2025’s top lenders for home buyers
Which is the best mortgage lender? That depends on your credit score, down payment, and how much home you can afford.
Still, the best mortgage lenders all offer low interest rates, reasonable lender fees, and flexible loan options for a range of borrowers.
We used the latest federal HMDA data—the most reliable source on mortgage loans—to spotlight 10 lenders known for competitive mortgage rates and a simple, straightforward home-buying process.
Choose your best mortgage lender. Start here
Editor’s note: The Mortgage Reports may be compensated by some of these lenders if you choose to work with them. However, that does not affect our rankings.
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10 best mortgage lenders in 2025
| Lender | Mortgage Reports Rating | Credit Score (FHA Loan) | Credit Score (Conventional Loan) | Avg. Interest Rate | Avg. Origination Fee |
| Veterans United* | 5.0 | 580 | 620 | 6.40 | $1,991 |
| NBKC | 5.0 | 620 | 620 | 6.33 | $957 |
| Lennar Mortgage | 4.7 | 580 | 620 | 5.34 | $2,486 |
| Guaranteed Rate | 4.6 | 580 | 620 | 6.64 | $2,918 |
| PennyMac | 4.6 | 580 | 620 | 6.34 | $4,955 |
| Sage | 4.6 | 580 | 620 | 6.34 | $2,607 |
| ARK-LA-TEX Financial | 4.6 | 580 | 620 | 6.51 | $2,570 |
| Citizens Bank | 4.6 | 620 | 620 | 6.44 | $2,944 |
| PNC | 4.6 | 620 | 620 | 6.63 | $2,057 |
| Guild Mortgage | 4.5 | 540 | 620 | 6.39 | $4,113 |
Source: Home Mortgage Disclosure Act data via FFIEC, 2024 Modified LAR. Historical average rates are for comparison purposes only; your interest rate will be different.
*These lenders specialize in select loan types and may not help every borrower.
What is a mortgage?
A mortgage is a type of home loan that helps you buy a house without paying the full price upfront. You borrow money from a lender, agree to monthly payments, and pay the loan back over time, usually 15 to 30 years. The loan is secured by the home itself, meaning the lender can take the property if you stop paying. Most mortgage loans come with interest rates, lender fees, and closing costs, and may require a down payment. Common loan options include conventional loans, FHA loans, VA loans, and USDA loans.
How does a mortgage work?
A mortgage works by breaking your loan amount into smaller payments made each month over the life of the loan. Your payment typically covers the loan principal, interest, property taxes, homeowners insurance, and sometimes private mortgage insurance (PMI) if your down payment is under 20%.
The type of mortgage you choose, like a fixed-rate mortgage or an adjustable-rate mortgage, affects how your interest rate behaves over time. Your credit history, debt-to-income ratio (DTI), and income help determine your loan terms. If you refinance later, you can change your interest rate and loan length, or even tap into your home equity.
Check your home buying options. Start here
Types of mortgage loans
Most financial institutions offer several major types of mortgage loans, each designed to meet different needs based on your credit score, down payment, loan amount, and homeownership goals.
Conventional loans
Conventional mortgages are the most common type of home purchase loan. These loans usually require a minimum credit score of 620 and a down payment requirement of at least 3%. However, if your down payment is under 20%, you’ll have to pay private mortgage insurance (PMI). But you can drop PMI once you’ve paid off at least 20% of the loan balance or reached 20% home equity.
Compare conventional loan rates from multiple lenders. Start here
Government-backed loans
These mortgage loan programs are insured by the federal government and help borrowers qualify with lower credit scores and down payment requirements.
- FHA loans: Backed by the Federal Housing Administration, these loans require just 3.5% down and accept lower credit scores, but include mortgage insurance premiums (MIP) for the life of the loan.
- VA loans: Backed by the Department of Veterans Affairs, these loans are available to veterans and active-duty military. They require no minimum down payment or mortgage insurance, though a one-time VA funding fee applies.
- USDA loans: Offered through the U.S. Department of Agriculture, these are for home buyers in eligible rural areas. They require no minimum down payment but charge upfront and annual guarantee fees.
Refinance loans
Refinancing replaces your current mortgage loan with a new one, usually to get a lower interest rate, change your loan terms, or take cash out from your home equity. A cash-out refinance lets homeowners tap the difference between their home’s value and their current balance. Refinance options are available across conventional loans, FHA loans, and VA loans.
