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Best Mortgage Lenders for First-Time Home Buyers in 2025

Last updated on April 2, 2025
Kate Wood
Written by 
Lead Writer/Spokesperson
Dawnielle Robinson-Walker
Edited by 
Editor & Content Strategist
Fact Checked
Kate Wood
Written by 
Lead Writer/Spokesperson
Dawnielle Robinson-Walker
Edited by 
Editor & Content Strategist
Fact Checked

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 and here's how we make money.

Why trust NerdWallet
  • 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.

Our 2025 Best-Of Award Winner

Nerdwallet Best of Awards Badge
Best Mortgage Lender  First-Time Home Buyers
Rocket Mortgage, LLC

NMLS#3030

Rocket Mortgage, LLC
Rocket Mortgage, LLC

NMLS#3030

Home loans overall
Learn moreat Rocket Mortgage, LLC
at Rocket Mortgage, LLC
First-Time Home Buyers
First-Time Home Buyers
WHY OUR NERDS LOVE IT
Rocket Mortgage originates a significant volume of first-time-buyer-friendly FHA loans. It also offers a low-down-payment mortgage and gives qualified buyers help with closing costs.

Best Mortgage Lenders for First-Time Home Buyers in 2025

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Lender
NerdWallet Rating
Min. credit score
Min. down payment
Learn more
Rocket Mortgage, LLC

Rocket Mortgage, LLC: NMLS#3030

Learn more
at Rocket Mortgage, LLC
at Rocket Mortgage, LLC
4.5
/5
Home loans overall
Best for first-time home buyers overall

620

1%

Learn more
at Rocket Mortgage, LLC
at Rocket Mortgage, LLC
4.5
/5
VA loans
Best for VA loans

620

0%

5.0
/5
Home loans overall
Best for lower credit scores

620

3%

First Federal Bank

First Federal Bank: NMLS#408902

Learn more
at First Federal Bank
at First Federal Bank
4.5
/5
FHA loans
Best for government loans

N/A

3.5%

Learn more
at First Federal Bank
at First Federal Bank
Northpointe

Northpointe: NMLS#447490

4.5
/5
Home loans overall
Best for first-time home buyers overall

620

3%

Truist

Truist: NMLS#399803

Compare More Lenders
on NerdWallet
4.0
/5
Home loans overall
Best for variety of loan types

620

3%

Compare More Lenders
on NerdWallet
CrossCountry Mortgage

CrossCountry Mortgage: NMLS#3029

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on NerdWallet
4.0
/5
Home loans overall
Best for fast closing

620

3%

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on NerdWallet
Flagstar

Flagstar: NMLS#417490

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on NerdWallet
5.0
/5
FHA loans
Best for FHA loans

580

3.5%

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on NerdWallet
PNC Bank

PNC Bank: NMLS#446303

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on NerdWallet
5.0
/5
Jumbo loans
Best for jumbo loans

620

5%

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on NerdWallet
Wells Fargo

Wells Fargo: NMLS#399801

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on NerdWallet
4.5
/5
Home loans overall
Best for Wells Fargo banking customers

620

3%

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on NerdWallet
Guild Mortgage

Guild Mortgage: NMLS#3274

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on NerdWallet
4.0
/5
Home loans overall
Best for borrower assistance programs

N/A

3%

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on NerdWallet
U.S. Bank

U.S. Bank: NMLS#402761

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on NerdWallet
5.0
/5
Home loans overall
Best for home loans overall

N/A

N/A

Compare More Lenders
on NerdWallet
PrimeLending

PrimeLending: NMLS#13649

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on NerdWallet
4.0
/5
Home loans overall
Best for construction loans

620

3%

Compare More Lenders
on NerdWallet

Explore all of our lender picks by category

How do I choose a mortgage lender?

Once you know what type of mortgage you want, finding the right lender may be easier than you expect. Don't want to do the research? A mortgage broker can give you a personalized list of options.

Video preview image

Applying for mortgage preapproval with multiple lenders can give you an idea of how much you could borrow, what interest rate you'd get and what it's like to work with each lender. Most lenders charge a fee to apply for a mortgage, but preapprovals can help narrow down your options for free.

To see actual interest rates and fees, you'll need to apply for a mortgage with more than one lender. Once you apply, you'll receive a Loan Estimate within three business days. This standard form makes it easy to compare lenders side by side.

How much do I need to save for a down payment?

The amount you need for a down payment depends on the type of home loan you choose. Some conventional loans offer down payments as low as 3%, but a down payment below 20% requires paying private mortgage insurance. FHA loan down payments can be as low as 3.5%, depending on your credit score. VA loans and USDA loans don't require down payments.

Can I get help making a down payment?

As a first-time home buyer, you may qualify for down payment assistance or other first-time home buyer benefits. These programs are usually run by state housing authorities, though some cities and counties offer them as well. You may need to meet income or residency requirements. Many programs also require a first-time home buyer class.

More from NerdWallet

Last updated on April 2, 2025

Frequently asked questions

  • The best mortgage for you as a first-time home buyer is the loan you're qualified for that meets your needs. It depends on a number of factors, including your credit score.

    If your score is at least 580, an FHA loan is your best option. With a credit score of 620 or higher, a conventional loan could be a better choice.

    If you have a military connection, you might qualify for a VA loan. The Department of Veterans Affairs doesn't require a minimum credit score, though lenders can set their own requirements.

  • There are many grants, special loans and down payment assistance programs for borrowers looking to buy their first home. Check out our list of first-time home buyer programs by state to get started.

  • The easiest loan to qualify for is an FHA loan, because FHA requirements allow lower credit scores and are more flexible on debt-to-income ratios. However, if you have strong credit, a conventional loan may offer a lower down payment.

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.

All reviewed mortgage lenders that offer programs for first-time home buyers were evaluated based on (1) the portion of their business dedicated to FHA and VA lending, (2) their ability to offer conventional loans with a down payment as low as 3%, (3) their origination fees, (4) their proprietary first-time home buyer loans or assistance (e.g. grants or loans to cover down payment and closing costs), (5) mortgage rate transparency, and (6) 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.

To recap our selections...

NerdWallet's Best Mortgage Lenders for First-Time Home Buyers in 2025

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