11 Best Mortgage Lenders for First-Time Home Buyers in 2021
These mortgage lenders cater to first-time home buyers with low down payments, grant programs and educational materials.
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For first-time home buyers, finding the right mortgage can be a big challenge. You want to work with a lender that can give you the best rate, the right term and the lowest closing costs, as quickly and efficiently as possible.
NerdWallet has picked some of the best mortgage lenders for first-time home buyers in a variety of categories so you can quickly decide which one is right for you.
For first-time home buyers, finding the right mortgage can be a big challenge. You want to work with a lender that can give you the best rate, the right term and the lowest closing costs, as quickly and efficiently as possible.
NerdWallet has picked some of the best mortgage lenders for first-time home buyers in a variety of categories so you can quickly decide which one is right for you.
Best Mortgage Lenders for First-Time Home Buyers in 2021
| Lender | NerdWallet Rating | Min. Credit Score | Min. Down Payment | Learn More |
|---|---|---|---|---|
 Quicken Loans: NMLS#3030 Learn more at Quicken Loans | Best for online experience | 620 | 3% | Learn more at Quicken Loans |
 NBKC: NMLS#409631 Learn more at NBKC | Best for online experience | 620 | 3% | Learn more at NBKC |
 NASB: NMLS#400039 Learn more at NASB | Best for first-time home buyers overall | 620 | 3% | Learn more at NASB |
 Ally Bank: NMLS#181005 Learn more at Ally Bank | Best for conventional loans | 620 | 3% | Learn more at Ally Bank |
 New American Funding: NMLS#6606 Learn more at New American Funding | Best for nontraditional credit | 620 | 3% | Learn more at New American Funding |
 Bank of America: NMLS#399802 Learn more at Bank of America | Best for assistance programs | 620 | 5% | Learn more at Bank of America |
 Chase: NMLS#399798 Learn more at Chase | Best for first-time home buyers overall | 620 | 3% | Learn more at Chase |
 Alliant: NMLS#197185 | Best for low down payments | N/A | 3% | Read review |
 Navy Federal: NMLS#399807 | Best for veterans | N/A | 0% | Read review |
 SunTrust (Truist): NMLS#2915 | Best for low down payments | 620 | 3% | Read review |
 Flagstar: NMLS#417490 | Best for low down payments | 620 | 3% | Read review |
at Quicken Loans
Quicken Loans: NMLS#3030
Min. Credit Score
620Min. Down Payment
3%at Quicken Loans
at Ally Bank
Ally Bank: NMLS#181005
Min. Credit Score
620Min. Down Payment
3%at Ally Bank
at New American Funding
New American Funding: NMLS#6606
Min. Credit Score
620Min. Down Payment
3%at New American Funding
at Bank of America
Bank of America: NMLS#399802
Min. Credit Score
620Min. Down Payment
5%National / Regional
Nationalat Bank of America
Alliant: NMLS#197185
National / Regional
NationalMin. Down Payment
3%Navy Federal: NMLS#399807
National / Regional
NationalMin. Down Payment
0%SunTrust (Truist): NMLS#2915
Min. Credit Score
620Min. Down Payment
3%Flagstar: NMLS#417490
Min. Credit Score
620Min. Down Payment
3%How do I choose a mortgage lender?
Once you have an idea of the type of mortgage you're looking for, finding the right lender may be easier than you think — especially when you compare at least three lenders and let them compete for your business. It's likely one lender's mortgage package will rise above the others’ — with a lower rate and lower fees.
More from NerdWallet
Last updated on December 1, 2021
Methodology
NerdWallet's star ratings for mortgage lenders are awarded based on our evaluation of the products and services each lender offers to consumers who are actively shopping for the best mortgage. The five key areas we evaluated include the variety of loan types and products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available Home Mortgage Disclosure Act data. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.
To recap our selections...
NerdWallet's Best Mortgage Lenders for First-Time Home Buyers in 2021
- Quicken Loans: Best for online experience
- NBKC: Best for online experience
- NASB: Best for first-time home buyers overall
- Ally Bank: Best for conventional loans
- New American Funding: Best for nontraditional credit
- Bank of America: Best for assistance programs
- Chase: Best for first-time home buyers overall
- Alliant: Best for low down payments
- Navy Federal: Best for veterans
- SunTrust (Truist): Best for low down payments
- Flagstar: Best for low down payments
Frequently asked questions
The best mortgage for you as a first-time home buyer is the loan for which you're most qualified. And that depends on a number of factors, including your credit score. With a credit score of at least 580, you may find that a loan backed by the FHA is your best option. With a credit score around 620 or higher, a conventional loan might be a better option, and could require an even lower down payment of 3%.
Many grants, special loans and down payment assistance programs are available to borrowers looking to buy their first home. These first-time home buyer programs are offered by agencies in the state where you live.
The loan program that's easiest to qualify for is an FHA-backed loan. That's because FHA loan requirements allow a lower credit score and less stringent debt-to-income guidelines than conventional loans. However, if you’re a first-time buyer with strong credit, conventional loans may allow even lower minimum down payments than an FHA loan.