Verify your new refinance rate. Start here
Second mortgages
A second mortgage lets homeowners tap into their home equity without refinancing or selling. These loan products come in two main forms: home equity loans and home equity lines of credit (HELOCs). Both turn home equity into cash, but how you borrow and repay differs.
- Home Equity Loans give you a lump sum based on your loan amount, which you’ll repay over a set loan term with a fixed interest rate. These loans work well for large, one-time expenses. A mortgage calculator can help estimate your monthly payment.
- HELOCs offer a revolving line of credit that works like a credit card. You borrow what you need, when you need it, and pay interest only on what you use. HELOCs are useful for ongoing costs or emergency funds.
How to compare mortgage lenders
Our picks for the best mortgage lenders lean toward large, national mortgage companies. They’re widely available, rated by federal agencies, and easy to compare. But don’t overlook credit unions, local lenders, or a good mortgage broker. The best lender for you depends on your goals, your credit score, and the type of mortgage you’re applying for.
1. Find a lender that works for your situation
Some lenders are better for first-time home buyers with smaller down payments. Others offer lower interest rates to borrowers with strong applications. The only way to know where you’ll get the best deal is to shop around.
2. Compare Loan Estimates
Start by requesting rate quotes from multiple lenders, then apply with at least three to compare official Loan Estimates. Each lender is required to provide a Loan Estimate after you apply. This standardized document includes the mortgage interest rate, APR, loan terms, closing costs, and monthly payment, so you can compare loan options side by side.
3. Look beyond rates and fees
The best lender isn’t always the one offering lower interest rates. A lender offering down payment assistance, flexible loan programs, or a simpler online application process might be a better fit, even if their underwriting fees are slightly higher.
How to get the best mortgage rates
Your mortgage rate depends on how “good” your application looks to lenders. To get the lowest rate, you need a high credit score, a solid down payment, little debt, and other features that make you look like a responsible borrower.
Compare rates from multiple lenders. Start here
With that in mind, there are steps you can take leading up to your mortgage application to ensure you get the best rate possible:
- Shop around with 3–4 lenders minimum
- Compare loan offers carefully
- Check your credit report and dispute errors in your credit history to improve your score
- Pay down debts to keep your debt-to-income ratio (DTI) low
- Keep credit card balances below 30% of your limit
- Watch out for closing costs, especially the loan origination fee, which varies a lot by lender
- Consider buying discount points to lower your rate if you have extra cash upfront
Some lenders sneakily reduce the rates they offer in their quotes by assuming you’re going to buy discount points. Others don’t.
There’s nothing wrong with discount points if you want them. But you need to compare rates on an equal footing. So, make sure your loan estimates factor in the same number of points.
Choosing the right type of home loan
Choosing the right loan type matters as much as the lender. It affects your eligibility, your interest rate, and how much you’ll pay over time.
Here’s a brief overview of the five main types of mortgage loans:
| Min. Down Payment | Min. Credit Score | Mortgage Insurance Required? | Special Eligibility Requirements | |
| Conforming Loan | 3% | 620 | Yes, with <20% down | No |
| FHA Loan | 3.5% | 580 | Yes | No |
| VA Loan | 0% | N/A (Often 620) | No | Must have military service history |
| USDA Loan | 0% | 640 | Yes | Must buy in a rural area |
| Jumbo Loan | 10-20% | 680-700 | Yes, with <20% down | Loan amount above conforming loan limits |
The right loan depends on your priorities. Want the lowest down payment? The smallest monthly mortgage payment? Need more flexibility because of your credit score?
Check out our full guide to types of home loans to see what fits.
Find the best loan for you. Start here
Steps to get a mortgage loan
Getting a home loan is a big part of buying a home. Here’s what the mortgage process usually looks like.
Find the best mortgage for you. Start here
- Figure out what you can afford. Look at your income, credit score, and monthly budget so you know how much house you can take on.
- Start saving for a down payment. Most mortgage options have some kind of down payment requirement. The more you put down, the less you’ll owe and the lower your monthly payment will be.
- Get preapproved by a lender. A lender will check your finances and tell you how much they’re willing to lend. A preapproval letter shows sellers you’re serious.
