Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
If you aren’t sure if you can qualify for a mortgage because your credit isn’t great, you might be able to buy a home with an FHA mortgage.
The best mortgage lenders with FHA loans offer additional benefits such as an easy online application, hybrid or digital closing options, or the ability to apply with non-traditional credit (such as proof of on-time rent or utility payments) if you don’t have a traditional credit score.
The Best Mortgage Lenders for FHA Loans in 2023
Below you’ll find the full details on our top picks for the best FHA loan lenders.
The Best Mortgage Lenders for FHA Loans
New American Funding FHA mortgage
New American Funding FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, USDA, reverse, buydown loan, I CAN mortgage,
New American Funding FHA mortgage
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, USDA, reverse, buydown loan, I CAN mortgage,
Carrington Mortgage Services FHA mortgage
Carrington Mortgage Services FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, USDA, VA, Carrington Flexible Advantage
Carrington Mortgage Services FHA mortgage
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, USDA, VA, Carrington Flexible Advantage
Guild Mortgage FHA mortgage
Guild Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, USDA, VA, reverse, renovation, manufactured, bridge, energy-efficient, doctor, Complete Rate
Guild Mortgage FHA mortgage
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, USDA, VA, reverse, renovation, manufactured, bridge, energy-efficient, doctor, Complete Rate
Rocket Mortgage FHA mortgage
Rocket Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA
Rocket Mortgage FHA mortgage
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA
Fairway Independent Mortgage FHA Mortgages
Fairway Independent Mortgage FHA Mortgages
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, USDA, VA, reverse, renovation, refinance
On Fairway Independent Mortgage Corporation’s website
Fairway Independent Mortgage FHA Mortgages
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, USDA, VA, reverse, renovation, refinance
Experts’ Advice on Choosing the Best FHA Lender
Insider
Our experts have provided advice about how to know whether you should get an FHA loan or another type of mortgage.
Here’s what they had to say. (Some text may be lightly edited for clarity.)
What factors should someone take into consideration when choosing a mortgage lender?
Anthony Park, author:
“The canned answer is to just go with the lowest rate. However, you also want to take into account who’s going to serve your loan best. Are repayments going to be easy for you? Who is most likely to be able to help you if you need to take out a HELOC or refinance later, versus somebody who’s more of a one-off type?
“They may have the lowest rates to get you involved, but they might have very, very little hand holding after the fact. I wouldn’t recommend paying an exorbitant amount more for potential services in the future, but just don’t always necessarily go with the rock-bottom lowest rate. There’s sometimes a cost with that.”
Molly Grace, Personal Finance Insider:
“Remember that you’re not just choosing a mortgage lender — you’re also building a homebuying team. To snag the home you want in this competitive market, you need a lender that can move quickly and has good communication with you and your real estate agent.
When I was looking for a house, I was able to text my loan officer (whom my real estate agent recommended) and get quick replies when I had questions or needed an updated preapproval letter for an offer. As you compare lenders, pay attention to how responsive they are, and ask your agent if they have any experience with the lenders you’re considering.”
How can someone decide between a conventional mortgage vs. a government-backed mortgage, like an FHA loan?
Molly Grace, Personal Finance Insider
“An FHA mortgage is a really helpful option for borrowers with low scores or kind of rocky credit histories. But if you have great credit, you may get a better rate and pay less for mortgage insurance on a conventional mortgage.
VA mortgages are really great deals. If you qualify for one, you should definitely go for it. You get zero down with no mortgage insurance — plus some of the best rates available.”
Julie Aragon, Aragon Lending Team:
“The most common government loan that’s widely available to almost everyone is the FHA loan. There’s a couple of reasons why somebody would go with FHA instead of conventional one. Their credit is a little on the crummy side, let’s say below 700. You can get conventional with down to a 620 score, but the mortgage insurance gets really expensive. FHA doesn’t discriminate — no matter how perfect or crappy your credit is, the mortgage insurance is the same.”
