Best of
Best Tennessee Mortgage Lenders of 2019
NerdWalletJuly 2, 2019
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Here are are our picks for some of the best Tennessee mortgage lenders, including ones that help first-time home buyers and military members, as well as lenders who offer low down payment mortgages and HELOCs.
at New American
at New American
Min. Credit Score
620
Min. Down Payment
3%
Ideal for borrowers who need to be evaluated on the basis of nontraditional credit. New American Funding offers FHA and VA loans, works with down payment assistance programs, and seeks borrowers whose credit histories don't fit the mold of traditional banking.
Pros
- Uses manual underwriting to evaluate creditworthiness.
- Offers full online mortgage application, rate quotes, document upload and loan tracking.
Cons
- Services not available in all 50 states.
Min. Credit Score
620
Min. Down Payment
3%
Ideal for borrowers who are looking to apply for a mortgage and manage the process through online tools, whether buying or refinancing. Guaranteed Rate offers FHA, VA and USDA loans for borrowers who are well-qualified.
Pros
- Works with most borrowers as long as they have good credit scores and incomes.
- Provides a user-friendly digital platform that’s thorough in covering all types of borrowing scenarios.
- Has a 95% customer satisfaction rate, according to company data.
Cons
- Charges some fees, such as a $1,290 lender fee that includes a $150 application fee.
- Offers many products, which might confuse or overwhelm borrowers.
- Several click-throughs required for personalized rates.
at Veterans United
at Veterans United
Min. Credit Score
620
Min. Down Payment
0%
Ideal for veterans and active-duty servicemembers. Veterans United is the nation's largest VA home purchase lender but also offers an excellent selection of other government and conventional loans.
Pros
- Also offers FHA, USDA and conventional loans.
- Offers 24/7 customer service.
- You can complete a loan application and pre-qualify online.
- Registers a low volume of complaints filed with the Consumer Financial Protection Bureau.
- Offers free credit score education and assistance.
- Provides a client advocate team staffed by former senior enlisted leaders from each branch of the armed forces.
Cons
- Doesn’t offer home equity loans or HELOCs.
- Loans are available in all 50 states, but Veterans United has offices in only about half.
National / Regional
National
Min. Down Payment
0%
Ideal for military members and their families. Navy Federal Credit Union offers a wide range of mortgage products, an online application and considers alternative credit data for certain loan types.
Pros
- Wide range of affordable mortgage products designed for military members.
- Willing to look at nontraditional credit data, such as rent payments, as part of its credit evaluation for certain products.
- Lower minimum loan amounts than many other lenders.
- Online application for preapproval with quick decision.
- $1,000 mortgage rate match program.
- Operates nationwide.
Cons
- Charges application and underwriting fees.
- Origination charge on a typical conventional loan is 1% of the loan amount.
at SoFi
at SoFi
National / Regional
Regional
Min. Down Payment
10%
Ideal for young professionals and self-employed borrowers looking for a lender that considers non-traditional income.
Pros
- Charges no application or origination fees.
- Provides an entirely digital mortgage application to make the process easier for borrowers.
- Considers nontraditional income, such as restricted stock units, and works with self-employed borrowers.
Cons
- Doesn't offer government-backed loans, like FHA or VA.
- Does not offer home equity loans or HELOCs.
at Vylla
at Vylla
Min. Credit Score
620
Min. Down Payment
3%
Ideal for first-time home buyers or credit-challenged borrowers who may have trouble qualifying for a mortgage.
Pros
- Low minimum credit score.
- Online application, loan tracking and document upload.
- Free rate locks.
Cons
- No online preapproval.
- No presence in Massachusetts or North Dakota.
National / Regional
National
Min. Down Payment
3%
Ideal for first-time home buyers or those with weaker credit. Citibank Mortgage, a large-scale lender with a full menu of home loan products, offers low down payment options and considers alternative credit data.
Pros
- Low down payment options.
- Discounts for Citibank customers.
- Looks at alternative credit data like rent history and child support payments.
- Available in all 50 states.
Cons
- Charges a mortgage application fee.
- Did not disclose origination fees, which may vary.
- Can't complete loan online.
at loanDepot
at loanDepot
Min. Credit Score
620
Min. Down Payment
3.5%
Ideal for borrowers looking to get a mortgage with help from a loan officer. Digital back-office operations are said to add efficiency to the loan process.
