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7 Best Mortgage Lenders of April 2021

A mortgage is most likely the largest loan you’ll ever take out in your life. You’ll be paying it for years, which makes getting a lower interest rate essential. Comparing loan terms such as mortgage rates, fees, and closing time are some steps that every consumer should take before settling on a servicer.

The best mortgage lenders tend to offer a wide variety of loan programs for consumers of different credit levels. They should also have a streamlined mortgage prequalification and application process and as clean a record as possible with regulating agencies. If you’re already on your way and would just like to calculate your mortgage, you can use our mortgage calculator.

Money.com Research Team: Gabriella Cruz-Martínez Heidi Rivera Joan Pabón Colin Grubb Last Updated: April 13, 2021
A woman, her husband, and her daughter, stand outside their new home.
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Money’s Best Mortgage Lenders Picks

  • Company
    Specialty

  • Quicken Loans

    Best Overall

    View Rates

    3rd Party Ratings

    MBA Ranking

    #1 MBA Ranking

    JD Power Rating

    Best in Mortgage Origination Satisfaction

    Company Credit Check

    Minimum Credit Score

    620

    Analyze alternative credit data?

    No. They consider credit scores and DTI Ratios.
    Visit Site

    Quicken is our Best Overall mortgage lender for two reasons:

    • High reach nationwide
    • Excellent customer service

    Rated "Among the Best" according to JD Power's Primary Mortgage Origination Satisfaction Study, Quicken has consistently ranked highest in customer satisfaction for loan originations with JD Power for ten consecutive years.

    Quicken's YOURgage program sets it apart from other online lenders by allowing borrowers to choose the term of their fixed-rate mortgage and get a loan of up to $548,250. First-time homebuyers can pay as little as 3% down, which is especially helpful if you haven’t been able to save the 20% benchmark for a down payment.

    LATEST NEWS AS OF JANUARY 2021

    Quicken Loans COVID-19 Response

    Quicken Loans clients impacted by COVID-19 can fill out an online application for assistance by visiting RocketMortgage.com. The company offers an initial 3-month forbearance, extendable up to 12 months, which temporarily stops mortgage payments.

    Once the crisis is over, Quicken Loans will work with clients to determine the best course of action when they’re ready to resume monthly payments. Clients won't experience an impact to their credit as a result of the forbearance.

  • Guild Mortgage

    Best for First-time Home Buyers

    3rd Party Ratings

    MBA Ranking

    #13 MBA Ranking

    JD Power Rating

    Better Than Most

    Company Credit Check

    Minimum Credit Score

    620 is the standard, with minor exceptions

    Analyze alternative credit data?

    Yes, such as utility bills and rental payment histories.
    Visit Site

    Guild Mortgage is our Best for First-time Home Buyers mortgage lender for two reasons:

    • Top 5 lender for FHA loans nationwide
    • Specific programs for low-income borrowers available

    Guild offers government-backed FHA, VA, and USDA loans, as well as programs that specialize in down-payment assistance. According to the Mortgage Bankers Association Report (MBA), Guild is among the nation's top five lenders of FHA loans, making it a great option for qualifying borrowers with a minimum credit score of 600.

    For first-time homebuyers who believe their credit score or down payment amounts aren't enough to get a mortgage, the lender offers a program specifically designed for borrowers who meet low-income requirements or live in low-income areas. It features an incentive that accepts a minimum 3% down payment and awards borrowers a $2,000 Home Depot gift card, as well as a $1,500 grant that can be used for the loan's down payment or closing costs.

    LATEST NEWS AS OF JANUARY 2021

    Guild Mortgage COVID-19 Response

    Guild Mortgage is actively monitoring the COVID-19 situation and won’t adversely report customer loans to credit bureaus. If you expect COVID-19 to continue impacting you, Guild Mortgage offers an initial forbearance option and hardship assistance in partnership with investors, as well assistance extensions depending on your case. This relief isn’t automatic, however, so remember to ask about these options if COVID-19 has impacted you financially.

  • Veterans United

    Best for Military Members (Online)

    View Rates

    3rd Party Ratings

    JD Power Rating

    Among the Best

    Company Credit Check

    Minimum Credit Score

    660

    Analyze alternative credit data?

