Better mortgage review
This fintech lender gets rave reviews from past borrowers — but its loan selection is limited.
finder.com’s rating: 3.5 / 5.0
- Choose this lender for competitive rates and low closing costs.
- Choose another lender if you want a VA, USDA, HELOC, home equity, construction or commercial loan.
- A good option for tech-savvy borrowers looking for a conventional or FHA loan.
|Loan products offered||Conventional, Jumbo, FHA, Refinance|
|Minimum credit score||Refinance: 680|
All other loans: 620
|Minimum down payment||3%|
|State availability||Not available in: HI, MA, MN, NV, NH, VT, VA|
To find out if you’re eligible for a Better home loan, visit the company’s website. Basic eligibility for a mortgage loan includes:
- Two years’ history of employment
- A FICO credit score of 620 or higher
- No history of bankruptcy in the past two years
The documents you’ll need to apply for a home loan from Better include:
For employed persons:
- Photo identification
- Past two years’ employment history
- Your most recent pay stub
- W2 statement for the past year
- Most recent personal tax return
- Other documentation
For self-employed persons:
- 1099 statements for the past year
- Most recent two years’ personal tax returns
- Most recent two years’ business tax returns (if filed)
- A year-to-date P&L statement (may not be required)
- K-1 statements (if you own part of an S-Corporation or Partnership)
- Other documentation
Costs and fees
Better doesn’t charge any lender fees, which means you won’t have to pay an application or origination fee. Note that you’ll still have to pay third-party fees such as appraisal fees, title services and recording charges.
How to apply for a mortgage with Better
To get started:
- Go to Better’s website and select Get Started.
- Choose either Are you buying? or Refinancing a home?, then select See rates.
- Answer the questions asked to complete the form. Depending on where you are in the homebuying process, the questions dynamically change to guide you through the appropriate forms.
- As you progress through the forms, you’ll be asked to approve a soft credit pull.
- After completing the application, you should receive a preapproval decision and be connected with a loan officer. If additional information is needed, you’ll be notified by Better customer service.
What types of mortgages can I get through Better?
Other mortgage products offered by Better
Better also offers these specialized types of mortgages.
- Bridge loans. Allows you to make an offer on a new home without being forced to sell your old one first.
- Mortgage refinancing. This type of loan can help reduce your interest rate, lower your monthly mortgage payment and get rid of PMI.
How Better’s mortgage products compare to other lenders
Compared to other lenders, Better offers a basic range of home mortgage options, including conventional and FHA loans. What makes Better different than other lenders is its streamlined digital application process which cuts out the middleman. This allows you to take advantage of more competitive rates and lower closing costs.
Compare mortgage lenders and brokersCompare top brands by home loan type, state availability and credit score. Select See rates to provide the lender with basic property and financial details for personalized rates.
Better reviews and complaints
As of March 2021, Better has a 3.98 out of 5 rating with the Better Business Bureau (BBB) and a 4.1 out of 5 rating on Zillow from hundreds of customers. Better has been accredited with the BBB since 2018 and has an A- rating with 54 complaints registered over the last three years. Several BBB complaints are related to Better’s $550 appraisal fee, which is required to lock in the interest rate.
Customer reviews — both positive and negative — tend to focus on how automated the loan process is, with several reviewers comparing it to an assembly line. When everything runs smoothly, loans are completed on time and the process is simple. But when there’s an issue, some users complain that it’s hard to get any personalized help.
Pros and cons of Better
- Matching technology. Better’s matching technology can help find loans for unique financial situations and personalized discounts for borrowers.
- Better price guarantee. As of March 2021, Better attempts to match any competitor’s offer and credits you $100. If Better can’t match the offer, you get to keep the $100.
- 21-day closing commitment. Better is committed to closing loans in 21 days for eligible borrowers buying single family/detached unit homes.
- Informative website. Better’s website offers a range of resources, including calculators and homebuying guides.
- Not available in all states. Better is working on expanding, but for now, services are not available in HI, MA, MN, NH, NV, VA and VT.
- Limited loan types. Better doesn’t currently offer VA, USDA, HELOCs, home equity, construction or commercial loans.
- No branch locations. As a digital lender, you won’t be able to meet with a loan officer face to face.
What is Better?
Launched in 2016, Better is a digital lender headquartered in New York, NY. Since its inception, Better has funded more than $25 billion in loans. In 2018, Better launched its Better Real Estate division, which helps match buyers to agents. And in 2019, the company introduced Better Cover and Better Settlement Services to help simplify the home insurance and title insurance process.
Kat Aoki is a mortgage writer at Finder. Since 2011, she’s helped consumers make better financial decisions with their home loans, credit cards, insurance and more. As a business writer for the real estate, mortgage and personal finance industries, she’s written hundreds of helpful, informative articles for some of the leading brands around the globe that include iSelect, InfoChoice, realestate.com.au, GE Money and Amex. Kat earned a BS in Marketing from California State University, Sacramento. She enjoys travel, hiking and photography in her spare time.
As a 100% digital lender, Better may be best suited for tech-savvy homebuyers looking for a convenient electronic application process and faster turnaround times. While the company offers competitive rates and lower closing costs, it’s not for borrowers looking for VA, USDA, construction or commercial loans.