Qualifying for a mortgage with poor credit is more difficult, but not impossible with the right lender. 

If you have poor credit or a score below 580, qualifying for a mortgage can be more difficult than it is for those with higher scores. The good news is it is not impossible. Home loans are available for borrowers with scores as low as 500, if you choose the right lender and loan type. 

Read on for some of the best mortgage lenders for borrowers with poor credit. 

Quick Winners List

• Best for a Variety of Options: New American Funding
• Best for No Credit History: Guild Mortgage
• Best for Relationship Benefits: Citibank
• Best for Down Payment Assistance: CrossCountry Mortgage
• Best for Future Refinancing: LoanDepot

Best for a Variety of Options: New American Funding

Best For

A Variety of Options

Minimum Credit Score

620

get started securely through New American Funding’s website

More Details

Avg. Days to Close Loan

31-40

Minimum Credit Score

620

1 Minute Review

New American Funding is a lender that offers several types of mortgages, including conventional, FHA and VA loans. It has relatively low interest rates but a limited number of term options.

Best For

• Conventional loans: This is the most popular type of mortgage. These loans usually have the lowest fees but often have stricter requirements.
• FHA loans: These loans are designed for those with fair credit or who can’t afford as much of a down payment.
• Jumbo loan: These loans have larger maximum loan amounts and are geared toward high-income borrowers.
• VA loans: Veterans and current service members are eligible for VA loans with no down payment requirement.
• Refinancing: If you have a mortgage with a high interest rate, you can refinance to get a better deal.
• Adjustable rates: An adjustable-rate mortgage is desirable for those who believe interest rates will come down soon.
• Fixed rates: Fixed-rate mortgages are popular for people who want stability in their monthly payment.

Pros

• Offers mortgage refinance as well as new loan origination. Both new homebuyers and existing homeowners can shop for a mortgage with New American Funding.
• Has low interest rates. Borrowers looking for a good rate can find one with New American Funding.
• Several types of mortgages available. A few different mortgage options are available, so you’re not stuck with one type.
• Website offers homebuying resources. New American Funding’s website includes articles and tools that help buyers understand more about the homebuying process.

Cons

• Limited local branches. The lack of a local branch can be frustrating if you prefer an in-person experience. Not available in every state.
• New American Funding does not service New York and Hawaii residents.

Pros: 

• Wide variety of loan types
• Offers VA and FHA loans
• Educational resources for first-time homebuyers
• Check current rates online

Cons: 

• Higher credit score requirements on some loan types
• Physical branches not available in all states

Nitty Gritty: New American Funding is one of our top picks for variety, offering several kinds of home loans including VA and FHA loans, which have more flexible down payment requirements. It also has various options for non-traditional borrowers, including self-employed borrowers. It allows you to use bank statements to verify your income instead of trying to qualify with tax returns, W-2s or pay stubs, which you might not have with a fluctuating or lump-sum income.

New American Funding is also an excellent lender for first-time home buyers, offering educational resources to help first-timers understand the mortgage process. 

Best for No Credit History: Guild Mortgage

Best For

Closing Cost Credits

Minimum Credit Score

680

Compare Lenders

Pros: 

• Programs available for borrowers with no credit
• Variety of loan types
• Calculators for estimating payments, buying power and more
• Online application

Cons: 

• Not available in all states
• Interest rates not public

Nitty Gritty: If you don’t have a credit score, Guild Mortgage offers a path to homeownership with its Complete Rate program. It uses alternative data to qualify borrowers for a loan, including rental payment and utility bill history. The program is available for FHA, VA and USDA loans with low down payment options. Guild also offers a variety of mortgage calculators on its site to help you estimate affordability and buying power. 

Best for Relationship Benefits: Citibank

Best For

Interest Rate Discounts

Minimum Credit Score

620

Get started

More Details

Avg. Days to Close Loan

30

Minimum Credit Score

620

1 Minute Review

Citi Mortgage is just one arm of the larger Citibank, one of largest institutions in the country, providing credit cards, banking and loans to the general public and businesses. Citi Mortgage offers the HomeRun program that provides lower down payments, many loan types and branches you can visit, allowing you to shop around and get more for your money.

Best For

• Interest rate discounts
• HomeRun program
• Several loans to choose from

Pros

• Branches are available to visit
• The bank is large and offers a range of options that help keep costs down
• You can ask about programs for civil servants

Cons

• You may not have access to one of their offices

Pros: 

• Closing cost and interest rate discounts for existing customers
• First-time homebuyer resources
• Offers FHA and VA loans
• Down payment assistance program

Cons: 

• Slower approval times 
• Branches not available in all states

Nitty Gritty: Citibank is a large national bank offering several types of mortgage available to those with lower credit scores, including FHA and VA loans. The bank also offers relationship benefits to existing customers who apply for a mortgage, including savings on closing costs or lower interest rates depending on your balances in your eligible accounts. Additionally, Citi offers programs that make home buying more accessible, including both down payment assistance and low down payment options. 

Best for Down Payment Assistance: CrossCountry Mortgage

Best For

Self-employed Borrowers

Minimum Credit Score

620

get started securely through CrossCountry Mortgage’s website

More Details

Disclosure: Available in: CA, CO, CT, DC, FL, GA, IL, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VA, WA 

Avg. Days to Close Loan

30 – 40

Minimum Credit Score

620

1 Minute Review

CrossCountry Mortgage was started in 2003 by Ronald Leonhardt Jr., founder and CEO. Its headquarters is located in Cleveland, Ohio, but it’s licensed in all 50 states, D.C. and Puerto Rico, and it has over 700 branch locations across the country. Hopeful homeowners turn to CrossCountry Mortgage for its diverse portfolio of loan options, including conventional loans, Federal Housing Administration (FHA) loans, United States Department of Veterans Affairs (VA) loans and United States Department of Agriculture (USDA) loans.

 

Best For

• Self-employed professionals
• Retirees
• Investors
• Condo buyers

Pros

• Provides loans across all 50 states, D.C. and Puerto Rico
• 120 mortgage purchase, refinance and home equity solutions
• Can work with credit scores as low as 500
• Tax returns aren’t required
• Ideal for first-time homebuyers

Cons

• Doesn’t post rates online
• Underwriting process may take longer

Pros: 

• Down payment assistance programs available
• Offers FHA, USDA and VA loans
• Variety of non-QM loans for non-traditional income
• Educational resources for first-time homebuyers

Cons: 

• Rates aren’t published online
• Does not offer online preapproval

Nitty Gritty: CrossCountry Mortgage is one of Benzinga’s top choices for self-employed borrowers thanks to its flexible income verification options and various non-traditional loan types. In addition to conventional loans, the lender offers government-backed loans including FHA and VA loans, which can be more accessible to those with poor credit. If affording a down payment is a barrier to homeownership, you may be able to qualify for one of the lender’s down payment assistance programs as well, of which the mortgage provider has several options to choose from. 

Best for Future Refinancing: LoanDepot

Best For

Comparing Lenders

Minimum Credit Score

620

Compare Lenders

More Details

Avg. Days to Close Loan

15

Minimum Credit Score

620

1 Minute Review

Loandepot is a clearinghouse for anyone to get a competitive loan quote and preapproval. There are several partners on the site who can provide  loans to consumers with a range of rates and terms available based on your credit rating.

Best For

• Comparing lenders
• Lots of information on the partners on the site
• Quality interface

Pros

• Apply quickly
• Get competitive rates
• Choose the loan that works best for your situation

Cons

• Not all partners can give you the best rates

Pros: 

• Lifetime Guarantee waives future refinancing fees
• Flexible loan terms available
• Offers FHA and VA loans
• “No steering” policy

Cons: 

• Can’t view rates online
• Fewer loan options than competitors

Nitty Gritty: Borrowers with lower credit scores don’t usually qualify for the best interest rates and terms. However, if you want to refinance down the line when your score improves, LoanDepot makes that process easier. The lender’s Lifetime Guarantee waives lender fees if you refinance in the future. LoanDepot offers conventional, FHA and VA loans, with some loans available to those with credit scores as low as 500. 

What Mortgage Can You Get With Poor Credit? 

Credit scores help lenders determine the amount of risk they take on extending a loan to a particular borrower and with a loan as large as a mortgage, mortgage providers need to ensure that you can pay back what you owe. 

“Typically, it’s really hard to get a mortgage with anything less than a 620 credit score,” said Christina McCollum, a Washington-based producing market leader for Churchill Mortgage. 

Even with Federal Housing Administration (FHA) loans, which have lower credit score requirements than other types of home loan, it can be hard to get approved with poor credit, said McCollum. 

Still, there may be options available for those with lower scores. 

For instance, veterans may qualify for a Department of Veterans Affairs (VA)-backed loan, which has more flexible credit and down payment requirements. 

“The VA has a higher threshold for risk, so you could have a lower credit score and higher debt-to-income ratio and still get an approval,” said McCollum.

However, if you don’t qualify for this type of loan, it can be more difficult to qualify for a mortgage. Additionally, loans you do qualify for will likely have less favorable terms than those offered to those with good credit. 

“In general, having a credit score above 700 can improve your chances of qualifying for more favorable interest rates and loan terms,” said Justin Zakocs, head of residential lending at Cambridge Savings Bank.

If you want to ensure you have plenty of options when shopping for a mortgage and can qualify for a good interest rate, you may want to consider working to improve your credit before buying a home. 

“Whether or not you should wait to buy a home until your credit improves depends on your personal financial situation and long-term goals…Waiting to improve your credit can offer several advantages, such as better interest rates, more favorable loan terms, increased chances of approval and lower monthly payments,” said Zakocs.

Just keep in mind that if you do put off a home purchase, you take the risk of interest rates or home prices rising. 

“As you weigh your options, consider how low your current credit score is, how quickly you might be able to improve it, the current conditions of the local real estate market, your overall financial situation and your long-term goals,” advised Zakocs. 

Why You Should Trust Us

Emily Sherman is a financial journalist with over seven years of experience writing about credit, banking and mortgages. She has written for publications including U.S. News & World Report and Buy Side from the Wall Street Journal. In addition to ensuring all information about lenders on this page is accurate according to their websites, she consults experts in mortgage lending to provide reputable advice on getting a mortgage with poor credit.  

Methodology 

Benzinga evaluates mortgage lenders based on various factors, including rates and fees, accessibility and customer service. We look for lenders that offer competitive interest rates, highly rated customer support systems and a variety of mortgage types for borrowers from all credit score ranges. Read our full methodology here. 

FAQ

Sources

• Christina McCollum, producing market leader for Churchill Mortgage
•  Justin Zakocs, head of residential lending at Cambridge Savings Bank

The post Best Mortgage Lenders for Poor Credit by Emily Sherman appeared first on Benzinga. Visit Benzinga to get more great content like this.

Online mortgage lenders allow prospective homebuyers to complete their entire mortgage process – from preapproval to closing – without meeting their lender face to face. Whether you are a first-time homebuyer or investor, looking for a new loan or refinance, you can complete the entire process online with one of these lenders. 

Quick Winners List

• Best Pre-Approval Process: Rocket Mortgage (formerly Quicken Loans)
• Best for Conventional Loans: New American Funding   
• Best for Nonconforming Mortgage Loans: Angel Oak Mortgage Solutions
• Best for Refinancing: Better.com
• Best for First-Time Home Buyers: Rate (formerly Guaranteed Rate)
• Best for Self-Employed Borrowers: CrossCountry Mortgage

Best for Pre-Approval Process: Rocket Mortgage

Best For

Online Mortgages

Minimum Credit Score

580

Get started securely through Rocket Mortgage (formerly Quicken Loans)’s website

More Details

Avg. Days to Close Loan

30

Minimum Credit Score

580

1 Minute Review

Rocket Mortgage (formerly known as Quicken Loans) is one of the best mortgage lenders on the market, making it easy to apply for a home loan entirely online. Its streamlined preapproval process and quick access to customer service set it apart from other online lenders. Rocket Mortgage offers a large variety of mortgages and is backed by the largest mortgage lender, Quicken Loans. Whether you need help or know exactly what you’re looking for, Rocket Mortgage matches you with the right mortgage type and helps you quickly complete your online application.