    Lenders can count VA disability income and certain military allowances such as flight and hazard pay, among others, as effective income.
    Visit Site

    Veterans United is our Best for Military Members (Online) mortgage lender for two reasons:

    • Competitive rates
    • Online credit counseling program available

    VU specializes in loans backed by the U.S. Department of Veterans Affairs, making it a great option for those looking into this type of mortgage. Although it doesn't offer home equity loans or HELOCs, it does offer competitive rates.

    Veterans United also offers a free online credit counseling program for veterans and service members with low credit scores called the Lighthouse Program. A credit specialist is assigned to each customer to help fix errors on credit reports, map out a score improvement plan, and keep advising the borrower until they reach their credit score goal.

    LATEST NEWS AS OF JANUARY 2021

    Veterans United COVID-19 Response

    Veterans United is offering an initial forbearance period of up to 180 days, temporarily suspending monthly mortgage payments. If necessary, borrowers have the option to extend that period for an additional 180 days.

    While the loan is in a forbearance program, VU won’t assess any late payment fees or accrue any additional interest on the loan. Entering into a forbearance plan won’t affect a borrower’s credit score. When this period ends, Veterans United will work with individual borrowers to establish either a repayment plan or a loan modification.

  • Navy Federal

    Best for Military Members (In-person)

    3rd Party Ratings

    MBA Ranking

    #1613 MBA Ranking

    JD Power Rating

    Among the Best

    Company Credit Check

    Minimum Credit Score

    620 is the standard, but they accept less than perfect credit scores for certain loan products

    Analyze alternative credit data?

    Yes, it considers utility bills and evaluates a member's tenure or loyalty to the company.
    Visit Site

    Navy Federal is our Best for Military Members (In-person) mortgage lender for two reasons:

    • 324 branches nationwide
    • Rate loan match available

    With their 324 branches, Navy Federal Credit Union (NFCU) ranks as our best lender for in-person assistance. NFCU services all of its mortgages in-house for the life of the loans, which can be important for customers looking to do business solely with their chosen lender.

    VA loans are government-backed, so they don't feature the same interest rate across lenders. However, borrowers looking into mortgage products through NFCU can take advantage of its rate loan match. If you find a better rate elsewhere, NFCU will match it or give you a deduction of $1,000 off your closing costs.

    Membership is open to active-duty military members as well as reservists, veterans, retirees, and annuitants.

    LATEST NEWS AS OF JANUARY 2021

    Navy Federal COVID-19 Response

    Navy Federal is offering eligible members a forbearance plan which temporarily suspends monthly mortgage payment requirements for a total of up to 18 months . Members will also be provided with options to make payments missed during forbearance, including a loan modification or a deferral. While closing a mortgage loan may take longer than usual, Navy Federal is honoring initial locked rates in light of COVID-19.

  • Caliber Home Loans

    Best for Self-Employed Individuals

    3rd Party Ratings

    MBA Ranking

    #7 MBA Ranking

    JD Power Rating

    Along Industry Average

    Company Credit Check

    Minimum Credit Score

    580

    Analyze alternative credit data?

    Yes, Caliber has special financing options that consider payment and rental history instead of just credit score and DTI.
    Visit Site

    Caliber Home Loans is our Best for Self-Employed Individuals mortgage lender for two reasons:

    • Some loan programs have low credit score options
    • Program available for self-employed customers

    Caliber accepts applicants with credit scores as low as 580 for some of its loan programs. The company also considers alternative credit data during the mortgage application process, in some cases offering low down payments of 3%.

    The low entry barrier and a program specifically tailored towards self-employed individuals make it much easier for them to prove how much they earn even without a regular salary..

    Caliber’s online application process is another standout feature. Customers can apply online by answering a few questions about themselves, their finances, and their budget. A representative will contact applicants shortly after, a process that may take as little as 15 minutes.

    LATEST NEWS AS OF JANUARY 2021

    Caliber Home Loans COVID-19 Response

    Caliber offers both short- and long-term solutions for those struggling to pay their mortgage due to COVID-19. First is a forbearance plan which postpones monthly payments. Clients also have other options depending on the type of loan and their financial situation.

    A repayment plan is available to gradually catch up on paying the amounts postponed by their forbearance, and a deferral plan can keep the payments suspended until clients reach the end of their loan. Alternatively, and upon request, modifications can be made to a client’s loan to make it more manageable.

