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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.

New American Funding

at New American

Min. Credit Score

620

Min. Down Payment

3%

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.
Read full review
National / Regional

National

Min. Down Payment

3%

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.
Read full review
Min. Credit Score

620

Min. Down Payment

3%

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.
Read full review
loanDepot

at loanDepot

Min. Credit Score

620

Min. Down Payment

3.5%

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.
Read full review
Min. Credit Score

620

Min. Down Payment

3%

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.
Read full review
Min. Credit Score

620

Min. Down Payment

3%

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.
Read full review
BNC National Bank

at BNC National Bank

Min. Credit Score

620

Min. Down Payment

3%

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.
Read full review
Min. Credit Score

620

Min. Down Payment

3%

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

Summary of Best Minnesota Housing Finance Agency Lenders of 2019

LenderBest For

Minimum Credit Score

Minimum Down PaymentLearn More
New American Funding

New American Funding

at New American

buyers with nontraditional credit

620

3%

at New American

Fairway

Fairway

face-to-face service

N/A

3%

Read review
Wells Fargo

Wells Fargo

face-to-face service

620

3%

Read review
loanDepot

loanDepot

at loanDepot

FHA loans

620

3.5%

at loanDepot

PrimeLending

PrimeLending

FHA loans

620

3%

Read review
Caliber

Caliber

VA loans

620

3%

Read review
BNC National Bank

BNC National Bank

at BNC National Bank

VA loans

620

3%

at BNC National Bank

Guaranteed Rate

Guaranteed Rate

online lending

620

3%

Read review
LenderBest For

Minimum Credit Score

Minimum Down PaymentLearn More
New American Funding

New American Funding

at New American

buyers with nontraditional credit

620

3%

at New American

Fairway

Fairway

face-to-face service

N/A

3%

Read review
Wells Fargo

Wells Fargo

face-to-face service

620

3%

Read review
loanDepot

loanDepot

at loanDepot

FHA loans

620

3.5%

at loanDepot

PrimeLending

PrimeLending

FHA loans

620

3%

Read review
Caliber

Caliber

VA loans

620

3%

Read review
BNC National Bank

BNC National Bank

at BNC National Bank

VA loans

620

3%

at BNC National Bank

Guaranteed Rate

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