Best Mortgage Lenders for First-Time Home Buyers in 2024

Last updated on October 1, 2024
Written by 
Kate Wood
Lead Writer/Spokesperson
Alice Holbrook
Edited by 
Alice Holbrook
Assigning Editor
Fact Checked
Kate Wood
Written by 
Lead Writer/Spokesperson
Alice Holbrook
Edited by 
Alice Holbrook
Assigning Editor
Fact Checked

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners and here's how we make money.

  • 50+ mortgage lenders reviewed and rated by our team of experts.
  • 40+ years of combined experience covering mortgages and financial topics.
  • Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
  • Governed by NerdWallet's strict guidelines for editorial integrity.
NerdWallet's mortgage content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in home lending. Their work has appeared in The Associated Press, USA Today, The Washington Post, MarketWatch, Newsweek and many other national, regional and local publications. They have been cited in publications including The Wall Street Journal, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.

Best Mortgage Lenders for First-Time Home Buyers in 2024

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Lender
NerdWallet Rating
Min. credit score
Min. down payment
Learn more
NBKC

NBKC: NMLS#409631

Top 3 most visited 🏆
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at NBKC
at NBKC
Home loans overall
Best for rate transparency

620

3%

New American Funding

New American Funding: NMLS#6606

4.0
/5
Home loans overall
Best for borrowers with nontraditional credit

580

3%

Andrews Federal Credit Union

Andrews Federal Credit Union: NMLS#410421

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4.5
/5
Home loans overall
Best for military borrowers

620

3%

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on NerdWallet
Flagstar

Flagstar: NMLS#417490

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on NerdWallet
5.0
/5
Home loans overall
Best for overall mortgage lending

N/A

5%

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on NerdWallet
Truist

Truist: NMLS#399803

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on NerdWallet
4.0
/5
Home loans overall
Best for digital convenience

620

3%

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on NerdWallet

Explore all of our lender picks by category

NBKC
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at NBKC
at NBKC
NBKC

NBKC: NMLS#409631

4.5
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItNBKC has a user-friendly website and low average rates, but the mobile app is not aimed at mortgage borrowers and browsing customized mortgage rates requires supplying your name and contact information.
Pros
  • Mortgage rates are on the low side compared to other lenders, according to the latest federal data.
  • VA loans represent more than a quarter of purchase volume, a larger share than many lenders NerdWallet reviews.
  • Offers a variety of loan types for purchase and refinance, including fixed- and adjustable-rate loans and government options
Cons
  • HELOCs and no-down-payment loans are available only in the Kansas City metro area.
  • Mobile app focuses on online banking, not mortgages.
  • You’ll need to share contact information to see customized mortgage rates.
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New American Funding
Learn more
at New American Funding
at New American Funding
New American Funding

New American Funding: NMLS#6606

4.0
Home loans overall
NerdWallet rating
Min. credit score

580

Min. down payment

3%

Why We Like ItNew American Funding offers a large menu of loan products, as well as programs like first-time home buyer assistance, but personalized mortgage rates aren't available on its website.
Pros
  • Offers a wide variety of purchase and refinance mortgages, as well as unique buyer assistance programs.
  • Its home equity line of credit can be used for a primary residence or second home.
Cons
  • Average origination fees are on the high side, according to the latest federal data.
  • Personalized mortgage rates are not available on the website without providing contact information.
Andrews Federal Credit Union
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Andrews Federal Credit Union

Andrews Federal Credit Union: NMLS#410421

4.5
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItThe relatively small Andrews Federal Credit Union offers some mighty advantages, like showing detailed, personalized interest rates without requiring contact info and making it easy to get out of paying an origination fee.
Pros
  • Has a robust and user-friendly tool for customized mortgage rates.
  • Easy to qualify for credit union membership.
  • Offers HELOCs and home equity loans.
Cons
  • Physical branches in the U.S. are limited to Maryland, New Jersey, Virginia and Washington, D.C.
  • Does not offer less common mortgage types, like renovation or construction home loans.
Flagstar
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Flagstar

