6 Best Nonbank Mortgage Lenders of 2024
See NerdWallet's picks for the best nonbank mortgage lenders of 2024 across different categories.
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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.
- 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.
- 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.
6 Best Nonbank Mortgage Lenders of 2024
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
620 | 3% | |||
620 | 3% | |||
 Pennymac: NMLS#35953 LEARN MORE on NerdWallet | 620 | 3% | LEARN MORE on NerdWallet | |
 New American Funding: NMLS#6606 Top 3 most visited 🏆 Learn more at New American Funding | 580 | 3% | Top 3 most visited 🏆 Learn more at New American Funding | |
620 | 3% | Learn more at Veterans United | ||
620 | 1% | Learn more at Rocket Mortgage, LLC |
- Fully underwritten mortgage approval in as little as one day for qualified borrowers.
- Generous selection of loans, including government-backed, interest-only, jumbo and renovation.
- Advertises a HELOC that can be funded in as few as five business days.
- Origination fees are on the high side, according to the latest federal data.
- HELOC requires immediate, full withdrawal of funds.
- Borrowers can apply, lock in a rate and receive a commitment letter within one day.
- Offers both HELOCs and home equity loans with a high borrowing limit of 90% CLTV.
- Offers mortgages for manufactured homes, as well as financing for self-employed borrowers.
- No mobile app; customer service is by email or phone only.
- Borrower must provide contact information to see customized rates.
- Does not offer renovation or construction loans.
- 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 home equity lines of credit or renovation loans.
New American Funding: NMLS#6606
580
3%
- Offers a wide variety of purchase and refinance mortgages, as well as unique buyer assistance programs.
- Its home equity line of credit can be used for a primary residence or second home.
- 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.
Veterans United: NMLS#1907
620
3%
- 24/7 customer service line supports servicemembers stationed internationally.
- Niche VA products, including refinances, EEMs and VA jumbo loans.
- Maintains a network of real estate agents experienced with VA borrowers.
- No HELOCs or home equity loans.
- No renovation loans.
- No live chat feature on website.
Rocket Mortgage, LLC: NMLS#3030
620
1%
- Reported average time to close is 15 days faster than industry average.
- FHA and VA loans make up 40% 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.
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.
NerdWallet's Best Nonbank Mortgage Lenders of 2024
- Rate: Best for jumbo loans
- Better: Best for streamlined process
- Pennymac: Best for FHA loans
- New American Funding: Best for nontraditional credit histories
- Veterans United: Best for VA loans
- Rocket Mortgage, LLC: Best for refinancing