- Find a home and make an offer. Once you’re preapproved, you can shop with confidence. When you find a place you like, work with your real estate agent to put in an offer.
- Do a home inspection and appraisal. These help make sure the home’s in good shape and worth the price. Your lender will usually require both.
- Work with your lender to finalize the loan. You’ll lock your interest rate, review your loan terms, and wrap up the application process.
- Close the deal and move in. You’ll sign the paperwork, pay your closing costs, and get the keys to your new place.
FAQs about the best mortgage lenders in 2025
Based on ratings, Veterans United, NBKC, and Lennar Mortgage stand out as the best mortgage lenders in 2025. Veterans United earned a perfect 5.0 rating, though it primarily serves VA loan borrowers. For most home buyers, NBKC offers strong overall value with low origination fees and competitive interest rates. Lennar Mortgage is another top choice, with nationwide availability and a wide range of loan options.
The lenders and banks with the lowest average interest rates from our review include Lennar Mortgage (5.34%), NBKC (6.33%), and Veterans United (6.40%). Your actual mortgage rate will depend on your credit score, loan amount, and financial profile.
The lowest 30-year mortgage rate ever recorded was 2.65% in January 2021, during the COVID-19 pandemic. Rates have since risen, now averaging around 6% to 7%, depending on the type of loan and the borrower.
It’s not always better to go through a bank. The right choice depends on your goals and overall affordability. Banks like Chase or Bank of America offer in-person service, which some home buyers prefer for working directly with a loan officer. Online lenders like Rocket Mortgage may offer faster approvals and lower interest rates. If you’re applying for a VA loan, a lender like Veterans United could be a better fit.
Yes, both VA loans and USDA loans offer 0% down payment options for eligible homebuyers. Other loan programs like FHA loans require at least 3.5% down, and conventional loans start at 3% down.
If your down payment is less than 20% on a conventional loan, you’ll likely have to pay private mortgage insurance (PMI). PMI can be removed once you reach 20% home equity. Some lenders offer lender-paid PMI or loan options that help reduce upfront costs.
A fixed-rate mortgage gives you predictable monthly payments and a locked-in interest rate. An adjustable-rate mortgage (ARM) starts with a lower rate that can change over time. Most homebuyers choose fixed rates for stability unless they plan to move or refinance soon.
You can get a Fannie Mae or Freddie Mac loan through most conventional lenders. However, these agencies don’t lend directly. Instead, they back conventional mortgages offered by banks, credit unions, and online lenders.
To get a lower mortgage interest rate, aim for a credit score of 720 or higher, save for a larger down payment, and compare Loan Estimates from at least three lenders. Shopping around is one of the most effective ways to find the best rate for your loan type.
Best mortgage lenders: Methodology
To find the best mortgage lenders, we started with a list of the 50 biggest lenders last year by non-commercial loan origination volume, which is the most recent data available at the time of writing per the Consumer Financial Protection Bureau’s Home Mortgage Disclosure Act (HMDA) Data.
- We compared mortgage companies based on third-party data including average 30-year fixed interest rates and median origination costs, as well as online customer experience and a review of each lender’s mortgage offerings by our editorial team.
- Average interest rates and fees were sourced from loan-level data lenders are required to file each year under the HMDA Act.
All mortgage lender reviews are carried out independently by The Mortgage Reports’ editorial team. You can read our full editorial disclosures here.
Recap: The 10 best mortgage lenders
To recap, here are our picks for the 10 best mortgage lenders in 2025:
- Veterans United
- NBKC
- Lennar Mortgage
- Guaranteed Rate
- PennyMac
- Sage
- ARK-LA-TEX Financial
- Citizens Bank
- PNC
- Guild Mortgage
Remember, mortgage rates change daily. So once you find a lender you like, keep an eye out for low rates and be prepared to lock in. You can get a head start by requesting personalized rate estimates below.
Time to make a move? Let us find the right mortgage for you
1The Mortgage Reports Score is based on an independent review by our editorial board of each mortgage lender’s loan offerings, requirements, customer service reviews, and online accessibility
2Minimum credit score reflects the minimum score required by each lender for an FHA loan at the time of writing
3Average loan costs sourced from loan-level data lenders are required to file each year under the Home Mortgage Disclosure Act. Data shown here represents the most recent year available at the time of writing
Written by: Maggie Overholt