8 Best Mortgage Lenders of 2025

Buying a house is a major milestone in many Americans’ lives. It provides an opportunity to put down roots in a community and is one of the primary ways to create and increase household and generational wealth.

For many people, buying a home is the most significant investment they’ll ever make, so it’s an undertaking that demands careful planning and research. In a housing market that features high mortgage rates and home prices, comparing loan products from several different lenders can help you find the best one for your needs.

There are many lenders to choose from, from brick-and-mortar banks and credit unions to online-only and non-bank lenders, as well as mortgage brokers that offer loans from multiple institutions. Money has reviewed the country's largest mortgage providers across a wide range of loan types and evaluated their offerings in order to rank them. As you learn about mortgages and shop for a provider, this guide to the best mortgage lenders of 2025 is a good place to start educating yourself.

What to know about mortgage lenders

• There are wide variations between lenders when it comes to loan products, terms and interest rates.
• Each lender will have its own qualification and documentation requirements. Make sure you understand what each one uses in its evaluation and underwriting process.
• Remember that you can negotiate for better rates and terms, so don't be afraid to reject an initial lender offer if it doesn't initially meet your needs.

How we chose out top picks

Money reviewed more than 30 of the largest financial institutions and their products, using publicly available data as well as interviews with lender representatives to ensure accuracy. We then evaluated each lender’s available rates, loan terms, credit score requirements, geographic availability and customer satisfaction metrics. Our top picks received the highest combined score among the lenders we reviewed.

Read our full methodology for more details on our selection process.

Our top picks for the best mortgage lenders of 2025

Lenders are listed in order of loan origination volume

• Rocket Mortgage: Best overall lender
• Guild Mortgage: Best lender for self-employed borrowers
• Bank of America: Best national bank lender
• loanDepot: Best in-person VA lender
• Pennymac: Best online VA lender
• Better Mortgage: Best online lender
• PenFed: Best credit union lender
• Northpointe Bank: Best lender for bad credit

Why we chose it: Rocket Mortgage offers the smoothest online application process among the companies we considered, making it easy to upload all the necessary documentation. Plus, Rocket offers several lending programs to make homebuying more affordable, including rate buydowns. Renters can receive a lender credit towards closing costs equivalent to 10% of their total yearly rent, up to a maximum of $5,000.

Why we chose it: Guild Mortgage offers a large variety of loan options for borrowers who don't qualify for conventional loans or who rely on non-traditional sources of income, such as the self-employed and gig workers. Its loans are customizable to meet your needs and offer greater flexibility for borrowers with more complicated earnings histories or credit profiles. Note that Guild’s products aren’t available in New York State.

Why we chose it: Bank of America offers nearly every mortgage product widely available in the mortgage market. It consistently ranks above average in J.D. Power’s U.S. Mortgage Origination Satisfaction Study, coming in third in 2024. The company offers competitive rates; eligible members of its loyalty program may qualify for an origination or interest rate reduction.

Why we chose it: LoanDepot is our top lender for VA loans due to its variety of loan products and term options. Over the course of our review period, it consistently offered low interest rates, and its minimum credit score requirement of 520 was the lowest among all the VA lenders we reviewed. In addition, first-time homebuyers can get up to $4,500 cash back when taking out a VA loan.

Why we chose it: PennyMac offers a quick, easy application process and competitive interest rates on its purchase and refinance loans. It offers loan terms of 15, 20, and 30 years, and its minimum credit score of 580 is lower than that of most VA lenders we reviewed. Pennymac scores above average in the J.D. Power 2025 Mortgage Servicer Satisfaction Study.

Why we chose it: Better Mortgage is our choice for the best online lender due to its fast application process, minimal lender fees and low minimum credit score requirement. You can start a loan preapproval in as little as three minutes without a hard credit check. Eligible borrowers can get a commitment letter — a document showing you have passed the initial loan underwriting process — with a conditional loan amount within 24 hours, the fastest among the companies we considered.

Why we chose it: PenFed consistently offered the best interest rates among all the institutions we reviewed during our research period. Anyone can join the credit union by opening a savings account with a $5 deposit. PenFed offers a wide variety of mortgage products, including incentives for first-time homebuyers. Its easy membership requirements and low rates make PenFed the best choice for borrowers seeking a credit union.