Best For

• Homebuyers who are looking to complete the mortgage application process on their own
• Homebuyers who have found their dream home and are looking to move through the approval process quickly
• Homebuyers with good credit scores looking to review their mortgage options
• Current homeowners looking to refinance within the next few months

Pros

• Rocket Mortgage allows you to move at your own pace, guiding you through each step of the process. After you answer all the application questions, Rocket Mortgage lets you know if you’re approved and show your personalized mortgage recommendations
• You can submit checking and savings account information, tax returns and other financial documents online — a feature that sets Rocket Mortgage apart from online competitors
• RateShield allows you to lock in your Rocket Mortgage approved rate for up to 90 days
• The home loan application process can be completed in minutes, allowing you to find out if you qualify for a mortgage right away
• The online software allows you to navigate through the entire home buying process, from approval to home closing. Once you’re approved and you make an offer on your home, Rocket Mortgage offers online tools that will help you move through the rest of the closing process

Cons

• While Rocket Mortgage has customer specialists ready to answer your questions and provide guidance, if you prefer sitting across from a person when filling out financial forms, this lender might not be right for you
• You can’t easily view all of Rocket Mortgage’s home loan options prior to applying. It offers conventional, FHA, USDA and VA loans, but you’ll need to apply to find out more about the mortgage types within these offerings and which ones you’re eligible for

Pros: 

• Offers variety of loan types
• Quick online application process
• View personalized rates online
• Highly rated customer service

Cons: 

• Fewer loan options than some competitors
• Rates can be higher 

Nitty Gritty: Rocket Mortgage, formerly known as Quicken Loans, is a popular online lender and one of the first to offer online closings. Borrowers can complete their entire mortgage process online, starting with a rate visualizer and quick prequalification process. The mortgage provider offers a variety of loan types, including Jumbo, FHA and VA loans, plus programs for first-time homebuyers. Though Rocket Mortgage doesn’t offer physical locations, you can contact customer support by phone or chat seven days a week. 

Specs: 

• Minimum credit score: 580
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA and Jumbo loans
• States served: 46 states (excluding Iowa, Maryland, Nevada and West Virginia)

Best for Conventional Loans: New American Funding

Best For

A Variety of Options

Minimum Credit Score

620

get started securely through New American Funding’s website

More Details

Avg. Days to Close Loan

31-40

Minimum Credit Score

620

1 Minute Review

New American Funding is a lender that offers several types of mortgages, including conventional, FHA and VA loans. It has relatively low interest rates but a limited number of term options.

Best For

• Conventional loans: This is the most popular type of mortgage. These loans usually have the lowest fees but often have stricter requirements.
• FHA loans: These loans are designed for those with fair credit or who can’t afford as much of a down payment.
• Jumbo loan: These loans have larger maximum loan amounts and are geared toward high-income borrowers.
• VA loans: Veterans and current service members are eligible for VA loans with no down payment requirement.
• Refinancing: If you have a mortgage with a high interest rate, you can refinance to get a better deal.
• Adjustable rates: An adjustable-rate mortgage is desirable for those who believe interest rates will come down soon.
• Fixed rates: Fixed-rate mortgages are popular for people who want stability in their monthly payment.

Pros

• Offers mortgage refinance as well as new loan origination. Both new homebuyers and existing homeowners can shop for a mortgage with New American Funding.
• Has low interest rates. Borrowers looking for a good rate can find one with New American Funding.
• Several types of mortgages available. A few different mortgage options are available, so you’re not stuck with one type.
• Website offers homebuying resources. New American Funding’s website includes articles and tools that help buyers understand more about the homebuying process.

Cons

• Limited local branches. The lack of a local branch can be frustrating if you prefer an in-person experience. Not available in every state.
• New American Funding does not service New York and Hawaii residents.

Pros: 

• Multiple loan types
• Offers educational resources and calculators 
• Offers FHA loans 
• Strong customer service and loan officer support

Cons: 

• Higher credit score requirement for some loan types
• Physical branches not available in all states

Nitty Gritty: While New American Funding does offer branch locations, it also allows borrowers to complete their mortgage application process online for a streamlined experience. The lender offers conventional loans with flexible repayment terms – including FHA loans and first-time homebuyer programs with down payment assistance – and Jumbo loans and non-QM loans for less traditional borrowers. Its website also hosts extensive educational content, such as calculators for estimating payments and a learning center with articles about all parts of the homebuying journey. 

Specs: 

• Minimum credit score: 580
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA, construction, USDA, non-QM, interest-only and Jumbo loans
• States served: All 50 states

Best for Nonconforming Mortgage Loans: Angel Oak Mortgage Solutions

Best For

Flexible Mortgage Options

Minimum Credit Score

600

get started securely through Angel Oak Mortgage Solutions’s website

More Details

Disclosure: Angel Oak Licensing and Disclosure Information

Avg. Days to Close Loan

30

Minimum Credit Score

600

1 Minute Review

Angel Oak Mortgage Solutions specializes in non-traditional mortgage products, making it a go-to for borrowers with unique financial situations, like self-employed individuals or those without traditional income verification. Angel Oak stands out for its flexible qualification options, including bank statement loans, asset-based loans, and programs for foreign nationals. However, these specialized loans often come with higher rates compared to conventional loans, and the company’s service area is limited, meaning not everyone can take advantage of their offerings.

Best For

• Self-employed borrowers or small business owners
• Investors seeking cash flow-based financing
• Borrowers with non-traditional income sources
• Individuals seeking flexible qualification criteria

Pros

• Offers a wide range of non-QM (non-qualified mortgage) loan products
• Flexible income verification options, including bank statements and assets
• Loans available for foreign nationals and ITIN holders
• Dedicated loan officers for personalized service

Cons

• Limited availability in some states
• Higher interest rates compared to conventional loans

Pros: 

• Flexible income verification options 
• Available to permanent and non-permanent U.S. residents
• Interest-only loans available 
• Dedicated loan officers

Cons: 

• Doesn’t operate in all states
• Nonconforming loans may have higher rates

Nitty Gritty: In addition to offering an online application process, Angel Oak Mortgage is one of our top picks for nonconforming mortgage loans, offering jumbo loans plus various programs for those with nontraditional income. These include asset qualifier mortgages, bank statement loans and 1099 income loans – which can be good options for self-employed borrowers or anyone with irregular income. 

Specs: 

• Minimum credit score: 640
• Minimum down payment: Not disclosed
• Loan types offered: Non-QM and Jumbo loans
• States served: Alabama, Arizona, Alaska, California, Colorado, Connecticut, Florida, Hawaii, Idaho, Indiana, Illinois, Kansas, Kentucky, Louisiana, Maine, Maryland, Mississippi, Minnesota, Michigan, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, Wyoming

Best for Refinancing: Better

Best For

The Online Experience

Minimum Credit Score

620

Get started

More Details

Avg. Days to Close Loan

21

Minimum Credit Score

620

1 Minute Review

Better.com is a fully digital mortgage lender known for its user-friendly online experience and lack of origination fees. Unlike traditional lenders, Better.com operates without commissioned loan officers, ensuring that their priority is finding the best mortgage for your needs, not theirs. The streamlined process is ideal for tech-savvy homebuyers who prefer a fast, transparent, and hassle-free experience. While Better.com’s digital approach is a major plus, it lacks certain government-backed loans like VA and USDA options, and it isn’t available in all states.

Best For

• Tech-savvy homebuyers who prefer an online experience
• First-time homebuyers looking for quick pre-approval
• Homebuyers seeking a no-fee mortgage process
• Borrowers interested in competitive refinancing options

Pros

• No application, origination, or commission fees
• Quick and straightforward online pre-approval process
• Rate lock available once tasks are completed
• User-friendly platform with 24/7 document upload capability

Cons

• Not available in all 50 states
• Does not offer VA or USDA loan

Pros: 

• Get personalized rates with no credit score impact
• AI tools for higher approval rates
• Offers refinancing and HELOCs
• High TrustPilot score

Cons: 

• Doesn’t offer USDA loans
• Fewer loan options than competitors

Nitty Gritty: Better Mortgage is another fully online lender with a quick and easy application process. New applicants can see customized rates in as little as three minutes, with a commitment letter in as little as 24 hours. In addition to its range of home purchase loans, Better offers a variety of refinancing loans, including cash-out refinancing. 

Specs: 

• Minimum credit score: 580
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA and Jumbo loans
• States served: All 50 states

Best for First-Time Homebuyers: Rate.com

Best For

Fast Payouts

Overall Rating

Read Review

Get started securely through Rate.com’s website

Pros: 

• Educational resources for first-time homebuyers
• Approval in as little as one day
• Quick online application process
• Operates in all 50 states

Cons: 

• Higher credit score requirements 
• Does not offer USDA loans

Nitty Gritty: Rate, formerly known as Guaranteed Rate, is another great option for borrowers looking for an online experience. The lender’s online application process can be completed quickly, with approvals offered in as little as one day. Rate also offers educational resources and down payment assistance programs for first-time homebuyers, making it easy to navigate the process. 

Specs: 

• Minimum credit score: 620
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA and Jumbo loans
• States served: All 50 states

Best for Self-Employed Borrowers: CrossCountry Mortgage

Best For

Self-employed Borrowers

Minimum Credit Score

620

get started securely through CrossCountry Mortgage’s website

More Details

Disclosure: Available in: CA, CO, CT, DC, FL, GA, IL, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VA, WA 

Avg. Days to Close Loan

30 – 40

Minimum Credit Score

620

1 Minute Review

CrossCountry Mortgage was started in 2003 by Ronald Leonhardt Jr., founder and CEO. Its headquarters is located in Cleveland, Ohio, but it’s licensed in all 50 states, D.C. and Puerto Rico, and it has over 700 branch locations across the country. Hopeful homeowners turn to CrossCountry Mortgage for its diverse portfolio of loan options, including conventional loans, Federal Housing Administration (FHA) loans, United States Department of Veterans Affairs (VA) loans and United States Department of Agriculture (USDA) loans.

 

Best For

• Self-employed professionals
• Retirees
• Investors
• Condo buyers

Pros

• Provides loans across all 50 states, D.C. and Puerto Rico
• 120 mortgage purchase, refinance and home equity solutions
• Can work with credit scores as low as 500
• Tax returns aren’t required
• Ideal for first-time homebuyers

Cons

• Doesn’t post rates online
• Underwriting process may take longer

Pros: 

• Wide variety of loan types including non-QM loans
• Down payment assistance available
• Lower credit score requirement for some loans 
• Educational resources available 

Cons: 

• Rates not posted online
• No online preapproval

Nitty Gritty: CrossCountry Mortgage is a great choice for nontraditional borrowers thanks to its wide variety of loan types, especially non-QM loans. The lender offers bank statement, 1099, P&L and asset-qualifier mortgages, which can be more flexible options for self-employed borrowers or others without steady income. CrossCountry Mortgage has more flexible credit score requirements on some of its loans – as low as 500 depending on the product.

Specs: 

• Minimum credit score: 500
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA, USDA, non-QM and Jumbo loans
• States served: All 50 states

What is an Online Mortgage Lender?

Online mortgage lenders operate similarly to traditional lenders. Still, the application, review and underwriting process is completed entirely online – rather than borrowers having to visit a physical bank to submit paperwork or documentation. Borrowers who apply for a mortgage online still have access to customer support and will be guided through the process by a representative. 

Why You Should Trust Us

Emily Sherman has over seven years of experience writing personal finance content and reviewing credit cards, loans and banking products. She has written financial content for various publications, including Benzinga, U.S. News & Bankrate. In addition to confirming all details about online lenders with the mortgage provider, she consulted mortgage experts to ensure that this story’s information is current. 

Methodology 

To choose the best online mortgage lenders, we compared lenders based on factors including various loan types, average time to close and minimum credit scores. We also considered customer experience including the online platform and customer service reputations per sources like TrustPilot and the Better Business Bureau. The best lenders offered accessible online mortgage applications in addition to these features. Read our full methodology here. 

FAQ

The post Best Online Mortgage Lenders in 2025 by Emily Sherman appeared first on Benzinga. Visit Benzinga to get more great content like this.

A credit score of 700 qualifies you for most kinds of mortgages, though your rates may not be as competitive as those with higher scores. 

If you’ve built a credit score of 700, your credit score is considered good, and you open the door to various loan products with more competitive rates and terms. This includes mortgages, as most types of loans – including conventional loans, USDA loans and jumbo loans – are available to borrowers with a 700 credit score. 

Still, every lender is different when qualifying for a mortgage, and you may not qualify for the best rates reserved for those with excellent credit. To find the best mortgage lender for a 700 credit score, consider the type of loan that best suits your needs and your other qualification factors, such as your debt-to-income (DTI) ratio and employment history. 

Quick Winners List

• Best Overall: New American Funding
• Best for Self-Employed Borrowers: CrossCountry Mortgage
• Best for First-Time Homebuyers: LoanDepot
• Best for In-Person Support: Chase Home Lending
• Best for Flexible Terms: SoFi

Best Overall: New American Funding

Best For

A Variety of Options

Minimum Credit Score

620

get started securely through New American Funding’s website

More Details

Avg. Days to Close Loan

31-40

Minimum Credit Score

620

1 Minute Review

New American Funding is a lender that offers several types of mortgages, including conventional, FHA and VA loans. It has relatively low interest rates but a limited number of term options.

