Best mortgage lenders 2024

Homebuyers have faced a myriad of challenges that have persisted over the past few years, including elevated mortgage interest rates, scarce home inventory and high home prices. The combination of negative forces has priced many buyers out of the market and left their hopes of homeownership in doubt.

Thankfully, the housing market is starting to turn the corner, with good news sprinkling into the sector. Inflation is cooling, and the Federal Reserve is expected to begin cutting rates this week. These developments could result in more favorable home loan rates. 

If you're in the market for a new mortgage loan, take the time to research the best mortgage lenders. Below, we've detailed our best picks for the top lenders that could benefit you, depending on your situation.

Start by seeing how low of a mortgage interest rate you could secure here today.

Best mortgage lenders 2024

Here are six of the best mortgage lenders on the market now, broken down into six different categories:

• Best overall: Veterans United Home Loans
• Best for first-time homebuyers: PenFed Credit Union
• Best for good credit: U.S. Bank
• Best for bad credit: New American Funding
• Best for fast funding: Better
• Best for low fees or closing costs: Alliant Credit Union

Best overall: Veterans United Home Loans

Low rates are great, but finding the best balance of competitive rates, favorable terms, quick preapproval and exceptional customer service wins the day. Veterans United Home Loans checks all the boxes and is our choice for the best overall mortgage lender. As its name suggests, Veterans United specializes in Veterans Affairs (VA) loans but also offers conventional loans—with down payments as low as 3%—and other government-backed mortgages including FHA and USDA mortgages. Veterans United boasts a 4.8 rating (out of 5) on its website with nearly 400,000 customer reviews. 

Learn more about Veterans United Home Loans here.

Best for first-time homebuyers: PenFed Credit Union

PenFed Credit Union is an excellent option for first-time buyers as it offers rates on conventional loans as low as 5.5% and low or no down payment options, depending on your loan type. The credit union also offers a First Time Home Buyer Advantage mortgage with a 3% down payment option and no income limits.

Qualified borrowers may secure a conventional mortgage loan with a 3% down payment, an FHA loan with 3.5% down or a VA loan with no down payment at all.  PenFed also offers jumbo loans, home equity lines of credit and refinances. 

If you're interested in a PenFed mortgage, you must become a member to qualify. Fortunately, the credit union is open to anyone who wishes to join.

Best for good credit: U.S. Bank

U.S. Bank is a large bank available to borrowers nationwide. You may prefer this bank if you like the idea of applying for a loan in person at a local branch. The bank also offers an online application process with a shorter approval time. U.S. Bank offers competitive rates for borrowers with a minimum credit score of 620, but higher scores may lead to a lower rate. 

In 2023, U.S. Bank launched the Access Home Loan program to improve homeownership opportunities for communities of color. This Special Purpose Credit Program (SPCP) provides eligible buyers with up to $12,500 in down payment assistance and $5,000 lender credit.

Best for bad credit: New American Funding

New American Funding offers three government-backed mortgage programs: FHA, VA and USDA. These programs provide affordable mortgage options for homebuyers who might have trouble qualifying for a conventional loan.

With a 10% down payment, you may be eligible for an FHA loan with a 500 minimum credit score. With a smaller down payment of only 3.5%, you may qualify with a 580 or greater score.

If you're looking for more than government-backed loans, New American Funding provides a wide range of options, with over 16 different mortgage products to choose from.

Get started with New American Funding online today.

Best for fast funding: Better

Better's One-Day Mortgage option may be worth considering if you need a fast closing or quick rate lock. This program gives qualified borrowers a rate and loan commitment letter within 24 hours, instead of the days or weeks many traditional banks require. Better also claims to close mortgages up to 17 days faster than the industry average. And if you find a lower rate with another lender, Better will match it. However, this option is not available for FHA and VA loans. Better enjoys a 4.4 rating on Trustpilot with over 1,700 reviews, 76% of which gave the lender a 5-star rating.

Best for low fees or closing costs: Alliant Credit Union

Alliant is a popular credit union that provides low and no-down payment options to help borrowers achieve the dream of homeownership. Alliant offers a large portfolio of mortgage options, including purchase, refinance and construction loans. As a credit union, rates are often lower than its traditional bank counterparts. Alliant's website is also a cut-above the competition, making it easy to explore your options, estimate your payment or get preapproved in minutes.

The bottom line

Mortgage rates and terms vary from one lender to another, so it pays to get multiple quotes to find the best offer. Most lenders allow you to prequalify in minutes without affecting your credit score, so you can see the loan amount and mortgage rates you might qualify for.