Northpointe is our choice for the best lender for borrowers with bad credit, offering several options for borrowers with checkered credit histories. One such option is its New Start program, which provides financing for borrowers recovering from a financial setback like a bankruptcy. This program lets borrowers with credit scores as low as 580 get mortgages of up to $1 million (other lenders that offer conventional mortgages generally require scores of at least 620).

Other mortgage lenders we considered

We evaluated over 30 mortgage lenders as part of our research. Below are lenders that didn't make our top picks list, but could be the right fit for your current needs.

Navy Federal Credit Union

Navy Federal specializes in loan programs designed for members of the armed forces. Although its main strength lies in VA loan products, the lender also offers conventional purchase and refinancing loan options, and its mortgage rates are competitive compared to other lenders. Membership is limited, however, to active and retired military members and their families, as well as some civilian employees of the Department of Defense, limiting who can benefit from its loan products.

What you need to know about mortgage lenders

There are several types of mortgage lenders, from traditional brick-and-mortar banks to online lenders to mortgage brokers. Each one has advantages and disadvantages. Evaluating different lending options can result in a lower interest rate and a better overall experience.

If you've taken out a mortgage before, you already have an idea of what to expect and look for. But if you're a first-time homebuyer, going through the mortgage process can seem overwhelming. The following tips can help you find the best lender for your financial needs.

How to choose the right mortgage lender

When shopping around for a lender, ask about all the loan options available to you and understand the pros and cons of each one. Learning about different loan types can help you narrow down which one is best suited to your financial situation. A reputable lender will take the time to walk you through the ins and outs of each mortgage loan and help you decide on the best course of action.

Once you've determined which loan type works best for you, compare offers from several lenders. Focusing on the following areas can help you find the right fit.

Comparing rates and fees

The mortgage interest rate is one of the most important pieces of information you'll need. It's what will determine your monthly payment and how much interest you'll pay over the full loan term. The lower the rate you qualify for, the more money you'll save in the long run.

Rates can vary widely among lenders, so don't settle for the first offer you find. According to research by Freddie Mac, getting one additional lender quote could result in an average of $1,500 in savings over the life of the loan. Obtaining five additional quotes increases the average to $3,000.

When comparing loan offers, ensure you're comparing the same type of mortgage, loan terms and amount to get a more accurate estimate.

Interest rate vs. annual percentage rate

When comparing rates, you'll see two separate numbers. One is the base rate the lender will charge, often referred to as the interest rate. This number is determined by your credit score and market conditions. However, it's not the actual rate you'll pay on the loan.

Lenders add fees that can include loan origination and underwriting charges, mortgage points, private mortgage insurance and broker fees, as applicable. The lender will add these fees to your interest rate to calculate the annual percentage rate (APR). This represents the total cost of financing the loan, and it’s the amount you ultimately pay.

If you find a lender that offers a lower interest rate but has a higher APR than another lender, this indicates that they are rolling a higher amount of fees into the cost of the loan. When comparing mortgage rates, comparing APRs will help you evaluate lenders on an apples-to-apples basis and provide a more accurate estimate of the total loan cost.

Fixed vs. variable interest

A fixed interest rate means that the interest rate charged on the loan doesn't change throughout the life of the loan. As a result, your monthly principal and interest payment will remain the same. (Your monthly payment might vary from year to year, however, if your property taxes are paid via an escrow account through your mortgage.)

A variable rate, also known as an adjustable rate, fluctuates at specific intervals (typically every six months or year). Most adjustable-rate mortgages today are commonly referred to as hybrid loans. They have a predetermined number of years at a fixed interest rate, after which the rate will become variable.

Whether and by how much the rate increases or decreases depends on market conditions and the loan terms. (Some might cap how much the rate can increase per adjustment, for instance.) This can result in significant changes to the amount of interest paid over the loan term.

Loan terms

The interest rate can also vary depending on the loan's term or length. Most homebuyers choose a 30-year mortgage because the monthly payments are usually lower and more affordable compared to shorter-term loans.

Loans with shorter payback terms, such as 10- or 15-year loans, tend to have lower interest rates. However, the shorter repayment term means that monthly payments will be higher than a longer loan with the same interest rate. The advantage of short-term loans is that you'll pay less total interest compared to a longer-term loan, and you can build equity in your home more quickly.

Checking preapproval options

Preapproval and prequalification might sound similar, but they’re actually different, and the distinction is important when you’re trying to buy a home.