  • Lending Tree

    Best Marketplace

    View Rates

    3rd Party Ratings

    MBA Ranking

    n/a

    JD Power Rating

    n/a

    Company Credit Check

    Minimum Credit Score

    585 (recommended)

    Analyze alternative credit data?

    n/a
    Visit Site

    Lending Tree is our Best Marketplace mortgage lender for two reasons:

    • Compare lenders in minutes
    • Various home loan learning sources available

    LendingTree is the go-to solution for browsing and comparing mortgage products from over 1,500 different lenders. You can compare lender offers online through a 3-step process that consists of answering a series of questions, comparing offers side by side, and reaching an agreement with a loan officer.

    LendingTree also has a wealth of resources regarding mortgages and loans such as an expansive glossary of loan terminology, current rates for all types of home loans, several calculators, and a national loan officer directory. It also features numerous reviews so users can see the experiences others have had with each lender.

    LATEST NEWS AS OF JANUARY 2021

    LendingTree COVID-19 Response

    LendingTree’s wealth of mortgage resources includes a detailed explanation of various coronavirus pandemic mortgage relief programs. It also features information about federal mortgage relief programs, instructions on finding your current loan services, and summaries of several lender relief programs. It also has a section on mortgage relief scams.

  • Bank of America

    Best National Bank

    3rd Party Ratings

    MBA Ranking

    #4 MBA Ranking

    JD Power Rating

    Among the Best

    Company Credit Check

    Minimum Credit Score

    620

    Analyze alternative credit data?

    Yes, they consider alternative credit data such as rent, utility, and cellphone payments for some of its loan products.

    Bank of America is our Best National Bank mortgage lender for two reasons:

    • Greater discount option may be available for existing customers
    • 4,300 retail financial centers, and 2,900 lending centers available nationwide

    Bank of America’s diverse selection of mortgage products, competitive closing costs, interest rate estimates, and broad reach makes it a solid lender choice overall. It’s an even better choice for existing members, as the bank may offer them greater discounts on origination fees.

    Accessibility is one of the bank’s strong points, with choices for both clients who prefer face-to-face interaction or an end-to-end digital experience. Bank of America features a staggering 4,300 retail financial centers and 2,900 lending centers. The bank also allows borrowers to apply and pre-qualify entirely online.

    LATEST NEWS AS OF JANUARY 2021

    Bank of America COVID-19 Response

    Bank of America is currently extending payment deferral and forbearance options to those experiencing financial hardship due to the COVID-19 pandemic. In both cases, payment due dates will be delayed but not forgiven or erased. The company will work with its clients on repayment options, and there won't be any late charges.

    Eligibility for these programs varies depending on the owners or insurers of the loan product. If Bank of America owns the loan, both deferral and forbearance options will be available. Only those who have a single due payment on their loans can apply for a deferral. If a third-party owns or is insuring the loan, Bank of America will follow their guidelines.

How Much Will I Pay for My Mortgage

Buying A House In 2021 and COVID-19

The Federal Reserve has taken extraordinary measures to stabilize the homebuying market in response to the coronavirus pandemic. 2020 started with mortgage rates plummeting to a 50-year historic low — and while rates have risen slightly, they have remained well under 4%.

Interest rates are projected to stabilize as the economy recovers through 2021. The Mortgage Bankers Association’s Chief Economist, Mike Frantatoni, forecasts that mortgage rates could rise in the year to come, but warns that there is still "profound uncertainty" in the housing market.

If you're looking to make the most out of the current market conditions and are financially ready to become a homeowner, our list of best mortgage lenders can be a great starting point to help narrow down your options.

How COVID-19 Is still Impacting Mortgages

In February 2021, underwriters Freddie Mac and Fannie Mae, and the US Department of Housing and Urban Development (HUD) announced an extension of the coronavirus-related protective measures until June 30, 2021..

These protections include:

  • A nationwide suspension of all foreclosure sales and evictions
  • Additional mortgage relief options
  • Expansion of forbearance programs to incorporate those affected directly and indirectly by this crisis, effective immediately
  • Loan modifications such as loss mitigation, which is usually offered for natural disasters, may be available as well — depending on the mortgage lender.

