BEST OF
11 Best Mortgage Lenders for First-Time Home Buyers in 2021
These mortgage lenders cater to first-time home buyers with low down payments, grant programs and educational materials.
For first-time home buyers, finding the right mortgage can be a big challenge. You want to work with a lender that can give you the best rate, the right term and the lowest closing costs, as quickly and efficiently as possible.
NerdWallet has picked some of the best mortgage lenders for first-time home buyers in a variety of categories so you can quickly decide which one is right for you.
For first-time home buyers, finding the right mortgage can be a big challenge. You want to work with a lender that can give you the best rate, the right term and the lowest closing costs, as quickly and efficiently as possible.
NerdWallet has picked some of the best mortgage lenders for first-time home buyers in a variety of categories so you can quickly decide which one is right for you.
Summary of Best Mortgage Lenders for First-Time Home Buyers in 2021
Lender | NerdWallet Rating | Minimum Credit Score | Minimum Down Payment | Learn More |
---|---|---|---|---|
Best for online experience | 620 | 3% | at NBKC | |
Best for nontraditional credit | 620 | 3% | at New American Funding | |
Best for online experience | 620 | 3% | at Quicken Loans | |
Best for first-time home buyers overall | 620 | 3% | at NASB | |
Best for conventional loans | 620 | 3% | at Ally Bank | |
Best for first-time home buyers overall | 620 | 3% | at Chase | |
Best for low down payments | N/A | 3% | Read review | |
Best for assistance programs | 620 | 3% | Read review | |
Best for veterans | N/A | 0% | Read review | |
Best for low down payments | 620 | 3% | Read review | |
Best for low down payments | 620 | 3% | Read review |
at NBKC
NBKC: NMLS#409631
Min. Credit Score
Min. Down Payment
at NBKC
at New American Funding
New American Funding: NMLS#6606
Min. Credit Score
Min. Down Payment
at New American Funding
at Quicken Loans
Quicken Loans: NMLS#3030
Min. Credit Score
Min. Down Payment
at Quicken Loans
at NASB
NASB: NMLS#400039

Min. Credit Score
Min. Down Payment
at NASB
at Ally Bank
Ally Bank: NMLS#181005

Min. Credit Score
Min. Down Payment
at Ally Bank
at Chase
Chase: NMLS#399798
Min. Credit Score
Min. Down Payment
at Chase
Alliant: NMLS#197185

National / Regional
Min. Down Payment
Bank of America: NMLS#399802

Min. Credit Score
Min. Down Payment
Navy Federal: NMLS#399807

National / Regional
Min. Down Payment
SunTrust (Truist): NMLS#2915

Min. Credit Score
Min. Down Payment
Flagstar: NMLS#417490

Min. Credit Score
Min. Down Payment
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 from NerdWallet
Last updated on April 7, 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 Mortgage Lenders for First-Time Home Buyers in 2021
- NBKC: Best for online experience
- New American Funding: Best for nontraditional credit
- Quicken Loans: Best for online experience
- NASB: Best for first-time home buyers overall
- Ally Bank: Best for conventional loans
- Chase: Best for first-time home buyers overall
- Alliant: Best for low down payments
- Bank of America: Best for assistance programs
- Navy Federal: Best for veterans
- SunTrust (Truist): Best for low down payments
- Flagstar: Best for low down payments
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.