FHA loans that are backed by the Federal Housing Administration are known well among the first-time home buyers. These loans come with low down payment therefore it’s easy to secure a mortgage at good terms and conditions. The best FHA loan lenders for 2024 have the requirement of generous credit score than the other home loan options. Not solely for first-time home buyers but also other buyers can take advantage of the refinancing option of this loan. The lenders that are inculcated in the list of best FHA loan lenders offer competitive interest rates, low down payment and a great mix of features.
FHA loans often require 3.5 % down payment requirement if you meet the credit score eligibility. If you don’t have the down payment saving then FA loan is the viable option. The lenders that are included in the list makes it easier for the user to review the top-class mortgage lenders and select one as per the preference . Here’s the detailed guide of best FHA loan lenders for 2024.
Table of Contents
Quick Overview – Best FHA Loan Lenders for 2024
- NBKC Bank – Best FHA loan lender with great digital experience
- Guaranteed Rate – Best lender for FHA loans with competitive interest rates
- PNC Bank- Great pick for FHA loans and other mortgage products
- Ally – Good option for FHA loan with a standard lender fee
- Quicken Loans- Great FHA loan lender with flexible customer support
- Rocket Mortgage – Good lender for FHA loans with low mortgage rates
- Loan Depot – Viable option for FHA loan withextensive branch network
- Bethpage Federal Credit Union – Best FHA Loan Lender with a solid selection of mortgages
Charting the Best FHA Loan Lenders for 2024
| Lender | Minimum Credit Score | Minimum Down Payment | Mortgage Rates |
| NBKC Bank | 620 | 3.5% | 4.50% – 6.00% |
| Guaranteed Rate | 600 | 3.5% | 4.75% – 6.25% |
| PNC Bank | 600 | 3.5% | 4.875% – 6.375% |
| Ally | 580 | 3.5% | 4.75% – 6.25% |
| Quicken Loans | 580 | 3.5% | 4.625% – 6.125% |
| Rocket Mortgage | 580 | 3.5% | 4.875% – 6.375% |
| Loan Depot | 580 | 3.5% | 4.75% – 6.25% |
| Bethpage Federal Credit Union | 580 | 3% | 4.625% – 6.125% |
NBKC Bank
Minimum Credit Score: 620
Minimum Down Payment: 3.5%
NBKC Bank offers a diverse range of loaning options with a convenient online application process for ease of the customers. Most of the mortgage products are available all across the U.S but some particular mortgage products are only limited to Kansas City. NBKC offers FHA, adjustable and fixed rate mortgages as well as other refinancing options to the users. As the top pick among the best FHA loan lenders, the website design is comparatively easy to navigate for the selection of loan.
Being the best lender for FHA loans it also offers mortgage tool which is quite easy to use. Only essential details and no contact information is required to see the results. The tool only takes the location and the credit score into account to show customized rates.
Pros and Cons of No 1 Best lender for FHA loan
| Pros | Cons |
| Displays customized rates for the ease of the customers | HELOC and construction loans are only available in the Kansas City metro area |
| Efficient customer service via email and phone | Mobile application is only available for online banking customers |
| Offers government-backed loans and some other hard-to-find mortgage products |
Guaranteed Rate
Minimum Credit Score: 600
Minimum Down Payment: 3.5%
If you are giving consideration to the FHA loans , consider this lender with competitive interest rates that is relatively lower than the national average. Being one of the best FHA loan lenders the loan borrowers can easily get approved in a day or two and can get prequalified in just 15 minutes . Although the minimum credit score for other types of loans are higher but for FHA and VA it is 600. This is good for all first-time home buyers who don’t possess excellent credit score to opt for jumbo loans .
Guaranteed Rate provides online and in-person assistance to its users who want to apply for the mortgage. The digital experience allows the borrowers to get out of the hassle of the paperwork and do all the work digitally.
Pros and Cons of No 2 Best lender for FHA loan
| Pros | Cons |
| This lender requires low minimum score and competitive interest rates to the borrowers | Guaranteed Rate does not provide home equity loans to its users |
| The alternative credit data such as home utility bills and rent payments are considered for eligibility | |
| Charges no lender fees for VA loan borrowers |
PNC Bank
Minimum Credit Score: 600
Minimum Down Payment: 3.5%
PNC Bank is operational in all the 50 U.S states and provides a range of mortgages specially geared towards the low and moderate income earners. The innovative online experience that is known as Home Insight enable customers to know about the mortgage payment they can bear. Moreover, for full fledge assistance the customers can also send invitation to the real estate agents. Moreover, on the digital platform you can easily follow along the application process.
