7 Best Nonbank Mortgage Lenders of 2025
Nonbank lenders offer convenience and flexibility. See which options stood out in our research.
Last updated on February 3, 2025
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Gone are the days when buying a home meant getting dressed up to visit the loan officer at your local bank.
Nonbank lenders provide an alternative to traditional banks, especially for credit-challenged borrowers or those looking for a more streamlined mortgage experience.
NerdWallet picked some of the best nonbank mortgage lenders in a variety of categories so you can determine which one is right for you.
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Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
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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.
7 Best Nonbank Mortgage Lenders of 2025
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Lender | NerdWallet Rating | Min. credit score | Min. down payment | Learn more |
|---|---|---|---|---|
620 | 3% | |||
620 | 3% | |||
620 | 3% | |||
580 | N/A | |||
620 | 3% | |||
620 | 3% |
Rate: Best for overall mortgage experience
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 for all its online conveniences, you'll still work with a human.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 fixed-rate HELOC that can be funded in as few as five business days.
ConsRead full review- Some affordable loan options have income limits or other restrictions.
- Details of less common loan types aren't available on the lender's website.
- HELOC requires immediate, full withdrawal of funds, though there is an option to make additional draws.
Better: Best for home equity borrowing
Min. credit score
620
Min. down payment
3%
- Why we like itBetter stands out for its attractive interest rates and wide range of mortgage types, including for condos and manufactured homes. Better offers connections with homeowners insurance providers and real estate attorneys, as well as title insurance. However, the lender could improve its customer service.Pros
- Has a wide variety of mortgage types, including home equity products.
- Offers lower interest rates than many competitors.
- Sample online rates are customizable by location.
ConsRead full review- We struggled to contact customer service.
- The lender scores poorly for customer satisfaction on Zillow.
- Does not offer construction loans.
Pennymac: Best for FHA loans
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.
New American Funding: Best for self-employed borrowers
Min. credit score
580
Min. down payment
N/A
- 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.
ConsRead full review- 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.
Veterans United: Best for VA loans
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.
Rocket Mortgage, LLC: Best for low down payment
Min. credit score
620
Min. down payment
3%
- Why we like itRocket Mortgage is the Goliath of home loans in the U.S. It's the largest mortgage lender by volume, and keeps expanding its reach. Fortunately for borrowers, Rocket is a gentle giant, offering affordable borrowing options including a 1% down payment loan.Pros
- Offers down payment and closing cost assistance.
- Largest lender, by volume, of FHA loans in 2024.
- Borrowers can apply via mobile app.
ConsRead full review- No HELOCs.
- No physical branches.
- Faces allegations of racial discrimination.
Network Capital: Best for borrowers with weaker credit
Min. credit score
620
Min. down payment
3%
- Why we like itNetwork Capital stands out for its focus on refinancing, especially cash-out transactions — only 6% of Network Capital customers got a purchase mortgage last year. Most likely to appeal to borrowers looking to refinance their home loan.Pros
- Cash-out refinancing is an uncommon specialty, so Network Capital could appeal to that borrower.
- Offers HELOCs for homeowners who want to access their equity without refinancing.
ConsRead full review- Home buyers should know the lender doesn’t specialize in purchase loans.
- Borrowers must be contacted for a quote before completing an online application.
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Last updated on February 3, 2025