Best For

• Conventional loans: This is the most popular type of mortgage. These loans usually have the lowest fees but often have stricter requirements.
• FHA loans: These loans are designed for those with fair credit or who can’t afford as much of a down payment.
• Jumbo loan: These loans have larger maximum loan amounts and are geared toward high-income borrowers.
• VA loans: Veterans and current service members are eligible for VA loans with no down payment requirement.
• Refinancing: If you have a mortgage with a high interest rate, you can refinance to get a better deal.
• Adjustable rates: An adjustable-rate mortgage is desirable for those who believe interest rates will come down soon.
• Fixed rates: Fixed-rate mortgages are popular for people who want stability in their monthly payment.

Pros

• Offers mortgage refinance as well as new loan origination. Both new homebuyers and existing homeowners can shop for a mortgage with New American Funding.
• Has low interest rates. Borrowers looking for a good rate can find one with New American Funding.
• Several types of mortgages available. A few different mortgage options are available, so you’re not stuck with one type.
• Website offers homebuying resources. New American Funding’s website includes articles and tools that help buyers understand more about the homebuying process.

Cons

• Limited local branches. The lack of a local branch can be frustrating if you prefer an in-person experience. Not available in every state.
• New American Funding does not service New York and Hawaii residents.

Pros: 

• Guaranteed closing in 14 business days on many loans 
• Educational resources for first-time homebuyers
• Wide variety of loan types
• Non-QM loans available

Cons: 

• Some fees not disclosed
• Limited branch locations in many states

Nitty Gritty: New American Funding offers various loan types for all kinds of borrowers, including FHA, VA, USDA, and non-QM loans. The lender also offers plentiful resources for first-time homebuyers, including educational content on its website and down payment assistance programs. Its loan application, approval and closing process are quick and easy, and the lender offers a 14-business-day loan closing guarantee on many of its loans. 

Specs: 

• Minimum credit score: 580
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA, construction, USDA, non-QM, interest-only and Jumbo loans
• States served: All 50 states

Best for Self-Employed Borrowers: CrossCountry Mortgage

Best For

Self-employed Borrowers

Minimum Credit Score

620

get started securely through CrossCountry Mortgage’s website

More Details

Disclosure: Available in: CA, CO, CT, DC, FL, GA, IL, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VA, WA 

Avg. Days to Close Loan

30 – 40

Minimum Credit Score

620

1 Minute Review

CrossCountry Mortgage was started in 2003 by Ronald Leonhardt Jr., founder and CEO. Its headquarters is located in Cleveland, Ohio, but it’s licensed in all 50 states, D.C. and Puerto Rico, and it has over 700 branch locations across the country. Hopeful homeowners turn to CrossCountry Mortgage for its diverse portfolio of loan options, including conventional loans, Federal Housing Administration (FHA) loans, United States Department of Veterans Affairs (VA) loans and United States Department of Agriculture (USDA) loans.

 

Best For

• Self-employed professionals
• Retirees
• Investors
• Condo buyers

Pros

• Provides loans across all 50 states, D.C. and Puerto Rico
• 120 mortgage purchase, refinance and home equity solutions
• Can work with credit scores as low as 500
• Tax returns aren’t required
• Ideal for first-time homebuyers

Cons

• Doesn’t post rates online
• Underwriting process may take longer

Pros: 

• Bank statement, 1099 and asset qualifier loans available 
• Variety of other loan types, including VA and USDA loans
• Accessible credit score requirements
• Educational resources for first-time homebuyers

Cons: 

• Must provide personal information to access rates
• No online pre-approval 

Nitty Gritty: CrossCountry Mortgage stands out for its flexibility and variety of loan options for many borrowers. The lender offers loans to borrowers with credit scores as low as 500. CrossCountry also provides various non-qualified mortgage loans that make it a great choice for self-employed borrowers without W-2 income, including 1099, bank statement and asset qualifier loans. 

Specs: 

• Minimum credit score: 500
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA, USDA, non-QM and Jumbo loans
• States served: All 50 states

Best for First-Time Homebuyers: LoanDepot

Best For

Comparing Lenders

Minimum Credit Score

620

Compare Lenders

More Details

Avg. Days to Close Loan

15

Minimum Credit Score

620

1 Minute Review

Loandepot is a clearinghouse for anyone to get a competitive loan quote and preapproval. There are several partners on the site who can provide  loans to consumers with a range of rates and terms available based on your credit rating.

Best For

• Comparing lenders
• Lots of information on the partners on the site
• Quality interface

Pros

• Apply quickly
• Get competitive rates
• Choose the loan that works best for your situation

Cons

• Not all partners can give you the best rates

Pros: 

• “No steering” policy
• Flexible loan terms available 
• Faster-than-average closing times
• First-time homebuyer program available

Cons: 

• Rates not disclosed online
• Fewer loan options than competitors

Nitty Gritty: LoanDepot is a direct mortgage lender boasting low rates and quick closing times. The lender offers both adjustable- and fixed-rate mortgages with flexible term options. The lender also has an excellent customer service reputation, high TrustPilot scores, and highly-rated mobile apps. Its website hosts a comprehensive learning center with resources for first-time homebuyers, who may qualify for a cash bonus when working with the lender. 

Specs: 

• Minimum credit score: 580
• Minimum down payment: 3.5%
• Loan types offered: Conventional, FHA, VA and Jumbo loans
• States served: All 50 states

Best for In-Person Support: Chase Home Lending

Best For

Banking and Mortgages

Minimum Credit Score

620

get started

More Details

Avg. Days to Close Loan

21

Minimum Credit Score

620

1 Minute Review

Chase Bank is one of the largest institutions of its kind in America providing a wide range of banking services for millions of customers, including mortgages and refinancing of all types with competitive rates.

Best For

• Banking and mortgages
• In-person applications
• Powerful mobile app

Pros

• Customer care inside the branch, including loan experts
• Many loan programs
• Nationwide coverage

Cons

• You may not have Chase branches near you

Pros: 

• Extensive branch network
• Variety of loan programs
• Guaranteed on-time closing
• Relationship rates and discounts available for existing Chase customers

Cons: 

• Full application process cannot be completed online
• Not all products available in all states

Nitty Gritty: Chase Home Lending can be a great option for borrowers who prefer in-person support, offering an extensive network of branch locations where you can speak with a loan officer. It offers several loan types, including conventional, FHA and VA loans, and its DreaMaker loan provides lower down payments for eligible first-time homebuyers. Eligible loans are backed by an on-time closing guarantee as well. 

Specs: 

• Minimum credit score: Not disclosed
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA and Jumbo loans 
• States served: All U.S. states

Best for Flexible Terms: SoFi

Best For

Current SoFi Members

Minimum Credit Score

620

get started securely through SoFi®’s website

More Details

Avg. Days to Close Loan

28

Minimum Credit Score

620

1 Minute Review

SoFi is an online lender most well known for its student loan refinancing services. It first began offering mortgages in 2014 and became a great asset for current SoFi members looking for a mortgage. It was one of the first lenders to offer an entirely online mortgage lending process. In the mortgage space, SoFi is known for offering as little as 10% down payments on all of its mortgage products, including jumbo loans.

Best For

• Borrowers who want a lower down payment
• Current SoFi members
• Homeowners looking to refinance

Pros

• Down payments can be as low as 10%
• Can finance mortgages for up to $3 million
• Discounts for SoFi members

Cons

• Not available in every state
• Does not offer government-backed loans such as FHA, USDA or VA loans

Pros: 

• Flexible loan terms available
• On-time closing guarantee
• Online pre-approval
• View personalized rates online

Cons: 

• Higher minimum credit score requirements than some competitors
• No USDA loans

Nitty Gritty: SoFi Mortgage offers transparency and flexibility to its borrowers, thanks to personalized online rates with no impact on your credit score, a variety of available loan terms and a streamlined online application process. It requires slightly higher minimum credit scores on some of its loans than competitors but still offers several options for those with good credit. Plus, its loans are backed with an on-time closing guarantee. 

Specs: 

• Minimum credit score: 600
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA and Jumbo loans
• States served: All U.S. states except New York

Is 700 a Good Credit Score?

If you have a credit score of 700, you are considered to have a “good” score. FICO – a credit scoring company used by most lenders – defines good scores as between 670 and 739. Scores over 740 are considered “very good,” and scores over 800 are considered “exceptional.”

That means if you score over 700, you are more likely to qualify for loans with better terms, including mortgages. 

“A 700 FICO is generally considered to be strong and should qualify a borrower for most mortgage products,” said Scott Bridges, chief consumer direct lending production officer at Pennymac. 

You may qualify for even better interest rates and terms if your score is higher. 

How to Choose a Mortgage Lender if You Have a 700 Credit Score

With a credit score of 700, you are eligible for most types of mortgages, as long as you meet other requirements. 

“This score typically opens access to conventional loans backed by government-sponsored entities (Fannie Mae and Freddie Mac), government-backed loans (FHA, VA), and nonconventional loans (second lien home equity loans and jumbo products),” said Bridges. 

Choosing a mortgage lender will therefore come down to the type of loan best suited for you, rates and fees and customer experience. For instance, if you want to purchase a more expensive home than the conforming loan limits (CLL) established for conventional loans, you’ll want to consider a jumbo mortgage and compare terms from lenders offering this type of loan. 

It’s also important to consider that credit score is just one factor determining mortgage eligibility, so your other qualifications will factor into your decision. 

“Beyond credit scores, lenders will typically assess debt-to-income ratios, property value and payment histories to help determine mortgage eligibility,” said Bridges. 

Before beginning your search for a mortgage lender, consider your needs and qualifications to find the right type of loan for your situation. From there, you can compare interest rates and fees from multiple lenders to pick the right fit. 

Why You Should Trust Us

Benzinga provides expert real estate and personal finance content to more than 25 million readers. Emily Sherman has written about personal finance content for more than seven years for publications including Bankrate and U.S. News & World Report, in addition to Benzinga. To ensure all the information presented in this article is accurate, Emily relies on data sourced directly from mortgage lenders and credit scoring companies and expert insight from an industry professional. 

Methodology 

To compare the best mortgage lenders for a 700 credit score, we analyzed lenders based on criteria including their rates and fees, variety of loan options, application process and customer experience. We prioritize lenders who offer a wide range of products for those with credit scores in all ranges. In addition to lender-provided information about rates, fees and loan options, we sourced customer experience data from TrustPilot and the Better Business Bureau. Read our full methodology here. 

FAQ

Sources

• Scott Bridges, chief consumer direct lending production officer at Pennymac. 
• Information on credit scores and average interest rates sourced from MyFICO.

The post Best Mortgage Lenders for a 700+ Credit Score by Emily Sherman appeared first on Benzinga. Visit Benzinga to get more great content like this.

These lenders offer jumbo loans over $1 million with competitive terms. 

If you’re looking at a home costing more than $1,000,000, you will need a jumbo mortgage. Conventional loans are capped at just over $800,000 in most of the country, according to limits set by the Federal Housing Finance Agency (FHFA). The good news is that there are plenty of top mortgage providers for jumbo loans over $1 million, though credit score requirements may be stricter. 

We compared interest rates, fees and other terms to identify the best lenders for mortgages over $1 million. Read on for our top picks. 

Quick Winners List

• Best for Easy Online Application: Rocket Mortgage
• Best for Refinancing: New American Funding
• Best for Large Jumbo Loans: Chase Home Lending
• Best for Interest-Only: PNC Bank
• Best for Quick Pre-Approval: Guaranteed Rate
• Best for Jumbo VA Loans: Veterans United 

Best for Easy Online Application: Rocket Mortgage

Best For

Online Mortgages

Minimum Credit Score

580

Get started securely through Rocket Mortgage (formerly Quicken Loans)’s website

More Details

Avg. Days to Close Loan

30

Minimum Credit Score

580

1 Minute Review

Rocket Mortgage (formerly known as Quicken Loans) is one of the best mortgage lenders on the market, making it easy to apply for a home loan entirely online. Its streamlined preapproval process and quick access to customer service set it apart from other online lenders. Rocket Mortgage offers a large variety of mortgages and is backed by the largest mortgage lender, Quicken Loans. Whether you need help or know exactly what you’re looking for, Rocket Mortgage matches you with the right mortgage type and helps you quickly complete your online application.

