BEST OF

8 Best Minnesota Housing Finance Agency Lenders of 2021

These mortgage lenders rank among the top participants in Minnesota Housing Finance Agency loan programs.

NerdWallet
Jan 21, 2021

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The Minnesota Housing Finance Agency helps the state's first-time home buyers with programs to help pay for down payment and closing costs. To get financial assistance, you'll need to work with an MHFA participating lender.

NerdWallet has reviewed several MHFA participating lenders and chose some of the top-rated options in several categories. We've also listed a few MHFA lenders that have not been reviewed but underwrite a lot of mortgages in Minnesota.

» MORE: Find MHFA loan programs and eligibility requirements

Best Minnesota Housing Finance Agency Lenders

New American Funding
Learn more

at New American Funding

New American Funding: NMLS#6606

5.0

NerdWallet rating 
New American Funding

Min. Credit Score

620

Min. Down Payment

3%
Learn more

at New American Funding

Why we like it

Good for: borrowers who need to be evaluated on the basis of nontraditional credit and those interested in various down payment assistance programs.

Pros

  • Uses manual underwriting to evaluate creditworthiness, in some cases.

  • Offers full online mortgage application, rate quotes, document upload and loan tracking.

Cons

  • Mortgage origination fees tend to be on the high end, according to the latest federal data.

Read Full Review
Fairway Independent Mortgage
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at Fairway Independent Mortgage

Fairway Independent Mortgage: NMLS#2289

3.5

NerdWallet rating 
Fairway Independent Mortgage

Min. Credit Score

620

Min. Down Payment

3%
Learn more

at Fairway Independent Mortgage

Why we like it

Good for: borrowers who want access to a wide variety of mortgages and the convenience of a comprehensive mobile application process.

Pros

  • Offers a robust suite of loan products, including a variety of renovation loans.

  • Has a digital application that can be completed in 10 minutes.

  • Works with some state housing finance agencies to offer mortgages with down payment and closing cost assistance.

Cons

  • Mortgage rates aren't posted online.

  • Origination fees are on the high side and are not offset by low rates, according to the latest data.

Read Full Review
Wells Fargo
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Wells Fargo: NMLS#399801

4.5

NerdWallet rating 
Wells Fargo

Min. Credit Score

620

Min. Down Payment

3%
Read review

Why we like it

Wells Fargo has a solid selection of mortgage products and offers easy-to-shop rates.

Pros

  • Provides numerous online conveniences, including loan application and process updates.

  • Current rates clearly posted for various loan products.

  • Offers a wide variety of loan types and products.

Cons

  • Home equity loans and lines of credit suspended due to COVID-19 are still unavailable.

  • Scandals and government actions have damaged consumer trust in recent years.

  • No home improvement loans offered.

Read Full Review
loanDepot
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at loanDepot

loanDepot: NMLS#174457

3.5

NerdWallet rating 
loanDepot

Min. Credit Score

580

Min. Down Payment

3.5%
Learn more

at loanDepot

Why we like it

Good for: borrowers looking to refinance or who want to start the application process online.

Pros

  • Offers digital income, asset and employment verification.

  • Offers multiple renovation loan options.

  • Has affiliated loan stores for customers who prefer face-to-face service.

Cons

  • Mortgage rates aren't available online; you'll need to contact a loan officer.

  • Does not offer home equity loans or lines of credit.

Read Full Review
PrimeLending
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PrimeLending: NMLS#13649

3.5

NerdWallet rating 
PrimeLending

Min. Credit Score

580

Min. Down Payment

3.5%
Read review

Why we like it

Good for: borrowers looking for closing cost assistance, as well as those seeking to renovate or to build a new home.

Pros

  • Full online application includes document uploads and automated loan updates.

  • Offers a "float-down" interest rate lock.

  • Offers a proprietary closing-cost assistance program.

Cons

  • No online mortgage rates — you have to contact the lender for info.

Read Full Review
Caliber
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Caliber: NMLS#15622

4.0

NerdWallet rating 
Caliber

Min. Credit Score

580

Min. Down Payment

0%
Read review

Why we like it

Good for: first-time home buyers, veterans and those who may have credit challenges to overcome.

Pros

  • Offers extensive educational resources for military borrowers.

  • Provides digital tools for a streamlined application process.

  • Participates in some state down payment assistance and first-time home buyer programs.

Cons

  • No mortgage rates displayed online.

  • Doesn’t offer home equity loans or lines of credit.

Read Full Review
Stearns Lending
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Stearns Lending: NMLS#1854

4.0

NerdWallet rating 
Stearns Lending

Min. Credit Score

620

Min. Down Payment

3%
Read review

Why we like it

Good for: borrowers who want a variety of home loan options, including a government-backed renovation loan.

Pros

  • Offers conventional and government-backed loans with low-down-payment options, including FHA 203k renovation loans.

  • Has a mobile app to help streamline the application process.

  • Has a loan program for medical doctors and dentists with down payments as low as 5%.

Cons

  • Doesn’t display information online about rates and fees.

  • Doesn't offer home equity loans or HELOCs.

Read Full Review
Guaranteed Rate
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at Guaranteed Rate

Guaranteed Rate: NMLS#2611

4.5

NerdWallet rating 
Guaranteed Rate

Min. Credit Score

620

Min. Down Payment

3%
Learn more

at Guaranteed Rate

Why we like it

Good for: borrowers seeking conventional or government-backed loans, and a totally online experience.

Pros

  • Offers the ability to securely upload and digitally sign loan documents.

  • Displays detailed sample rates for many of its loan products.

Cons

  • Doesn't offer home equity loans or lines of credit.

Read Full 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.

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 January 21, 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 Minnesota Housing Finance Agency Lenders of 2021