This Year’s Best Lenders for First-Time Home Buyers

The best rate, the right term, and the lowest closing costs – it’s important for first-time homebuyers to find a lender that will give you these as quickly as possible – so you can move into your new home without delay.

Here’s a list of lenders that cater to first-time homebuyers in a variety of categories, so you can compare and decide which one’s best for you:

Quicken Loans

Minimum credit score: 620

Minimum down payment: 3%

Good for:

– Borrowers looking for all the services offered by a neighborhood lender, online.

Pros:

– Fully online application coupled with available mortgage advisors

– Instant employment and income verification

– Custom fixed-rate loan terms (between eight and 30 years)

– Wide variety of loan types

Cons: 

– Home equity loans or HELOCs not offered

– Lender fees can be heavy

New American Funding

Minimum credit score: 620

Minimum down payment: 3%

Good for:

– Borrowers who need to be evaluated on nontraditional credit.

– Borrowers interested in down payment assistance programs.

Pros: 

– Manual underwriting to evaluate creditworthiness

– Fully online mortgage application, document upload, and loan tracking

Cons: 

– Mortgage rates offered are higher

Chase

Minimum credit score: 620

Minimum down payment: 3%

Good for: 

– Borrowers looking for a name-brand bank that charges lower rates and fees, with offices in a lot of states.

Pros: 

– Wide variety of mortgage types and products

– Good rates and reasonable fees

Cons: 

– Home improvement loans are not offered, such as FHA 203(k) and HomeStyle.

– Speaking with a home loan advisor is required to complete the application

Ally Bank

Minimum credit score: 620

Minimum down payment: 3%

Good for: 

– Borrowers interested in jumbo loans, online mortgage applications, and loan tracking

Pros: 

– Online document upload, loan tracking, and e-signatures.

– Rate shoppers can see customized interest rates.

Cons: 

– FHA, VA, and USDA loans are not offered

– Home equity loans and lines of credit are not offered

NBKC

Minimum credit score: 620

Minimum down payment: 3%

Good for: 

– Borrowers with good credit interested in VA loans

Pros: 

– Low rates and fees compared to other lenders.

– Online application and loan tracking

– Customized rates with fee estimates (without requiring contact information)

Cons: 

– Availability of equity lines and construction loans restricted to the Kansas City metro area

– Renovation loans not offered