Best For

• Homebuyers who are looking to complete the mortgage application process on their own
• Homebuyers who have found their dream home and are looking to move through the approval process quickly
• Homebuyers with good credit scores looking to review their mortgage options
• Current homeowners looking to refinance within the next few months

Pros

• Rocket Mortgage allows you to move at your own pace, guiding you through each step of the process. After you answer all the application questions, Rocket Mortgage lets you know if you’re approved and show your personalized mortgage recommendations
• You can submit checking and savings account information, tax returns and other financial documents online — a feature that sets Rocket Mortgage apart from online competitors
• RateShield allows you to lock in your Rocket Mortgage approved rate for up to 90 days
• The home loan application process can be completed in minutes, allowing you to find out if you qualify for a mortgage right away
• The online software allows you to navigate through the entire home buying process, from approval to home closing. Once you’re approved and you make an offer on your home, Rocket Mortgage offers online tools that will help you move through the rest of the closing process

Cons

• While Rocket Mortgage has customer specialists ready to answer your questions and provide guidance, if you prefer sitting across from a person when filling out financial forms, this lender might not be right for you
• You can’t easily view all of Rocket Mortgage’s home loan options prior to applying. It offers conventional, FHA, USDA and VA loans, but you’ll need to apply to find out more about the mortgage types within these offerings and which ones you’re eligible for

Pros: 

• Quick online application process
• Flexible credit requirements
• Jumbo loan minimum down payment of 10%
• Highly rated customer service

Cons: 

• Maximum loan amount is lower than competitors
• No physical branches

Nitty Gritty: Rocket Mortgage (formerly Quicken Loans) is a fully online mortgage provider, offering a streamlined online application and approval process. It offers a variety of loan types, including jumbo loans of up to $3 million for properties that exceed the conforming loan limit (CLL). To qualify, you’ll need a minimum credit score of at least 680, a 10% or higher down payment, and a DTI ratio below 45%, all of which are relatively flexible terms for large loan amounts. 

Best for Refinancing: New American Funding

Best For

A Variety of Options

Minimum Credit Score

620

get started securely through New American Funding’s website

More Details

Avg. Days to Close Loan

31-40

Minimum Credit Score

620

1 Minute Review

New American Funding is a lender that offers several types of mortgages, including conventional, FHA and VA loans. It has relatively low interest rates but a limited number of term options.

Best For

• Conventional loans: This is the most popular type of mortgage. These loans usually have the lowest fees but often have stricter requirements.
• FHA loans: These loans are designed for those with fair credit or who can’t afford as much of a down payment.
• Jumbo loan: These loans have larger maximum loan amounts and are geared toward high-income borrowers.
• VA loans: Veterans and current service members are eligible for VA loans with no down payment requirement.
• Refinancing: If you have a mortgage with a high interest rate, you can refinance to get a better deal.
• Adjustable rates: An adjustable-rate mortgage is desirable for those who believe interest rates will come down soon.
• Fixed rates: Fixed-rate mortgages are popular for people who want stability in their monthly payment.

Pros

• Offers mortgage refinance as well as new loan origination. Both new homebuyers and existing homeowners can shop for a mortgage with New American Funding.
• Has low interest rates. Borrowers looking for a good rate can find one with New American Funding.
• Several types of mortgages available. A few different mortgage options are available, so you’re not stuck with one type.
• Website offers homebuying resources. New American Funding’s website includes articles and tools that help buyers understand more about the homebuying process.

Cons

• Limited local branches. The lack of a local branch can be frustrating if you prefer an in-person experience. Not available in every state.
• New American Funding does not service New York and Hawaii residents.

Pros: 

• Wide variety of loan types, including jumbo loans
• Jumbo loan refinancing available 
• Offers educational resources, including calculators and home-buying guides
• Competitive rates

Cons: 

• Not available in all states
• Higher credit score requirements for jumbo loans 

Nitty Gritty: If you are looking for a jumbo loan to refinance your home, it can be even more difficult to find the right mortgage, as credit score requirements can be stricter than with a new home purchase. New American Funding features flexible loan offerings, including jumbo loan refinancing. The lender offers personalized service so you can find the loan that fits your needs and comprehensive educational resources on its website to navigate the process. 

Best for Large Jumbo Loans: Chase Home Lending

Best For

Banking and Mortgages

Minimum Credit Score

620

get started

More Details

Avg. Days to Close Loan

21

Minimum Credit Score

620

1 Minute Review

Chase Bank is one of the largest institutions of its kind in America providing a wide range of banking services for millions of customers, including mortgages and refinancing of all types with competitive rates.

Best For

• Banking and mortgages
• In-person applications
• Powerful mobile app

Pros

• Customer care inside the branch, including loan experts
• Many loan programs
• Nationwide coverage

Cons

• You may not have Chase branches near you

Pros: 

• High loan amounts available 
• Relationship rates and discounts available for existing Chase customers
• Guaranteed on-time closing
• Offers interest-only jumbo loans 

Cons: 

• Additional asset requirements may apply for loans over $3 million
• Entire application process cannot be completed online

Nitty Gritty: Chase Home Lending offers jumbo mortgages of up to $9.5 million for borrowers looking for particularly large jumbo loans. An on-time closing guarantee backs eligible mortgages, and the lender offers flexible terms, including interest-only loans. Plus, existing Chase customers with qualifying balances may qualify for relationship pricing for lower rates and fees. 

Best for Interest-Only: PNC Bank

Best For

Discounted Rates

Minimum Credit Score

N/A

Get started

More Details

Avg. Days to Close Loan

N/A

Minimum Credit Score

N/A

1 Minute Review

PNC Bank offers quite a bit of information on home equity and mortgages and how to get a mortgage or home equity line of credit. Rate reductions are available along with promo rates that are more affordable than most other banks. Start your application online today to get the cash you need or so that you can buy into your cream home. Mortgage rates are competitive and you only pay interest on what you use when taking out home equity.

Best For

• Discounted rates
• Fixed and variable rates
• Easy online application

Pros

• Choose the rate and HELOC or mortgage you want
• Apply online for easy approval
• Pay interest only on what you use for home equity

Cons

• Some may not qualify

Pros: 

• Offers jumbo loans up to $5 million
• Interest-only loans available 
• Educational tools, including a closing cost calculator
• Offers flexible loan terms 

Cons: 

• Limited branch locations
• Below-average J.D. Power Mortgage Servicer Satisfaction rating

Nitty Gritty: PNC Bank is another great option for borrowers looking to borrow over $1 million. The lender offers jumbo loans of up to $5 million with flexible terms, including interest-only payments. In addition to competitive fees, the lender offers online tools for estimating loan costs, including a closing cost calculator. 

Best for Quick Preapproval: Guaranteed Rate

Best For

Personalized support

Minimum Credit Score

620

get started

More Details

Avg. Days to Close Loan

28 – 32

Minimum Credit Score

620

1 Minute Review

No matter where you live in the U.S., you can use Rate’s services. It has an online application that could get you a mortgage loan in just a day. As of Feb. 13, 2025, Rate says that the national mortgage rate is 6.905% for a 30-year fixed loan, 6.217% for a 15-year fixed loan, 6.552% for a Federal Housing Administration (FHA) loan and 6.47% for a United States Department of Veterans Affairs (VA) loan.

Best For

• All online process
• Low down payment options
• Conventional, FHA and VA loans available

Pros

• Approval in as little as 24 hours
• Online application process
• Available in all 50 states and Washington, D.C.
• Hundreds of branches across the country
• Posts rates online

Cons

• A 620 credit score is generally needed for every loan type
• Some higher fees than other lenders
• No United States Department of Agriculture (USDA) loans

Pros: 

• Access personalized rates online
• Quick online application process
• Available in all 50 states 
• Educational resources available 

Cons: 

• Higher minimum credit score than some competitors
• Some fees on the higher side

Nitty Gritty: Rate (formerly Guaranteed Rate) offers jumbo loans with a quick, online approval process. Borrowers can explore their personalized rates online and start their application online, with approvals in as little as one day. If you prefer in-person support while applying for your jumbo loan, the lender also offers branch locations in most U.S. states. 

Best for Jumbo VA Loans: Veterans United

Best For

Current Service Members

Minimum Credit Score

620

Get started

More Details

Avg. Days to Close Loan

30

Minimum Credit Score

620

1 Minute Review

Veterans United focuses on VA Loans, which are government-backed loans guaranteed by the U.S. Department of Veterans Affairs to help veterans and active-duty servicemembers buy homes. Veterans United is licensed in all 50 states and the District of Columbia and is the top VA lender in the country. If you’re currently serving or if you’re a veteran, Veterans United is worth considering due to its outstanding customer service and range of mortgage options.

Veterans United’s advisors come from each military branch to ensure it’s taking care of its clients. You can visit its website to learn more about VA loans and the homebuyer process in general and its Lighthouse Program can help you get ready to buy if you’re not quite there yet. It offers strong support if you’ve served our country.

“Nobody handles VA loans better than Veterans United,” says real estate investor Sergio Aguinaga, owner and founder of Michigan Houses for Cash. “Their process is smooth, the support is great and they truly get military buyers. But, of course, the con is that they are only for veterans.”

Best For

• Current service members
• Veterans
• First-time home buyers

Pros

• 24/7 customer service
• Offers VA purchase and refinance loans
• Offers credit consulting through its Lighthouse Program
• Staff from every military branch

Cons

• Only has branches in only 18 states
• Must be a veteran to qualify

Pros: 

• No down payment requirement
• Lower credit score minimum than other lenders
• Competitive interest rates
• Serves all U.S. states

Cons: 

• Must be an active duty military member or veteran to qualify
• Stricter requirements for jumbo loans

Nitty Gritty: Veterans can qualify for more flexible application terms on a VA loan, and that goes for both conventional mortgages and jumbo loans. Veterans United is one of the top VA loan providers, backed by the Department of Veterans Affairs (VA), if you qualify for this type of mortgage. Its jumbo loans are available with no down payment, though you may need a higher credit score than the standard 620 minimum.

How to Qualify for a $1,000,000 Mortgage 

A $1,000,000 mortgage is usually considered a jumbo loan, meaning that qualification requirements may vary from those of conventional mortgages. 

“Each year, the conforming loan limits, set by Fannie Mae and Freddie Mac, increase. This is typically the barrier between what distinguishes a conforming loan vs. a jumbo loan. For most of the U.S., the conforming loan limit increased to $806,500 for a single-unit property in 2025. This means that any loan amount above $806,500 would be considered a non-conforming loan, or jumbo loan. In some higher-priced markets, the limit increases to $1,209,750,” said Brian Shahwan, vice president, mortgage banker and broker with William Raveis Mortgage. 

If you are applying for a jumbo loan – which is the case for most borrowers looking for more than $1 million – the eligibility requirements can be stricter than other loans. 

Shahwan explained that the process for evaluating mortgage eligibility for a jumbo loan is generally the same as a conventional one. The qualifications may just be a bit harder to meet. 

“In terms of guidelines, most banks offering jumbo loan products cap the DTI (debt-to-income) ratio at [43%], FICO not below 700 and more aggressive reserve requirements may be required. There may also be higher down-payment minimums as well. Though many require 20% down for jumbo loans, there are lenders who allow for much less down,” Shahwan said. 

To qualify for a $1,000,000 mortgage, you’ll need a good credit score, a low debt-to-income ratio and a healthy down payment. Actual requirements will vary by lender. 

Why You Should Trust Us

All the information presented in this article was verified based on data available on the mortgage lender sites, FHFA guidelines and expert insight from a seasoned mortgage broker. For various publications, Emily Sherman also has more than seven years of experience writing about personal finance topics, including mortgages. 

Methodology 

To find the best mortgage lenders for borrowing $1,000,000, we compared lenders that offered jumbo loans based on key criteria for borrowers. This included credit score requirements, with preference given to lenders who could accommodate a larger range of scores, interest rates compared to the industry average, fees, average length of closing and customer support. The best lenders offered loans with a lower minimum credit score requirement, competitive rate and highly rated customer support, according to sources such as TrustPilot and the Better Business Bureau. Read our full methodology here. 

FAQ

Sources

• Brian Shahwan, vice president, mortgage banker and broker with William Raveis Mortgage

The post Best Mortgage Lenders for Borrowing $1,000,000+ by Emily Sherman appeared first on Benzinga. Visit Benzinga to get more great content like this.

This type of loan lets investors purchase property with less documentation, though rates may be higher. 

If you’re looking for a mortgage for an investment property, a conventional loan can be cumbersome, requiring you to qualify for funding based on your income. Luckily, several non-traditional mortgage options, such as asset-based mortgages and debt service coverage ratio – or DSCR – loans, can be particularly beneficial to investors.  

