Best FHA loan lenders of September 2024 (2024)

Who's this for? Chase Bank is a good option if you want face-to-face contact: It has over 4,700branches in 48 states and the District of Columbia — more than any other lender. Chase is on track to open more than 500 new branches and renovate 1,700 existing locations by 2027. It's also expanding its network of Community Center branches helping homebuyers in underserved communities.

Standout benefits: Chase offers a $5,000 on-time closing guarantee and the Chase Homebuyer Grant lets eligible borrowers receive up to $7,500 for closing costs or a down payment. Current Chase customers may qualify for a mortgage rate reduction.

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Who's this for? Pennymac's rates for FHA mortgages are lower than the industry average. Sample rates for a 30-year fixed FHA loan are available on the Pennymac website and you can get a customized rate quote just by answering a few questions.

Standout benefits: With the BuyerReady Certification preapproval process, borrowers can get $1,000 towards closing costs. Using a real estate agent in Pennymac's Home Connect network can get you up to $9,500 back after closing.

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Who's this for? New American Funding has set a goal of providing $2 billion in new mortgagesto Latino homebuyers in 2024 and $20 billion to Black homebuyers by 2028. NAF's Black Impact and Latino Focus initiatives also offer educational resources and partnerships to increase homeownership within communities of color.

Standout benefits: NAF's I Can mortgage allows borrowers to set their own loan terms, from 8 to 30 years. Most NAF closings are guaranteed within 14 business days, a fraction of the industry average.

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Who's this for? Rocket Mortgage was named No. 1 for customer satisfaction in mortgage servicing by J.D. Power in 2023, and came in second for mortgage origination. Coupled with the A+ it received from the Better Business Bureau, it's a no-brainer for borrowers who want first-class treatment.

Standout benefits: The Rocket ONE+ mortgage allows qualified borrowers to put just 1% down. With the Rocket Visa Signature Card, borrowers can earn points toward mortgage payments or a down payment on a future Rocket home loan.

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Who's this for? Guild Mortgage's Zero Down loan allows eligible borrowers to put nothing down on an FHA loan. Most lenders require at least 3.5% for this kind of mortgage.

Standout benefits: Guild's rate-lock program allows borrowers to freeze their FHA loan rate for 120 days at no extra cost. Guild also considers non-traditional credit sources, which can be helpful to homebuyers with a thin credit history.

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Who's this for? We like CrossCountry Mortgage for buyers who want to close quickly: Its FastTrack Credit Approval program can get you in your new home in as little as 10 days. Most other closings wrap within 21 days, according to CrossCountry.

Standout benefits: The CCM Smart Start program offers up to $4,000 in down payment assistance to first-time homebuyers who meet income requirements.

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Who's this for? Fairway's Community Access program provides up to $7,500 toward a down payment for first-time homebuyers in 21 cities, including Atlanta, Baltimore, Chicago and New York. Recipients also get and a credit for a one-year home warranty.

Standout benefits: Fairway's in-depth Advantage preapproval process shows sellers you're serious about buying. But if financing falls through, the cash guarantee means Fairway will either buy the house for cash or give the seller $10,000 if they relist.

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Who's this for? Rate's online mortgage process is a blessing for buyers who want the convenience of borrowing from home. The streamlined application and hybrid e-closing means most paperwork can be completed online and closing documents can even be notarized via video.

Standout benefits: Same-day approval is available and closing can take as little as 10 days. The OneDown Program allows eligible borrowers to put as little as 1% down, with Rate providing the other 2% as well as a $1,000 closing cost credit.

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The largest bank in the U.S., Chase dates its origins to 1799, when Alexander Hamilton and Aaron Burr helped co-found the Bank of the Manhattan Company, one of the earliest financial institutions in New York City and a progenitor of JPMorgan Chase. Today, Chase Bank earns high rankings for mortgage origination and servicing from J.D. Power, and the Better Business Bureau rated the company A+.

Types of mortgage offered

Conventional, FHA, VA, DreaMaker, jumbo

Minimum credit score

620 for conventional or VA, 500 for FHA loans

Minimum down payment

3% for DreaMaker; 3.5% for FHA loan.

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Founded in 2008, Pennymac is an online lender licensed in all 50 states. The California-based company is the second-largest mortgage originator in 2023 by volume and the largest issuer of FHA loans, which make up more than a quarter of its business.

Types of mortgage offered

Conventional, FHA, VA, jumbo

Minimum credit score

620 for conventional and VA loans, 500 for FHA loans

Minimum down payment

0% for VA loans, 3% for conventional, 3.5% for FHA loan

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New American Funding has 230 locations nationwide and a portfolio of more than 33,000 mortgages valued at over $9.7 million. While it ranked below average in J.D. Power's 2023 mortgage origination survey, NAF landed near the top for mortgage servicers and earned an A from the Better Business Bureau.

