Even with a spotty credit history or a small down payment, the Federal Housing Administration (FHA) provides a mortgage program that can help you qualify for a house loan.
You just need a 3.5% down payment for an FHA loan, and your credit score is not required to be flawless. Continue reading to discover the finest FHA lenders, the principles of FHA mortgages, and a step-by-step tutorial for obtaining an FHA mortgage.
The best FHA lenders of March 2023
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Rocket Mortgage
Previously, Quicken Loans referred to its online platform as “Rocket Mortgage.” Rocket Mortgage’s meteoric rise meant that Quicken Loans and Rocket Mortgage quickly became synonymous with one another. Ultimately, Quicken Loan changed its name to Rocket Mortgage, claiming that the word “Rocket” perfectly encapsulated the services it provides.
There are many benefits to Rocket Mortgage. This lender is renowned for its affordable mortgage rates, exceptional customer service, and totally digital experience. Rocket Mortgage doesn’t provide every form of house loan, but if they have one that suits your needs, you have a decent chance of having a positive experience.
Rocket Mortgage review
For house purchasers who feel comfortable conducting business online, Rocket Mortgage is fantastic. The Rocket Mortgage mobile app makes the application process a breeze while on the go and is the industry standard for digital applications.
Pros
- high levels of consumer satisfaction
- excellent app
- possibilities for low down payments
- Rate lock for 90 days
- maintains its loans
Cons
- no actual branches
- No loans for house equity
- Restricted low down payment eligibility
- zero USDA loans
Customer service at Rocket Mortgage is outstanding. In the mortgage origination and service categories of two J.D. Power customer satisfaction surveys, it comes in first place. It was the top mortgage servicer for eight years and kept the top spot in the mortgage origination survey for 11 years running. In the J.D. Power customer satisfaction study conducted in 2021, Rocket Mortgage finished in second place, falling just 8 points short of Guild Mortgage.
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CitiMortgage
Citi is a well regarded mortgage lender that has won numerous awards for friendliness and effectiveness. In addition to its discounts and other incentives, Citi can accommodate most borrowers with its well-rounded variety of mortgage loans. See if Citi is the best mortgage lender for you by reading our CitiMortgage review.
CitiMortgage review
Those who are currently Citi customers and want to reduce their loan fees. Borrowers looking for a mortgage with a low down payment and no private mortgage insurance can consider CitiMortgage.
Pros
- a range of loans
- Program for low-down-payment mortgages
- Pricing reduction for current clients
- great standing
Cons
- No requirement for a down payment on a mortgage
- No disclosure of rates or fees
- Unsatisfactory Better Business Bureau rating
The majority of consumers who want to buy a home or refinance their mortgage can find the loan they need from CitiMortgage’s large variety of loans. The standard fixed-rate and adjustable-rate mortgage choices are available through Citi. Low down payment mortgages and a few government-backed loans are also available from CitiMortgage. Home purchasers who require mortgages that surpass government lending limitations might use Citi’s jumbo loan program.
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Bank of America Mortgage
The range of home loans offered by Bank of America is what you would anticipate from a significant national lender. It also focuses on house loans with little or no down payment. Some debtors may even be eligible for free money to help them buy a home. In addition, Bank of America consistently maintains inexpensive mortgage interest rates and excellent customer ratings. To determine if Bank of America is the best mortgage lender for you, read our in-depth evaluation.
Bank of America Mortgage Review
reputable first-time home purchasers with limited resources. Current clients who have sizeable balances at the bank or at Merrill Lynch may consider Bank of America Mortgage as well because they may be eligible for rate and charge breaks.
Pros
- mortgages with less money down
- Assistance with down payments
- Comparable HELOC
- Mortgage rates that are open
Cons
- zero USDA loans
- Alternatives for non-qualified mortgages are scarce
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PNC Bank Mortgage
PNC Mortgage is a national mortgage provider that provides a variety of low down payment mortgage application options. Even nonrepayable home buyer grants may be available to some borrowers. In addition to cash-out refinance choices, PNC also provides home equity solutions if cash is what you’re after.
Your decision over the finest mortgage lender for your subsequent home loan will be aided by our study of PNC Mortgage.
PNC Mortgage review
Medical professionals seeking a house loan with a low down payment and no private mortgage insurance, as well as people with low and moderate incomes. Anybody wishing to learn more about the mortgage procedure should definitely check out PNC Mortgage.
Pros
- a large selection
- Grants in cash
- electronic pre-approval
- flexible choices for home equity loans
Cons
- Relationship reduction
- White-glove treatment
- Fee disclosure
PNC Mortgage provides a huge selection of mortgage loans that should be able to meet the demands of most clients. Among PNC’s offers are the most popular government-backed mortgages, the regular conventional loan, low-down-payment mortgage choices, and specialized loans. The selection is greater than what many other mortgage lenders have to offer.
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Chase Mortgage
One of the largest financial organizations in the world is Chase. There are mortgage choices to suit the needs of the majority of borrowers at Chase Home Lending, the mortgage division of Chase. Chase also provides mortgages with low down payments, and some borrowers may be eligible for a nonrepayable home buyer grant to assist with the closing fees and down payment. To determine if Chase Mortgage is the best mortgage lender for you, read our review.
Chase Mortgage review
Those who desire a mortgage with a modest down payment, jumbo borrowers, and borrowers with low to moderate incomes.
Pros
- Low down payment mortgages
- lending without PMI
- mortgage grants
- Mortgage rates as of publication
Cons
- Not disclosed fees
- There is a rate lock cap.
- Absence of home equity products
Jumbo loans are more accessible because to Chase Mortgage’s reduced down payment requirements. Some lenders occasionally want 20% or more, but at Chase, you can
With a primary residence purchase or a Chase-to-Chase mortgage refinance with no cash back, you can borrow up to 89.99% of the home’s value. Private mortgage insurance (PMI), stricter credit score criteria, and geographic limits apply to this loan.
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PennyMac Mortgage
As the second-largest lender in the country, PennyMac has originated more than 2 million mortgage loans. With approximately $500 billion worth of loans in its servicing portfolio, the business is also among the biggest mortgage servicers in the US.
A mortgage lender with an online presence, PennyMac provides a range of loan programs with different terms, as well as a wealth of helpful tools to help purchasers navigate the process. We’ll examine PennyMac’s loan business in this study, along with its benefits and drawbacks, and other details to help you determine if it would be a good fit for you.
PennyMac Mortgage Review
Many different types of borrowers, such as those seeking low-cost conventional loans, FHA, USDA, or VA loans, as well as those who desire the mortgage lender to continue serving as the mortgage servicer.
Pros
- Transparency of rates
- Rate assurance
- term flexibility
Cons
- limited choices for low down payments
- A scanty physical presence
Borrowers can view PennyMac’s current lending rates for a variety of loan terms with a few mouse clicks. They even understand how paying points may change their rate. Although rates may fluctuate once PennyMac has verified the borrower’s credit, this level of mortgage rate transparency is something many of PennyMac’s rivals don’t provide.