Best FHA Lenders of December 2024
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FHA loans are backed by the government (the Federal Housing Administration), but FHA-approved lenders set their own requirements for borrowers to get pre-approved. Our best picks can help you shop around.
» MORE: Compare FHA mortgage rates
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- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
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- Governed by NerdWallet's strict guidelines for editorial integrity.
Best FHA Lenders of December 2024
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
620 | 3.5% | |||
500 | 3.5% | Learn more at New American Funding | ||
 Rocket Mortgage, LLC: NMLS#3030 Top 3 most visited 🏆 Learn more at Rocket Mortgage, LLC | 580 | 3.5% | Top 3 most visited 🏆 Learn more at Rocket Mortgage, LLC | |
580 | 3.5% | Learn more at First Federal Bank | ||
 Bethpage Federal Credit Union: NMLS#449104 Learn more at Bethpage Federal Credit Union | 500 | 3.5% | Learn more at Bethpage Federal Credit Union |
Explore all of our lender picks by category
- Mortgage rates are on the low side compared to other lenders, according to the latest federal data.
- Offers a strong variety of loan types for purchase and refinance, including fixed- and adjustable-rate loans.
- Mobile app focuses on online banking, not mortgages.
- You’ll need to share contact information to see customized mortgage rates.
New American Funding: NMLS#6606
500
3.5%
- Offers a wide variety of purchase and refinance mortgages.
- Has unique buyer assistance programs.
- Average origination fees are on the high side, according to the latest federal data.
- Personalized mortgage rates are not available on the website without providing contact information.
Rocket Mortgage, LLC: NMLS#3030
580
3.5%
- Reported average time to close is 15 days faster than industry average.
- FHA loans make up more than 20% of Rocket Mortgage’s total loan volume.
- Borrowers can apply via mobile app.
- Origination fees are on the higher end, according to the latest federal data.
- No construction or renovation loans.
- Physical branches are only available in Detroit, Cleveland, and Phoenix.
First Federal Bank: NMLS#408902
580
3.5%
- Almost a quarter of all loans last year were FHA loans.
- Average mortgage rates are on the lower side, according to the latest federal data.
- Offers 15-, 20-, 25-, and 30-year repayment terms, which is unusually flexible.
- No dedicated mobile app for mortgage borrowers.
- Some loans are geographically limited.
Bethpage Federal Credit Union: NMLS#449104
500
3.5%
- Low average FHA origination fees compared to other lenders.
- Specialty loans include financing for co-ops and nonwarrantable condos.
- Highly rated mobile app.
- Doesn’t offer renovation or construction loans.
- Can’t get a preapproval online.
- A temporary buydown program lowers buyers’ interest rates in their first year.
- Offers low rates compared with other lenders, according to the latest federal data.
- Average origination fees are on the high side compared to other lenders, according to the latest federal data.
- Mortgage rates are not published online.
- Doesn’t originate mortgages in the state of New York.
- Fully underwritten mortgage approval in as little as one day for qualified borrowers.
- Generous selection of mortgages, including renovation loans.
- Doesn't offer customer service chat with a live agent.
- Reported average time to close (20-30 days) is faster than industry standard.
- Offers down payment assistance to first-time home buyers.
- The lender’s mobile app is focused on banking, not mortgages.
- Some loans and programs are restricted by area.
- Offers multiple low-down-payment loan options.
- Customizable mortgage rates are posted online.
- In-person service is not available in every state.
- You’ll have to supply personal data or account info to get answers by phone.
- Easy to personalize a quote and apply online.
- Can lock in a rate before you’re under contract, earlier than most lenders.
- Perks include a 1% interest rate buydown and “refinance later” cash bonus.
- Origination fees are on the higher end, according to the latest federal data.
- Online chat is available only in the logged-in experience.
- No renovation loans.
- Reported average time to close is 20 days, far below the industry average.
- Offers FHA energy-efficient mortgages.
- Also offers non-QM loans and ITIN loans, which have flexible qualifying guidelines.
- The lender’s website offers limited loan details.
- Low average FHA interest rates compared to other lenders.
- Sample rates and details are shown for various loan products.
- Offers generous down payment and closing cost assistance programs for qualified borrowers.
