Best Mortgage Lenders of January 2026
Last updated on January 16, 2026
Written by
Editor & Content StrategistReviewed by
Lead Writer & SpokespersonEdited by
Head of Content, Home LoansFact Checked
Fact Checked
Written by
Editor & Content StrategistReviewed by
Lead Writer & SpokespersonEdited by
Head of Content, Home LoansFact Checked
Fact Checked
Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
Before buying a home or tapping equity, shop around to find the best mortgage lenders for your circumstances.
A mortgage is a big financial decision. Comparing mortgage rates and other loan elements among at least three lenders can help you find the best deal.
When choosing a lender, look at:
Mortgage rates
Fees & loan terms
Time to close
Online application & loan tracking
Customer service
Taking the time to make an informed decision can save you thousands of dollars over the life of your loan.
NerdWallet’s editorial team has picked some of the best lenders across categories to help you find the home loan that's right for you.
You can find more of our picks for best mortgage lenders here:
Why trust NerdWallet
Why trust NerdWallet
- 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.
Why trust NerdWallet
Why trust NerdWallet
- 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.
Our 2025 Best-Of Award Winner
Best Mortgage Lender First-Time Home Buyers
Rocket Mortgage, LLC
NMLS#3030
WHY OUR NERDS LOVE IT
Best Mortgage Lenders of January 2026
Have you or your spouse served in the military?
We’ve got more home loan options for you. Show me
Lender | NerdWallet Rating | Min. credit score | Min. down payment | Learn more |
|---|---|---|---|---|
620 | 3% | |||
580 | 0% | |||
N/A | 0% | |||
620 | 3% | |||
620 | ||||
5.0 /5 | 580 | 3% | ||
640 | 3% | |||
620 | 3% | |||
620 | 3% | |||
660 | N/A | |||
500 | 3.5% | |||
670 | N/A | |||
640 |
PNC Bank: Best for Home loans overall, first-time home buyers & borrowers with low credit
Min. credit score
620
Min. down payment
3%
- Why we like itPNC Bank has solid options for budgets large and small. Though average interest rates are on the high side, its wide selection of loans (even for lower credit scores) could be a good pick for first-time home buyers seeking a streamlined digital experience.Pros
- Solid variety of mortgage types, both standard and harder-to-find.
- Online rate quotes are informative and easy to customize.
- Offers down payment grants and no-PMI loans for low-income borrowers.
ConsRead full review- Some of the highest average interest rates of all lenders we review.
- HELOC and construction/lot loans not available in all states.
- In-person service not available in all states.
First Federal Bank: Best for VA loans
- Why we like itFirst Federal Bank stands out for its relatively low VA interest rates and fees and its emphasis on government loans, including VA.Pros
- Big VA lender, by loan volume.
- Low average VA origination fees compared to other lenders.
- Offers low VA mortgage rates compared with other lenders.
ConsRead full review- No mobile app.
- Does not offer VA rehab and renovation loans.
Navy Federal: Best for VA loans
- Why we like itNavy Federal is known for VA lending, but its flexible VA-like loan options truly stand out. You'll need a military connection to join the credit union.Pros
- Low average VA origination fees compared to other lenders.
- " Offers low VA mortgage rates compared with other lenders."
- Offers low VA mortgage rates compared with other lenders.
ConsRead full review- Borrowers must join the credit union before applying for a mortgage, and all borrowers on the loan must be members for the loan to close.
- Does not offer VA rehab and renovation loans.
Rate: Best for refinancing & borrowers with low credit
Min. credit score
620
National / regional
National
- Why we like itRate boasts a streamlined application process, with full underwriting in as little as one business day — though for all its online conveniences, you'll still work with a human.Pros
- Generous selection of refinancing loan types.
- Offers low refinancing rates compared with other lenders.
- Major refinance lender, by loan volume.
ConsRead full review- Details of less common loan types aren't available on the lender's website.
- Refinance loans make up a relatively small share of Rate's total home loans.
New American Funding: Best for home equity loans & first time home buyers
- Why we like itNew American Funding’s home equity loans feature flexible terms, relatively speedy closings and high borrowing limits, but lack rate transparency.Pros
- Offers a higher than typical borrowing limit.
- Flexible term options.
- Faster average time to close than many lenders surveyed by NerdWallet.
ConsRead full review- Appraisal required.
- Does not post sample home equity loan rates online.
Tomo: Best for purchase loans & online rate shopping
- Why we like itGood for: Mortgage rate transparencyPros
- Comprehensive online rates comparison tool makes it easy to customize sample rates.
- Mortgage rates are on the low side, according to the latest federal data.
- Offers financing options for borrowers with lower credit and those without Social Security numbers.
Cons- No refinance or home equity options.
- Loans not available in all states.
Alliant: Best for first-time home buyers
Min. credit score
640
Min. down payment
3%
- Why we like itAlliant Credit Union allows you to see a wide range of customized mortgage rates without sharing any personal information, though customer service is geared toward credit union members.Pros
- Mortgage borrowers do not need to become members of the credit union until reaching the closing process, so interested home buyers can apply without committing to membership.