How can someone know whether they’re financially ready to buy a home?
Lauryn Williams, CFP:
“You should have funds left over after everything is said and done as it pertains to purchasing the home. So if you don’t have an emergency fund plus a down payment, you’re probably not ready to purchase a home. Another thing I think about is credit card debt. While you can be approved for a mortgage with credit card debt and student loans and very little cash on hand, you put yourself in a very risky situation.”
Molly Grace, Personal Finance Insider
“You have to be ready to dedicate a chunk of your budget to homeownership — and I don’t mean your mortgage payment. When you own your house, there’s always something that needs taking care of, especially in the first year. We got to our new house on moving day to find that the A/C was out. We paid $700 to have it fixed.”
FHA Mortgages Frequently Asked Questions
An FHA loan is a mortgage backed by the Federal Housing Administration. This means that if you default on your mortgage, the FHA will compensate your lender. These loans allow lower scores, higher DTIs, and come with lower rates.
The FHA insures a few different types of mortgages, the most popular being the 203(b) loan, which is the standard FHA loan. You can also get a 203(k) loan, which is a mortgage that lets you finance the cost of repairs or upgrades to the home in addition to the purchase price.
Find lenders that will approve your FHA loan application at your current credit score and debt-to-income ratio. Then apply for preapproval with your favorites and compare the interest rates and fees between each one.
Think about what you need from a lender. Do you prefer to apply online? Maybe you also want to close digitally, or you’re looking for a company with live online chat features so you don’t have to wait on hold over the phone.
No, you don’t have to be a first-time homebuyer to get an FHA loan.
FHA loans are often marketed as first-time homebuyer programs because the lenient credit score and debt-to-income ratio requirements can be ideal for younger people who don’t have the most robust financial profiles yet. But you can apply for an FHA loan even if this isn’t your first time owning a home.
Methodology: How We Chose the Best FHA Lenders for 2023
To choose the top FHA loan lenders, we looked at three main factors:
- Credit score. FHA loans’ main appeal is that you don’t need a great credit score to qualify. While the official FHA guidelines allow for scores as low as 580 (or 500 with a 10% down payment), some lenders have higher minimum credit score requirements, which can make it difficult for some borrowers to qualify. All of the FHA lenders on our list allow scores of 580, and many will allow even lower scores with a higher down payment. Most of our lenders also have some form of flexible credit guidelines, such as letting borrowers apply with non-traditional credit or allowing borrowers to have recent negative events on their credit reports.
- Customer satisfaction. If the lender appeared in the J.D. Power 2022 Mortgage Origination Satisfaction Study, we looked at its ranking. If it wasn’t in the survey, then we read online customer reviews.
- Ethics. Each of our top picks received an A+ from the Better Business Bureau, which measures companies’ trustworthiness. The exception is Guild Mortgage. We also researched and considered any scandals in the past three years.
Best lenders for FHA loans
Editors’ Rating
Editors’ Rating
Editors’ Rating
Editors’ Rating
Editors’ Rating
Best Overall FHA Lender
New American Funding FHA mortgage
*You may be able to get an FHA loan from this lender with a score below 580 with compensating factors.
If you don’t have a credit score, you can use non-traditional credit to apply with this lender. You may also still be able to get an FHA loan with New American Funding if you have recent negative credit events (such as a late payment) on your credit report.
New American Funding has an A- rating from the BBB. It’s not available to residents of Hawaii or New York.
New American Funding Mortgage Review
Best FHA Lender for Low Credit Scores
Carrington Mortgage Services FHA mortgage
Carrington accepts scores as low as 500 on its FHA loans and has flexible requirements for borrowers with “less than perfect” credit.
Carrington has an NR (“no rating”) from the BBB because it’s currently responding to complaints that were previously closed. It’s unavailable to residents of Massachusetts and North Dakota.