As per the Financial Services Forum, many lenders have also implemented supplemental relief efforts, like fee waivers, and are not reporting adverse credit to credit bureaus. If you have a loan with one of the entities mentioned above, please contact your mortgage lender, as you may be entitled to relief programs if you have been affected by COVID-19.

Is Now the Right Time to Buy a Home?

The financial market's uncertainty has caused mortgage rates and applications to continue experiencing significant volatility. However, mortgage loan applications have increased due to lowering interest rates, according to the MBA.

To help recover from the coronavirus, Freddie Mac is working with the Federal Housing Finance Agency (FHFA) to make it easier to buy, sell, or refinance a home. Specifically, Freddie Mac is relaxing employment verification requirements and offering appraisal alternatives in light of the crisis.

Additionally, Freddie Mac and Fannie Mae have announced a nationwide relief plan to help borrowers facing financial hardship due to COVID-19.

So, if you want to take advantage of buying a new house in 2021, contact your mortgage lender first to evaluate the options that are available to you.

Mortgage Lenders FAQs

To answer some of these questions, we contacted Tim Lucas, Managing Editor for The Mortgage Reports; Jason Sharon, mortgage broker, US Navy Veteran, and owner of Home Loans, Inc; and Andy Harris, owner of Vantage Mortgage Group, Inc.

What does a demand feature mean in a mortgage loan?

Having a demand feature in your mortgage loan — checked as “yes” in your loan’s closing disclosure — means that the lender can require you to pay the entirety of the loan at any time. The lender can make the request for any reason, so you should inquire about this feature before signing any contract.

What is a mortgage loan originator?

A mortgage loan originator, also known as MLO, is a trained professional that can guide applicants throughout the mortgage approval process. Their goal is to orient customers from the moment the loan application is prepared, up to its closing. Mortgage loan originators can be either a state-licensed individual or a licensed company representative.

Which is better: fixed or adjustable-rate mortgage?

A fixed-rate mortgage is the way to go, for now. According to Tim Lucas, adjustable rates “don’t make any sense at all,” given how low current rates are. “The only way that I would suggest an adjustable rate is if you're expecting some big inheritance or if you're able to pay off your mortgage in two or three years.”

“It's a big risk having that adjustable rate because, at this point, it can only go up, so you might as well lock it in for 30 years and never worry about it again,” Lucas added.

I qualify for both conventional and government-backed loans. Which one should I choose?

Choosing a government-backed loan could save you hundreds of dollars on your mortgage in the long-run when compared to a conventional loan.

“If you qualify for both a VA loan and a conventional loan, usually the VA loan will be the better option based on the interest rate if you select the proper lender,” said Jason Sharon. Additionally, loans never have private mortgage insurance (PMI), while conventional loans will require PMI if you make a down payment of less than 20% of the purchase price.

What documents do I need to apply for a mortgage?
  • Copies of your last two pay stubs
  • A copy of your most recent tax return
  • W-2 and/or 1099 (although some lenders may require up to two years’ worth of these, depending on your employment history)
  • A state-issued photo ID, such as your passport or driver's license
  • Statements of all your assets (IRAs, investment accounts, checking and savings accounts, etc.)
  • Bankruptcy discharge documents (if applicable)
  • A recent credit report
  • Statements of any outstanding debts—some lenders may require information about monthly credit card payments

In some cases, lenders may require additional documentation, like a history of alimony payments and gift letters, so make sure to ask before applying.

Will I have a higher interest rate because I’m self-employed?

Your credit score and loan type will affect your interest rates, not your employment status. However, being self-employed will likely affect your qualifying status. Tim Lucas stated that “You'll have a greater chance of being denied because the underwriter for that loan is going to have a harder time proving that you make a certain amount of money.”

If I want to buy a house, where do I start?

Andy Harris suggested that getting pre-approval before deciding on a property can be crucial to avoid getting ahead of yourself and looking at homes you can't afford. “You must be pre-approved before you start looking at properties or talking to a real estate agent. Otherwise, you have no idea of what your target budget is,” he said.

Most consumers will get motivated by the piece of real estate itself because that’s the fun part. But other things should come first. “No one wants to go through the process of setting a budget and applying for a mortgage, underwriting a loan, and doing all these things, but you can't put the cart before the horse,” he added.

What are Jumbo Loans?

