Best Lenders for FHA Loans in November 2024
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FHA loans have down payments as low as 3.5%. But though they’re backed by the government, lenders may still have differing requirements and policies — so it’s smart to shop around.
» MORE: Compare FHA mortgage rates
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Best Lenders for FHA Loans in November 2024
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
620 | 3.5% | |||
580 | 3.5% | |||
 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 | |
 Bethpage Federal Credit Union: NMLS#449104 LEARN MORE on NerdWallet | 500 | 3.5% | LEARN MORE on NerdWallet | |
 Flagstar: NMLS#417490 LEARN MORE on NerdWallet | 580 | 3.5% | LEARN MORE on NerdWallet |
Explore all of our lender picks by category
- Offers FHA purchase, streamline and cash-out refinance loans.
- Offers low rates and fees for FHA loans compared with other lenders, according to the latest federal data.
- Displays customized rates, with fee estimates, without requiring contact information.
- Branches for in-person service are limited to the Kansas City metro area.
- Displays detailed sample rates for many of its loan products.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Offers a variety of FHA loans, including renovation mortgages.
- Was among the top 10 lenders by loan volume for FHA mortgages in 2022, according to the latest federal data.
- Lender's "Same Day Mortgage" offer not available for FHA loans.
Rocket Mortgage, LLC: NMLS#3030
580
3.5%
- Streamlined online process with document and asset retrieval capabilities, as well as the ability to edit your preapproval letter.
- FHA mortgage interest rates are on the low side compared to other lenders, according to the latest federal data.
- Was the top lender by loan volume for FHA mortgages in 2022, according to the latest federal data.
- Origination fees for FHA loans are on the high side compared with other lenders, according to the latest federal data.
Bethpage Federal Credit Union: NMLS#449104
500
3.5%
- Has a fully online mortgage application and a highly rated mobile app.
- Offers financing for co-ops, a type of home that’s common on the East Coast.
- FHA rates and fees are on the low side, according to the latest federal data.
- In-person service available only on Long Island, New York.
- Customized rates not available online.
- Offers a wide range of loan types and products, including FHA renovation loans and FHA streamline and cash-out refinance mortgages.
- Borrowers can apply and track loan status online.
- Offers customized online rate quotes with monthly payment estimates.
- Does not offer FHA energy efficient mortgages.
- Lender fees and interest rates for FHA mortgages are lower than average, according to the latest federal data.
- Easy to get custom mortgage rate quotes on its website.
- Offers FHA streamline and cash-out refinance mortgages.
- Doesn't offer FHA renovation mortgages.
- In-person service is not available in every state.
- Dedicates a significant portion of its business to FHA lending.
- Displays custom rate quotes based on home value, down payment, ZIP code and credit score range.
- “Lock & Shop” lets you secure a rate for up to 90 days, even if you don’t have a purchase contract yet.
- FHA interest rates are on the lower end, according to the latest federal data.
- Origination fees for FHA loans are on the higher end, according to the latest federal data.
- Doesn't offer FHA renovation loans.
Wintrust Mortgage: NMLS#449042
N/A
3.5%
- Offers a broad assortment of mortgages, including FHA renovation loans.
- Participates in first-time home buyer assistance programs in Illinois and Wisconsin.
- Offers online conveniences to apply for a mortgage and track progress.
- Sample rates for some loan products are available only by contacting a loan officer.
- No online chat function available on website.
- Offers down payment and closing cost assistance programs.
- May give existing customers a discount on mortgage lender origination fees.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Doesn't offer FHA renovation loans.
- Has a robust digital experience and mobile app.
- FHA mortgage rates are lower than average, according to the latest federal data.
- Offers FHA streamline refinance loans.
- Requires a call or email for personalized rates.
- FHA origination fees are on the higher end, according to the latest federal data.
- Lender fees for FHA loans are on the lower end, according to the latest federal data.
- Offers FHA streamline refinance mortgages.
- Lists sample mortgage rates and APRs for many of its products online, including a breakdown of estimated monthly payments.
- Sample mortgage rates online are not customizable by credit score.
- Offers FHA streamline and FHA cash-out refinance loans.
- FHA mortgage rates are lower than industry average, according to the latest federal data.
- Posts sample mortgage rates on its website.
- Customized rates by credit score aren't available without contacting the lender.
- Mortgages aren’t available in all 50 states.
Qualifying for an FHA loan
To qualify for an FHA loan, you'll need a credit score of at least 580 for the lowest FHA down payment of 3.5% and a score of 500 with a 10% down payment. FHA loans allow a debt-to-income ratio of up to 43%, and in some cases there may be a bit more flexibility.
In addition to money for your down payment, you'll also need funds to cover FHA closing costs and an upfront mortgage insurance premium, which for FHA borrowers is 1.75% of the loan amount. Both the upfront mortgage insurance premium and the closing costs can be rolled into the total amount of the mortgage.
Bear in mind that these are the Federal Housing Administration's qualification guidelines; individual lenders can impose stricter rules. That's one reason it's worth comparing several 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. FHA student loan guidelines state that lenders must include all student loans when calculating a borrower's debt-to-income ratio. 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 November 1, 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 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. 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 2022 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Lenders for FHA Loans in November 2024
- NBKC: Best for rate transparency
- Rate: Best for first-time home buyers
- Rocket Mortgage, LLC: Best for digital convenience
- Bethpage Federal Credit Union: Best for credit union lending
- Flagstar: Best for overall mortgage lending
- PNC: Best for overall FHA loan experience
- Pennymac: Best for FHA mortgage rates
- Wintrust Mortgage: Best for rate transparency
- Bank of America: Best for customer satisfaction
- Mr. Cooper: Best for FHA mortgage rates
- US Bank: Best for mobile app
- Truist: Best for first-time home buyers
