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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.

Details

Loan products offeredConventional, Jumbo, FHA, Refinance
Minimum credit scoreRefinance: 680
All other loans: 620
Minimum down payment (Conventional)3%
State availabilityNot available in: HI, MA, MN, NV, NH, VT, VA
NMLS #330511

Better requirements

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

Documentation

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:

  1. Go to Better’s website and select Get Started.
  2. Choose either Are you buying? or Refinancing a home?, then select See rates.
  3. 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.
  4. As you progress through the forms, you’ll be asked to approve a soft credit pull.
  5. 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?

  • Conventional
  • FHA
  • VA
  • USDA
  • Jumbo
This company accepts mortgage refinance applications.

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.

Alternatives to Better

Better offers a streamlined digital application process that cuts out the middleman, affording you more competitive rates and lower closing costs.

But not everyone is comfortable with a digital-only mortgage application process. Better may appeal more to tech-savvy borrowers who upload documents from their smartphone like second nature.

If you don’t fall into this category, you may want to go with a more traditional lender with local branches or one that offers both digital convenience and in-person support when you need it, such as Freedom Mortgage and Guaranteed Rate.

Find your perfect match by comparing lenders and lender marketplaces by the type of home loan you’re searching for, state availability and minimum credit score for a conventional loan. Select See rates to visit the lender’s website for a personalized quote.

Name Product Loan products offered State availability Min. credit score
Morty
(NMLS #1429243)
Morty
Conventional, Jumbo, Refinance
AL, AR, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, MD, ME, MI, MN, MS, MT, NC, NE, NJ, NM, OH, OK, OR, PA, SC, TN, VA, WA, WI, WV
660
Preapproval in minutes and closing in as little as 3 weeks with no origination fees.
SoFi
(NMLS #1121636)
SoFi
Conventional, Home equity, Refinance
Not available in: HI, MO, NM, NY, WV
620
No hidden fees, multiple loan terms, and member discounts available.
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
Streamline your mortgage from quote to final payment — all from your computer or phone.
Better
(NMLS #330511)
Better
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
620
Online preapproval in minutes and no origination fees with this direct lender.
LendingTree
(NMLS #1136)
LendingTree
Conventional, Jumbo, FHA, VA, USDA, Home Equity, HELOC, Reverse, Refinance
Available in all states
620
Connect with vetted home loan lenders quickly through this online marketplace.
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Compare up to 4 providers

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

Pros

  • 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.

Cons

  • 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.

Avatar

Review by


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.

Expert review

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.

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