Carrington Mortgage Services Review
Best FHA Lender for Those With no Credit History
Guild Mortgage FHA mortgage
Guild Mortgage offers a hybrid closing option that lets you sign documents ahead of time and keep your closing appointment quick. It can also help connect you with down payment assistance in your area.
Guild has an A+ rating from the BBB. It’s unavailable to residents of New Jersey or New York.
Best FHA Lender for an Easy Online Experience
Rocket Mortgage was ranked as the top lender for customer satisfaction in J.D. Power’s 2022 study. It offers a simple online experience and live online chat with a mortgage professional. But it doesn’t accept non-traditional credit — you must have a traditional credit score of at least 580 to qualify
Rocket Mortgage has an A+ rating from the BBB and is available in all 50 states.
Best FHA Lender for Home Renovations
Fairway Independent is a good option for borrowers looking to purchase a fixer-upper or those who prefer a remote closing experience. But it doesn’t show sample rates online.
This lender has an A+ rating from the BBB and is available in all 50 states.
Fairway Independent Mortgage Corporation Review
Other Mortgage Lenders We Considered
- Bank of America: Bank of America offers competitive down payment assistance programs, but you’ll need at least a 640 credit score to get an FHA loan.
- Chase: Chase is a good lender overall, but it also requires a 640 credit score.
- Better.com: Better.com provides a smooth online experience and charges low fees, but you’ll need a minimum 620 credit score.
- Veterans United: Although Veterans United is a strong lender that offers FHA loans, its main focus is VA loans.
- Regions: You might like using Regions, but the bank only has branches in certain parts of the US.
- US Bank: US Bank requires a 640 credit score to get an FHA loan.
- Citibank: This bank received decent customer satisfaction ratings from J.D. Power, but an F rating from the BBB.
- Paramount Bank: You might like Paramount as an online lender, but it doesn’t show customized rates on its website.
- NBKC Bank: You’ll need at least a 640 credit score to get an FHA loan with this lender.
- Pennymac: Pennymac requires a 620 score on its FHA loans, and it ranks low on J.D. Power’s customer satisfaction survey.
- Flagstar Bank: This bank has received an A+ from the BBB, but J.D. Power ranks it pretty low in customer satisfaction.
- Mr. Cooper: J.D. Power ranks Mr. Cooper as below average for customer satisfaction.
- Caliber Home Loans: You can find lenders with better customer satisfaction ratings from J.D. Power.
- LoanDepot: Loan Depot doesn’t provide FHA loan interest rates on its website.
- Guaranteed Rate: Guaranteed Rate is a solid FHA lender, but in 2020 it settled allegations that it pressured underwriters into lying so that the government would insure FHA and VA loans
- Freedom Mortgage: J.D. Power ranks Freedom Mortgage low for customer service.
- Wells Fargo: Due to some recent scandals, Wells Fargo has received an F rating from the BBB. It also only lends to existing customers.
- Truist: You might like Truist, but it just scored average on J.D. Power’s annual survey.
- PNC Bank: This is a good lender overall, but you’ll need a 620 credit score to get an FHA loan.
Are these mortgage lenders trustworthy?
The Better Business Bureau grades companies based on responses to customer complaints, honesty in advertising, and transparency about business practices. Here are the BBB grades for our top mortgage lenders:
Most of our top picks have an A+ from the BBB. The exception is Carrington, which has an NR (“no rating”) because it’s currently responding to previously-closed complaints, and New American Funding. Broker Solutions Inc., New American Funding’s legal name, entered into a consent order with the Commonwealth of Massachusetts in January 2023 to settle allegations that the company facilitated unlicensed mortgage activities in the state.
In 2020, Guild Mortgage paid the United States $24.9 million when it was accused of approving FHA mortgages for people who didn’t qualify, resulting in loan defaults.
Mortgage and Refinance Rates by State
Check the latest rates in your state at the links below.
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