BEST OF

10 Best Nonbank Mortgage Lenders of 2022

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

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

New American Funding
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at New American Funding

New American Funding: NMLS#6606

5.0

NerdWallet rating 
New American Funding

Min. credit score

620

Min. down payment

3%
Learn more

at New American Funding


Why we like it

Good for: borrowers who need to be evaluated on the basis of nontraditional credit and those interested in various down payment assistance programs.

Pros

  • Uses manual underwriting to evaluate creditworthiness, in some cases.

  • Offers full online mortgage application, rate quotes, document upload and loan tracking.

Cons

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

Read Full Review
Watermark Home Loans
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at Watermark Home Loans

Watermark Home Loans: NMLS#1838

4.5

NerdWallet rating 
Watermark Home Loans

Min. credit score

620

Min. down payment

3%
Learn more

at Watermark Home Loans


Why we like it

Good for: borrowers looking for a decent selection of loan types with some not-so-standard options, such as reverse mortgages for seniors.

Pros

  • Offers reverse mortgages and interest-only loans for certain borrowers.

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

Cons

  • Does not offer home improvement loans.

  • Fully customized mortgage rates not available without providing contact information.

Read Full Review
Veterans United
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at Veterans United

Veterans United: NMLS#1907

4.5

NerdWallet rating 
Veterans United

Min. credit score

620

Min. down payment

0%
Learn more

at Veterans United


Why we like it

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

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 17 states.

  • Information on FHA, USDA and conventional loans is harder to find on its website.

Read Full Review
Reali Loans
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at Reali Loans

Reali Loans: NMLS#991397

4.5

NerdWallet rating 
Reali Loans

Min. credit score

620

Min. down payment

5%
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at Reali Loans


Why we like it

Good for: borrowers looking for an online mortgage application experience.

Pros

  • Offers a completely online application process.

  • Posts current interest rates for purchase and refinancing.

  • Provides customized rate quotes online.

Cons

  • Available in just 14 states.

  • Offers fewer loan types and products than other lenders.

Read Full Review
Pennymac
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at Pennymac

Pennymac: NMLS#35953

4.5

NerdWallet rating 
Pennymac

Min. credit score

620

Min. down payment

3%
Learn more

at Pennymac


Why we like it

Pennymac excels in online capabilities and makes it easy to shop rates online. Average origination fees are higher than other lenders, and home equity lines of credit and jumbo mortgages were suspended due to the COVID-19 pandemic.

Pros

  • Offers a full range of online capabilities, including e-signatures and online loan process tracking.

  • Displays custom rate quotes based on home value, down payment or equity, ZIP code and credit score range.

Cons

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

  • Doesn't offer jumbo mortgages or home equity lines of credit.

Read Full Review
Network Capital
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at Network Capital

Network Capital: NMLS#11712

5.0

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 mobile app supports the loan process.

  • A good selection of loan products, including all government-backed mortgages.

  • Offers jumbo loans up to $30 million.

Cons

  • Doesn't lend in all states.

  • Website doesn’t provide customized mortgage rates.

Read Full Review
Better
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at Better

Better: NMLS#330511

5.0

NerdWallet rating 
Better

Min. credit score

620

Min. down payment

3%
Learn more

at Better


Why we like it

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

Pros

  • An online process with human help as needed.

  • Makes it easy to see customized mortgage rates.

  • Offers an "underwriter reviewed" preapproval letter in as little as 24 hours.

  • Appraisal guarantee promises the loan won’t change even if appraisal is lower than expected.

Cons

  • Doesn't offer home equity loans or HELOCs.

  • Doesn't do VA or USDA loans.

  • Appraisal guarantee is limited to borrowers who use Better real estate agents.

Read Full Review
Guaranteed Rate
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at Guaranteed Rate

Guaranteed Rate: NMLS#2611

4.5

NerdWallet rating 
Guaranteed Rate

Min. credit score

620

Min. down payment

3%
Learn more

at Guaranteed Rate


Why we like it

Good for: borrowers seeking conventional or government-backed loans, and a totally online experience.

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.

Read Full Review

LenderFI: NMLS#133056

5.0

NerdWallet rating 
LenderFI

Min. credit score

620

Min. down payment

3%

Why we like it

Good for: borrowers who want a completely online experience when buying or refinancing.

Pros

  • Has a full suite of online capabilities, including application, document uploading and process updates.

  • Site displays many combinations of loans and interest rates.

  • Rates and fees are lower than most lenders, according to the latest data.

Cons

  • Home equity loans and lines of credit, as well as purchase-renovation loans, aren't options.

  • VA loans are currently unavailable.

Read Full Review

Carrington: NMLS#2600

4.5

NerdWallet rating 
Carrington

Min. credit score

620

Min. down payment

3%

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 and rent payments.

  • You can view customized rates for purchasing a home and apply online.

Cons

  • Doesn't offer home equity loans, HELOCs or renovation mortgages.

  • Lender fees and mortgage rates are on the high side, according to the latest 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