Best of
Best Mortgage Lenders of 2019 for Low or Bad Credit Score Borrowers
NerdWalletAugust 6, 2019
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A less-than-ideal credit score doesn't have to keep you from buying a home. NerdWallet's list of low credit score mortgage lenders can help you quickly decide which one is right for you.
at Rocket Mortgage
at Rocket Mortgage
Min. Credit Score
580
Min. Down Payment
3%
Ideal for anyone who appreciates smartphone app service, support and time savings. A fully digital home loan experience with a large variety of mortgage products.
Pros
- The site caters to self-service users who want to apply for a home loan without talking to a human unless it’s absolutely necessary.
- With your authorization, accesses asset statements from 98% of U.S. financial institutions.
- Tells you the loan amount you’ll qualify for within minutes.
- Rocket Mortgage’s document and asset retrieval capabilities can save you a bunch of time and hassle.
Cons
- Doesn't offer home equity loans or HELOCs.
- If you’re a “look me in the eye” type of customer, you’re out of luck.
- Doesn’t consider alternative credit data. It just looks at credit scores and debt-to-income ratios, the way most mortgage lenders always have.
Min. Credit Score
580
Min. Down Payment
3%
Ideal for borrowers looking for a wide variety of mortgage options, including fixed-rate home loans, adjustable-rate mortgages and VA loans.
Pros
- Wide variety of terms, including 10-, 15-, 20-, 25- and 30-year fixed-rate mortgages and ARMs with 3/1, 5/1, 7/1 and 10/1 terms.
- Offers Fannie Mae and Freddie Mac programs for low- to moderate-income home buyers.
- VA lending is one-third of J.G. Wentworth’s business. A number of loan officers and other employees are former service members.
- Focus on automation includes an entirely online loan application process, digital document uploads, loan tracking and signatures as well as pre-qualification letters by email.
- Licensed in all states except for Hawaii, Missouri, Montana, Nevada and New York.
Cons
- Does not offer home equity loans or lines of credit.
- Physical locations in 14 states only.
- Not licensed in Hawaii, Missouri, Montana, Nevada or New York.
at Quicken Loans
at Quicken Loans
Min. Credit Score
580
Min. Down Payment
3%
Ideal choice for convenience and quick-response customer service. Quicken Loans provides just about all the services your neighborhood lender does — with online convenience.
Pros
- Quicken Loans couples a fully online application with available mortgage advisors for those who want a human touch.
- Instantly verifies employment and income for more than 60% of working Americans.
- Offers custom fixed-rate loan terms that are between eight and 30 years.
- Provides FHA-backed loans, USDA loans as well as products offered by Freddie Mac and Fannie Mae that require down payments as low as 3%.
Cons
- Doesn't offer home equity loans or HELOCs.
- If you’re a “look me in the eye” type of customer, you’re out of luck.
- Doesn’t consider alternative credit data. It just looks at credit scores and debt-to-income ratios, the way most mortgage lenders always have.
at New American
at New American
Min. Credit Score
580
Min. Down Payment
3%
Ideal for borrowers who need to be evaluated on the basis of nontraditional credit. New American Funding offers FHA and VA loans, works with down payment assistance programs, and seeks borrowers whose credit histories don't fit the mold of traditional banking.
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.
at Vylla
at Vylla
Min. Credit Score
500
Min. Down Payment
3%
Ideal for first-time home buyers or credit-challenged borrowers who may have trouble qualifying for a mortgage.
Pros
- Low minimum credit score.
- Online application, loan tracking and document upload.
- Free rate locks.
Cons
- No online preapproval.
- No presence in Massachusetts or North Dakota.
at Network Capital
3.5
NerdWallet ratingat Network Capital
Min. Credit Score
600
Min. Down Payment
3%
Ideal for cost-conscious borrowers looking for a lender with no origination fees and online convenience with mortgage banker assistance.
Pros
- Charges no lender fees.
- A good selection of loan products, including all government-backed mortgages.
- Offers jumbo loans up to $3 million.
Cons
- Offers no home equity products.
- Doesn't lend in all states.
Min. Credit Score
550
Min. Down Payment
3%
Ideal for borrowers who prefer an online experience. Homebridge offers a variety of home loan options and an online application.