- Sample rates are displayed upfront, and it's easy to get detailed, personalized rates without providing any personally identifying information.
- No application fee.
ConsRead full review- You can't apply for preapproval online.
- Website has minimal information about home loan offerings.
- Customer service is tough to navigate as a non-member.
Veterans United: Best for home loans overall, VA loans, home equity loans & refinancing
Min. credit score
620
Min. down payment
3%
- Why we like itVeterans United originates more VA mortgages than any other lender. Though average fees are on the higher side, it’s a solid pick for veterans and military borrowers looking for a VA loan with ample support along the way.Pros
- Offers a range of VA mortgages, including refinance, energy-efficient and jumbo.
- 24/7 customer service line supports servicemembers stationed internationally.
- Average time to close is 34 days, faster than the national average.
ConsRead full review- Average origination fee is on the higher side, according to the latest federal data.
- Website doesn’t have online chat.
- No renovation loans.
Pennymac: Best for FHA loans & refinancing
Min. credit score
620
Min. down payment
3%
- Why we like itPennymac, known for government loans, has some of the lowest average mortgage rates we’ve seen, though fees run a little high, and HELOCs and renovation loans aren’t available. Best for VA or FHA borrowers looking for low rates and an efficient digital experience.Pros
- Online rate tool is user-friendly and informative.
- Perks include a 1% interest rate buydown and “refinance later” cash bonus.
- Experienced in VA and FHA mortgages.
ConsRead full review- Average origination fee is on the higher side, according to the latest federal data.
- Home equity loans, but no HELOCs.
- No construction or renovation loans.
Bank of America: Best for HELOCs
Max LTV
85%
Min. credit score
660
National / regional
National
- Why we like itBank of America's HELOC features no annual fee as well as options for a rate discount and fixed rate, but time to close may be opaque.Pros
- Borrowers can personalize HELOC rates online.
- Major HELOC lender, by loan volume.
- A rate discount is available to some borrowers.
ConsRead full review- Average time to close is not clear.
- Mobile app may not cater to HELOC borrowers.
Carrington: Best for FHA loans & borrowers with low credit
- Why we like itCarrington is a big FHA lender by loan volume, and average FHA rates are low, though average FHA fees are on the high side.Pros
- FHA loans make up a large share of Carrington's total home loans.
- Offers low FHA mortgage rates compared with other lenders.
ConsRead full review- Average FHA origination fees are on the high side.
- Branches are only available in nine states.
Aven - HOME_EQUITY - HELOC: Best for HELOCs
- Why we like itAven's HELOC offers fast closing, flexible repayment terms, and a rare cash-back feature, but the draw term is on the short side.Pros
- Sample HELOC rates are posted online.
- Much faster average time to close than many lenders surveyed by NerdWallet.
- No origination fee or annual fee.
ConsRead full review- Five year draw period is shorter than typical.
- HELOCs are not available for second homes.
FourLeaf Federal Credit Union: Best for HELOCs
Max LTV
85%
Min. credit score
670
National / regional
National
- Why we like itFourleaf's HELOC features no origination or annual fee and solid customer support, but be prepared for a slower closing.Pros
- Sample HELOC rates are posted online.
- Generous introductory rate, below the prime rate.
- Offers a fixed-rate option.
ConsRead full review- HELOCs are not available for second homes.
- Slower average time to close than many lenders surveyed by NerdWallet.
CrossCountry Mortgage: Best for home equity loans
Max LTV
90%
Min. credit score
640
National / regional
National
- Why we like itCrossCountry’s home equity loans offer long, flexible terms and high borrowing limits, but require an appraisal and lack transparent rate information online.Pros
- Offers a higher than typical borrowing limit.
- Flexible term options.
- Option for a term of 30+ years, making payments more affordable.
ConsRead full review- Does not post sample home equity loan rates online.
- Requires an appraisal.
How does a mortgage work?
A mortgage is a loan to buy a home. You repay it monthly with interest over a number of years (often 15, 20 or 30). If you can’t repay, the lender may take the home through a process known as foreclosure.
- Who offers mortgages? Banks, credit unions and lenders.
- How do you apply? Fill out an application and share your financial details.
- What do lenders check? Your income, debt, and credit score determine if you qualify and the terms offered.
» MORE: What is a mortgage?
Types of mortgages
There are different types of mortgages. Here is a simple breakdown of your options.
Fixed vs. adjustable rates
✅ Fixed-rate mortgage: the interest rate stays the same for the entire loan.
✅ Adjustable-rate mortgage (ARM): the interest rate stays the same for a certain period (up to 10 years), then adjusts at a specific interval (usually every six months).
15-, 20- and 30-year mortgages
30-year mortgages are the most common.
✅ 15- and 20-year loans are also available.
✅ Payments are spread over the loan term. Once fully paid, you own the home free and clear.
