Best of

6 Best Nonbank Mortgage Lenders of 2024

See NerdWallet's picks for the best nonbank mortgage lenders of 2024 across different categories.

NerdWallet
By
Last updated on January 26, 2024
Edited by
✅ Fact checked and reviewed
Johanna Arnone
Edited by
✅ Fact checked and reviewed

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.

  • 50+ mortgage lenders reviewed and rated by our team of experts.
  • 40+ years of combined experience covering mortgages and financial topics.
  • Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
  • Governed by NerdWallet's strict guidelines for editorial integrity.
NerdWallet's mortgage content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in home lending. Their work has appeared in The Associated Press, USA Today, The Washington Post, MarketWatch, Newsweek and many other national, regional and local publications. They have been cited in publications including The Wall Street Journal, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.

Best Nonbank Mortgage Lenders

Have you or your spouse served in the military?

We’ve got more home loan options for you. Show me

Lender
NerdWallet Rating
Min. credit score
Min. down payment
Learn more
Guaranteed Rate

Guaranteed Rate: NMLS#2611

Top 3 most visited 🏆
Learn more
at Guaranteed Rate
at Guaranteed Rate
Home loans overall
Best for jumbo loans

620

3%

Veterans United

Veterans United: NMLS#1907

Learn more
at Veterans United
at Veterans United
4.0
/5
Home loans overall
Best for VA loans

620

0%

New American Funding

New American Funding: NMLS#6606

4.0
/5
Home loans overall
Best for nontraditional credit histories

580

3%

Rocket Mortgage, LLC

Rocket Mortgage, LLC: NMLS#3030

4.0
/5
Home loans overall
Best for refinancing

620

1%

Pennymac

Pennymac: NMLS#35953

LEARN MORE
on NerdWallet
4.5
/5
Home loans overall
Best for FHA loans

620

3%

LEARN MORE
on NerdWallet
Better

Better: NMLS#330511

LEARN MORE
on NerdWallet
4.5
/5
Home loans overall
Best for streamlined process

620

3%

LEARN MORE
on NerdWallet
Guaranteed Rate
Learn more
at Guaranteed Rate
at Guaranteed Rate
Guaranteed Rate

Guaranteed Rate: NMLS#2611

5.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItGood for: borrowers seeking a broad menu of loans, including jumbo and interest-only options, renovation loans and government-backed mortgages, as well as home equity lines of credit.
Pros
  • Offers a one-day mortgage approval process.
  • Offers a generous selection of loans, including government-backed, interest-only, ITIN, jumbo and renovation loans.
  • Advertises a HELOC that can be funded in as few as five business days.
Cons
  • Origination fees are higher than average, according to the latest federal data.
  • HELOC has a relatively short draw period, which may not provide flexibility for someone who wants the option of accessing home equity over a longer period.
Read Full Review
Veterans United

Veterans United: NMLS#1907

4.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

0%

Why We Like ItGood 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
  • Parent company’s mortgage rates are on the higher side, according to the latest federal data.
  • Does not offer second mortgage options like home equity loans or HELOCs.
New American Funding
Learn more
at New American Funding
at New American Funding
New American Funding

New American Funding: NMLS#6606

4.0
Home loans overall
NerdWallet rating
Min. credit score

580

Min. down payment

3%

Why We Like ItGood for: first-time home buyers, military members and self-employed or underrepresented borrowers.
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.
  • Has a program to enable buyers to make cash offers.
  • Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
Cons
  • Mortgage origination fees tend to be on the high end.
  • Personalized mortgage rates are not available on the website without providing contact information.
Rocket Mortgage, LLC
Learn more
at Rocket Mortgage, LLC
at Rocket Mortgage, LLC
Rocket Mortgage, LLC

Rocket Mortgage, LLC: NMLS#3030

4.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

1%

Why We Like ItGood for: FHA borrowers and others short on down payment cash, as well as home buyers who value convenience over low fees.
Pros
  • Streamlined online process with document and asset retrieval capabilities, as well as the ability to edit your preapproval letter.
  • Offers the option to work with loan officers by phone if desired.
  • Largest FHA lender in the nation.
Cons
  • Getting a customized interest rate requires a credit check, which can affect your credit score.
  • Origination fees are on the high side compared with other lenders, according to the latest federal data.
  • Doesn't offer home equity lines of credit.
Pennymac
LEARN MORE
on NerdWallet
Pennymac

Pennymac: NMLS#35953

4.5
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItGood for: rate-conscious borrowers who want to shop and compare a wide variety of mortgage types online.
Pros
  • Rates are on the low side, according to the latest federal data.
  • An online tool makes it easy to customize a rate quote online, with no contact information required.
  • “Lock & Shop” lets you secure a rate for up to 90 days while you house-hunt, and switch to a lower one if rates drop while you shop.
Cons
  • Origination fees are on the higher end, according to the latest federal data.
  • Doesn't offer home equity lines of credit or renovation loans.
  • Online chat is available only in the logged-in experience.
Better
LEARN MORE
on NerdWallet
Better

Better: NMLS#330511

4.5
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItGood for: borrowers who prefer an online experience, prize low rates and are primarily interested in conventional loans.
Pros
  • Offers a one-day mortgage that lets eligible borrowers apply, lock in a rate and get a loan commitment within 24 hours.
  • Average interest rates are on the low end compared to other lenders, according to the latest federal data.
  • Offers a HELOC that can be used for a primary, second or investment home.
Cons
  • Doesn't offer harder-to-find loans, such as construction loans, renovation loans, or USDA mortgages.
  • Finding descriptions of all of the loan offerings on the website requires some digging, and the lender does not have a mobile app.
  • Average lender fees are on the high end compared with other lenders, according to the latest federal data.

More from NerdWallet
5 tips for finding the best mortgage lender
Calculate your mortgage payment
How much home can you afford?

Last updated on January 26, 2024

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 or above according to our home loans overall methodology. “Nonbank” means mortgage companies that are neither banks nor credit unions.

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 2022 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.

To recap our selections...

NerdWallet's Best Nonbank Mortgage Lenders of 2024

  • Guaranteed Rate: Best for jumbo loans
  • Veterans United: Best for VA loans
  • New American Funding: Best for nontraditional credit histories
  • Rocket Mortgage, LLC: Best for refinancing
  • Pennymac: Best for FHA loans
  • Better: Best for streamlined process
NerdWallet Pixel