Pros
- A wide variety of loan types.
- Low credit score requirements for government-backed loans.
- A wealth of educational material on its website.
- Licensed in all 50 states.
Cons
- Mortgage application can't be tracked online.
- Charges origination fees on some loans.
- Limited branch locations.
Min. Credit Score
620
Min. Down Payment
3%
Ideal for borrowers looking for lower credit score requirements, and who don’t mind remote customer service.
Pros
- Has low credit score options and will consider alternative credit data for FHA borrowers.
- Offers a real-time loan application tracker.
- Has a mobile app that tracks property details after closing.
- Lends in all 50 states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands.
Cons
- Doesn’t offer an online application.
- Requires a call or email for personalized rates.
National / Regional
National
Min. Down Payment
3%
Ideal for first-time home buyers or those with weaker credit. Citibank Mortgage, a large-scale lender with a full menu of home loan products, offers low down payment options and considers alternative credit data.
Pros
- Low down payment options.
- Discounts for Citibank customers.
- Looks at alternative credit data like rent history and child support payments.
- Available in all 50 states.
Cons
- Charges a mortgage application fee.
- Did not disclose origination fees, which may vary.
- Can't complete loan online.
National / Regional
National
Min. Down Payment
0%
Ideal for military members and their families. Navy Federal Credit Union offers a wide range of mortgage products, an online application and considers alternative credit data for certain loan types.
Pros
- Wide range of affordable mortgage products designed for military members.
- Willing to look at nontraditional credit data, such as rent payments, as part of its credit evaluation for certain products.
- Lower minimum loan amounts than many other lenders.
- Online application for preapproval with quick decision.
- $1,000 mortgage rate match program.
- Operates nationwide.
Cons
- Charges application and underwriting fees.
- Origination charge on a typical conventional loan is 1% of the loan amount.
Summary of Best Mortgage Lenders of 2019 for Low or Bad Credit Score Borrowers
| Lender | Best For | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
Rocket Mortgage at Rocket Mortgage | online experience | 580 | 3% | at Rocket Mortgage |
 J.G. Wentworth | online experience | 580 | 3% | Read review |
Quicken Loans at Quicken Loans | refinancing | 580 | 3% | at Quicken Loans |
New American Funding at New American | low or bad credit scores overall | 580 | 3% | at New American |
Vylla at Vylla | low or bad credit scores overall | 500 | 3% | at Vylla |
Network Capital NerdWallet rating at Network Capital | customer support | 600 | 3% | at Network Capital |
 HomeBridge | customer support | 550 | 3% | Read review |
 Mr. Cooper | refinancing | 620 | 3% | Read review |
 Citibank Mortgage | low down payment | N/A | 3% | Read review |
 Navy Federal | low down payment | N/A | 0% | Read review |
| Lender | Best For | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
Rocket Mortgage at Rocket Mortgage | online experience | 580 | 3% | at Rocket Mortgage |
J.G. Wentworth | online experience | 580 | 3% | Read review |
Quicken Loans at Quicken Loans | refinancing | 580 | 3% | at Quicken Loans |
New American Funding at New American | low or bad credit scores overall | 580 | 3% | at New American |
Vylla at Vylla | low or bad credit scores overall | 500 | 3% | at Vylla |
Network Capital NerdWallet rating at Network Capital | customer support | 600 | 3% | at Network Capital |
HomeBridge | customer support | 550 | 3% | Read review |
Mr. Cooper | refinancing | 620 | 3% | Read review |
Citibank Mortgage | low down payment | N/A | 3% | Read review |
Navy Federal | low down payment | N/A | 0% | Read review |
More from NerdWallet
Last updated on August 6, 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 Mortgage Lenders of 2019 for Low or Bad Credit Score Borrowers
- Rocket Mortgage: Best for online experience
- J.G. Wentworth: Best for online experience
- Quicken Loans: Best for refinancing
- New American Funding: Best for low or bad credit scores overall
- Vylla: Best for low or bad credit scores overall
- Network Capital: Best for customer support
- HomeBridge: Best for customer support
- Mr. Cooper: Best for refinancing
- Citibank Mortgage: Best for low down payment
- Navy Federal: Best for low down payment