Jumbo loans are mortgages designed to finance luxury properties and homes in competitive real estate markets. They are different from conventional loans in that they exceed the limits set by the Federal Housing Financing Agency. It’s hard to qualify for a jumbo loan because they aren’t purchased or guaranteed by Freddie Mac and Fannie Mae.

Applicants generally need an excellent credit history, a lower debt-to-income ratio, and will have to provide a larger down payment. They may also need a greater number of tax returns and more liquid funds in their bank account for the closing process, which tends to be longer because of the stricter requirements for a jumbo loan. Wells Fargo and New American Funding are examples of banks that offer jumbo loans.

To learn more, read our article on the best jumbo mortgage lenders of 2020.

How We Found the Best Mortgage Lenders

Our research into the best mortgage lenders led us to the Mortgage Bankers Association, from which we obtained a detailed mortgage origination report. This shed light on the total number of originations (or the number of loans issued) by volume per state and per lender, the percentage originated for each loan type, and the average loan size issued in each state. For VA loans, we based our top picks on the Veterans Administration's 2020 list of lenders by loan volume.

We then cross-referenced our top 50 picks with J.D. Power's 2020 U.S. Primary Mortgage Origination Satisfaction Study. This study measures customer satisfaction with each lender's application, approval, and closing process, as well as their loan offerings and communication.

With this data, we calculated the median number of purchase originations, which further narrowed down our list to 7 mortgage companies. As a final step, we identified where our top lenders had the highest originations per region, using the Mortgage Bankers Association's Top 100 Lenders by State excerpt from the 2020 Residential Originations Databook.

We also took into account the number of mortgage complaints per lender according to the Consumer Financial Protection Bureau (CFPB), and the number of regulatory actions taken against a company according to the Nationwide Mortgage Licensing System (NMLS). Companies that had more than five regulatory actions with the NMLS and over 20,000 complaints with the CFPB were eliminated from our rankings.

Rankings were derived from more than 60 data types in the following categories:

Types of Loans Offered

We favored companies that offered a variety of loan options, such as fixed- and adjustable-rate mortgages, term-lengths ranging between 10 and 30 years, and loans backed by government agencies such as the Federal Housing Administration (FHA), the US Department of Veteran Affairs (VA), and the United States Department of Agriculture (USDA).

Customer Experience

We consider customer experience to be one of our most important factors for choosing the best mortgage lender. To us, this includes:

  • Assessment of consumer credit history and whether they consider alternative credit data such as employment longevity to determine loan approval or interest rates
  • A streamlined application process
  • Customer support available in at least two forms: this could be in-branch, online, through email, or over the phone
  • Tools and resources, such as related literature and calculators to help borrowers make informed decisions

Reputation & Transparency

We evaluated consumer complaints with the CFPB and the number of regulatory actions filed against each mortgage company with the NMLS, selecting those with the best track record.

Types of Loans Offered

We favored companies that offered a variety of loan options, such as fixed- and adjustable-rate mortgages, term-lengths ranging between 10 and 30 years, and loans backed by government agencies such as the Federal Housing Administration (FHA), the US Department of Veteran Affairs (VA), and the United States Department of Agriculture (USDA).

Customer Experience

We consider customer experience to be one of our most important factors for choosing the best mortgage lender. To us, this includes:

  • Assessment of consumer credit history and whether they consider alternative credit data such as employment longevity to determine loan approval or interest rates
  • A streamlined application process
  • Customer support available in at least two forms: this could be in-branch, online, through email, or over the phone
  • Tools and resources, such as related literature and calculators to help borrowers make informed decisions

Reputation & Transparency

We evaluated consumer complaints with the CFPB and the number of regulatory actions filed against each mortgage company with the NMLS, selecting those with the best track record.

Summary of Money’s Best Mortgage Lenders of April 2021

Company and
Specialty		 Minimum
Credit Score		 Minimum
Down Payment
Quicken Loans
Best Overall		 620 3%
Guild Mortgage
Best for First-Time Homebuyers		 620 3%
Veterans United
Best for Military Members (Online)		 660 0%
Navy Federal
Best for Military Members (In-Person)		 620 0%
Caliber Home Loans
Best for Self-Employed Individuals		 580 3%
Lending Tree
Best Marketplace		 ~585 (recommended) n/a
Bank of America
Best National Bank		 620 3%

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