BEST OF
10 Best Nonbank Mortgage Lenders of 2021
See NerdWallet's picks for the best nonbank mortgage lenders of 2021 across different categories, including first-time home buyers, low down payments and customer service.
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 quickly determine which one is right for you.
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 quickly determine which one is right for you.
Summary of Best Nonbank Mortgage Lenders of 2021
| Lender | NerdWallet Rating | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
Best for first-time home buyers | 620 | 3% | at Quicken Loans | |
Best for online experience | 620 | 3% | at Guaranteed Rate | |
Best for first-time home buyers | 620 | 3% | at New American Funding | |
Best for refinancing | 620 | 5% | at loanDepot | |
Best for customer service | 620 | 3% | at Fairway Independent Mortgage | |
Best for veterans | 650 | 0% | at Veterans United | |
Best for refinancing | 620 | 5% | at Reali Loans | |
Best for veterans | N/A | 0% | Read review | |
Best for low down payment | 620 | 3% | Read review | |
Best for customer service | 620 | 3% | Read review |
at Quicken Loans
at Quicken Loans
Min. Credit Score
620
Min. Down Payment
3%
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 many working Americans.
- Offers custom fixed-rate loan terms that are between eight and 30 years.
- Provides a wide variety of loan types, including renovation loans and all government-backed mortgage products.
Cons
- Quicken Loans doesn't offer home equity loans or HELOCs.
- Quicken's lender fees can be stout and they don't offset those fees with particularly low mortgage rates.
at Guaranteed Rate
at Guaranteed Rate
Min. Credit Score
620
Min. Down Payment
3%
Pros
- Offers the ability to securely upload and digitally sign loan documents.
- Displays detailed sample rates for many of its loan products.
Cons
- Doesn't offer home equity loans or lines of credit.
at New American Funding
at New American Funding
Min. Credit Score
620
Min. Down Payment
3%
Pros
- Uses manual underwriting to evaluate creditworthiness.
- Offers full online mortgage application, rate quotes, document upload and loan tracking.
Cons
- Mortgage rates offered to borrowers are higher than the government-reported median of all lenders.
at loanDepot
at loanDepot
Min. Credit Score
620
National / Regional
National
Pros
- Offers digital income, asset and employment verification.
- Offers multiple renovation loan options.
- Has over 200 affiliated loan stores nationwide for customers who prefer face-to-face service.
Cons
- Mortgage rates aren't available online; you'll need to contact a loan officer.
- Does not offer home equity loans or lines of credit.
at Fairway Independent Mortgage
at Fairway Independent Mortgage
Min. Credit Score
620
Min. Down Payment
3%
Pros
- Offers a robust suite of loan products, including a variety of renovation loans.
- Has a digital application that can be completed in 10 minutes.
- Works with some state housing finance agencies to offer mortgages with down payment and closing cost assistance.
Cons
- Mortgage rates aren't posted online.
at Veterans United
at Veterans United
Min. Credit Score
650
Min. Down Payment
0%
Pros
- Offers 24/7 customer service over the phone.
- Has online application and pre-qualification.
- Offers a free credit counseling service.
- Employs advisors from each branch of the armed forces.
Cons
- Doesn’t offer home equity loans or HELOCs.
- Veterans United has physical branch offices in only 18 states.
- Information on FHA, USDA and conventional loans is harder to find on their website.
- Charges higher rates and fees than some other lenders.
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at Reali Loans
at Reali Loans
Min. Credit Score
620
National / Regional
Regional
Pros
- Offers a completely online application process.
- Provides customized rate quotes online.
Cons
- No FHA, VA or USDA refinance products.
- Available only in a dozen states.
Min. Credit Score
N/A
Min. Down Payment
0%
Pros
- Offers an ITIN qualification path for undocumented borrowers.
- Has a digital application process.
- Offers several mortgage options for low- to moderate-income borrowers.
- Borrowers can qualify with income from self-employment and other nontraditional sources.
Cons
- No mortgage rates published online.
- No home equity loans or lines of credit.
- Generally has higher rates and fees than other lenders.
- Branch offices not available in all states.
Min. Credit Score
620
Min. Down Payment
3%
Pros
- Posts current mortgage rates on its website.
- Has an online application for mortgage preapproval and a digital tool to track application progress.
- Offers several affordable loan options including FHA, VA, USDA and the PNC Community Loan.
Cons
- Can't complete a full mortgage application online.
- Doesn't offer renovation mortgages.
- In-person service is not available in every state.
Min. Credit Score
620
Min. Down Payment
3%
Pros
- Offers a full array of mortgage products, including government and renovation loans.
- Has loans for most purposes, including purchase, refinance and jumbo mortgages.
- Online portal keeps borrowers up-to-date on the loan application's progress.
Cons
- Doesn't post interest rates on its site.
- Doesn’t offer home equity loans or lines of credit.
Last updated on January 27, 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 Nonbank Mortgage Lenders of 2021
- Quicken Loans: Best for first-time home buyers
- Guaranteed Rate: Best for online experience
- New American Funding: Best for first-time home buyers
- loanDepot: Best for refinancing
- Fairway Independent Mortgage: Best for customer service
- Veterans United: Best for veterans
- Reali Loans: Best for refinancing
- Alterra: Best for veterans
- PNC: Best for low down payment
- HomeBridge: Best for customer service
