CNBC Select's top mortgage lenders for 2024.

Purchasing a home requires a mortgage for those who lack the funds to pay in full, but with numerous lenders available, selecting the ideal one can be difficult. Some cater to first-time homebuyers with flexible loan options, while others may be more suitable for experienced investors seeking quick pre-approvals.

Your mortgage interest rate can vary frequently due to market changes, and it will largely depend on your creditworthiness and location.

The mortgage approval and acceptance process entails various fees, and some lenders may waive certain fees or offer discounts. However, it's essential to inquire about which fees can be waived. While some lenders advertise no closing costs, they may charge a higher interest rate to cover the expenses.

CNBC Select has identified the top five mortgage lenders of 2024 based on various factors, including the types of loans offered, customer support, and minimum down payment requirements.

Best for lower credit scores

What is Rocket Mortgage known for in the U.S. mortgage industry? While most mortgage lenders require a minimum credit score of 620, Rocket Mortgage accepts applicants with lower credit scores, specifically 580, for certain loan options.

The Fresh Start program, offered by the lender, aims to help potential applicants improve their credit scores prior to applying for a mortgage. However, it's important to note that if you have a lower credit score, you may be subject to higher interest rates on the lender's APR range.

This lender provides conventional loans, FHA loans, VA loans, and jumbo loans but not USDA loans, which may not be suitable for potential homebuyers seeking to purchase a property in a rural area with a 0% down payment. On the other hand, Rocket Mortgage does not offer construction loans or HELOCs, but it is still a suitable option for homebuyers who plan to purchase a single-family home, a second home, or a condo that's already on the market.

Rocket Mortgage offers flexible loan repayment terms of up to 30 years.

Best for flexible down payment options

For whom is this? Chase Bank offers a loan option, the DreaMaker loan, that allows homebuyers to make a down payment as low as 3%, which is lower than the traditional advice of making a 20% down payment. By comparison, the FHA loan requires borrowers to make a 3.5% down payment.

The DreaMaker loan is a good option for those who can only afford a small down payment, but it has stricter income requirements compared to other loans. To qualify, your annual income must not exceed 80% of the Area Median Income (AMI), according to the Chase team. If you meet these income requirements, this loan could be attractive for those who want to save money for other homebuying expenses.

Chase offers a variety of mortgage options, including conventional, FHA, VA, and jumbo loans, in addition to the DreaMaker loan. However, USDA loans and HELOCs are not offered by this lender. Like other lenders, Chase has a minimum credit score requirement of 620 for their mortgage options.

Chase provides mortgage terms ranging from 10 to 30 years, including fixed-rate and adjustable-rate mortgages (ARM). Additionally, this lender offers discounts to existing customers, but the qualifications are stringent: To receive a $500 reduction in your mortgage processing fee, you must have between $150,000 and $499,999 in combined Chase deposit and investment accounts; those with $500,000 or more in these accounts can receive up to $1,150 off the processing fee.

Chase offers a range of resources to assist their customers in managing their mortgage, including online customer support, mortgage calculators, and educational articles.

Best for no lender fees

What is this intended for? Typically, lenders charge multiple fees on mortgage applications, such as an application fee, origination fee, processing fee, and underwriting fee, which can add up significantly during the home-buying process. However, Ally Bank does not charge any of these fees (they may charge an appraisal fee and recording fee, and may charge title search and insurance). You can obtain pre-approval for a loan in just three minutes online with Ally Bank.

Ally's HomeReady mortgage program is designed for low- to mid-income homebuyers, whether they are first-time or repeat buyers, and allows them to put down as little as 3% for a down payment. To be eligible, applicants must have a debt-to-income ratio of no more than 50%, their income must be equal to or less than 80% of the area's median income, and at least one borrower must complete a homeowner education course.

Besides this loan option, homebuyers can also apply for a jumbo loan (FHA, VA, and USDA loans are not offered by this lender). Customers can also opt for fixed-rate or adjustable-rate mortgages and loan terms of 15, 20, or 30 years.

Best for flexible loan options

PNC Bank offers USDA loans in addition to conventional, FHA, VA, jumbo, and community loans. The community loan program allows homebuyers to put down as little as 3% without private mortgage insurance and choose between fixed-rate and adjustable-rate mortgage terms.

Medical professionals can obtain a special loan from this lender to purchase a primary residence without paying private mortgage insurance (PMI), even with a down payment amount of less than 20%. The loan amount is capped at $1 million, and borrowers can choose between fixed-rate and adjustable-rate terms.

PNC Bank offers both online and in-person mortgage application processes, making it convenient for homebuyers who don't live near a PNC Bank location but still want to apply for a loan. With PNC Bank, you can get online prequalifications in as little as 30 minutes as long as you have all the documentation on hand. Similar to most other lenders, PNC Bank has a minimum credit score requirement of 620.

Best for saving money

What are the discounts offered by SoFi to homebuyers? SoFi offers several discounts to help homebuyers save money during their home-buying process. When you lock in a 30-year rate for a conventional loan, you can receive a 0.25% discount. Additionally, when you purchase a home through the SoFi Real Estate Center, which is powered by HomeStory, you can receive up to $9,500 in cash back.