- Home loans business is broadly focused on existing bank customers.
- Scandals and government actions have damaged consumer trust in recent years.
FHA loan pre-approval: What you need
To get an FHA loan pre-approval, you need to meet the lender’s requirements to qualify. If you do, many lenders (including those on our list) make it easy to get preapproved online. Like any other mortgage preapproval, you’ll need details about your employment, income, debt and financial accounts.
To qualify for an FHA loan, you'll need to meet (at least) these minimum requirements:
A credit score between 500 and 579 with a 10% down payment
A credit score of at least 580 for the lowest FHA down payment of 3.5%
Another perk: FHA loans allow borrowers to use gift money for their down payment, including funds from down payment assistance programs.
Nerdy Tip
You might need a higher credit score than these bare minimums to get an FHA loan. That’s because FHA-approved lenders set their own requirements, which may be more strict. If you have credit challenges, check out our roundup of the best home loans for bad credit for even more options.
FHA loans allow a debt-to-income ratio of 50% or below. In some cases, there may be a bit more flexibility. You’ll also need to pay FHA closing costs (an upfront payment of 2%-6% of the loan amount) and FHA mortgage insurance (which includes an upfront and recurring monthly fee).
» MORE: FHA loan requirements
Where to apply for an FHA loan
To save money and get the best rate, aim to get pre-approved with at least three lenders. You can start with the lenders we have here, but you can also browse the U.S. Department of Housing and Urban Development's searchable list of approved FHA lenders.
Are FHA loans only for first-time home buyers?
You do not need to be a first-time home buyer to use an FHA loan. Lower minimum credit score and down payment requirements make FHA loans attractive to first-time home buyers, but current homeowners are eligible, too.
Can you get an FHA loan if you have student loans?
You can get an FHA loan if you have student loan debt, as long as you meet FHA debt-to-income requirements. If your payments are currently deferred, your lender will consider your "monthly obligation" to be 0.5% of your total student loan balance.
More from NerdWallet
Last updated on December 17, 2024
Frequently asked questions
- Where do I get an FHA loan?
To apply, you'll work with a Federal Housing Administration-approved lender. Many banks, credit unions and mortgage lenders offer FHA loans.
- How do I get preapproved for an FHA loan?
FHA loan preapproval is similar to preapproval for other mortgage types, though you have to work with an FHA-approved lender. You'll need to provide documentation of your financial status, which can include employment history, bank account information and any current loan payments. Getting a mortgage preapproval from more than one FHA lender lets you compare not only rates but also all the fees and conditions each lender would apply.
- How do I choose an FHA lender?
FHA mortgage rates and fees vary by lender, so compare at least three FHA lenders to find the best deal. Then run the numbers with an FHA mortgage calculator to estimate your monthly payments. It's also important to remember that while the FHA sets minimum qualifications, lenders can require higher credit scores or lower debt-to-income ratios.
Methodology
The star ratings on this page reflect each lender's performance in NerdWallet’s FHA loans category. We scored the category and chose lenders for this page using the following methodology:
NerdWallet reviewed more than 40 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. We rated them on criteria including rate transparency, loan types offered, ease of application and more.
Some of the providers are NerdWallet partners, but this did not influence our selections.
All reviewed mortgage lenders that offer FHA loans were evaluated based on (1) the portion of their business dedicated to FHA lending, (2) their average FHA loan origination fees and mortgage rates, (3) the range of FHA loans offered, (4) their rate transparency and (5) the ease of their online application. The highest scoring lenders appear on this page.
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 2023 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best FHA Lenders of December 2024
- NBKC: Best for low average mortgage rates
- New American Funding: Best for fixer-uppers
- Rocket Mortgage, LLC: Best for digital experience
- First Federal Bank: Best for low average mortgage rates
- Bethpage Federal Credit Union: Best for credit union experience
- AmeriSave: Best for manufactured home loans
- Rate: Best for fast preapproval
- Flagstar: Best for credit challenged borrowers
- PNC Bank: Best for traditional lending experience
- Pennymac: Best for FHA loans overall
- Network Capital: Best for self-employed borrowers
- Wells Fargo: Best for refinance loans
