First-time home buyers generally have low credit score and small amounts for the down payment. The low credit score and smaller down payments make it much more challenging for buyers to qualify for the mortgages . To ease the process for you here in this blog we have listed the best mortgage lenders for first-time homebuyers. Although mortgages can be more expensive for those qualify but at least they get the home loan in favorable terms and conditions. These lenders offer the best rate, lowest closing costs to facilitate a large user base.
The best mortgage lenders for first-time homebuyers in 2024 are selected in a variety of categories so you can select the one which is right for you. These home lenders offer flexible underwriting and reasonable cost to simplify your selection for home loan lenders .
Table of Contents
Quick Overview – Best mortgage lenders for first-time homebuyers in 2024
- Better – Best overall for first-time home buyers with fast preapproval time
- Guaranteed Rate – Best mortgage lenders for first-time homebuyers with broad menu for loans
- PNC Bank – Great pick For home loan with minimum credit score requirement
- NBKC Bank – Best low-rate mortgage for first -time home buyers
- Bank of America Mortgage – Great pick for down payment assistance for first-time buyers
- Ally Home – Best mortgage lender for first time home buyers with option of Home Ready loans
- LoanDepot – Great home loan lender for first-time home buyers with robust online presence
- Andrews Federal Credit Union – Good option for first time home buyers with greater incentives
- New American Funding – Viable choice for home buyers with multiple mortgage options
- Quicken Loans – Great pick among the best mortgage lenders for first time buyers with flexible terms and conditions
Charting the Best mortgage lenders for first-time homebuyers in 2024
| Lender | Minimum Credit Score | Minimum Down Payment | Days to Close |
| Better | 620 | 3% | 30-45 |
| Guaranteed Rate | 620 | 3% | 25-45 |
| PNC Bank | 620 | 3% | 20-45 |
| NBKC Bank | 620 | 3.5% | 20-45 |
| Bank of America Mortgage | 620 | 3% | 25-45 |
| Ally Home | 620 | 3% | 20-45 |
| LoanDepot | 580 | 3% | 25-45 |
| Andrews Federal Credit Union | 620 | 3% | 20-45 |
| New American Funding | 580 | 3% | 25-45 |
| Quicken | 620 | 3% | 25-45 |
Better
- Preapproval time: 20 minutes or less
- Minimum Credit score: 620
- Minimum Down payment: 3%
- Mortgage Rates: Within 1 to 3 points below the national average
Why Better is regarded as No#1 among best mortgage lenders for first-time homebuyers ?
Better provides an extremely easy-to-navigate process with lower mortgage rates in comparison with the other type of home lenders. As the top pick in the list of best mortgage lenders for first-time homebuyers the preapproval time is fast and applicants get a quote in less than 20 minutes. The fees is at the higher end but the services are worth the price.
The lender has developed a technology where the customers can easily look for all the discounts that they are eligible for. The primary focus of the Better in on the conventional loans as customer prefer these from the lender. The lender does not charge any sort of commission and lender fees to provide the best rates to the home loan lenders.
Types of Loans Offered by Better
The table below summarizes the details of the type of loan offered by Better.
| Type of Loan | Offered |
| Conventional | ✔ |
| FHA | ✔ |
| VA | ❌ |
| USDA | ❌ |
| Jumbo | ✔ |
| ARM | ✔ |
| Home Equity loan | ❌ |
| Specialty | Interest only mortgages |
Pros and Cons of Better
| Pros | Cons |
| Ultra-fast loan preapproval time | Does not offer hard-to-find loans such as VA, USDA among many others |
| It provides HELOC that can be used for primary or investment home | Lender does not have a mobile application |
| The average interest rates are lower in comparison with the other home loan lenders | |
| No commission or lender fees |
Guaranteed Rate
- Preapproval time: 1 to 2 days
- Minimum Credit score: 620
- Minimum Down payment: 3%
- Mortgage Rates: Comparatively lower than the national average
Why Guaranteed Rate is regarded as No#2 among best mortgage lenders for first-time homebuyers?
Guaranteed Rate is considered a good option for all the borrowers who are in search of the broader market of loans that include jumbo , interest loans , government-backed loans and various other offerings. The plethora of loan options compelled this in the list of the best mortgage lenders for first-time homebuyers in 2024 with competitive interest rates. The borrowers can easily get prequalified online in a matter of minutes . Moreover, the minimum FICO credit score requirement is 600 for FHA and VA loans.