This lender provides an online-only experience for those seeking conventional, jumbo, VA, FHA, fixed, adjustable-rate, and closed-end second mortgages. Terms range from 10 to 30 years and are both fixed and adjustable-rate. Like most other lenders, SoFi requires a minimum credit score of 600.

SoFi offers homebuyers a range of resources, including a home affordability calculator, a mortgage calculator, and a home improvement cost calculator, which can be useful when purchasing a home that requires renovations and budgeting for the costs ahead of time.

What is pre-approval and how does it work?

A pre-approval letter from a lender outlines the amount of money you can borrow to purchase a home and your potential interest rate. To obtain pre-approval, you may need to submit bank statements, pay stubs, tax forms, and employment verification. Once pre-approved, you can use the letter to begin viewing homes and making offers. It is recommended to get pre-approved at the beginning of your home-buying journey before you start looking at properties.

How do mortgages work?

A mortgage is a loan that allows you to purchase a home by putting down a portion of the price upfront and making equal monthly payments, including interest, over a specified period.

While you may not be able to pay $400,000 for a home upfront, you might be able to afford a down payment of $30,000. A mortgage could enable you to make that $30,000 payment while a lender would provide a loan for the remaining $370,000, and you would agree to repay that amount plus interest to the lender over 15 or 30 years.

If you put down less than 20% when purchasing a home, you will be required to pay private mortgage insurance (PMI) in addition to your monthly mortgage payments. However, you may be able to have the PMI waived after making enough payments to build 20% equity in your home.

Where do you get a mortgage?

Numerous mortgage brokers provide diverse loan options for purchasing a home. You can explore mortgages from credit unions, brick-and-mortar banks, and online lenders. Due to the abundance of choices, it may take some time to determine which financial institutions offer loans that best suit your needs.

Government-backed loans, such as FHA loans, are one of the many mortgage options available to borrowers. In contrast, conventional mortgages are not supported by any government programs.

You can either visit lender websites or call their representatives to determine if you qualify for a loan and to receive loan estimates. Additionally, you can discuss fixed-rate or adjustable-rate mortgages with them, though some lenders may only offer one option. Don't forget to inquire about any loan programs you may be eligible for to save money.

Besides mortgages, lenders may also provide other products to help with homeownership, such as home equity lines of credit and refinancing options.

How is my mortgage rate decided?

Mortgage rates fluctuate daily due to market factors such as inflation and the economy, although the Federal Reserve does not set these rates. Instead, mortgage rates often follow the Federal Reserve's interest rate changes.

Your mortgage rate will be determined by your credit report, credit score, and location, with market forces influencing the general range of rates. A higher credit score increases the likelihood of qualifying for a lower mortgage interest rate.

You can obtain quotes from various lenders to compare and potentially lower your mortgage rate.

Why trust CNBC Select?

Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to help our readers make informed financial decisions. Each mortgage review is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of mortgage products. At CNBC Select, we maintain our journalistic standards and ethics while earning a commission from affiliate partners on many offers and links. To learn more about our methodology and how we select the best mortgages, please visit our website.

Our methodology

Analyzing fixed-rate APRs and flexible loan amounts and terms, CNBC Select evaluated numerous U.S. mortgages offered by both online and brick-and-mortar banks, including large credit unions, to determine the top mortgage lenders.

We prioritized the following features when evaluating and selecting the best mortgages.

A fixed rate APR ensures that your interest rate remains constant throughout the loan term, providing stability to your monthly payments and simplifying budget planning.
Lenders offer various mortgage loan options, including conventional, FHA, VA, USDA, and jumbo loans. These loans cater to different needs of applicants, and having more options available means lenders can serve a wider range of customers. We have also taken into account loans that would suit borrowers looking to purchase a second home or rental property.
Each lender on our list has a unique closing timeline that ranges from two weeks to 45 days after the home purchase agreement is signed.
Mortgage application fees: Origination fees, application fees, underwriting fees, processing fees, and administrative fees are common fees associated with mortgage applications. We consider these fees along with other factors when evaluating lenders' offers. While some lenders on this list do not charge these fees, we have noted any instances where a lender does charge such fees.
Each mortgage lender offers a range of financing options that you can tailor to your monthly budget and repayment timeline.
Our list of mortgage lenders does not charge borrowers for paying off the loan early.
We evaluated whether lenders provided a user-friendly online application process or local branch options for a hassle-free application.
Our list of mortgage lenders offers customer support through phone, email, or secure online messaging, as well as an online resource hub or advice center to assist you in understanding the personal loan process and managing your finances.
We found lenders that provide specialty loans with a lower minimum down payment requirement.

We ranked our recommendations based on their suitability for overall financing requirements, prompt closing schedule, lower interest rates, and adaptable terms.

The interest rate and monthly payment for a mortgage are guaranteed to remain consistent throughout the loan term if you accept the mortgage agreement. However, the rates and fee structures advertised for mortgages may fluctuate based on the Fed rate. Your APR, monthly payment, and loan amount are determined by your credit history, creditworthiness, debt-to-income ratio, and desired loan term. To obtain a mortgage, lenders will conduct a hard credit inquiry and require a full application, which may include proof of income, identity verification, proof of address, and more.

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