BEST OF

8 Best Nonbank Mortgage Lenders of 2022

See NerdWallet's picks for the best nonbank mortgage lenders of 2022 across different categories.

NerdWallet
Apr 4, 2022

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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 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

Better
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at Better

Better: NMLS#330511

5.0

NerdWallet rating 
Better

Min. credit score

620

Min. down payment

3%
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at Better

Why we like it

Good for: tech-savvy borrowers who prefer an online experience.

Pros

  • Offers a cash guarantee that qualifying mortgages will close on time.

  • 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.

  • Allows qualifying buyers to make cash offers.

Cons

  • Doesn't offer VA or USDA loans.

  • Doesn't offer home equity loans or HELOCs.

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Pennymac
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at Pennymac

Pennymac: NMLS#35953

4.5

NerdWallet rating 
Pennymac

Min. credit score

620

Min. down payment

3%
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at Pennymac

Why we like it

Good for: borrowers seeking a government-backed mortgage who want to rate-shop online.

Pros

  • Offers a wide variety of loan products, including government-backed and refinance options.

  • 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.

Cons

  • Origination fees are on the higher end, according to the latest federal data.

  • Doesn't offer home equity products or renovation loans.

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New American Funding
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at New American Funding

New American Funding: NMLS#6606

4.5

NerdWallet rating 
New American Funding

Min. credit score

620

Min. down payment

3%
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at New American Funding

Why we like it

Good for: First-time home buyers and other borrowers looking for a broad array of loan choices.

Pros

  • 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.

Cons

  • Mortgage origination fees tend to be on the high end, according to the latest federal data.

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Guaranteed Rate
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at Guaranteed Rate

Guaranteed Rate: NMLS#2611

5.0

NerdWallet rating 
Guaranteed Rate

Min. credit score

620

Min. down payment

3%
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at Guaranteed Rate

Why we like it

Good for: borrowers seeking a solid variety of loan types, including jumbo and interest-only options, and a totally online experience.

Pros

  • 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.

Cons

  • Doesn't offer home equity loans.

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Veterans United
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at Veterans United

Veterans United: NMLS#1907

4.0

NerdWallet rating 
Veterans United

Min. credit score

620

Min. down payment

0%
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at Veterans United

Why we like it

Good for: veterans, active-duty service members and eligible reservists looking for VA loans.

Pros

  • Offers 24/7 customer service over the phone.

  • Offers a free credit counseling service.

  • Mortgage rates are on the low side, according to the latest federal data.

Cons

  • Doesn’t offer home equity loans or HELOCs.

  • Veterans United has physical branch offices in only 17 states.

  • Focus on VA loans, so may not be the strongest choice for those seeking other loan types.

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Network Capital
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at Network Capital

Network Capital: NMLS#11712

4.0

NerdWallet rating 
Network Capital

Min. credit score

620

Min. down payment

3%
Learn more

at Network Capital

Why we like it

Good for: borrowers looking for a lender with online convenience and mortgage banker assistance.

Pros

  • A good selection of loan products, including government-backed FHA and VA mortgages.

  • Provides “same-as-cash” loan that allows borrowers to compete with cash offers.

  • Online application process is clear and simple to follow.

Cons

  • Doesn't lend in all states.

  • Website doesn’t provide customized mortgage rates.

  • Lender fees are on the high side, according to the latest federal data.

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Watermark Home Loans
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Watermark Home Loans: NMLS#1838

4.0

NerdWallet rating 
Watermark Home Loans

Min. credit score

620

Min. down payment

3%
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Why we like it

Good for: borrowers looking for a solid selection of loan types with some not-so-standard options, such non-QM loans.

Pros

  • Online capabilities include a full application, as well as loan process updates.

  • Offers low rates compared with other lenders, according to the latest federal data.

Cons

  • Watermark’s mortgage interest rates are not published online.

  • Watermark says it offers HELOCs, but no details are available online.

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Carrington
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Carrington: NMLS#2600

4.5

NerdWallet rating 
Carrington

Min. credit score

620

Min. down payment

5%
Read review

Why we like it

Good for: first-time home buyers or credit-challenged borrowers interested in government loan products.

Pros

  • 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.

Cons

  • Doesn't offer home equity lines of credit.

  • Lender fees are on the high side, according to the latest Federal data.

Read Full Review

Last updated on April 4, 2022

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 nearly 60 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (lenders had to have 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 2020 HMDA data for origination volume, origination fee, rate spread and share-of-product data.

To recap our selections...

NerdWallet's Best Nonbank Mortgage Lenders of 2022