As first-time home buyers have lower credit score and credit history so this lender is a favorable option . In case you are a VA borrower then the Guaranteed Rate can waive of all the loan fees for you.
Types of Loans Offered by Guaranteed Rate
Guaranteed Rate offers numerous loan options to facilitate a large user base of home buyers.
| Type of Loan | Offered |
| Conventional | ✔ |
| FHA | ✔ |
| VA | ✔ |
| USDA | ✔ |
| Jumbo | ✔ |
| ARM | ✔ |
| Home Equity loan | ❌ |
| Home Equity Line of Credit | ❌ |
| Specialty | Interest only mortgages |
Pros and Cons of Guaranteed Rate
| Pros | Cons |
| Low minimum credit score is required for approval | The lender does not offer home equity loans |
| Offers competitive interest rate to the users | Origination fees is higher than the average fees offered by other home loan lenders |
| No lender fees for the VA loan borrowers | |
| Offers HELOC that can be funded in less than 5 business days |
PNC Bank
- Preapproval time: 20-30 minutes
- Minimum Credit score: 620
- Minimum Down payment: 3%
- Mortgage Rates: Relatively lower than the national average
Why PNC Bank is regarded as No#3 among best mortgage lenders for first-time homebuyers?
PNC Bank operates in all 50 US States and therefore the loaning process is super convenient for the buyers. The home loans offered by the lender are geared towards moderate income earners as well as for all those seeking mortgage in highly priced regions. Being one of the best mortgage lenders for first-time homebuyers in 2024 the lender places special emphasis on jumbo loans with lower down payments. For first-time buyers, the community loan requires no private mortgage insurance along with a down payment as low as 3%.
As a credible lender, it provides an innovative online experience known as Home Insight that enables users to know which mortgage payment they can afford to get real-time quotes and details about the loan payment. Additionally, to better gain the trust of the users , it allows users to invite real estate agents to monitor the whole progress. Also, the average closing time for the lender is approximately 45 days.
Types of Loans Offered by PNC Bank
PNC Bank has a plethora of home loan options that make it convenient for first-time home buyers. Let’s delve into the details of all the loan types offered by this lender.
| Type of Loan | Offered |
| Conventional | ✔ |
| FHA | ✔ |
| VA | ✔ |
| USDA | ❌ |
| Jumbo | ✔ |
| ARM | ✔ |
| Home Equity loan | ✔ |
| Specialty | Community, Medical Professional Loan |
Pros and Cons of PNC Bank
| Pros | Cons |
| Offers multiple discount programs | Does not offer USDA loans and renovation loans |
| Efficient online and in-person services | The bank does not offer in-person services in all U.S states |
| Ample digital support opportunities for the customers | |
| Availability of Jumbo loans with down payment of 5% |
NBKC Bank
- Preapproval time: the same day you submit application
- Minimum Credit score: 620
- Minimum Down payment: 3%
- Mortgage Rates: Lower than the national average
Why NBKC Bank is regarded as No#4 among best mortgage lenders for first-time homebuyers?
The lender offers a smooth online experience, low rates, and phone support to the user. Being the viable choice in the list of best mortgage lenders for first-time homebuyers in 2024, it places special emphasis on VA loans. NBKC Bank offers above average amount of mortgages that are backed up by the Department of Veterans Affairs. The Bank offers its customers ease with the option to get prequalified for mortgage online. The prequalification process is super-efficient and you just need to give basic information to get prequalified.
The downside is that the HELOC is only available to the users who are residing in the Kansas City. Being one of the best mortgage lenders for first-time homebuyers, the maximum amount you can receive from the bank is $3 million. In addition, if you want to qualify for the jumbo loan you need a credit score that should be greater than 660.
