6 Best Nonbank Mortgage Lenders of 2023
See NerdWallet's picks for the best nonbank mortgage lenders of 2023 across different categories.
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.
Gone are the days when buying a home meant getting dressed up to visit the loan officer at your local bank.
Nonbank lenders provide a welcome 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.
Best Nonbank Mortgage Lenders
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
5.0 /5 | 620 | 3% | Learn moreat Pennymac at Pennymac | |
5.0 /5 | 620 | 3% | Learn moreat Guaranteed Rate at Guaranteed Rate | |
5.0 /5 | 620 | 3% | Learn moreat Better at Better | |
4.5 /5 | 620 | 3% | Learn moreat Rocket Mortgage, LLC at Rocket Mortgage, LLC | |
4.5 /5 | 580 | 5% | Learn moreat New American Funding at New American Funding |
- Offers a wide variety of loan products, including government-backed and refinance options, as well as home equity loans.
- Displays custom rate quotes based on home value, down payment or equity, ZIP code and credit score range.
- “Lock & Shop” lets you secure a rate for up to 60 days, even if you don’t have a purchase contract yet.
- Origination fees are on the higher end, according to the latest federal data.
- Doesn't offer home equity lines of credit or renovation loans.
- Displays detailed sample rates for many of its loan products.
- Offers a wide variety of loans, including jumbo and interest-only products.
- Offers low rates compared with other lenders, according to the latest federal data.
- Doesn't offer home equity loans.
- Offers a program allowing qualifying buyers to make cash offers.
- Makes it easy to see customized mortgage rates.
- Average interest rates are on the low end compared to other lenders, according to the latest federal data.
- Doesn’t offer USDA loans.
- VA loans are not available in every state.
- Doesn't offer home equity loans.
- Streamlined online process with document and asset retrieval capabilities, as well as the ability to edit your preapproval letter.
- Mortgage interest rates are on the low side compared to other lenders, according to the latest federal data.
- Offers the option to work with loan officers by phone if desired.
- Getting a customized interest rate requires a credit check, which can affect your credit score.
- Doesn't offer home equity lines of credit.
- Origination fees are on the high side compared with other lenders, according to the latest federal data.
- Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.
- Its home equity line of credit can be used for an owner-occupied or second home.
- Offers a program to enable buyers to make cash offers.
- Mortgage origination fees tend to be on the high end, according to the latest federal data.
- Offers multiple low-down-payment loan programs.
- May consider alternative credit data, such as bank statements.
- You can view customized rates for purchasing a home and apply online.
- Doesn't offer home equity lines of credit.
- Lender fees are on the high side, according to the latest federal data.
Last updated on February 2, 2023
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.
For inclusion on this roundup, nonbank lenders must score a 4.5 or above according to our overall methodology.
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 2021 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Nonbank Mortgage Lenders of 2023
- Pennymac: Best for FHA loans
- Guaranteed Rate: Best for digital convenience
- Better: Best for refinancing
- Rocket Mortgage, LLC: Best for digital convenience
- New American Funding: Best for nontraditional credit histories
- Carrington: Best for first-time home buyers