Flagstar: NMLS#417490

5.0
Home loans overall
NerdWallet rating
Min. credit score

N/A

Min. down payment

5%

Why We Like ItFlagstar Bank stands out for its range of accessible loans and programs, including loans with flexible requirements and down payment grant options. Its mortgage operations will be acquired by Mr. Cooper in 2024.
Pros
  • Conventional loan terms extend to 40 years, which is unusually flexible.
  • Offers options for high-balance mortgages.
  • Offers specialized mortgages for professionals, such as doctors and lawyers, starting their careers.
  • Reported average time to close (20-30 days) is faster than industry standard.
Cons
  • The lender’s mobile app is focused on banking, not mortgages.
  • Conventional fixed-rate mortgages require a 5% minimum down payment, higher than some competitors.
Truist
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Truist

Truist: NMLS#399803

4.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItTruist stands out for its range of accessible mortgage products, including government or conventional loans with flexible credit and down payment requirements.
Pros
  • Offers mortgage options focused on affordability.
  • Convenient online application.
  • Offers a HELOC and construction loans.
Cons
  • HELOCs are not available in every state.
  • Borrowers must reach out for customized rates.
PNC
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PNC

PNC: NMLS#446303

5.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItPNC Bank has a variety of appealing mortgage options, including jumbo loans, programs for first-time home buyers and home equity lines of credit.
Pros
  • Low-down-payment loan options include FHA, VA, USDA and PNC Community Loan.
  • Jumbo loans available with minimum down payments of 5%.
  • Customizable mortgage rates are posted online.
Cons
  • Average mortgage rates are on the high side, according to the latest federal data.
  • In-person service is not available in every state.
  • You’ll have to supply personal data or account info to get answers by phone.
Rate
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Rate

Rate: NMLS#2611

5.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItRate boasts a streamlined application process, with full underwriting in as little as one business day, though average fees are higher than many competitors’.
Pros
  • Fully underwritten mortgage approval in as little as one day for qualified borrowers.
  • Generous selection of loans, including government-backed, interest-only, jumbo and renovation.
  • Advertises a HELOC that can be funded in as few as five business days.
Cons
  • Origination fees are on the high side, according to the latest federal data.
  • HELOC requires immediate, full withdrawal of funds.
Network Capital
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Network Capital

Network Capital: NMLS#11712

4.5
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItNetwork Capital stands out for its wide range of mortgage offerings, including niche products like physician loans, non-QM loans, ITIN loans and mortgages for manufactured homes.
Pros
  • Reported average time to close is 20 days, far below the industry average.
  • Products like non-QM loans and ITIN loans make borrowing more accessible.
  • HELOCs offer long draw terms, up to 30 years.
Cons
  • The lender’s website offers limited loan details.
  • HELOCs have a minimum loan amount of $50,000.
Guild Mortgage
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Guild Mortgage

Guild Mortgage: NMLS#3274

4.0
Home loans overall
NerdWallet rating
Min. credit score

N/A

Min. down payment

3%

Why We Like ItGuild offers a number of loans and programs that stand out, including renovation loans and home equity products. However, Guild does not have a mobile app, and interest rates aren’t published online.
Pros
  • Offers several programs to make homeownership more accessible.
  • Offers loans for manufactured homes.
  • Renovation loan options are available.
Cons
  • Does not publish interest rates online.
  • No mortgage mobile app.
  • Loans are not available in every state.
Churchill
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Churchill

Churchill: NMLS#1591

3.5
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItGood for: borrowers with nontraditional credit who value a debt-free lifestyle. Churchill advocates debt-free homeownership and helps customers try to achieve that goal.
Pros
  • Experienced at underwriting loans for borrowers without credit scores.
  • Offers conventional mortgages for manufactured homes.
  • Has conveniences such as online chat and a mobile app.
Cons
  • Doesn't provide sample or customized mortgage rates on its website.
  • Mortgage rates and fees are on the high side, according to the latest federal data.
CrossCountry Mortgage
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CrossCountry Mortgage

CrossCountry Mortgage: NMLS#3029

4.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItCrossCountry Mortgage has an impressive selection of grants and loans for first-time buyers, and customer service receives high praise, but it doesn’t post rates online or offer a mobile app.
Pros
  • Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
  • Qualified borrowers can receive up to $6,500 in down payment assistance.
  • Offers conventional loans for manufactured homes.
Cons
  • Doesn’t post rates online.
  • No mobile app.
  • Fees are on the high side, according to the latest federal data.
Movement Mortgage
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Movement Mortgage

Movement Mortgage: NMLS#39179

3.5
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

National / regional

National

Why We Like ItMovement Mortgage has a relatively high market share of FHA loans and offers some harder-to-find types, like FHA 203(k) loans.
Pros
  • Average closing time under 25 days, faster than the national average.
  • Offers down payment and closing cost assistance for FHA loans, with no income limits.
  • Profit-sharing model supports charitable giving through the Movement Foundation.
Cons
  • Doesn’t post mortgage rates online.
  • No online chat for customer service.
  • Average origination fee is on the high side, according to the latest federal data.