Types of Loans Offered by NBKC Bank
NBKC Bank offers easy custom rates for various loaning schemes. Several loans are available to the users that include the following ones
| Type of Loan | Offered |
| Conventional | ✔ |
| FHA | ✔ |
| VA | ✔ |
| USDA | ❌ |
| Jumbo | ✔ |
| ARM | ✔ |
| Home Equity Line of credit | ✔ |
| Specialty | Specialty loans for pilot |
Pros and Cons of NBKC Bank
| Pros | Cons |
| Offers the ability to see personalized mortgage rates online | HELOC and construction loans are available in Kansas City |
| Offers low rates and fees in comparison with other top home loan lenders | |
| Provides some of the hard-to-find loans that include government-backed loans, construction loans and more |
Bank of America Mortgage
- Preapproval time: Takes 10 days to receive application approval
- Minimum Credit score: 600
- Minimum Down payment: 3%
- Mortgage Rates: Lower than the national average
Why Bank of America Mortgage is regarded as No#5 among best mortgage lenders for first-time homebuyers?
Bank of America is one of the biggest mortgage and refinance lenders in the U.S . there is no geographic restriction for getting approved for the loaning schemes. With the largest branch network all across the U.S , it also offers online mortgage experience that is named as Bank of America Digital Mortgage Experience. As a first class option in the list of best mortgage lenders for first-time homebuyers in 2024, it provides an easy application process with an online rate lock to the users. For better assistance, the borrowers can easily connect with the lending specialist online.
A long preapproval time is one of the set back of the lender but as soon as you get approved you immediately get the funds. In comparison with the other option in the list of best mortgage lenders for first-time homebuyers, it offers lower than average mortgage rates to the users. Also , the down payment rates are just as low as 3% with no private mortgage insurance to save hundred of dollars each month.
Types of Loans Offered by Bank of America Mortgage
Bank of America offers fixed and adjustable rates for both the conventional and jumbo loans. With no mortgage insurance required the FHA loans only take the minimum payment of 3%.
| Type of Loan | Offered |
| Conventional | ✔ |
| FHA | ✔ |
| VA | ✔ |
| USDA | ❌ |
| Jumbo | ✔ |
| ARM | ✔ |
| Home Equity Line of credit | ✔ |
| Specialty | Affordable solution mortgage |
Pros and Cons of Bank of America Mortgage
| Pros | Cons |
| Easily qualify for the low minimum mortgage payment with no PMI | USDA loans are not offered by Bank of America |
| Borrowers have the option to apply for online and in-person loans | Preapproval duration is longer and it usually takes 10 days |
| Offers numerous mortgage discount offers | |
| For approval it also considers alternative credit data such as utility and rent payments |
Ally Home
- Preapproval time: 3 minutes
- Minimum Credit score: 620
- Minimum Down payment: 3%
- Mortgage Rates: within the 1 to 3 points of the national average
Why Ally Home is regarded as No#6 among best mortgage lenders for first-time homebuyers?
Ally is one the credible financial service that offers personal mortgage products to an extensive user base. The lender have competitive rates and standard lender fees in the range of 2-5% of the loan . the first time buyers can also facilitate from the Fannie Mae’s HomeReady loans with a minimum down payment of 3%. Qualified borrowers can benefit from the fast preapproval letter which is one of the biggest advantage of the lender in the competitive market.
Ally also offers refinancing options like cash-out and rate and term to the users. It does not offer FHA, VA loans so if you are seeking these options it is preferable to select the other options in the list of best mortgage lenders for first-time homebuyers in 2024. The good aspect of this lender is the leverage it gives to the users to track their progress online. AS long as you have the stable internet, you can do all the application process remotely .
Types of Loans Offered by Ally Home
Ally Home offers the fixed and adjustable rates for both conventional and jumbo loans . Along with this there are few other home loaning option available for the users.
| Type of Loan | Offered |
| Conventional | ✔ |
| FHA | ❌ |
| VA | ❌ |
| USDA | ❌ |
| Jumbo | ✔ |
| ARM | ✔ |
| Home Equity loan | ❌ |
| Specialty | Home Ready Loans |
Pros and Cons of Ally Home
| Pros | Cons |
| Charges no lender fees | No branch location for assistance |
| Alternative credit data such as utility and other bills are considered for the application | Does not offer VA, FHA and USDA loans |
| Offers transparent interest rates to the users | |
| First-time home buyers can benefit from the Home Ready loan option |
LoanDepot
- Preapproval time: 15 minutes
- Minimum Credit score: 580
- Minimum Down payment: 3.5%
- Mortgage Rates: 1 to 3 points above or below the national average
Why LoanDepot is regarded as No#7 among best mortgage lenders for first-time homebuyers?