“DSCR programs allow for much less documentation from a borrower, which makes them an ideal product for investors with multiple properties in their portfolio or those looking for a reduced doc approach. Eliminating the need for personal income documents, including tax returns, also allows for a more streamlined process,” said Brian Shahwan, vice president, mortgage banker and broker at William Raveis Mortgage in New York. 

While qualifying for these loans may be easier in some respects, they can also come with higher interest rates and more stringent repayment requirements. Read on to learn more about DSCR loans, who they are best for and our top picks for lenders offering this kind of mortgage. 

Quick Winners List

• Best for Interest-Only Loans: Angel Oak Mortgage Solutions
• Best for No Ratio DSCR Loans: A&D Mortgage
• Best for Competitive Interest Rates: Kiavi
• Best for Multi-Family Properties: Truss Financial Group
• Best for High Loan Amounts: Griffin Funding

Best for Interest-Only loans: Angel Oak Mortgage Solutions

Best For

Flexible Mortgage Options

Minimum Credit Score

600

get started securely through Angel Oak Mortgage Solutions’s website

More Details

Disclosure: Angel Oak Licensing and Disclosure Information

Avg. Days to Close Loan

30

Minimum Credit Score

600

1 Minute Review

Angel Oak Mortgage Solutions specializes in non-traditional mortgage products, making it a go-to for borrowers with unique financial situations, like self-employed individuals or those without traditional income verification. Angel Oak stands out for its flexible qualification options, including bank statement loans, asset-based loans, and programs for foreign nationals. However, these specialized loans often come with higher rates compared to conventional loans, and the company’s service area is limited, meaning not everyone can take advantage of their offerings.

Best For

• Self-employed borrowers or small business owners
• Investors seeking cash flow-based financing
• Borrowers with non-traditional income sources
• Individuals seeking flexible qualification criteria

Pros

• Offers a wide range of non-QM (non-qualified mortgage) loan products
• Flexible income verification options, including bank statements and assets
• Loans available for foreign nationals and ITIN holders
• Dedicated loan officers for personalized service

Cons

• Limited availability in some states
• Higher interest rates compared to conventional loans

Pros: 

• Offers multiple non-QM loans, including DSCR loans
• Available to permanent and non-permanent U.S. residents
• Interest-only loan options are available 
• High LTV ratio

Cons: 

• Higher credit score requirements for max LTV
• Max of five loans allowed with lender

Nitty Gritty: Angel Oak Mortgage Solutions is a great choice for non-traditional borrowing, offering a variety of non-traditional qualification loans, including bank statement loans, asset-based mortgages and DSCR loans. Its DSCR loan offers flexible terms, with no ratio options available. Loans are available from $100,000 to $3 million, with repayment terms such as interest-only offered. No personal income or employment information is required to qualify. However, you’ll need a minimum credit score of 680, with a 720 score required to access the maximum loan-to-value (LTV) ratio. 

Best for No Ratio DSCR Loans: A&D Mortgage

Pros: 

• No ratio DSCR loans available
• First-time homebuyers allowed
• Low minimum credit score requirement
• Quick closing time 

Cons: 

• Minimum of three months’ cash reserves required to qualify for DSCR loan
• Minimum 20% down payment

Nitty Gritty: A&D Mortgage offers flexible financing for investors, with a DSCR loan featuring accessible terms. Namely, there is no DSCR requirement for investors seeking a no-ratio loan. Plus, with a DSCR over 1.25, borrowers may qualify for a credit. Its DSCR loan is also available to first-time homebuyers and for mixed-use and multi-family properties with up to eight units. A&D requires a minimum FICO score of 620 to qualify for this type of mortgage, which is lower than many competitors, but you may need a higher score for loans with a DSCR of less than 1. 

Best for Competitive Interest Rates: Kiavi

Pros: 

• Competitive interest rates
• No prepayment penalty after third year
• Interest-only options available 
• Option to check your rate online

Cons: 

• Minimum credit score not disclosed
• Not available for mixed-use properties

Nitty Gritty: Kiavi is an online lender with a technology-powered platform aimed at streamlining the loan application process and providing transparency to borrowers. It focuses on loans for real estate investors, offering fix-and-flip, rental and new construction mortgages – including DSCR loans. In addition to favorable terms, including interest-only options and no prepayment penalties after the third year, Kiavi offers competitive interest rates on its DSCR loans, including both 30-year fixed rates and multiple adjustable-rate mortgages. 

Best for Multi-Family Properties: Truss Financial Group

Pros: 

• Get a personalized quote with no commitment 
• Flexible loan terms available
• No minimum DSCR ratio
• Loans available for properties with up to 12 units

Cons: 

• Minimum credit score requirement not disclosed
• Property criteria may apply

Nitty Gritty: Truss Financial Group boasts flexible loan terms and qualification requirements, offering multiple non-QM loans for self-employed individuals and real estate investors. Eligibility requirements for its DSCR loans are no exception, with no minimum DSCR ratio and multiple loan terms available. The lender also supports purchasing multi-family properties with up to 12 units, more than many other lenders on this list. While Truss doesn’t disclose its minimum credit score requirement for this type of loan, borrowers can get a customized quote without documentation or commitment. 

Best for High Loan Amounts: Griffin Funding

Best For

Mortgage Quiz

Minimum Credit Score

620

Compare Lenders

More Details

Avg. Days to Close Loan

45

Minimum Credit Score

620

1 Minute Review

Griffin Funding is a mortgage lending platform that provides you with a simple question and answer format that helps get you aligned with the loans that are best for you, quick funding and simplified closing, along with an online portal that makes it easy to manage your loan.

Best For

• Mortgage quiz
• Get aligned with the right loans
• Quickly apply online

Pros

• Several mortgage options are available to you
• Refinance if needed
• Reach out to the customer service team and they can explain what’s best for you

Cons

• You may not qualify for loans that would work best for you

Pros: 

• DSCR loans available on all property types, including multi-family properties
• Offers jumbo DSCR loans up to $20,000,000
• Fixed and ARM rates available 
• Online DSCR calculator available 

Cons: 

• Not available in all states
• High minimum credit score requirement for some loans

Nitty Gritty: Though perhaps best known for its VA loans, Griffin Funding offers a variety of loan types, including bank statement loans, asset-based mortgages and DSCR loans. The lender offers flexible terms on its DSCR loans, with fixed and adjustable-rate mortgages available at various lengths. Griffin also offers jumbo DSCR loans of up to $20,000,000 – a big plus for investors targeting high-end properties. The lender provides DSCR loans for all properties, including multi-family properties and short-term rentals, though qualification requirements may vary. 

What is a DSCR Mortgage?

“DSCR, which stands for Debt Service Coverage Ratio, is a home loan product most suitable for the purchase or refinance of an investment property. Borrowers can benefit from a DSCR program as it allows for qualifying solely based [on] the current or future rental income the property could produce, rather than the borrower’s personal income. This also eliminates the need for any personal income documents, including tax returns,” said Shahwan. 

Essentially, DSCR mortgages use the income-generating potential of a property to measure the investor’s ability to repay the loan, rather than the borrower’s income. That means you can often qualify with a lower credit score and minimal income documentation. 

This nontraditional lending model has pros and cons. On the one hand, it can be easier for investors to qualify without significant personal income or assets. On the other hand, this kind of loan can come with higher interest rates and down payments. 

“[Lenders] typically only offer DSCR mortgages at lower loan to value (LTV) ratios and at higher interest rates than more traditional mortgages. This is because the collateralizing asset stands alone, whereas the more traditional mortgages take the borrower’s full financial wherewithal into consideration. With this increase in risk, it only makes sense that DSCR mortgages are for less LTV and higher interest rates,” explained David Gottlieb, wealth manager at Savvy Advisors.

Gottlieb and Shahwan recommend working closely with an expert mortgage advisor to ensure you find a set of terms that works for your needs if you are considering this type of loan. 

Why You Should Trust Us

Emily Sherman has been a personal finance journalist covering topics including mortgages for the past seven years. In addition to consulting lender websites for details about mortgage offerings, she relies on industry experts to ensure the information presented is accurate. 

Methodology 

To evaluate the best DSCR mortgage lenders, we compared lenders based on factors including rates, fees, credit score requirements and customer service. Since DSCR loans are non-traditional mortgages, we prioritized offerings available to those with lower credit scores. 

Customer support was also a crucial feature. We analyzed data from sources including TrustPilot and the Better Business Bureau to ensure lenders were available, responsive and helpful in resolving borrowers’ queries. We also looked at down payment requirements, prepayment penalties, and other loan features. Read our full methodology here. 

FAQ

Sources

• David Gottlieb, wealth manager at Savvy Advisors
• Brian Shahwan, vice president, mortgage banker and broker at William Raveis Mortgage

The post Best DSCR Mortgage Lenders, According to Experts by Emily Sherman appeared first on Benzinga. Visit Benzinga to get more great content like this.

The VA doesn’t offer HELOCs, but some veteran-focused lenders offer more favorable terms for this borrowing option. 

If you’re looking for a way to borrow money for a home renovation, medical expense or other large purchase, you might consider leveraging the equity you’ve built in your home. Home equity lines of credit, or HELOCs, are flexible borrowing options that allow borrowers to take out funds against their home equity. 

HELOCs can be a useful tool for funding emergency expenses. Still, they come with associated interest charges and credit limits, so potential borrowers should ensure they can afford to make any payments. Unfortunately, the U.S. Department of Veterans Affairs (VA) doesn’t offer a HELOC program – like it does with VA mortgages – so you won’t qualify for a particular loan based on your service. The good news is that several HELOC lenders offer incentives or more flexible eligibility requirements for veterans. Read on to learn more. 

Quick Winners

• Best for an Introductory Rate: Armed Forces Bank
• Best for High Max LTV: Navy Federal Credit Union
• Best for Flexible Membership Requirements: PenFed Credit Union
• Best for Quick Funding: Guaranteed Rate
• Best for Fixed-Rate HELOC: Figure

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Best for an Introductory Rate: Armed Forces Bank

Pros: 

• Low promotional APR for first six months
• Competitive ongoing rates
• Option to waive annual fee
• Low closing costs

Cons: 

• Max LTV only available on loans up to $250,000
• Not available in all states

Nitty Gritty: Armed Forces Bank is an institution that caters to military members, with 75% of its team also affiliated with the military. Its HELOC is a competitive option for veterans, thanks to a max LTV of 85%, low closing costs and a low, fixed introductory APR for the first six months. While an annual fee of $50 typically applies after the first year, HELOC applicants can waive the fee by setting up auto-drafts from a checking account with the bank or an affiliate. 

HELOCs from Armed Forces Bank might be a better choice for those who need to borrow smaller amounts. The maximum LTV of 85% only applies to loan amounts up to $250,000. For loan amounts above that threshold, the maximum LTV is 70%. Terms may also vary by state. 

Specs: 

• Minimum credit score: Not disclosed
• National/regional: National
• Max LTV: 85%

Best for High Max LTV: Navy Federal Credit Union (NFCU)

Best For

Active and Retired Military

Overall Rating

Get started

More Details

APR

7.49%–18.00%

N/A

APR

7.49%–18.00%

Origination Fee

$0

Term Lengths

12–60 Months

1 Minute Review

Navy Federal Credit Union serves active and retired military personnel with a wide range of banking options, including mortgages that may include VA, conventional, FHA, USDA, jumbo, construction and/or investment loans. Check your eligibility on the Navy Fed website and apply today, speak to a loan officer or visit your local branch for more information.

Best For

• Active and retired military
• Military families
• Getting the same loans you would get at any other bank

Pros

• Simple for military personnel to manage accounts
• Many other banking services are available
• The credit union keeps costs and fees down

Cons

• Remember that spouses or children need to verify their eligibility before opening accounts

Pros: 

• High max LTV
• No closing costs
• Optional credit card for accessing funds
• Interest-only payments available 

Cons: 

• Higher rates than some competitors
• Slower funding times than other lenders

Nitty Gritty: Navy Federal Credit Union is popular among military lenders for its loan and banking products. To qualify for membership with the credit union, you’ll need to be an active duty or former armed forces member or a current Department of Defense employee. The immediate family of service members can also qualify for membership. 

Navy Federal’s HELOC has a slightly higher starting interest rate than competitor products, but it makes up for this cost with other savings, including no closing costs. It also offers the highest max LTV of HELOCs on our list, at 95%. The draw period on Navy Federal’s HELOC is also long, at 20 years, followed by a 20-year repayment term. 