There was a time when getting prequalified for a loan was enough for you to be competitive in the housing market. Since the pandemic, however, the market has become more competitive, with more all-cash buyers (which are generally preferred by sellers). In this climate, getting not just prequalified but preapproved for a home loan is recommended.

When you get prequalified, the lender will give you an estimate of how much you could borrow based on the cursory financial information you provide. The actual amount you qualify to borrow could be significantly different once you submit a complete application that is vetted by the lender.

With a preapproval, the lender will review and verify your financial documents and information, including your credit report, before issuing a preapproval letter. This letter is not a guarantee for a loan, but it verifies that the lender has vetted your finances and is conditionally willing to loan you up to a certain amount. This letter is usually good for 60 to 90 days, although some lenders will issue letters that expire after 30 days.

Most lenders will provide a preapproval letter free of charge, but some may charge an application or processing fee to cover expenses like a check of your credit. Verify with the lenders you're considering to see if there are any costs to obtaining a preapproval and how long it will last.

Understanding loan costs and conditions

Once you submit a mortgage application, a lender has three days to provide you with an official loan estimate. This document is a standardized form that includes loan details and provides information about the following:

• Loan terms: Includes the loan amount, interest rate and a breakdown of which portion of each monthly payment goes toward the loan principal, interest, mortgage insurance and escrow.
• Loan fees and other costs: Includes the closing costs of the loan, which range between 2% and 6% of the loan amount and include application, origination and underwriting fees, along with mortgage insurance premiums, property taxes, mortgage points and ancillary fees.
• Estimated cash to close: Details the upfront costs needed to close the loan. Items in this section include the down payment, deposits and fees to be paid by the borrower in addition to the closing costs.
• Comparisons: Provides interest rate and payment information you can use to compare with other loan offers.
• Other considerations: Includes information about home appraisals, whether the loan can be taken over by someone else (most can't), late payment penalties, homeowners' insurance requirements, refinancing terms and whether the loan will be serviced by the lender or transferred to another party.

It's important to read this document carefully and understand all the terms, fees and conditions involved in accepting the lender's offer. Because this document is standardized, you can use it to easily compare terms across lenders and determine which one best suits your needs. Once you choose a loan, you will receive the final closing documents, which should closely match the information provided in the estimate.

Latest news in mortgage lending

Although affordability remains a challenge for many prospective homebuyers, there are signs that market conditions could finally be improving.

Mortgage rates have been on the decline since the end of May, and are currently holding in the low 6% range, more than half a percentage point lower than just a few months ago. The impact of these lower rates can be significant: The monthly payment on a 30-year, $400,000 mortgage at 6.2% would be about $131 lower than the same loan at 6.7%. Mortgage rates are expected to continue moving lower over the next few months and into 2026.

Buyers are also getting a break from the intense competition that was the hallmark of the pandemic years. According to the National Association of Realtors (NAR), housing supply has been slowly rising and is currently at a five-year high, although it remains below pre-pandemic levels. Increased inventory translates into more options for buyers and also helps keep home price growth in check.

Methodology

Money reviewed more than 30 of the largest financial institutions and their products, using publicly available data and confirming its accuracy through interviews with lender representatives. We then evaluated each one in terms of their sample rates, loan options, customer satisfaction, minimum credit score requirement and accessibility, scoring each lender on a scale of one to five on the following metrics: Credit score (25%), interest rates (25%), reputation/customer satisfaction (20%), loan options (15%) and geographic availability (15%).

• Lenders that accepted lower credit scores received higher marks because a larger pool of borrowers can use them.
• We sampled interest rates over a one-month period, and we prioritized lenders offering consistently lower rates.
• Companies with higher customer satisfaction ratings received higher scores than competitors with lower ratings.
• Lenders offering more loan options were given higher scores, as they provide borrowers with a better chance of finding the right product for their needs.
• Companies with a broader service footprint scored higher than those with a more limited reach.

Summary of Money's best mortgage lenders of 2025

• Rocket Mortgage: Best overall lender
• Guild Mortgage: Best lender for self-employed borrowers
• Bank of America: Best national bank lender
• loanDepot: Best in-person VA lender
• Pennymac: Best online VA lender
• Better Mortgage: Best online lender
• PenFed: Best credit union lender
• Northpointe Bank: Best lender for bad credit

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