LoanDepot is one of the largest non-bank mortgage lender in America with strong online presence and 150 branches. This is one shop for all the borrowers who want ample option along with convenient online process. The loan products include the conventional loans , government backed loans , refinances among other options as well. The good aspect is that the lender offer perks for buying and selling through the LoanDepot partner mellohome with its streamlined services.
The Mellohome technology reduce the closing time to almost half which is just 17 days. This way you reduce paperwork and can digitally connect and verify assets, income, and debt. One of the greatest benefit of this technology is that it can let the borrowers determine that if they can waive the appraisal requirement to save some additional dollars.
Types of Loans Offered by LoanDepot
LoanDepot offers numerous home loaning schemes that include the fixed-rate and adjustable rate mortgages , FHA, VA among many others.
| Type of Loan | Offered |
| Conventional | ✔ |
| FHA | ✔ |
| VA | ✔ |
| USDA | ❌ |
| Jumbo | ✔ |
| ARM | ✔ |
| Home Equity loan | ❌ |
| Specialty | – |
Pros and Cons of LoanDepot
| Pros | Cons |
| Offer fast preapproval in just 15 minutes | Origination fees is little higher than other top mortgage loan lenders |
| Requires a moderate credit score for the approval | Loan closing may take a little longer than a month |
| Customers who have opted for the Mello Smartloan can cut the closing days to 17 |
Andrews Federal Credit Union
- Preapproval time: –
- Minimum Credit score: 620
- Minimum Down payment: 3%
- Mortgage Rates: Typically, lower than the national average
Why Andrews Federal Credit Union is regarded as No#8 among best mortgage lenders for first-time homebuyers?
If you are seeking for a mortgage lender with deep roots in the local communities than look no other than the Andrews Federal Credit Union. It pay solid rate as compared to the average money market . With a range of loan options and low interest charges, it is favorable for the first time home buyers and military borrowers . The website makes it super easy for individuals to compare interest rates and apply online.
Types of Loans Offered by Andrews Federal Credit Union
Andrews Federal Credit Union has solid line up of loan offerings that includes USDA, Jumbo , FHA , VA and many others
| Type of Loan | Offered |
| Conventional | ❌ |
| FHA | ✔ |
| VA | ✔ |
| USDA | ✔ |
| Jumbo | ✔ |
| Second Mortgage | ✔ |
| Home Equity line of credit | ✔ |
| Specialty | HELOC |
Pros and Cons of Andrews Federal Credit Union
| Pros | Cons |
| Caters to the diverse need of first-time home buyers with incentives and education | Does not offer construction and renovation loans |
| This lender provides extra benefits and support for all the military borrowers | Less physical branches in U.S for assistance |
| Offers HELOC and line of credit in competitive interest rates |
New American Funding
- Preapproval time: –
- Minimum Credit score: 580
- Minimum Down payment: 3%
- Mortgage Rates: Typically, lower than the national average
Why New American Funding is regarded as No#9 among best mortgage lenders for first-time homebuyers?
New American Funding provides multiple type of loans that are good for the first time home buyers , self-employed borrowers. Being of the reliable option in the list of best mortgage lenders for first-time homebuyers in 2024 it offers loan repayment terms of 8-30 years . The jumbo loans offered by the lender are valuable and can go up to the amount of $1 million.
Types of Loans Offered by New American Funding
New American Funding offers the diverse range of loans foe the first time home buyers . With moderate credit score you can access the following type of loans.
| Type of Loan | Offered |
| Conventional | ✔ |
| FHA | ✔ |
| VA | ✔ |
| USDA | ✔ |
| Jumbo | ✔ |
| Home Equity line of credit | ✔ |
| Specialty | – |
Pros and Cons of New American Funding
| Pros | Cons |
| Provides all the major mortgage loans | Charges high mortgage origination fees |
| HELOC can be used for owner-occupied or second home | Personalized mortgage rates are not available on the site |
| Receives high score for customer satisfaction |
Quicken Loans
- Preapproval time: 24 hours
- Minimum Credit score: 620
- Minimum Down payment: 3%
- Mortgage Rates: 3 points higher than the national average
Why Quicken is regarded as No#10 among best mortgage lenders for first-time homebuyers?
With extensive customer support, Quicken loans offers online experience to the users that is unique in every aspect. The mortgage rates are competitive but the average interest rates is one of its downside. The minimum credit score required for various home loans is 620. When reviewing the mortgage application the lender also closely examine the alternative credit data such as rent and utility payments of the user.