Pros
- Offers digital income, asset and employment verification.
- Has over 150 affiliated loan stores nationwide for customers who prefer face-to-face service.
- One of the nation’s most active lenders of FHA and VA loans.
Cons
- Published mortgage rates include up to three points of prepaid interest and fees.
- Does not offer home equity loans or lines of credit.
Min. Credit Score
620
Min. Down Payment
3%
Ideal for borrowers who prefer a traditional bank. Bank of America offers a wide array of mortgages and online account management tools. It also has first-time home buyer loans with low down payments and no mandatory mortgage insurance.
Pros
- Allows borrowers to apply entirely online.
- Offers down payment and closing cost assistance programs.
- Accepts alternative credit data for some loan types.
- May give existing customers a discount on mortgage lender origination fees.
Cons
- Charges an application fee of $1,170, on average.
- Has a high volume of consumer complaints, even for a big national bank.
at Quicken Loans
at Quicken Loans
Min. Credit Score
620
Min. Down Payment
3%
Ideal choice for convenience and quick-response customer service. Quicken Loans provides just about all the services your neighborhood lender does — with online convenience.
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 more than 60% of working Americans.
- Offers custom fixed-rate loan terms that are between eight and 30 years.
- Provides FHA-backed loans, USDA loans as well as products offered by Freddie Mac and Fannie Mae that require down payments as low as 3%.
Cons
- Doesn't offer home equity loans or HELOCs.
- If you’re a “look me in the eye” type of customer, you’re out of luck.
- Doesn’t consider alternative credit data. It just looks at credit scores and debt-to-income ratios, the way most mortgage lenders always have.
Summary of Best Tennessee Mortgage Lenders of 2019
| Lender | Best For | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
New American Funding at New American | overall | 620 | 3% | at New American |
 Guaranteed Rate | overall | 620 | 3% | Read review |
Veterans United at Veterans United | VA loans | 620 | 0% | at Veterans United |
 Navy Federal | VA loans | N/A | 0% | Read review |
SoFi at SoFi | first-time home buyers | N/A | 10% | at SoFi |
Vylla at Vylla | first-time home buyers | 620 | 3% | at Vylla |
 Citibank Mortgage | home equity borrowing | N/A | 3% | Read review |
loanDepot at loanDepot | home equity borrowing | 620 | 3.5% | at loanDepot |
 Bank of America | low down payments | 620 | 3% | Read review |
Quicken Loans at Quicken Loans | low down payments | 620 | 3% | at Quicken Loans |
| Lender | Best For | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
New American Funding at New American | overall | 620 | 3% | at New American |
Guaranteed Rate | overall | 620 | 3% | Read review |
Veterans United at Veterans United | VA loans | 620 | 0% | at Veterans United |
Navy Federal | VA loans | N/A | 0% | Read review |
SoFi at SoFi | first-time home buyers | N/A | 10% | at SoFi |
Vylla at Vylla | first-time home buyers | 620 | 3% | at Vylla |
Citibank Mortgage | home equity borrowing | N/A | 3% | Read review |
loanDepot at loanDepot | home equity borrowing | 620 | 3.5% | at loanDepot |
Bank of America | low down payments | 620 | 3% | Read review |
Quicken Loans at Quicken Loans | low down payments | 620 | 3% | at Quicken Loans |
Last updated on July 2, 2019
Methodology
NerdWallet's selection of mortgage lenders for inclusion here was made based on our evaluation of the products and services that lenders offer to consumers who are actively shopping for the best mortgage. The six key areas we evaluated include the loan types and loan products offered, online capabilities, online mortgage rate information, customer service and the number of complaints filed with the Consumer Financial Protection Bureau as a percentage of loans issued. We also awarded lenders up to one bonus star for a unique program or borrower focus that set them apart from other lenders. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.
To recap our selections...
NerdWallet's Best Tennessee Mortgage Lenders of 2019
- New American Funding: Best for overall
- Guaranteed Rate: Best for overall
- Veterans United: Best for VA loans
- Navy Federal: Best for VA loans
- SoFi: Best for first-time home buyers
- Vylla: Best for first-time home buyers
- Citibank Mortgage: Best for home equity borrowing
- loanDepot: Best for home equity borrowing
- Bank of America: Best for low down payments
- Quicken Loans: Best for low down payments
