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10 Best Lenders for FHA Loans in January 2022

FHA loans offer several benefits including lower down payments and more lenient requirements. Compare some of the top FHA lenders to find the right fit for your needs.

NerdWallet

Jan 6, 2022

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You might think all Federal Housing Administration lenders are the same. But when you’re looking for an FHA loan, it’s always smart to shop at least three lenders. Their mortgage rates and fees can differ substantially, plus lenders' requirements for approval for an FHA loan vary.

NerdWallet has picked some of the best FHA lenders in a variety of categories so you can quickly determine which one is right for you.

» MORE: Compare FHA mortgage rates

Tap to learn how COVID-19 may affect mortgage shopping

The coronavirus pandemic introduced some new challenges to getting a mortgage. Many lenders facing high loan demand and staffing issues increased their fees, adjusted minimum required credit scores or temporarily suspended certain loan products. While some products and business practices have returned to pre-pandemic levels, you might still find delays and limited options. If you can’t pay your current home loan, refer to our mortgage assistance resource. For information on how to cope with financial stress during this pandemic, see NerdWallet’s financial guide to COVID-19.

You might think all Federal Housing Administration lenders are the same. But when you’re looking for an FHA loan, it’s always smart to shop at least three lenders. Their mortgage rates and fees can differ substantially, plus lenders' requirements for approval for an FHA loan vary.

NerdWallet has picked some of the best FHA lenders in a variety of categories so you can quickly determine which one is right for you.

» MORE: Compare FHA mortgage rates

Tap to learn how COVID-19 may affect mortgage shopping

The coronavirus pandemic introduced some new challenges to getting a mortgage. Many lenders facing high loan demand and staffing issues increased their fees, adjusted minimum required credit scores or temporarily suspended certain loan products. While some products and business practices have returned to pre-pandemic levels, you might still find delays and limited options. If you can’t pay your current home loan, refer to our mortgage assistance resource. For information on how to cope with financial stress during this pandemic, see NerdWallet’s financial guide to COVID-19.

Best Lenders for FHA Loans in January 2022

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at Rocket Mortgage, LLC

Rocket Mortgage, LLC: NMLS#3030

4.0

NerdWallet rating

Min. Credit Score

620

National / Regional

National

Learn more

at Rocket Mortgage, LLC

Why we like it

Good for: borrowers who appreciate convenience online and on the go for a fully digital home loan experience with consistently acclaimed customer service.

Pros

Caters to self-service users who want to apply for a home loan online and talk to a human only as necessary.
Estimates the loan amount you’ll qualify for within minutes.
Streamlines the online process with document and asset retrieval capabilities, including the ability to edit your preapproval letter.

Cons

Getting a customized interest rate requires a credit check, which can affect your credit score.
Doesn't offer home equity loans or lines of credit.
Lender fees are on the high side and the fees aren't offset by particularly low mortgage rates, according to the latest data.

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at New American Funding

New American Funding: NMLS#6606

5.0

NerdWallet rating

Min. Credit Score

640

Min. Down Payment

3.5%

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at New American Funding

Why we like it

Good for: borrowers who need to be evaluated on the basis of nontraditional credit and those interested in various down payment assistance programs.

Pros

Uses manual underwriting to evaluate creditworthiness.
Offers full online mortgage application, rate quotes, document upload and loan tracking.

Cons

Mortgage origination fees tend to be on the high end, according to the latest federal data.

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at PennyMac

PennyMac: NMLS#35953

4.5

NerdWallet rating

Min. Credit Score

620

Min. Down Payment

3.5%

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at PennyMac

Why we like it

PennyMac excels in online capabilities and makes it easy to shop rates online. Average origination fees are higher than other lenders, and home equity lines of credit and jumbo mortgages were suspended due to the COVID-19 pandemic.

Pros

Offers a full range of online capabilities, including e-signatures and online loan process tracking.
Displays custom rate quotes based on home value, down payment or equity, ZIP code and credit score range.

Cons

Origination fees are on the higher end, according to the latest federal data.
Doesn't offer jumbo mortgages or home equity lines of credit.

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Carrington: NMLS#2600

4.5

NerdWallet rating

Min. Credit Score

500

Min. Down Payment

3.5%

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Why we like it

Good for: first-time home buyers or credit-challenged borrowers interested in government loan products.

Pros

Offers multiple low-down-payment loan programs.
May consider alternative credit data, such as bank statements and rent payments.
You can view customized rates for purchasing a home and apply online.

Cons

Doesn't offer home equity loans, HELOCs or renovation mortgages.
Lender fees and mortgage rates are on the high side, according to the latest data.

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Caliber: NMLS#15622

4.0

NerdWallet rating

Min. Credit Score

580

Min. Down Payment

3.5%

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Why we like it

Good for: first-time home buyers, veterans and those who may have credit challenges to overcome.

Pros

Offers extensive educational resources for military borrowers.
Provides digital tools for a streamlined application process.
Participates in some state down payment assistance and first-time home buyer programs.

Cons

No mortgage rates displayed online.
Doesn’t offer home equity loans or lines of credit.

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at Fairway Independent Mortgage

Fairway Independent Mortgage: NMLS#2289

3.5

NerdWallet rating

Min. Credit Score

640

Min. Down Payment

3.5%

Learn more

at Fairway Independent Mortgage

Why we like it

Good for: borrowers who want access to a wide variety of mortgages and the convenience of a comprehensive mobile application process.