How do I choose a mortgage lender?

Once you have an idea of the type of mortgage you're looking for, finding the right lender may be easier than you think, especially when you compare at least three lenders and let them compete for your business. It's likely one lender's mortgage package will rise above the others’ — with a lower rate and lower fees.

» MORE: Tips for first-time home buyers

Video preview image

How do I compare mortgage lenders?

After determining what kind of loan you need, think about what type of service and lending experience is important to you. Maybe you'd prefer to talk to a banker in person at an actual brick-and-mortar bank. Or perhaps minimizing contact is more your style, and you'd like to be able to do almost the entire mortgage process on an app. Depending on what you prefer, you might focus on traditional banks, nonbank lenders, credit unions — or you might decide to have a mortgage broker do the research for you.

Apply for mortgage preapproval with multiple lenders to see how much you might qualify to borrow, what kind of rate you might be offered and also get a taste of what it would be like to work with each lender. In order to see actual interest rates and fees, you'll need to go through with applying for a mortgage with more than one lender. Since that'll cost you an application fee whether or not you go through with the loan, it'll help if you can narrow the field with your preapprovals. Once you've applied for a mortgage, you'll receive a Loan Estimate within three business days. This standard form allows you to compare lenders side by side to see who is offering you the best mix of rates and fees.

How much do I need to save for a down payment?

The amount you'll need for a down payment varies depending on the type of home loan you're using. Conventional loans can offer down payments as low as 3%, though some buyers will make down payments as high as 20% in order to avoid paying private mortgage insurance. FHA loans can come with down payments as low as 3.5%, depending on your credit score. VA loans and USDA loans do not require down payments.

Can I get help making a down payment?

As a first-time home buyer, you may qualify for down payment assistance and other types of first-time home buyer benefits. These programs are generally run by state housing authorities, though depending on where you live, you may find options that are city- or county-specific. Income and residency restrictions may apply, and you'll often have to take a first-time home buyer class in order to qualify for assistance.

More from NerdWallet

Last updated on October 1, 2024

Frequently asked questions

  • The best mortgage for you as a first-time home buyer is the loan for which you're most qualified. And that depends on a number of factors, including your credit score. With a credit score of at least 580, you may find that a loan backed by the FHA is your best option. With a credit score around 620 or higher, a conventional loan might be a better option, and could require an even lower down payment of 3%.

  • Many grants, special loans and down payment assistance programs are available to borrowers looking to buy their first home. These first-time home buyer programs are offered by agencies in the state where you live.

  • The loan program that's easiest to qualify for is an FHA-backed loan. That's because FHA loan requirements allow a lower credit score and less stringent debt-to-income guidelines than conventional loans. However, if you’re a first-time buyer with strong credit, conventional loans may allow even lower minimum down payments than an FHA loan.

Methodology

The star ratings on this page reflect each lender's overall star ratings. Read more about how we determine those ratings. The lenders on this page are chosen using this 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.

All reviewed mortgage lenders that offer programs for first-time home buyers were evaluated based on (1) the portion of their business dedicated to FHA and VA lending, (2) their ability to offer conventional loans with a down payment as low as 3%, (3) their origination fees, (4) their proprietary first-time home buyer loans or assistance (e.g. grants or loans to cover down payment and closing costs), (5) mortgage rate transparency, and (6) 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 2022 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.

To recap our selections...

NerdWallet's Best Mortgage Lenders for First-Time Home Buyers in 2024

  • NBKC: Best for rate transparency
  • New American Funding: Best for borrowers with nontraditional credit
  • Andrews Federal Credit Union: Best for military borrowers
  • Flagstar: Best for overall mortgage lending
  • Truist: Best for digital convenience
  • PNC: Best for first-time home buyers overall
  • Rate: Best for customer satisfaction
  • Network Capital: Best for self-employed borrowers
  • Guild Mortgage: Best for customer satisfaction
  • Churchill: Best for variety of loan types
  • CrossCountry Mortgage: Best for first-time home buyer programs
  • Movement Mortgage: Best for government-backed loans
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