Being the best FHA loan lenders for 2024, the preapproval takes only 20 to 30 minutes . The average closing of the loan takes almost 30-45 days depending upon the loan you have opted for . In some cases the closing can take less than 30 days too .
Pros and Cons of No 3 Best lender for FHA loan
| Pros | Cons |
| The lender requires average credit score and the preapproval process is fast and super-efficient | It does not offer USDA loans to the customers |
| Offers several discount programs to its customers | |
| Online and in-person both type of support are available for the ease of users |
Ally
Minimum Credit Score: 580
Minimum Down Payment: 3.5%
For the basic mortgage loan option Ally provides standard lender fees that range in the bracket of 2-5%. The first time home buyers can also leverage the power of Fannie Mae HomeReady mortgage that solely requires the down payment of 3%. Being in the list of the best FHA loan lenders it offers fast and rapid preapproval process to its users. Borrowers can easily lock the interest rates in less than 10 minutes. The whole application process can be tracked online and in case any document is missing you will notified about it. As long as you have stable internet connection then you can do all the application processing easily.
The essential documents that is required to secure the mortgage of best FHA loan lenders for 2024 are monthly bank statements , credit report , tax returns identification documents to name a few. The borrowers who are asked to provide proof of income , additional assets can take a little longer . The average closing time for this lender is approximately 36 days.
Pros and Cons of No 4 Best lender for FHA loan
| Pros | Cons |
| The loan preapproval takes just few minutes | It does not offer VA,USDA loans to the customers |
| Borrowers can easily lock in their mortgage rates in a matter of minutes | Ally does not offer land loans |
| First time home buyers can avail the Home Ready loan option |
Best Mortgage Lenders with No Origination Fee
If you want to avoid the additional cost of the origination fee then Ally is the preferred choice. This bank off best-in-classer best in class FHA loan and adjustable-rate mortgages to facilitate a large user base.
Quicken Loans
Minimum Credit Score: 580
Minimum Down Payment: 3.5%
Quicken Loans is the largest mortgage lender all across the United States and it offer online experience that is unique from the other top tier lenders. Borrowers who face difficulty in the application process can contact the support at any time of the day . Full-fledge customer assistance is available round the clock for the users. The application preapproval can just take 10 minutes. Although the downside is that the loan approval process usually takes 47 days . Moreover as a completely online lender only the branches are located at 4 locations that include Cleveland, Detroit , Phoenix and Charlotte.
Pros and Cons of No 5 Best lender for FHA loan
| Pros | Cons |
| Flexible term mortgage is available on the repayment plan of 8-29 years | The lender does not offer USDA and HELOCS |
| Interest rates are comparatively lower in comparison with the other best FHA loan lenders for 2024 | No brick-to-mortar locations for assistance |
| Customer service hours are extensive to facilitate the users |
Rocket Mortgage
Minimum Credit Score: 580
Minimum Down Payment: 3.5%
Rocket Mortgage stands out as one of the best FHA loan lenders helping the borrowers to avail FHA loans at lower down payments. The home buyers and refinancer can easily benefit from the lenders easy to navigate website and application both to manage the loans. As per customer satisfaction is concerned it ranked great in loan funding. Although the origination fees is on the higher side but the mortgage rate is average.
Pros and Cons of No 6 Best lender for FHA loan
| Pros | Cons |
| Offers the ease to work with the loan officer via phone call | Customized interest rates require credit check that can affect the credit score |
| Offers streamlined online process with the ease to upload documents | Origination fee is on the higher side as compared to the other lenders |
| Largest FHA lender with flexible terms and policies |
LoanDepot
Minimum Credit Score: 580
Minimum Down Payment: 3.5%
LoanDepot is one of the nonbank mortgage lenders that is inculcated in the list of the best FHA loan lenders for 2024. With the extensive network of branches, it is easy to have assistance during the application process. This lender offers a plethora of loan products that include government-backed loans, conventional mortgages, FHA, and other refinancing options to the users. Customers can easily make use of the Mello Smart loan online technology to reduce the closing timeline to just 17 days. This reduces the paperwork by digitally verifying all the documents on the website.
The Mello Smartloan can easily conduct the title clearance which is one of the crucial steps of underwriting. Another good aspect is that it determines that if borrowers can or cannot waive their appraisal requirement and can save an additional hundreds of dollars from it. As per the availability , it is available online all the 50 U.S states and have 150 branches all across the U.S. Moreover, being the flexible option in the list of best FHA loan lenders for 2024, if your FICO score is 500-579 then it offers FHA loan with 10% down payment.