Types of Loans Offered by Quicken Loans
| Type of Loan | Offered |
| Conventional | ✔ |
| FHA | ✔ |
| VA | ✔ |
| USDA | ❌. |
| Jumbo | ✔ |
| Home Equity line of credit | ❌ |
| Specialty | YOURgage flexible-term mortgage |
Pros and Cons of Quicken Loans
| Pros | Cons |
| Flexible mortgage terms for the users | Does not offer USDA and HELOC |
| Competitive interest rates are applicable on all loan types | No brick and mortar locations available |
| Customer service is readily available to the users |
What is the criteria for selecting the Best mortgage lenders for first-time homebuyers?
While making the selection for the lenders to inculcate in the list of the best mortgage lenders for first-time homebuyers in 2024 the primary focus is laid on the following features :
Fixed Rate APR :With adjustable interest rates, the main disadvantage is that the interest rate may go up and down over the lifetime of your loan which can put a strain on your wallet. With fixed APR, you lock the interest rate and will pay it for the duration of loan terms. This means that your monthly payments won’t change making it easy for you to manage your budget.
Types of the loan offered: The most common mortgage loans are FHA and VA loans. If the lender offer USDA loans that is a cherry on the top. Having numerous mortgage loan offer means that you have plenty of options to choose from . The top lenders in the list of best mortgage lenders for first-time homebuyers in 2024 offers FHA,VA , USDA and other types of loan as well. As per your need and credit score you can choose one of the lenders from the list.
Minimum down payment: Although minimum down payment is dependent on the type of the loan you have opted for. But in most if the cases the minimum down payment for FHA and VA loans are 3%.
Closing timeline: The lenders that are inculcated in the list of Best mortgage lenders for first-time homebuyers in 2024offer a closing period starting from two weeks to a maximum of 45 days after the agreement is signed. To know the exact duration of the lender you can either see the website or contact the support team.
Fees: The fees that is generally associated with the mortgage lenders include the origination fee, application fees, processing fee, and administrative fee. However, with first-time home buyers, we try to choose the lenders that operate with minimal fee. There are lenders in the list of best mortgage lenders for first-time homebuyers that charge no fees at all for the loan borrowers.
Flexible minimum and maximum loan terms: As each home loan lender provide numerous financing option, so the terms and conditions for each vary. The lenders that are on the list of the best mortgage lenders for first-time homebuyers in 2024 can customize your financing options based on your monthly budget.
Streamlined application process: Most of the mortgage lenders offer fast and convenient online application process. So if you want to stay away from the hassle of going to bank for approval of loan application choose the lender that offer easy and convenient online application process.
Customer Support: Most of the lenders listed here provide customer support wither through chat bots , email , call or through secure online messaging. In case you face any difficulty in the application process you can contact the mortgage lender to assist you .
How do I compare Best mortgage lenders for first-time homebuyers?
As a first-time home loan borrower you have to weigh the pros and cons of the first-time homebuyer loans.
Pros
- Get qualified with the minimal credit- Many of the best mortgage lenders for first-time homebuyers offer the flexibility of low credit score requirements along with low debt to income ratio to facilitate the users.
- Try to make low down payment – It is always preferable to look closely at the closing fees and other charges before opting for the mortgage lender. Most of the options in the list of the best mortgage lenders for first-time homebuyers require a low-down payment of at least 3%. This way you will be able to pay for the home faster.
- Get complete assistance with home-buying costs – There are viable option in the list of mortgage lenders for first-time home buyers that offer government-backed and charitable loan programs with low down payment and closing costs. This way you get low interest rates or deferred payment loans which gives you an edge as first-time buyers.
Cons
- Eligibility may be restricted to household income – There are some lenders that offer certain programs that are restricted to specified regions. Depending upon how much money you make on the monthly basis most of the mortgage lenders reject the application for low income earners.
- Property should meet the minimum requirements – For loans that are specifically for home appraisal, the property should meet the bare minimum conditions. In case your property does not meet the criteria the application for FHA and VA loans have higher chances of rejection.
- Loan Amount – As each lender in the list of Best mortgage lenders for first-time homebuyers have a minimum and maximum amount to lend to the borrowers as per their financial situation. The loan amount may be limited based on your type of mortgage you opt for and your home location.