Specs: 

• Minimum credit score: Not disclosed
• National/regional: National
• Max LTV: 95%

Best for Flexible Membership Requirements: PenFed Credit Union

Best For

Low HELOC Rates

Minimum Credit Score

N/A

Get started

More Details

Avg. Days to Close Loan

N/A

Minimum Credit Score

N/A

1 Minute Review

PenFed Credit Union is an excellent place to manage your finances, and the credit union offers home equity lines of credit for consumers with lower rates and more flexibility. You can use the 10-year draw period to manage your finances better, but you get 20 years to repay the loan, making it much more manageable.

Best For

• Low HELOC Rates
• Government employees
• Financial flexibility

Pros

• Use HELOC loans to manage debt and expenses
• Flexible repayment plans
• Long draw period

Cons

• Minimum credit score is very high

Pros: 

• Competitive interest rates
• Quick closing 
• No origination fee
• Option to keep your existing mortgage rate

Cons: 

• $99 annual fee
• Closing costs of up to $8,500 may apply.

Nitty Gritty: Like NFCU, PenFed Credit Union has a history of serving military members and their families. Unlike other credit unions, however, membership to PenFed is much easier to qualify for, requiring a $5 deposit into a Membership Regular Savings Account. Its HELOC comes with a competitive APR and benefits, including no origination fee and closing in as little as 15 days.

Specs: 

• Minimum credit score: 680
• National/regional: National
• Max LTV: 85%

Best for Fixed-Rate HELOC: Figure

Best For

High Loan to Value

Overall Rating

Read Review

get started securely through Figure’s website

More Details

Disclosure: * Our APRs can be as low as 3.00% for the most qualified applicants and will be higher for other applicants, depending on credit profile and the state where the property is located. For example, for a borrower with a CLTV of 45% and a credit score of 800 who is eligible for and chooses to pay a 4.99% origination fee in exchange for a reduced APR, a five-year Figure Home Equity Line with an initial draw amount of $50,000 would have a fixed annual percentage rate (APR) of 3.00%. The total loan amount would be $52,495. Alternatively, a borrower with the same credit profile who pays a 3% origination fee would have an APR of 4.00% and a total loan amount of $51,500. Your actual rate will depend on many factors such as your credit, combined loan to value ratio, loan term, occupancy status, and whether you are eligible for and choose to pay an origination fee in exchange for a lower rate. Payment of origination fees in exchange for a reduced APR is not available in all states. In addition to paying the origination fee in exchange for a reduced rate, the advertised rates include a combined discount of 0.50% for opting into a credit union membership (0.25%) and enrolling in autopay (0.25%). APRs for home equity lines of credit do not include costs other than interest. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.

APR

from 3.00% to 3.25% APR*

N/A

APR

from 3.00% to 3.25% APR*

Origination Fee

3 points and 4.99% points

Min Credit Score

<small>620; 720 for OK; 680 for investment properties</small>

1 Minute Review

If you already own a home, Figure may help you access your equity or improve your loan terms. You can get a speedy home equity line of credit (HELOC) or mortgage refinancing if you live in any of the 30 states it serves, and the application is all online (except in a few select states).

Best For

• Homeowners with equity
• Borrowers that are in search of home equity or refinancing options
• Those with a credit score of 620 or higher

Pros

• Funding in as few as five days on HELOCs
• Fixed interest rates
• All-online application
• Competitive rates

Cons

• Some complaints of misleading terms
• Not available in all states

Pros: 

• Quick, fully online application process
• Fixed interest rate
• Fast funding in as little as five days
• Competitive APR range

Cons: 

• Origination fee applies
• Must withdraw full loan amount at origination

Nitty Gritty: While Figure doesn’t exclusively cater to veterans, its HELOCs can be a competitive choice for any applicant. In addition to being competitive with other APRs, interest rates on Figure HELOCs are fixed rather than variable, which can result in more predictable (and sometimes more affordable) monthly payments. Funding is also quick: You can complete a fully online application in just a few minutes and access your money in as little as five days. 

Specs: 

• Minimum credit score: 640
• National/regional: National
• Max LTV: 85%

Best for Quick Funding: Guaranteed Rate

Best For

Quick Approvals

Overall Rating

Get started

More Details

Best For

Quick Approvals

N/A

1 Minute Review

A HELOC allows you to borrow money based on your home’s equity. Just like with any loan, you have to apply and be approved. The good thing about Rate is that it has a lightning-fast online application process, and the company boasts its ability to get you money ASAP. Interest rates start at 6.9% annual percentage rate (APR) and can go up to 16.45% APR.

“Their HELOC solution is unique for its fixed interest certainty and the ease and speed of online application,” says Alexei Morgado, a licensed real estate agent and CEO and founder at Lexawise.

Best For

• Simple website interface
• Competitive financing options
• Easy-to-visit locations

Pros

• Approval in as little as five days
• Fixed interest rates
• Online application process takes five to 10 minutes
• Available in all 50 states and Washington, D.C.
• Hundreds of branches across the country

Cons

• Maximum loan is only $400,000
• Draw period is only two to five years
• A 620 credit score is generally needed for every loan type

Pros: 

• Quick, fully online application process
• Fixed interest rate
• Fast funding in as little as five days
• Competitive APR range
• No closing costs (except origination fee)

Cons: 

• Higher minimum loan amount than some lenders
• Shorter draw periods than some competitors

Nitty Gritty: Like Figure, Guaranteed Rate is not a financial institution that caters specifically to veterans. However, its HELOC can be a good choice for service members and non-military. In addition to a 100% online application process and funding times as short as five to 10 days, Rate offers a competitive range of APRs that borrowers can reduce by enrolling in autopay and paying a 1.99% origination fee. 

One drawback: The draw period on Rate’s HELOC is shorter than most alternatives, at two to five years. While this may benefit those who don’t need extended access to funds, others may want to opt for a competitor offer with a longer draw period. 

Specs: 

• Minimum credit score: 640
• National/regional: National
• Max LTV: 85%

What is a HELOC?

A HELOC—or home equity line of credit—is a type of revolving credit that leverages a borrower’s home equity. It can be used for various purchases, such as making home repairs or improvements, consolidating high-interest debt or covering an emergency expense. 

The amount you can borrow with a HELOC is determined by factors including your eligibility based on credit history and loan-to-value (LTV) ratio, or the amount you owe on your home compared to how much it is worth. As a revolving credit loan, you can pull out money from your HELOC multiple times during your draw period, up to your available credit limit. 

“Once the HELOC is opened, you can draw funds against the available credit limit to cover various expenses. Think of it like a credit card: the credit is available for use, but interest charges and monthly payments are only due when there is an outstanding balance. Proceeds from a HELOC can be used for home improvements, college tuition, debt consolidation, major purchases, a down payment for an investment property or to set aside cash reserves for emergencies,” explained John Dustman, senior vice president and head of consumer lending and advisor banking at Axos Bank.

During the draw period, most HELOCs only require you to make payments equal to the interest on what you borrowed. After your draw period ends (typically between five and 10 years), you enter the repayment period, where you must pay back both the interest and principal. Depending on your HELOC, interest rates can be fixed or variable. 

How to Choose a HELOC as a Veteran 

Veterans have access to various loans designed specifically for service members, such as VA mortgages. However, the VA does not have a program for HELOCs. 

“This distinction is important, because the benefits associated with VA loans used to purchase a home or refinance an existing mortgage do not apply to HELOCs. Many veterans are not aware of this difference, which can impact the product attributes and features considered when shopping for a HELOC,” said Dustman. 

Rather, banks and credit unions that specifically service veterans and active-duty military members may offer HELOCs with more favorable terms, such as competitive interest rates, flexible eligibility requirements or high maximum LTV limits. 

Dustman added that financial institutions may otherwise offer special incentives or discounts for veterans. 

That means when shopping for a HELOC as a veteran, you’ll want to consider the same features as any other borrower. 

“The best place for a veteran to start is by working with a loan officer that you know, like and trust – ensure you are talking with someone who has your best interests in mind,” said Evan Luchaco, a Portland-based home loan specialist for Churchill Mortgage.

Compare features, including draw and repayment period terms, origination or other associated fees, interest rates, customer service reputation and borrowing limits to find the best HELOC for you.

Why You Should Trust Us

Emily Sherman has been writing about personal finance for the past seven years. She has covered topics including mortgages, credit and more for various major publications. She consulted industry experts, including a home loan specialist and senior vice president at a major bank, to ensure all the data presented in this article is accurate. 

Methodology 

To evaluate the best HELOCs for veterans, we analyzed offerings from major banks, credit unions and other financial institutions. We looked at factors including interest rates, max LTV, origination fees and other costs. We also considered closing time, prioritizing loans that provided borrowers quick access to funds. To ensure the HELOC was a good choice for veterans specifically, we looked for institutions who catered to the military community, had flexible credit score requirements and positive customer service reputations according to sources such as TrustPilot and the Better Business Bureau. For more info, read Benzinga’s full mortgage methodology. 

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FAQ

Sources

• John Dustman, senior vice president and head of consumer lending and advisor banking at Axos Bank
• Evan Luchaco, a Portland-based home loan specialist for Churchill Mortgage
• HELOC lender information sourced from company websites, including Armed Forces Bank, Navy Federal Credit Union, PenFed Credit Union, Guaranteed Rate and Figure.

The post Best HELOCs for Veterans, According to Experts by Emily Sherman appeared first on Benzinga. Visit Benzinga to get more great content like this.

These mortgage lenders allow borrowers to qualify for a loan based on assets rather than income. 

For borrowers who live on assets or don’t have a consistent paycheck, qualifying for a mortgage may seem difficult. Asset-based mortgages provide an alternative borrowing option for this kind of applicant, using assets as collateral for a loan. That way, self-employed borrowers or other individuals who live off assets can still qualify for a home loan. 

Asset-based mortgages are non-traditional loans that are more difficult to find than other types of mortgages, but many top lenders still provide the option. Read on for Benzinga’s top picks. 

Quick Winners List

• Best Overall: CrossCountry Mortgage
• Best for High Credit Scores: Angel Oak Mortgage Solutions
• Best for Refinancing: New American Funding
• Best for High Net Worth Borrowers: North American Savings Bank
• Best for Investors: Asset-Based Lending ABL

Best Overall: CrossCountry Mortgage

Best For

Self-employed Borrowers

Minimum Credit Score

620

get started securely through CrossCountry Mortgage’s website

More Details

Disclosure: Available in: CA, CO, CT, DC, FL, GA, IL, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VA, WA 

Avg. Days to Close Loan

30 – 40

Minimum Credit Score

620

1 Minute Review

CrossCountry Mortgage was started in 2003 by Ronald Leonhardt Jr., founder and CEO. Its headquarters is located in Cleveland, Ohio, but it’s licensed in all 50 states, D.C. and Puerto Rico, and it has over 700 branch locations across the country. Hopeful homeowners turn to CrossCountry Mortgage for its diverse portfolio of loan options, including conventional loans, Federal Housing Administration (FHA) loans, United States Department of Veterans Affairs (VA) loans and United States Department of Agriculture (USDA) loans.

 

Best For

• Self-employed professionals
• Retirees
• Investors
• Condo buyers

Pros

• Provides loans across all 50 states, D.C. and Puerto Rico
• 120 mortgage purchase, refinance and home equity solutions
• Can work with credit scores as low as 500
• Tax returns aren’t required
• Ideal for first-time homebuyers

Cons

• Doesn’t post rates online
• Underwriting process may take longer

Pros: 

• Variety of loan types, including asset-qualifier mortgages
• Minimum credit scores as low as 500, depending on loan type
• Offers educational hub for first-time homebuyers
• Down-payment assistance programs available

Cons: 

• Rates aren’t public
• Higher fees than some competitors

Nitty Gritty: CrossCountry Mortgage is a good choice for a variety of non-QM loan types. It offers loans based on bank statements, 1099s and qualifying assets. The lender operates in all 50 states, making it accessible to borrowers across the country. 

Requirements for non-QM loans from CrossCountry are also less stringent than with some other lenders; for instance, borrowers can often qualify for a loan with a credit score as low as 620 and some loans even accept applicants with scores as low as 500. 

Best for High Credit Scores: Angel Oak Mortgage Solutions

Best For

Flexible Mortgage Options

Minimum Credit Score

600

get started securely through Angel Oak Mortgage Solutions’s website

More Details

Disclosure: Angel Oak Licensing and Disclosure Information

Avg. Days to Close Loan

30

Minimum Credit Score

600

1 Minute Review

Angel Oak Mortgage Solutions specializes in non-traditional mortgage products, making it a go-to for borrowers with unique financial situations, like self-employed individuals or those without traditional income verification. Angel Oak stands out for its flexible qualification options, including bank statement loans, asset-based loans, and programs for foreign nationals. However, these specialized loans often come with higher rates compared to conventional loans, and the company’s service area is limited, meaning not everyone can take advantage of their offerings.

