Rocket Mortgage
Minimum credit score | Conventional: 620 FHA: 580 VA: 620 Jumbo: 700 |
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Buying a new home is an exciting time at any stage of life. But amid a multitude of mortgage lenders and a housing market with high interest rates and low inventory, choosing the right loan can be a challenge.
According to Finder’s Consumer Confidence Index, 19% of those surveyed struggle to make mortgage payments. But with mortgage payments averaging almost $500 less per month than what participants pay in rent, deciding to buy a home might make financial sense.
If that’s true for you, consider these mortgage lenders, which may offer the funding you need.
Rocket Mortgage
Minimum credit score | Conventional: 620 FHA: 580 VA: 620 Jumbo: 700 |
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Veterans United
Minimum credit score | Conventional: 620 FHA: 620 VA: 620 |
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AmeriSave
Minimum credit score | Conventional: 620 FHA: 600 VA: 600 USDA: 600 |
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Guaranteed Rate
Minimum credit score | Conventional: 620 Other mortgages: As low as 580, depending on type |
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PenFed Credit Union
Minimum credit score | Conventional - 620 |
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Better
Minimum credit score | Conventional: 620 Refinance: 620 FHA, VA: 580 |
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Credible
Minimum credit score | Mid-600s (varies by lender) |
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We chose these lenders based on several criteria, including fees, loan amounts, interest rates and eligibility requirements. We also considered customer reviews from sites such as Trustpilot and the Better Business Bureau (BBB).
Our lending experts researched hundreds of home loan providers to narrow down the best lenders. We found lenders suited to a wide range of needs, including those that offer multiple mortgage products, get high customer ratings and offer the best rates and low fees.
We weigh lenders against 11 key metrics:
Choosing the right lender can be a challenge if you’re not sure what to look for. A few features to compare while you’re shopping around are:
Mortgage brokers take your financial information and try to connect you with the best mortgage to match your location and needs. You’re basically paying a fee to have an expert compare mortgage products for you — a fee that can range from 0.5% to 3.0% of your loan principal.
This can save you a tremendous amount of time and money if you find a better rate than you could have on your own. But, similar to using a lender marketplace, you’re limited to lenders the broker is familiar with and lenders that work with brokers. Not all lenders do.
Your financial history and the amount of your down payment are the two most important determinants of your mortgage rate, regardless of lender. But there are other factors that can help you get the best rate available to you.
With interest rates high now but expected to come down in the coming months, this may be a great time to follow our suggestions to get a better interest rate on your mortgage.
Each lender has different mortgage products on offer, which is why it’s important to compare and understand all the loans you have to choose from.
These are loans that meet the federal guidelines set by Fannie Mae (FNMA)/Freddie Mac(FMCC). The requirements include:
Any loan with requirements outside these is considered non-conforming.
Obviously, the loan limits of conforming loans make financing difficult in areas like Silicon Valley or NYC, where housing costs are high. Large loans create a big risk for the lender, which is why jumbo loans usually require large down payments and higher financial stability and carry higher APRs.
For people who can’t qualify for a conventional loan, there are government programs that can help keep things affordable. These are all backed by a government authority and come with a set of requirements listed on the appropriate government websites.
There are many specialty loans to choose from, the most common include:
Get to know the different lenders who offer mortgages.
Buying a house is the largest purchase most people will ever make. If you are ready financially and know you’ll continue to be stable for the next three to five years, buying a house can be a good investment. Regardless of current rates, every year you spend in the home builds equity you can use down the line to borrow against or buy your next home. And because the loan’s term is so long, you can choose to refinance when interest rates come down.
But if you’re not quite ready, waiting can also be the right call. House values will continue to rise, but you may find you’re able to spend more on a house after you take the time to raise your credit score and save more of a down payment.
Learn the ins and outs of this new low down payment program from Rocket Mortgage.
Weighing your options is vital to avoid ending up in worse financial shape than you were before you tapped into your home equity. Here’s how.
That three-digit number is important, but it doesn’t have to be a roadblock to homebuying.
Compare mortgage and refinance rates from lenders in your area to see how much you’ll pay on your next home loan.