Types of mortgages offered

Conventional, jumbo, FHA, VA, USDA

Minimum credit score

620 for conventional, 500 for FHA

Minimum down payment

0% for VA or USDA, 3% for conventional, 3.5% for FHA loans

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Conventional, FHA, VA, jumbo, Rocket ONE+

Minimum credit score

620 for conventional, 500 for FHA

Down payment minimum

0% for VA, 1% for Rocket ONE+, 3.5% for FHA loan

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San Diego-based Guild Mortgage lends across the U.S. except in New York and has more than 350 branches in 46 states. In 2023, it originated $15 billion in home loans, making it the 12th largest mortgage originator in the U.S. by dollar.

Types of mortgages offered

Conventional, FHA, VA, USDA, jumbo, Zero Down, home equity, HELOC

Minimum credit score

620 for conventional and Zero Down, 540 for FHA (Guild considers nontraditional credit sources)

Down payment minimum

0% for USDA, Arrive Home or Zero Down; 1% for conventional, 3.5% for FHA

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CrossCountry Mortgage has over 600 branches and operates in all 50 states. The Cleveland-based direct lender is rated highly by J.D. Power and received an A+ from the Better Business Bureau.

Types of mortgages offered

Conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, HELOC

Minimum credit score

620 for conventional loans, 500 for FHA

Minimum down payment

0% for VA, 3% for conventional, 3.5% for FHA

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Founded in 1996, Fairway is licensed in all 50 states and has 700 branches nationwide. It's ranked No.1 in J.D. Power's 2023 U.S. Mortgage Origination Satisfaction Study, which rates the mortgage process from application to closing day.

Types of mortgages

Conventional, FHA, USDA, VA, jumbo, physician loans, renovation loans, reverse mortgages, HELOC

Minimum credit score

620 for conventional, 500 for FHA

Down payment minimum

0% for VA or USDA, 3% for conventional, 3.5% for FHA

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Founded as Guaranteed Rate in 2000, Rate has more than 400 branches and issues mortgages in all 50 states. In addition to popular conventional and government-backed mortgages, Rate offers foreign national loans for non-citizens and physician loans for qualified medical professionals.

Types of mortgages offered

Conventional loans, FHA loans, VA loans, USDA, jumbo loans, non-QM loans, physician loans, foreign national loans, reverse mortgages, HELOC

Minimum credit score

620 for conventional, 500 for FHA

Down payment minimum

0% for VA and USDA loans, 3% for conventional, 3.5% for FHA loans

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An FHA loan is a mortgage backed by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development. Since they’re less risky for lenders, FHA loans typically have lower credit scores and down payment requirements.

There are FHA loans with fixed andvariable rates and specialty loans — like theFHA 203(k), which can be used for home renovations. If you refinance an FHA loan, you can take advantage ofstreamlined refinancing, which could save you a credit check and home appraisal.

FHA loans don't come withprivate mortgage insurance, but borrowers do have to mortgage insurance premiums (MIP), which are slightly different: You'll pay 1.75% of the loan balance up front and then have a monthly MIP, typically between 0.15% and 0.75% of the principal.

FHA mortgages can only be used to buy aprimary residence. The property can have up to four units, however, so long as you live in one.

• Loan amount: $498,257 ($1,149,825 in high-cost areas)
• Credit score: 580 with 3.5% down (500 with 10% down)
• Income requirements: None
• Debt-to-income ratio: typically 43%

Individual lenders may set additional guidelines.

The benefits and drawbacks of an FHA loan

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To determine which FHA mortgage lenders are the best, CNBC Select analyzed online and brick-and-mortar banks and credit unions that offer this kind of loan. When ranking the best, we focused on the following features:

• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan.
• Types of loans offered: The lenders on this list also offer other popular government-backed mortgages, including VA and USDA loans.We also considered how much of each bank's business is dedicated to FHA loans by volume, using the most recent federal data.
• Closing timeline: The lenders on our list offer closing timelines that vary from as promptly as two weeks after the home purchase agreement has been signed to as many as 42 days.
• Fees: Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. We evaluate these fees in addition to other features when determining the overall offer from each lender. We have noted instances where lenders do charge such fees.
• Flexible minimum and maximum loan amounts/terms: Each mortgage lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
• Streamlined application process: We considered whether lenders offered a convenient, fast online application process and/or an in-person procedure at local branches.
• Customer service: Every mortgage lender on our list provides customer service available via telephone, email or secure online messaging. We also considered customer satisfaction ratings from J.D. Power and the Better Business Bureau.
• Minimum down payment: Although minimum down payment amounts depend on loan type, we noted lenders with lower down payment options.

We then sorted our recommendations by best for in-person service, online lending, low rates, quick closing timeline, customer service, for minority borrowers, lower interest rates and down payment assistance.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Rates and fee structures listed or mortgages fluctuate per the Fed rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. When considering a mortgage, lenders will conduct a hard credit inquiry and may request a full application, which could require proof of income, identity verification, proof of address and more.

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