Best For

• Self-employed borrowers or small business owners
• Investors seeking cash flow-based financing
• Borrowers with non-traditional income sources
• Individuals seeking flexible qualification criteria

Pros

• Offers a wide range of non-QM (non-qualified mortgage) loan products
• Flexible income verification options, including bank statements and assets
• Loans available for foreign nationals and ITIN holders
• Dedicated loan officers for personalized service

Cons

• Limited availability in some states
• Higher interest rates compared to conventional loans

Pros: 

• Wide variety of non-traditional mortgage offerings
• Offers jumbo loans up to $4 million
• Multiple income verification options, including bank statements and assets
• Connects applicants with a dedicated loan officer

Cons: 

• Not available in all states
• Higher rates on many loan products

Nitty Gritty: Angel Oak Mortgage Solutions offers diverse mortgage options and specializes in non-traditional mortgages, including asset-qualifier loans. You’ll need a credit score of at least 700 to qualify for this type of loan – making it a better choice for applicants with strong credit. It covers large loan amounts, with up to $4 million available. 

Asset-qualifier mortgages from Angel Oak are available for purchase and cash-out or rate-term refinancing on primary residences only. Angel Oak Lending offers an interest-only program for qualifying applicants for added flexibility. 

Best for Refinancing: New American Funding

Best For

A Variety of Options

Minimum Credit Score

620

get started securely through New American Funding’s website

More Details

Avg. Days to Close Loan

31-40

Minimum Credit Score

620

1 Minute Review

New American Funding is a lender that offers several types of mortgages, including conventional, FHA and VA loans. It has relatively low interest rates but a limited number of term options.

Best For

• Conventional loans: This is the most popular type of mortgage. These loans usually have the lowest fees but often have stricter requirements.
• FHA loans: These loans are designed for those with fair credit or who can’t afford as much of a down payment.
• Jumbo loan: These loans have larger maximum loan amounts and are geared toward high-income borrowers.
• VA loans: Veterans and current service members are eligible for VA loans with no down payment requirement.
• Refinancing: If you have a mortgage with a high interest rate, you can refinance to get a better deal.
• Adjustable rates: An adjustable-rate mortgage is desirable for those who believe interest rates will come down soon.
• Fixed rates: Fixed-rate mortgages are popular for people who want stability in their monthly payment.

Pros

• Offers mortgage refinance as well as new loan origination. Both new homebuyers and existing homeowners can shop for a mortgage with New American Funding.
• Has low interest rates. Borrowers looking for a good rate can find one with New American Funding.
• Several types of mortgages available. A few different mortgage options are available, so you’re not stuck with one type.
• Website offers homebuying resources. New American Funding’s website includes articles and tools that help buyers understand more about the homebuying process.

Cons

• Limited local branches. The lack of a local branch can be frustrating if you prefer an in-person experience. Not available in every state.
• New American Funding does not service New York and Hawaii residents.

Pros: 

• Offers non-QM loans, including asset-qualifier loans
• Educational resources and calculators available
• 14-day closing guarantee on many loan types
• Positive customer service reputation

Cons: 

• Not available in all U.S. states
• Some fees not disclosed

Nitty Gritty: Beyond its diverse lineup of loan types, New American Funding has a reputation for quality customer service. The lender has an A+ rating with the Better Business Bureau, thanks partly to positive customer feedback about loan options and quick closings. The servicer also offers educational resources on its website and mobile app for those new to the home-buying process. 

New American Funding offers several non-QM loan types for applicants without a traditional income, including an asset-qualifier program for purchases or refinancing. Its non-QM loans can be used for both primary homes and secondary or investment properties. They are available in loan amounts of up to $2.5 million, making them a good choice for borrowers needing jumbo loans. 

Best for High Net Worth Borrowers: North American Savings Bank (NASB)

Best For

Non-Conforming Mortgages

Minimum Credit Score

620

Contact a Lender

More Details

Avg. Days to Close Loan

30

Minimum Credit Score

620

1 Minute Review

North American Savings Bank is a unique company that offers a range of banking products. You can take out several different mortgage types, choosing from a range of competitive rates and mortgage styles. Because the range of mortgages is so large, you have a better chance of finding what you need.

Best For

• Military personnel
• Variety of loan products
• Quick closing

Pros

• Choose the loan that’s right for you
• Competitive rates
• Competitive fee structure

Cons

• Minimum credit score might be a bit high

Pros: 

• Variety of non-QM mortgage options
• Check current rates online
• Programs available for first-time homebuyers
• Branch locations available in Kansas City area

Cons: 

• Limited physical loan offices
• Lower maximum jumbo loan amount than some competitors

Nitty Gritty: North American Savings Bank (NASB) is another great lender for non-QM loans, offering a variety of mortgage types, including bank statement loans, DSCR loans and asset depletion mortgages. Its asset-based mortgage product is available for loans of at least $175,000 and up to $1 million. Unlike some other asset-based lending products, there is no minimum age requirement on nonbusiness liquid assets used as collateral for your loan. Remember that stocks, stock options and mutual funds use 70% of their value when calculating total assets. 

NASB offers plenty of ways to contact customer service, making it a good choice for those who need help navigating the home-buying process. In addition to a phone line, email address and live chat options, borrowers can schedule in-person appointments with a loan specialist in the Kansas City area. 

Best for Investors: Asset-Based Lending (ABL)

Pros: 

• Hard-money loans based on assets
• Average closing time of seven to 10 days
• No prepayment penalties
• Quick approval process

Cons: 

• Interest rates are higher than traditional loans
• Minimum credit score of 660

Nitty Gritty: For investors, Asset-Based Lending, LLC (ABL) specializes in hard-money loans for real estate investments. Loans are based on the value of the investment property rather than the borrower’s credit, making the loans more accessible to applicants with limited credit history or traditional income streams. 

ABL offers real estate loans for new construction, purchase and renovation of residential properties and cash-out or permanent refinancing of both rental and residential properties. Jumbo loans are available for up to $3.5 million. All ABL loans are short-term (12 months) for investors, not for financing a primary residence over an extended term. 

What is an Asset-Based Mortgage?

“Asset-based mortgages are when you leverage an asset as collateral,” said Rose Krieger, senior home loan specialist for Churchill Mortgage. 

This non-traditional mortgage loan type allows borrowers to get approved for a mortgage even if their income is low or inconsistent by using assets as collateral. Applicants will still need to qualify based on their credit score and provide a down payment, but they can leverage assets as proof they can make payments rather than show paystubs. The assets used to determine eligibility for this mortgage vary based on the applicant. 

“Typically, you’ll see savings accounts used in this type of transaction for individuals, while businesses will use business accounts, inventory, equipment, etc. I wouldn’t say they are particularly common, but are usually considered where a traditional mortgage doesn’t work out for a borrower,” said Krieger. 

Asset-based mortgages can be a good option for self-employed individuals without a steady income or other borrowers who live off assets. 

Why You Should Trust Us

Emily Sherman is a finance journalist with seven years of experience writing about topics, including the best mortgage lenders. She relies on industry experts and loan specialists to ensure that all the information presented here is accurate. 

Methodology

Benzinga analyzed over 100 mortgage lenders and brokers to identify the best asset-based mortgage lenders. We rated lenders based on criteria including rates and fees, diversity of loan types, time to close and accessibility for those with lower credit scores. We gave preference to lenders with short closing windows (30 days or less) and transparent fee structures. Review the full methodology here.

FAQ

Sources

• Rose Krieger, senior home loan specialist at Churchill Mortgage Corporation

The post Best Asset-Based Mortgage Lenders by Emily Sherman appeared first on Benzinga. Visit Benzinga to get more great content like this.

Top mortgage lenders offer competitive rates and simple applications, even if you don’t have a W2. 

If you’re self-employed, you might worry about your ability to qualify for a mortgage. While it’s true lenders may want to see additional documentation proving income from self-employed borrowers, there are still plenty of great mortgage options for these applicants. 

“When it comes to self-employed lenders, Bank of America has specialized programs that cater to self-employed individuals, and they often provide flexible documentation options. Guild Mortgage and New American Funding are also worth mentioning, as both are known for flexible loan options tailored to people with unique income situations and experience working with self-employed borrowers,” said Baruch Mann (Silvermann), CEO and founder of The Smart Investor. 

We researched mortgage lenders and consulted experts to identify these and other top picks for self-employed borrowers to ensure you can find an option that works for you when you are ready to buy a home. Read on to learn more. 

7 Best Mortgage Lenders for Self-Employed Borrowers

• Best Overall: CrossCountry Mortgage
• Best for Flexible Loan Options: Guild Mortgage
• Best for Quick Closing: New American Funding
• Best for Existing Bank of America Customers: Bank of America 
• Best for Refinancing: Rocket Mortgage
• Best for Competitive Rates: Angel Oak Mortgage Solutions
• Best for First-Time Homebuyers: North American Savings Bank

Best Overall: CrossCountry Mortgage

Best For

Self-employed Borrowers

Minimum Credit Score

620

get started securely through CrossCountry Mortgage’s website

More Details

Disclosure: Available in: CA, CO, CT, DC, FL, GA, IL, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VA, WA 

Avg. Days to Close Loan

30 – 40

Minimum Credit Score

620

1 Minute Review

CrossCountry Mortgage was started in 2003 by Ronald Leonhardt Jr., founder and CEO. Its headquarters is located in Cleveland, Ohio, but it’s licensed in all 50 states, D.C. and Puerto Rico, and it has over 700 branch locations across the country. Hopeful homeowners turn to CrossCountry Mortgage for its diverse portfolio of loan options, including conventional loans, Federal Housing Administration (FHA) loans, United States Department of Veterans Affairs (VA) loans and United States Department of Agriculture (USDA) loans.

 

Best For

• Self-employed professionals
• Retirees
• Investors
• Condo buyers

Pros

• Provides loans across all 50 states, D.C. and Puerto Rico
• 120 mortgage purchase, refinance and home equity solutions
• Can work with credit scores as low as 500
• Tax returns aren’t required
• Ideal for first-time homebuyers

Cons

• Doesn’t post rates online
• Underwriting process may take longer

Pros: 

• Wide variety of mortgage products
• Offers various down payment assistance programs
• Provides niche products like bank statement loans
• Works with many state homebuyer assistance programs

Cons: 

• Not available in all states

CrossCountry Mortgage makes it easy for all types of homebuyers to get approved for a mortgage. Their flexible requirements can help you secure financing without employment or income verification and minimum DTI. CrossCountry Mortgage offers traditional loan terms as well as more flexible home payment plans with its 40-year loan program.

It’s also easier to get approved if you’re self-employed. Tax returns are not required; you’ll only need one year of self-employment income history and a minimum credit score of 580. CrossCountry Mortgage can also help you get approved based on assets like bank statements, stocks and bonds or retirement accounts. 

Specs:

• Minimum credit score: 500
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA, USDA, non-QM and Jumbo loans
• States served: California, Colorado, Connecticut, DC, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia and Washington.

Best for Flexible Loan Options Guild Mortgage

Best For

Closing Cost Credits

Minimum Credit Score

680

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Pros: 

• Wide range of loan options, including specialty programs like physician mortgages
• No down payment program options
• Branch locations across the country for in-person support
• Offers calculators for estimating your mortgage cost, required income and more

Cons: 

• Interest rates not published online
• Branch locations not available in every state

Guild Mortgage has an option for all borrowers, offering a robust lineup of mortgage types, including conventional loans, new construction loans, manufactured home loans and more. The lender also supports several programs that pave a path to homeownership for first-time homebuyers and underserved communities, including the 3-2-1 Home Plus program and Special Purpose Credit Programs. 

Borrowers worried about their qualifications will also be glad to learn that Guild has the option to only perform a soft credit pull for its mortgage preapproval, allowing potential borrowers to lock in a rate before undergoing a hard credit check. 

Specs:

• Minimum credit score: 540
• Minimum down payment: 0% with eligible down payment assistance program
• Loan types offered: Conventional, FHA, VA, USDA, manufactured home, new construction and Jumbo loans
• States served: All states, except New York

Best for Quick Closing: New American Funding

Best For

A Variety of Options

Minimum Credit Score

620

get started securely through New American Funding’s website

More Details

Avg. Days to Close Loan

31-40

Minimum Credit Score

620

1 Minute Review

New American Funding is a lender that offers several types of mortgages, including conventional, FHA and VA loans. It has relatively low interest rates but a limited number of term options.

