Top FHA Mortgage Lenders for July 2024

If you have poor credit or a small down payment, an FHA loan may be the best option for you while shopping for a mortgage.

Government-backed mortgages were introduced during the Great Depression to assist low- and moderate-income Americans in purchasing homes. These mortgages accept borrowers with credit scores as low as 580 with a down payment of 3.5%. Additionally, borrowers who put down 10% can obtain an FHA loan with a credit score as low as 500.

To help you find the best FHA loan lender, CNBC Select has compiled a list of seven top lenders based on customer service, ease of application, perks, and affordability. Our methodology involved comparing dozens of lenders and taking into account various factors.

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Best from a brick-and-mortar bank

If being in person with your lender is your top priority, Chase Bank is the best choice. With 5,300 branches nationwide, it has more brick-and-mortar locations than any other bank. Additionally, Chase stands out among brick-and-mortar banks for its excellent service record, as JD Power ranked it third in its Mortgage Servicer Satisfaction study in 2023, the highest among banks with large retail footprints.

Chase offers grants of up to $7,500 to eligible borrowers in select areas of the U.S. for closing costs or down payments. Additionally, Chase provides rate discounts for existing banking customers and guarantees a closing date or offers a $5,000 refund if the closing does not occur on time.

Best for low rates

If you're seeking an FHA loan at a low rate, Pennymac is the ideal choice. With nearly a third of its loan volume coming from FHA loans, Pennymac is the top FHA lender by volume, according to the Scotsman Guide. Additionally, Pennymac allows borrowers to lock their rate in for up to 90 days from when they apply at no extra cost and offers lenders credits so borrowers can buy down their rate for a year.

Pennymac's BuyerReady Certification program offers borrowers $1,000 towards closing costs. Additionally, Pennymac's website provides guides to help house hunters navigate their options. Through Pennymac's Home Connect network, borrowers can receive up to $9,500 for closing costs when they find their real estate agent.

Best for customer satisfaction

If you prioritize customer service, Rocket Mortgage is a great option. It has an A+ rating with the Better Business Bureau (BBB) and was named No. 1 in client satisfaction in mortgage servicing by JD Power in 2023 for the ninth year. Rocket Mortgage stands out with its excellent rate transparency, a wide variety of loans, and numerous perks.

The Rocket Homes℠ Discount offers up to $10,000 towards closing costs when buying a house through Rocket Homes. Additionally, Rocket Mortgage's ONE+ mortgage allows qualified borrowers to put only 1% down, with Rocket providing an additional 2% in the form of a grant to increase the down payment to 3%.

Best for a 0% down payment

Guild Mortgage offers an FHA loan program that allows borrowers to put 0% down with the help of a second mortgage. Eligible borrowers with a 620 credit score or higher and below 160% of the area median income can apply for the program.

Guild offers a rate-lock program for conventional, FHA, and VA loans, which enables borrowers to lock in their rate for 120 days without any additional cost, provided the house remains in contract for 90 days. Additionally, Guild provides several low credit score options, some of which require a minimum credit score of 540, while others do not require a credit score at all.

Best for speedy closing

If you need to close on your loan quickly, CrossCountry Mortgage may be the right choice. Its FastTrack Credit Approval program enables borrowers to close on their loan in just 10 days, making them more competitive buyers in the housing market.

CrossCountry Mortgage offers a FastTrack Credit Approval option and closes most loans within 21 days, significantly faster than the average closing time. Additionally, it provides up to $4,000 in down payment assistance for first-time homebuyers.

Best for down payment assistance

620 for conventional loans, 500 to 580 for some government-insured loans

Types of mortgage loans offered

Loans such as conventional, FHA, VA, USDA, jumbo, and manufactured home loans are available.

Down payment minimum

Fairway Independent Mortgage Corporation

Fairway is a mortgage lender that specializes in conventional loans, federally insured loans, interest-only loans, and specialized loans. They also have a strong down payment assistance program.

Minimum credit score

580 for FHA loans, 620 for conventional loans

Types of mortgage loans offered

Loans such as conventional, FHA, VA, USDA, physician, renovation, and jumbo are available.

Down payment minimum

If you move forward with conventional methods, you will have a 3% chance of success. However, if you move forward with USDA methods, your chances of success will be 0%.

Guaranteed Rate

Guaranteed Rate offers a fully online mortgage process from application to closing nationwide, with retail locations in most states in the U.S. They provide conventional, FHA, VA, and specialized loans, such as physician and Foreign National loans. The company is rated A+ by the BBB.

Minimum credit score

620 for conventional, 580 for FHA loans

Types of mortgage loans offered

These are some types of loans that people can use to purchase or refinance a home.

Down payment minimum

3.5% with FHA loan

Why trust CNBC Select?

Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each mortgage review we publish 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 are committed to maintaining our journalistic standards and ethics, even though we earn a commission from affiliate partners on many offers and links. Our methodology outlines the process we use to select the best FHA loan lenders, which you can find for more information.

Our methodology

To identify the top FHA mortgage lenders, CNBC Select evaluated numerous U.S. mortgages provided by both online and traditional banks, including large credit unions, that offer fixed-rate APRs and customizable loan amounts and terms to meet a range of financing requirements. In determining the best mortgages, we prioritized the following characteristics.

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. Additionally, we have taken into account loans that would be suitable for borrowers looking to purchase a second home or a 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 for FHA loans based on their suitability for overall financing needs, quick closing timelines, lower interest rates, and flexible terms. In addition, CNBC Select evaluated each bank's FHA loan business volume using the most recent federal data to determine the best options.

We took into account CNBC Select audience data, including demographics and engagement with our content and tools, when possible.

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.