Pros and Cons of No 7 Best lender for FHA loan
| Pros | Cons |
| Loan approval process is fast and takes just 15 minutes | The mortgage rates are above the national average |
| Moderate credit requirements and refinancing fees are waived for the existing customers | Origination fee is on the higher side in comparison with the other best FHA loan lenders for 2024 |
| Offers the option of Mello Smart loan with closing time up to 17 days |
Bethpage Federal Credit Union
Minimum Credit Score: 580
Minimum Down Payment: 3.5%
If you are looking for low rates and community-minded business model of a credit union then look no other than the Bethpage Federal Credit Union. It offers a range of mortgage products that include the adjustable rate and fixed loans , jumbo loans , government-backed and the FHA loans as well. It also offers loans for second home to cater the needs a large user base. Being one of the best FHA loan lenders, it also offers FHA refinancing options to the users. If you want to know the rate quote of mortgages then you can easily speak to the loan specialist to get the estimated idea.
Pros and Cons of No 8 Best lender for FHA loan
| Pros | Cons |
| Provides online updates on the online application for the FHA loan | Does not provide USDA loans |
| The sample mortgage rates are available for plethora of mortgage products | In-person services are only available in 3 locations that include New York, Queens, and on Long Island |
| Offers special financing for the cooperatives for homes located in the East Coast |
What are the tips for comparing FHA loans ?
FHA loans are geared towards borrowers who have moderate to low credit score and have less money to pay for the down payment. The borrowers who put less than 20% on FHA mortgages have to pay for the mortgage insurance which is equivalent to 1% of the overall loan amount.
FHA loans are considered the top choices as the requirements are minimal. With minimal requirements, you have a greater chance to secure the loan. With other loan options, the lenders make it difficult to qualify for the loan. The best FHA loan lenders for 2024 requires credit score that is in the range of 580-620.
It is important to check the lender origination fee, minimum debt-to-income ratio requirement and other charges before you opt for the mortgage lender. After considering multiple mortgage lender for FHA loans with rate quote estimate you can make a reasonable choice. The comparison between the mortgage lenders can let you have lower interest rates with detailed analysis of the information . You can use the loan estimate of one lender to negotiate a lower rate with another lender.
What are the pros and cons of FHA loans?
| Pros | Cons |
| FHA loans allow down payments as low as 3.5%, making them more accessible to first-time homebuyers or those with limited savings. | FHA loans require borrowers to pay MIP, which can add to the overall cost of the loan. |
| FHA loans are generally more forgiving of lower credit scores than conventional loans. Borrowers with scores as low as 580 may be eligible for an FHA loan. | In addition to monthly MIP, FHA borrowers are required to pay an upfront MIP payment at closing. |
| FHA lenders may consider alternative factors besides DTI when evaluating a borrower’s ability to repay the loan. | FHA loans may require more stringent property appraisals than conventional loans. |
| FHA loans can be used to finance a variety of property types, including single-family homes, condos, and multi-unit properties. | FHA loans have maximum loan limits set by the Federal Housing Administration (FHA) for each county. |
Can you get FHA loan with student loan?
Yes you can get FHA loan along with student loan debt as long as you fulfill the debt to income requirements. Although the FHA student loan guidelines are different from the other types of FHA loans as all student loans are added to calculate the debt-to-income ratio.
What are the main factors to qualify for FHA loans?
To qualify for the FHA loan, you need to have a credit score of at least 580. Anything that is lower than this credit limit requires a down payment of 10%. The debt to income ratio for FHA loans are 43%. In addition, with this, the minimum down payment required is at least 3.5%
What are the Best FHA loan lenders Texas?
The best FHA loan lenders Texas include the following mortgage lending options:
- First Financial Mortgage
- FHA loans Texas
- Texas FHA
- Mortgage Solutions Financial Hacker Heights
Frequently Asked Questions
 Which companies are best for FHA loans?
The top picks for FHA loans are the following lenders :
1. NBKC Bank
2. Guaranteed Rate
3. PNC Bank
4. Ally
5. Quicken Loans
 Who is the largest FHA lender?
 As per the latest data available of the year 2021, rocket mortgage provided nearly 128,000 FHA loans that are worth the cost of $25.5 billion. Therefore Rocket Mortgage is the largest FHA lender in the United States.
 What is the most common FHA loan ?
 The most common FHA loan among the borrowers is the FHA 203 (b) which is geared towards the first-time home buyers. This mortgage product can only be used for the borrowers who are seeking loan for their primary residence. Moreover, it is important to mention here that the FHA 203 (b) is backed by the Federal Housing Administration.
