and easy application process.
Pros
- A robust suite of loan products.
- Licensed in all 50 states.
- Close in as little as 10 days using the Fairway app.
Cons
- Limited branch locations.
- Mortgage rates not posted on website.
Min. Credit Score
620
Min. Down Payment
3%
Ideal for borrowers looking for a national lender with a complete selection of mortgage products for home buyers in all financial stages.
Pros
- Loan programs to educate and assist first-time home buyers, union members and others.
- Relocation and employee mortgage programs for many large companies.
- Accepts down payments as low as 3% on fixed-rate mortgages through its yourFirst Mortgage program.
Cons
- Government actions and scandals have damaged consumer trust.
at loanDepot
at loanDepot
Min. Credit Score
620
Min. Down Payment
3.5%
Ideal for borrowers looking to get a mortgage with help from a loan officer. Digital back-office operations are said to add efficiency to the loan process.
Pros
- Offers digital income, asset and employment verification.
- Has over 150 affiliated loan stores nationwide for customers who prefer face-to-face service.
- One of the nation’s most active lenders of FHA and VA loans.
Cons
- Published mortgage rates include up to three points of prepaid interest and fees.
- Does not offer home equity loans or lines of credit.
Min. Credit Score
620
Min. Down Payment
3%
Ideal for borrowers looking for help with closing costs: PrimeLending's proprietary program, NeighborhoodEdge, helps qualified low- to moderate-income borrowers with up to $2,000 in closing cost credits (certain restrictions are based on income and location).
Pros
- Low rate of consumer complaints filed with the Consumer Financial Protection Bureau.
- Request a pre-qualification through PrimeLending’s secure system from a phone, tablet or computer.
- Niche mortgage products include energy-efficient mortgages, FHA 203(k) renovation and remodeling loans, manufactured home mortgages and home construction loans.
- Free “float down” interest rate option lets borrowers choose the lower rate if interest rates fall, even with a rate lock.
- NeighborhoodEdge closing cost assistance program for low- to moderate-income borrowers allows qualified borrowers $2,000 in closing cost credits (restrictions on income and location).
- “Alternative doc” program lets borrowers qualify for mortgage based on bank statements rather than tax returns.
Cons
- No live chat online.
- No online mortgage rate quotes.
Min. Credit Score
620
Min. Down Payment
3%
Ideal for first-time home buyers, veterans and those who may have credit challenges to overcome.
Pros
- Participates in some down payment assistance programs.
- Offers educational resources for military borrowers.
- Provides digital tools for a streamlined application process.
Cons
- No mortgage rates displayed online.
- Must work with a loan officer for pre-qualification and preapproval.
at BNC National Bank
at BNC National Bank
Min. Credit Score
620
Min. Down Payment
3%
Ideal for military members and others who want low-down-payment loan options.
Pros
- Loan officers are well-versed in VA loan process.
- Low minimum credit score for government loans.
- Down payments as low as 3% on conventional loans.
- Considers alternative credit data, like cell phone payments.
Cons
- No online preapproval.
- Typically charges a $1,095 lender fee.
- Limited number of physical mortgage offices.
Min. Credit Score
620
Min. Down Payment
3%
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.
Summary of Best Minnesota Housing Finance Agency Lenders of 2019
| Lender | Best For | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
New American Funding at New American | buyers with nontraditional credit | 620 | 3% | at New American |
 Fairway | face-to-face service | N/A | 3% | Read review |
 Wells Fargo | face-to-face service | 620 | 3% | Read review |
loanDepot at loanDepot | FHA loans | 620 | 3.5% | at loanDepot |
 PrimeLending | FHA loans | 620 | 3% | Read review |
 Caliber | VA loans | 620 | 3% | Read review |
BNC National Bank at BNC National Bank | VA loans | 620 | 3% | at BNC National Bank |
 Guaranteed Rate | online lending | 620 | 3% | Read review |
| Lender | Best For | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
New American Funding at New American | buyers with nontraditional credit | 620 | 3% | at New American |
Fairway | face-to-face service | N/A | 3% | Read review |
Wells Fargo | face-to-face service | 620 | 3% | Read review |
loanDepot at loanDepot | FHA loans | 620 | 3.5% | at loanDepot |
PrimeLending | FHA loans | 620 | 3% | Read review |
Caliber | VA loans | 620 | 3% | Read review |
BNC National Bank at BNC National Bank | VA loans | 620 | 3% | at BNC National Bank |
Guaranteed Rate | online lending | 620 | 3% | Read review |
More MHFA participating lenders
Here are some additional lenders that participate in Minnesota Housing Finance Agency programs. While they haven’t been reviewed by NerdWallet, they are among the highest volume mortgage originators in Minnesota.
Bell Bank
- Touts a "free and easy pre-qualification process."
- Has plentiful branches in the Twin Cities and west central Minnesota.
- Offers an online application.
AMEC Home Loans
- Provides a closing guarantee worth up to $10,000 to the buyer and seller if AMEC does not close the loan.
- Has more than 20 branches in Minnesota.
- Offers several loan types, including conforming, FHA, VA and USDA.
Alerus Mortgage
- Promises $20,000 to the home seller if a loan doesn't close according to the terms of the approval letter.
- Provides online tracking of the mortgage application.
- Has mortgage loan officers available in five Minnesota cities.
HomeServices Lending
- Has an online application.
- Offers no- and low-down-payment mortgage options, such as FHA and VA loans.
- Promises borrowers a $100 gift card for comparing a competitor's loan offer with a HomeServices pre-approval letter.
More from NerdWallet:
Last updated on August 14, 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 Minnesota Housing Finance Agency Lenders of 2019
- New American Funding: Best for buyers with nontraditional credit
- Fairway: Best for face-to-face service
- Wells Fargo: Best for face-to-face service
- loanDepot: Best for FHA loans
- PrimeLending: Best for FHA loans
- Caliber: Best for VA loans
- BNC National Bank: Best for VA loans
- Guaranteed Rate: Best for online lending
