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.

By NerdWallet  

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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

4.5

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: First-time home buyers and other borrowers looking for a broad array of loan choices.

Pros

  • Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.

  • Its home equity line of credit can be used for an owner-occupied or second home.

  • Offers a program to enable buyers to make cash offers.

Cons

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

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Guaranteed Rate
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at Guaranteed Rate

Guaranteed Rate: NMLS#2611

5.0

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 a solid variety of loan types, including jumbo and interest-only options, and a totally online experience.

Pros

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

  • Offers a wide variety of loans, including jumbo and interest-only products.

  • Offers low rates compared with other lenders, according to the latest federal data.

Cons

  • Doesn't offer home equity loans.

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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, including renovation loans and ITIN loans.

Pros

  • Offers a robust suite of loan products, including ITIN loans for borrowers without Social Security numbers, renovation loans, government-backed mortgages and loans for self-employed borrowers.

  • Receives high marks for customer satisfaction, according to J.D. Power and Zillow.

Cons

  • Mortgage rates for different types of loans aren't posted online.

  • Origination fees are on the high side compared with other lenders, according to the latest federal data.

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loanDepot
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loanDepot: NMLS#174457

3.5

NerdWallet rating 
loanDepot

Min. credit score

520

Min. down payment

3.5%
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Why we like it

Good for: borrowers who want an easy online application and a variety of loan types to explore.

Pros

  • Has branches across the country for customers who prefer face-to-face service.

  • Receives high marks for customer satisfaction, according to J.D. Power and Zillow.

  • Mortgage interest rates tend to be on the lower end, according to the latest federal data.

Cons

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

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

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PrimeLending
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PrimeLending: NMLS#13649

4.0

NerdWallet rating 
PrimeLending

Min. credit score

580

Min. down payment

3.5%
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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 government-backed mortgage and refinance options, including FHA, USDA and VA loans.

Cons

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

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Caliber
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Caliber: NMLS#15622

3.5

NerdWallet rating 
Caliber

Min. credit score

580

Min. down payment

0%
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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.

  • Participates in some 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
Wells Fargo
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Wells Fargo: NMLS#399801

4.5

NerdWallet rating 
Wells Fargo

Min. credit score

620

Min. down payment

3%
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Why we like it

Good for: existing customers of the bank looking for a wide selection of mortgage products.

Pros

  • Sample rates clearly posted for various loan products.

  • Offers a wide variety of loan types and products.

  • Mortgage rates tend to be on the low side compared with other lenders, according to the latest federal data.

Cons

  • Home loans business is broadly focused on bank customers.

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

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

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

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