Pros

Offers a robust suite of loan products, including a variety of renovation loans.
Has a digital application that can be completed in 10 minutes.
Works with some state housing finance agencies to offer mortgages with down payment and closing cost assistance.

Cons

Mortgage rates aren't posted online.
Origination fees are on the high side and are not offset by low rates, according to the latest data.

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PrimeLending: NMLS#13649

3.5

NerdWallet rating

Min. Credit Score

580

Min. Down Payment

3.5%

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Why we like it

Good for: borrowers looking for closing cost assistance, as well as those seeking to renovate or to build a new home.

Pros

Full online application includes document uploads and automated loan updates.
Offers a "float-down" interest rate lock.
Offers a proprietary closing-cost assistance program.

Cons

No online mortgage rates — you have to contact the lender for info.

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Guild Mortgage: NMLS#3274

4.0

NerdWallet rating

Min. Credit Score

N/A

Min. Down Payment

3.5%

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Why we like it

Good for: borrowers who value customer service, and first-time home buyers and others who may need the flexibility of a low-down-payment loan program.

Pros

Offers multiple online conveniences, including a full mortgage application, e-signatures and digital loan process tracking.
Offers a wide variety of loan products, including home improvement and manufactured home loans.

Cons

Does not offer home equity loan products.
Origination fees tend to be on the higher end, according to the latest data.

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Mr. Cooper: NMLS#2119

3.5

NerdWallet rating

Min. Credit Score

580

Min. Down Payment

3.5%

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Why we like it

Good for: borrowers looking for lower credit score requirements and those who don’t mind fully remote customer service.

Pros

Offers a robust digital experience.
Will consider alternative credit data for FHA borrowers.

Cons

Requires a call or email for personalized rates.
Does not offer home equity loans or lines of credit, or home improvement loans.

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Freedom Mortgage: NMLS#2767

3.5

NerdWallet rating

Min. Credit Score

500

Min. Down Payment

3.5%

Read review

Why we like it

Freedom offers a typical range of home loan options, but rates are not available on its website.

Pros

Offers conventional, FHA, VA, USDA and jumbo loans.
Multiple customer service options, including brick-and-mortar branches and online appointment setting.

Cons

No mortgage rates displayed online.
Does not offer home equity loans or lines of credit.

Read Full Review

Qualifying for an FHA loan

To qualify for an FHA loan, you'll need a credit score of at least 500 with a 10% down payment. To determine if you’re eligible for the lowest FHA down payment — just 3.5% — underwriters will look for a score of 580 or higher. You’ll also need to have a debt-to-income ratio of 50% or less.

In addition to money for your down payment, you'll also need funds to cover FHA closing costs and an upfront mortgage insurance premium, which for FHA borrowers is 1.75% of the loan amount. Both the upfront insurance premium and the closing costs can be rolled into the total amount of the mortgage.

Bear in mind that these are the FHA's qualification guidelines; individual lenders usually impose additional rules which can be stricter. That's just one reason it's worth comparing several lenders. You can start with the lenders we have here, but you can also look at the Department of Housing and Urban Development's searchable list of approved FHA lenders.

Are FHA loans only for first-time home buyers?

No, you do not need to be a first-time home buyer to use an FHA loan. Lower credit score minimums and down payments certainly make FHA loans attractive to first-time home buyers, but current homeowners are eligible, too. In fiscal year 2020, about 83% of FHA purchase loans were made to first-time home buyers — which means 17% went to borrowers who were already homeowners.

» MORE: How to qualify for first-time home buyer benefits

Can you get an FHA loan if you have student loans?

Yes, you can get an FHA loan if you have student loan debt, though you'll still have to meet FHA debt-to-income requirements. FHA student loan guidelines state that lenders must include all student loans when calculating a borrower's debt-to-income ratio. If your payments are currently deferred, your lender will consider your "monthly obligation" to be 1% of your total student loan balance.

» MORE: How student loans impact getting a mortgage

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 four key areas we evaluated include the variety of loan types offered, ease of application, mortgage rate transparency, and our analysis of the rates and fees 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 Lenders for FHA Loans in January 2022

Rocket Mortgage, LLC: Best for online experience
New American Funding: Best for first-time home buyers
PennyMac: Best for overall FHA loan experience
Carrington: Best for nontraditional credit histories
Caliber: Best for veterans seeking FHA loans
Fairway Independent Mortgage: Best for online experience
PrimeLending: Best for online experience
Guild Mortgage: Best for customer service
Mr. Cooper: Best for lower credit score borrowers
Freedom Mortgage: Best for veterans seeking FHA loans

Frequently asked questions

Getting an FHA loan isn't especially different from what you'd do to get a conventional mortgage. You don't apply to the Federal Housing Administration itself; you’ll work with an FHA-approved mortgage lender that likely offers other types of home loans in addition to FHA loans.

FHA loan preapproval is similar to preapproval for other mortgage types, though you have to work with an FHA-approved lender. You'll need to provide documentation of your financial status, which can include employment history, bank account info and any current loan payments. Getting a mortgage preapproval from more than one FHA lender lets you compare not only rates but also all the fees and conditions each lender would apply.

Compare at least three FHA lenders when you're looking for an FHA loan, since FHA mortgage rates vary by lender. It's also important to remember that while the FHA sets minimum qualification guidelines, lenders can ask for higher credit scores or lower debt-to-income ratios. Lender fees can also vary, so try to look for the best combination of rates and fees. You can also run the numbers with an FHA mortgage calculator to estimate your monthly loan payments.

VA:	500
USDA:	550
JUMBO:	N/A
FHA:	500
CONVENTIONAL:	620