Best online mortgage lenders of July 2024

Better offers competitive rates for conventional mortgages and jumbo loans as well as mortgages backed by the Federal Housing Administration (FHA) and Department of Veterans Affairs (VA). For starters, you won’t pay application, origination or underwriting fees.

Homebuyers in 20 states can get up to $2,000 in lender credits to put toward their closing costs by purchasing a home with the help of a participating real estate agent. The lender’s Better Buying Guarantee will also provide up to $3,500 in lender-paid credits if you decide to refinance within three years of your initial closing.

You can complete the entire mortgage application process online, and it’s possible to receive a customizable preapproval letter within a few minutes. Additionally, you could close on your mortgage up to 10 days sooner than the national average.

• Interest rates: Below national average.
• DTI ratio: Up to 50%.
• Perks: No origination, application or underwriting fees, several promotions to reduce closing costs, offers non-commissioned real estate agents.
• Preapproval time: As little as 3 minutes.
• Time to close: Typically 3 to 6 weeks after rate lock.

Closing costs can be surprisingly expensive—usually 2% to 6% of your home’s purchase price—but Rocket Mortgage makes it easy to earn closing cost discounts through its Rocket Rewards program. First, you can complete short online tasks such as reading articles, watching videos and using loan calculators to earn reward points. Then, you can redeem your points for credits to put toward your closing costs.

This online lender offers a wide variety of home purchase and mortgage refinancing options, including loans for less-qualified borrowers. For example, it’s possible to qualify for an FHA loan with a median 580 credit score versus the 620 required for most other loan types.

Conventional, VA and jumbo loans are also available. Unfortunately, Rocket Mortgage doesn’t offer USDA loans, and the closing process can take a month or longer, which is potentially longer than other lenders on this list.

• Interest rates: Below national average.
• DTI ratio: Up to 45% for most loans.
• Perks: Redeem rewards points for closing cost credits, no application fee.
• Preapproval time: Around 24 hours.
• Time to close: 30 to 45 days.

Mr. Cooper makes it easy to compare annual percentage rates (APRs) and repayment options for multiple types of loans. These include conventional and jumbo loans as well as FHA and VA loans. Streamline refinances and cash-out refinances are available, too.

Depending on the loan program, you may be able to make a down payment as low as 3% of the home’s purchase price for a conventional loan or 3.5% for an FHA loan. You can also qualify for an FHA home loan with a credit score as low as 580.

You can receive a personalized rate quote by email or phone after submitting your mortgage details online as well as a free 45-day rate lock after your initial preapproval.

Mr. Cooper also has one of the most valuable on-time closing guarantees. If your closing date gets delayed for a qualifying reason, the lender will reimburse the first month’s principal and interest payment. Additionally, existing Mr. Cooper customers can qualify for 0.50% in discount points on a new purchase loan.

• Interest rates: Below national average.
• DTI ratio: Does not disclose.
• Perks: On-time closing guarantee, 45-day fee-free rate lock.
• Preapproval time: Typically 24 hours.
• Time to close: 30 to 40 days on average.

SoFi accepts down payments as low as 3% from qualified borrowers, which could make it a good option for first-time homebuyers. All other borrowers will need a 5% minimum down payment. Keep in mind that private mortgage insurance (PMI) applies to conforming loans with a loan-to-value (LTV) ratio above 80%—meaning a down payment lower than 20%.

Using a pre-screened local real estate agent through the lender’s HomeStory program lets you receive rebates worth up to $9,500. You may also receive a $2,000 closing guarantee if your loan doesn’t close on time.

You can apply for conventional and jumbo home purchase loans. Home equity lines of credit (HELOCs) of up to 95% of your equity and mortgage refinancing are also available. Unfortunately, this lender doesn’t offer government home loans such as those backed by the FHA, VA or USDA.

SoFi offers a variety of banking, investing and lending products that can satisfy your other financial needs, too. It’s also possible to enroll in the SoFi Member Rewards program to earn rewards points on qualifying activities that you can redeem for cash rewards or to put toward eligible loans.

• Interest rates: Below national average.
• DTI ratio: Up to 36%.
• Perks: $2,000 on-time closing guarantee, 3% down payment accepted for first-time homebuyers and rate lock for up to 90 days.
• Preapproval time: Does not disclose.
• Time to close: Does not disclose.

You won’t pay lender fees when you apply for an Ally fixed-rate, adjustable-rate or jumbo loan. Standard mortgage refinancing and cash-out refinancing are also available without lender fees.

This online lender doesn’t offer FHA, VA or USDA loans, but it’s possible to qualify for Fannie Mae’s HomeReady Mortgage program, which only requires a 3% down payment and accepts DTI ratios as high as 50%.

If you’d prefer, Ally provides the option to work with a mortgage loan officer to compare your options, which won’t slow down the closing process. Ally discloses that the average time to close is approximately 10 days faster than the industry average.

• Interest rates: Below national average.
• DTI ratio: Up to 50% on select loans.
• Perks: No lender fees, accepts down payments as low as 3% with select loans.
• Preapproval time: Within a few minutes.
• Time to close: A few weeks to a few months.