Government-backed mortgages
These loans are insured by the federal government:
🏠 FHA loans: Backed by the Federal Housing Administration
- 3.5% down payment required
- Lower credit score requirement than other loans
- Mortgage insurance required
🏠 USDA loans: Backed by the U.S. Department of Agriculture
- For rural home buyers
- No down payment required
- Upfront and annual guarantee fees apply (similar to mortgage insurance)
🏠 VA loans: Backed by the Department of Veterans Affairs
- For veterans and active military
- No down payment required
- One-time VA funding fee (can be added to the loan)
Conventional loans
Conventional loans are mortgages that are not backed by the federal government. Some require as little as 3% down, but private mortgage insurance (PMI) is needed if the down payment is under 20%.
There are two types of conventional loans:
🏠 Conforming loans: Must stay within loan limits set by the Federal Housing Finance Agency (FHFA). They follow rules from Fannie Mae and Freddie Mac, which buy these loans.
🏠 Nonconforming loans: Do not follow these limits or guidelines.
- Jumbo loans are a type of nonconforming loan that exceed loan limits. They often require higher credit scores and stricter approval criteria.
What’s the credit score needed for a home loan?
The credit score needed to buy a home depends on the type of loan and the lender. Most borrowers have scores in the high 600s to 700s. FHA loans generally have the most lenient credit score requirements.
How to compare mortgage rates
- Check current mortgage rates to see the average offers.
- Get online quotes from lenders based on:
- Your location
- Loan term
- Purchase price
- Down payment
- Other factors
To get a more personalized quote, apply for preapproval. During preapproval, the lender will check your credit score and verify your financial information, such as income, assets and debts.
How to shop for a mortgage lender
The best time to shop for a mortgage lender is before you start house hunting.
- Get preapproved: This shows real estate agents and sellers that you’re a serious buyer.
- Compare Loan Estimates: Request estimates from multiple lenders.
- Review key details: Look at loan terms, monthly payments, and estimated closing costs.
By comparing lenders, you can find the best deal and save money over time.
Home equity loans and lines of credit
Homeowners can access their home equity without refinancing or selling by taking out a second mortgage.
- Provides a lump sum based on home value
- Best for home upgrades or repairs that add value
- Repaid over a fixed time period
🏠 HELOC (Home Equity Line of Credit)
- Works like a credit card with a borrowing limit
- Allows multiple withdrawals over a set period
- Payments are made over time
Important: Both options use your home as collateral. If you miss payments, you could lose your home.
Refinancing a mortgage
Getting a mortgage doesn't have to be a one-time decision. Refinancing lets you replace your current home loan with a new one, often to lower your interest rate, change your loan term or access home equity. The new loan pays off the old one, and you make payments on the refinance instead.
Why homeowners refinance
✅ Lower the interest rate to reduce monthly payments
✅ Change the loan term (for example, from 30 years to 15)
✅ Switch from an adjustable-rate mortgage to a fixed rate
✅ Tap home equity with a cash-out refinance
Types of refinances
- Changes your interest rate, loan term, or both
- No cash is taken out
- Lets you borrow more than you owe and take the difference in cash
- Often used for home improvements, debt consolidation or major expenses
🏠 Streamline refinance
- Available for FHA, VA and USDA loans
- Fewer documentation requirements
- May not require a home appraisal
What lenders look at
✅ Lenders review many of the same factors as with a purchase loan:
✅ Income and employment
✅ Credit score
✅ Debt -to-income ratio
✅ Home value and equity
Costs to consider
Refinancing usually comes with closing costs, often 2% to 5% of the loan amount. A refinance makes sense when the long-term savings outweigh these upfront costs.
» MORE: Best Mortgage Refinance Lenders
More from NerdWallet:
Last updated on January 16, 2026
Frequently asked questions
- The answer depends on your needs. Mortgage lenders vary by the types of loans and services they offer as well as their credit score minimums and other requirements for borrowers. The best mortgage lender is the one that offers the products you need, has requirements you can meet and charges the lowest mortgage rates and fees.
- Some lenders post mortgage rates on their websites and include tools to see how much your rate might be. But those are just estimates. You'll need to get preapproved for a mortgage to get a rate offer based on your credit score and other financial information.
- Closing costs are the various fees and expenses you pay to finalize the mortgage. Closing costs typically run between about 2% and 5% of the loan amount. That means on a $300,000 home loan, you could pay $6,000 to $15,000 in closing costs.
- Most state housing finance agencies offer first-time home buyer programs, which can include closing cost and down payment assistance. The assistance can come in the form of a grant, a forgivable loan or a deferred-payment loan. To qualify, you need to work with a lender approved by the state agency.
- You should shop for a lender first and get preapproved for a mortgage before shopping for a house. A mortgage preapproval shows sellers and their real estate agents that you're a serious buyer. It also indicates how much you can borrow, which will help you determine how much home you can afford.
Methodology
NerdWallet's editorial team selected the mortgage lenders that appear on this page from our lists of best mortgage lenders for: first-time home buyers, borrowers with low credit, FHA loans, VA loans, home equity lines of credit (HELOCs), home equity loans and refinancing. In each category, the highest-scoring lenders were selected. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team. Read more about how we rate mortgage lenders here.
NerdWallet reviewed 40 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.
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 2024 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
