Best FHA Loan Lenders
Not everyone has the ability to put down 20% on a new home purchase. FHA loans are one way the U.S. government has decided to help Americans achieve the dream of owning a home. Your credit score doesn’t have to be perfect to apply for an FHA loan, and you will only have to to put down 3.5% on your home.
Top 3 Best FHA Loan Lenders
When weighing the top FHA lenders we considered which lenders are most likely to provide a superior experience for home buyers and a mortgage that is affordable in the long run. When choosing top FHA lenders, we considered interest rates, customer service, transparent pricing, minimum credit scores, debt-to-income ratio requirements, additional services and consumer reviews.
Best FHA lender overall
One of AmeriSave Mortgage’s specialties is FHA mortgages. Refinancing into an FHA mortgage, either from a conventional loan or an existing FHA loan, is also an option. AmeriSave offers upfront rates (interest rates and APRs) for FHA loans and FHA refinancing on their website, taking into account the loan amount, loan-to-value ratio, geographical location and credit score. It takes an average of 33 days for borrowers to move from AmeriSave guaranteeing a rate to the actual funding. Terms are available in the length of 5, 7, 10, 15, 20, 25 or 30 years with both fixed and adjustable rates.
Applicants can receive incentives ranging from $250–$4,500 for purchasing homes within AmeriSave’s affiliated network. Applicants can also choose for closings to be held at their home or a local AmeriSave office. Throughout the process, each applicant will be able to rely on a dedicated loan officer and loan processor for assistance. General customer service is available from 7 am to 4 pm CST. AmeriSave is licensed in the District of Columbia and every state except New York and Iowa.
Best FHA lender for bad credit:
You may know JG Wentworth from their famous TV commercial jingle, but they are also a good choice for an FHA loan, especially if you are struggling with poor credit. JG Wentworth offers a variety of loan types at different rates, and they are willing to work hard to make the loan work for you, even if you have low credit. Loans come with both fixed and adjustable rates. Unlike some other companies, JG Wentworth does not use points. Their fixed-rate loans come in terms of 15, 20 and 30 years. Adjustable-rate loans are available in 3/1, 5/1, 7/1 and 10/1 terms. If you are looking to buy a fixer-upper, it’s worth looking into one of JG Wentworth’s FHA 203(k) loans.
JG Wentworth’s “Close-On-Time Guarantee” means that, if your loan doesn’t close on time, they’ll foot the bill for your first month’s mortgage, up to $2,500. You are also able to lock rates that you like for up to 60 days. Consumers can to apply online on the JG Wentworth website. The process is entirely digital, including the pre-application process and correspondences afterward by email. If you would prefer to speak to a real person, a licensed loan specialist can assist you. However, there are physical locations in only 15 states. JG Wentworth is licensed for business in 45 states and the District of Columbia. Mortgages are unavailable in Hawaii, Missouri, Montana, Nevada and New York.
Best online FHA lender:
Homebridge Financial is known for their efficient, easy-to-use online services. Creating an account online allows consumers to speak to mortgage loan originators directly and track their application throughout the entire process. These local mortgage loan originators can meet with you in person or guide you through the process online. Homebridge also have a wealth of educational material and tools on their website, making it easy for homebuyers to learn the ins and outs of the FHA loan application process.
Homebridge has physical locations in 30 states but is licensed for business in all 50 states. Homebridge’s minimum credit score of 550 for FHA loans (and all other government-backed loans) is one of the lowest around, making it an appropriate choice for those with weaker credit. The company is a good choice if you are looking to refinance an existing FHA loan, whether that be for lower payments, shorter pay-off term, lower interest costs or cash out. Homebridge also offers FHA 203(k) loans for those who are interested in renovating their home. The company’s FHA Energy Efficient mortgages are a good choice for those looking to save money on utilities by converting their house into an energy-efficient home. Last of all, Homebridge’s FHA 203(h) loans help homeowners rebuild after a natural disaster.
How to apply for an FHA loan
- Check if you qualify for an FHA loan
Almost anyone can qualify for an FHA loan. The minimum requirements include having a credit score of at least 500 and a debt-to-income ratio of 43 percent or less, including your new mortgage payment.
- Find an FHA mortgage lender and get pre-approved
Get quotes from a few FHA-approved lenders to see which one can offer you the best rate on your FHA mortgage. You can get pre-approved at this stage so you know what your budget is.
- Complete the FHA loan application
Once you have found the house you want to buy, it’s time to fill out your FHA loan application with your chosen lender. Applying for an FHA loan can often be done online, or you can submit paperwork directly to your mortgage lender.
- Get an FHA appraisal
All homes bought with an FHA loan are subject to an appraisal to ensure the home is up to the FHA’s standards and to determine what the value is.
The appraisal might determine that your home needs renovating. If your new home requires significant renovations before you can move in, you can apply for an FHA 203(k) loan, which will help you cover the cost of renovating or fixing your home once you buy it. Your renovation will need to be complete within six months.
- Sign closing documents
The process of applying for and closing on an FHA loan can take anywhere from a few weeks to a few months. Having an efficient underwriter and mortgage lender can make the difference between getting in your home quickly or having to wait an extra month, so make sure to do your homework and choose a lender with a reputation for an efficient closing process.
Top 10 Best FHA Lenders
Read 1273 Reviews
This online marketplace connects consumers with lenders. Credit score of 640-750 required. FHA, VA, USDA and Community Homebuyer loans require a minimum down payment of 0-10%; conventional loans require a 5-20% down payment.
Read 2804 Reviews
This lender offers fixed rate, adjustable rate, FHA, jumbo, HARP, VA and USDA loans, along with cash-out refinances. A minimum credit score of 620 is required for conventional products; 580 for FHA, VA and USDA loans.
Read 4174 Reviews
This lender offers conventional, FHA, VA and jumbo loans along with fixed or adjustable rates. 580 minimum credit score required for FHA; 620 for VA and conventional. Fast, online application process with no additional fees.
Read 731 Reviews
This nationwide mortgage lender offers VA, FHA, jumbo, HARP and conventional loans. No hidden fees. Most loans are funded within 30 days. Track loan progress via an online portal.
|Homebridge Financial Services|
Read 806 Reviews
This national, privately held, non-bank lender requires minimum down payments of 0-20%. A minimum 550 credit score is required for government-backed loans. Conventional, VA, FHA and home mortgage loans available.
|J.G. Wentworth Home Lending|
Read 252 Reviews
This direct mortgage lender offers conventional, fixed rate, adjustable rate, FHA, VA, USDA and HARP loans. No points or hidden fees. Minimum credit score of 580.
|Wells Fargo Mortgage|
Read 1365 Reviews
This national lender requires a minimum down payment of 3% and a minimum credit score of 620. FHA, VA, jumbo, new construction, renovation and VA loans available along with adjustable and fixed rates.
|Bank of America Mortgages|
Read 2832 Reviews
This lender requires a minimum down payment of 3% with no reserve funds required in most situations. A minimum credit score of 660 is also required. FHA, VA, home equity and refinance loans are available.
Read 90 Reviews
This lender offers fixed-rate, adjustable-rate and jumbo mortgages in addition to FHA and VA loans. Doctor Loan program and Construction-to-Permanent financing program are also available.
|1st Choice Mortgage||Read 6 Reviews|
This lender specializes in FHA loans and also offers a 3% down purchase program, lease-purchase, bank statement loans, rental property loans and bankruptcy buyouts.
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