Best For

• Conventional loans: This is the most popular type of mortgage. These loans usually have the lowest fees but often have stricter requirements.
• FHA loans: These loans are designed for those with fair credit or who can’t afford as much of a down payment.
• Jumbo loan: These loans have larger maximum loan amounts and are geared toward high-income borrowers.
• VA loans: Veterans and current service members are eligible for VA loans with no down payment requirement.
• Refinancing: If you have a mortgage with a high interest rate, you can refinance to get a better deal.
• Adjustable rates: An adjustable-rate mortgage is desirable for those who believe interest rates will come down soon.
• Fixed rates: Fixed-rate mortgages are popular for people who want stability in their monthly payment.

Pros

• Offers mortgage refinance as well as new loan origination. Both new homebuyers and existing homeowners can shop for a mortgage with New American Funding.
• Has low interest rates. Borrowers looking for a good rate can find one with New American Funding.
• Several types of mortgages available. A few different mortgage options are available, so you’re not stuck with one type.
• Website offers homebuying resources. New American Funding’s website includes articles and tools that help buyers understand more about the homebuying process.

Cons

• Limited local branches. The lack of a local branch can be frustrating if you prefer an in-person experience. Not available in every state.
• New American Funding does not service New York and Hawaii residents.

Pros: 

• Guaranteed closing in 14 business days
• Extensive learning center for learning about mortgage process
• Mortgage calculator
• Offers unique products, including non-QM and interest-only loans 

Cons: 

• Minimum credit score is high 
• Some fees not disclosed

New American Funding is a top choice for those looking for quick mortgage closings. The company has a reputation for providing efficient and fast services to its customers, making the homebuying process a smooth experience.

One of the main reasons New American Funding is known for quick closings is its streamlined and efficient process. From pre-approval to closing, the company ensures that all necessary steps are taken in a timely manner, eliminating unnecessary delays that often occur with other mortgage lenders.

Additionally, New American Funding offers a variety of loan options to meet the needs of different borrowers. Whether you are a first-time homebuyer or a seasoned investor, the company has a wide range of loan programs, ensuring that you find the perfect fit for your financial situation.

Specs:

• Minimum credit score: 580
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA, construction, USDA, non-QM, interest-only and Jumbo loans
• States served: All 50 states

Best for Existing Bank of America Customers: Bank of America 

Best For

Broad Range of Mortgage Loans

Minimum Credit Score

620

Compare Lenders

More Details

Avg. Days to Close Loan

45

Minimum Credit Score

620

1 Minute Review

Bank of America is one of the largest financial institutions in the U.S., offering a wide variety of mortgage options for first-time homebuyers, conventional borrowers, and those looking to tap into home equity. The bank stands out for its strong digital tools paired with in-person service through its nationwide branches. Bank of America’s specialized programs, like the Affordable Loan Solution and Preferred Rewards, are particularly appealing for those seeking low down payment options or discounts. While it doesn’t offer USDA loans, and its preferred rewards program is limited to those with higher balances, it’s still a solid choice for most homebuyers.

Best For

• First-time homebuyers seeking low down payment options
• Homebuyers who prefer the option of in-person support at a branch
• Existing Bank of America customers who qualify for preferred rewards
• Borrowers interested in a range of refinance options and home equity loans

Pros

• Wide range of mortgage products, including low down payment options
• Strong digital tools, including the Home Loan Navigator for tracking your loan
• Access to in-person customer service at branches across the country
• Discounts available through the Preferred Rewards program

Cons

• No USDA loans offered
• Preferred Rewards discounts require high account balances

Pros: 

• Branch locations across the country for in-person support
• Preferred Rewards members with qualifying balances can save on origination fees and interest rates
• Check current rates for your location
• Offers physician mortgages

Cons: 

• Does not offer USDA loans
• Preferred Rewards discounts limited to high account balances

Bank of America offers a variety of mortgage products and services to help make homeownership more accessible. These include an Affordable Loan Solution product with a low down payment and grant programs for both down payments and closing costs. The bank’s extensive collection of resources on the homebuying process makes it easy for first-time homebuyers to navigate the experience. 

Plus, existing Bank of America customers may qualify for discounts on their mortgage origination fees or even reductions to their interest rates, thanks to the Preferred Rewards program. The loyalty program offers up to 0.25% lower interest rates and up to $600 off origination fees for qualifying members. However, you’ll need high balances with Bank of America or Merrill to qualify for the best discounts. 

Specs:

• Minimum credit score: Not disclosed
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA and Jumbo loans
• States served: All 50 states

Best for Refinancing: Rocket Mortgage

Best For

Online Mortgages

Minimum Credit Score

580

Get started securely through Rocket Mortgage (formerly Quicken Loans)’s website

More Details

Avg. Days to Close Loan

30

Minimum Credit Score

580

1 Minute Review

Rocket Mortgage (formerly known as Quicken Loans) is one of the best mortgage lenders on the market, making it easy to apply for a home loan entirely online. Its streamlined preapproval process and quick access to customer service set it apart from other online lenders. Rocket Mortgage offers a large variety of mortgages and is backed by the largest mortgage lender, Quicken Loans. Whether you need help or know exactly what you’re looking for, Rocket Mortgage matches you with the right mortgage type and helps you quickly complete your online application.

Best For

• Homebuyers who are looking to complete the mortgage application process on their own
• Homebuyers who have found their dream home and are looking to move through the approval process quickly
• Homebuyers with good credit scores looking to review their mortgage options
• Current homeowners looking to refinance within the next few months

Pros

• Rocket Mortgage allows you to move at your own pace, guiding you through each step of the process. After you answer all the application questions, Rocket Mortgage lets you know if you’re approved and show your personalized mortgage recommendations
• You can submit checking and savings account information, tax returns and other financial documents online — a feature that sets Rocket Mortgage apart from online competitors
• RateShield allows you to lock in your Rocket Mortgage approved rate for up to 90 days
• The home loan application process can be completed in minutes, allowing you to find out if you qualify for a mortgage right away
• The online software allows you to navigate through the entire home buying process, from approval to home closing. Once you’re approved and you make an offer on your home, Rocket Mortgage offers online tools that will help you move through the rest of the closing process

Cons

• While Rocket Mortgage has customer specialists ready to answer your questions and provide guidance, if you prefer sitting across from a person when filling out financial forms, this lender might not be right for you
• You can’t easily view all of Rocket Mortgage’s home loan options prior to applying. It offers conventional, FHA, USDA and VA loans, but you’ll need to apply to find out more about the mortgage types within these offerings and which ones you’re eligible for

Pros: 

• Variety of loan options, including refinancing loans 
• RateShield allows you to lock in an approved rate for up to 90 days
• Home loan application process can be completed in minutes
• Offers online software and tools to navigate the entire homebuying process

Cons: 

• No physical branch locations
• Does not offer USDA loans

Rocket Mortgage (formerly known as Quicken Loans) is one of the top-rated lenders by its customers. It offers many types of mortgages, including government-backed and adjustable-rate mortgages (ARMs). Rates are consistent with the market, and Rocket Mortgage helps self-employed individuals get approved.

Rocket also offers an accessible online application for its loans, with a dashboard for tracking your process, updated rates and access to customer support. Borrowers report positive experiences with support representatives as well and the lender has a 4.7-star rating on TrustPilot. 

Specs:

• Minimum credit score: 580
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA and Jumbo loans
• States served: 46 states (excluding Iowa, Maryland, Nevada and West Virginia)

Best for Competitive Rates: Angel Oak Mortgage Solutions

Best For

Flexible Mortgage Options

Minimum Credit Score

600

get started securely through Angel Oak Mortgage Solutions’s website

More Details

Disclosure: Angel Oak Licensing and Disclosure Information

Avg. Days to Close Loan

30

Minimum Credit Score

600

1 Minute Review

Angel Oak Mortgage Solutions specializes in non-traditional mortgage products, making it a go-to for borrowers with unique financial situations, like self-employed individuals or those without traditional income verification. Angel Oak stands out for its flexible qualification options, including bank statement loans, asset-based loans, and programs for foreign nationals. However, these specialized loans often come with higher rates compared to conventional loans, and the company’s service area is limited, meaning not everyone can take advantage of their offerings.

Best For

• Self-employed borrowers or small business owners
• Investors seeking cash flow-based financing
• Borrowers with non-traditional income sources
• Individuals seeking flexible qualification criteria

Pros

• Offers a wide range of non-QM (non-qualified mortgage) loan products
• Flexible income verification options, including bank statements and assets
• Loans available for foreign nationals and ITIN holders
• Dedicated loan officers for personalized service

Cons

• Limited availability in some states
• Higher interest rates compared to conventional loans

Pros: 

• Offers a wide range of non-QM (non-qualified mortgage) loan products
• Flexible income verification options, including bank statements and assets
• Loans available for foreign nationals and ITIN holders
• Dedicated loan officers for personalized service

Cons: 

• Limited availability in some states
• Higher interest rates compared to conventional loans

Angel Oak Mortgage Solutions is a full-service mortgage lender offering traditional and portfolio loans. Its Bank Statement program is a loan option for eligible self-employed borrowers to purchase or refinance a home. This program uses personal or business bank statements to calculate income without requiring tax returns.

Angel Oak Mortgage Solutions provides loans ranging from $150,000 to $3 million and caters to mortgage applicants who have experienced foreclosure, short sale, bankruptcy or deed-in-lieu by requiring two years of seasoning.

Their loans are available for purchase, cash-out or rate-term refinance for primary residences, second homes or investment properties. They accept applications for single-family homes, townhomes and condos, including non-warrantable ones.

Angel Oak Mortgage Solutions also offers flexible income options, including submitting 12 or 24 months of business or personal bank statements and using 1099 income. They also offer a unique 40-year fixed interest-only option to provide additional flexibility for borrowers.

Specs:

• Minimum credit score: 640
• Minimum down payment: Not disclosed
• Loan types offered: Non-QM and Jumbo loans
• States served: Alabama, Arizona, Alaska, California, Colorado, Connecticut, Florida, Hawaii, Idaho, Indiana, Illinois, Kansas, Kentucky, Louisiana, Maine, Maryland, Mississippi, Minnesota, Michigan, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, Wyoming

Best for First-Time Home Buyers: North American Savings Bank

Best For

Non-Conforming Mortgages

Minimum Credit Score

620

Contact a Lender

More Details

Avg. Days to Close Loan

30

Minimum Credit Score

620

1 Minute Review

North American Savings Bank is a unique company that offers a range of banking products. You can take out several different mortgage types, choosing from a range of competitive rates and mortgage styles. Because the range of mortgages is so large, you have a better chance of finding what you need.

Best For

• Military personnel
• Variety of loan products
• Quick closing

Pros

• Choose the loan that’s right for you
• Competitive rates
• Competitive fee structure

Cons

• Minimum credit score might be a bit high

Pros: 

• Offers several first-time homebuyer programs for education, down payment assistance and more
• View personalized rates based on your location, down payment and credit score
• Competitive fee structure
• Wide range of non-QM mortgage options 

Cons: 

• Minimum credit score might be a bit high
• Limited physical loan offices

When you want a bank statement-only loan, you can turn to North American Savings Bank because the firm only asks that you provide 12 months of consecutive bank statements to qualify when you’ve been in the same line of work for many years. While most other banks expect you to provide years of statements, NASB knows that you might have begun your self-employment timeline sooner rather than later, even though you’ve been working for quite some time.

You can obtain loans from around $200,000 to $1 million while putting 10% down on the loan. Put 10% down with mortgage insurance or pay 20% down to eliminate your PMI. A high 45% debt-to-income ratio makes it easier for mortgage applicants to qualify, and you must escrow your taxes and insurance (which is convenient at the end of the day).

Specs:

• Minimum credit score: 580
• Minimum down payment: 3%
• Loan types offered: Conventional, FHA, VA, non-conforming and Jumbo loans
• States served: All 50 states

What Are Mortgage Lenders for Self-Employed Borrowers?

A mortgage works the same whether you are self-employed or have a W-2 position, but the application process might be a bit different. 

“If you are self-employed, lenders will need your last two years of tax returns with all schedules. If you file separate returns for business, you will need to show both personal and business returns. For self-employed borrowers, the last two years of income are reviewed. Most lenders will do loans for self-employed individuals, but it’s always a good idea to ask if your lender is familiar with calculating self-employment income,” explained Rose Krieger, senior home loan specialist for Churchill Mortgage.

The best mortgage lenders for self-employed borrowers are familiar with this process and experienced with working with these kinds of applicants. This helps to streamline the application process if you are self-employed and ensures the agent you work with can answer any related questions. 

Why You Should Trust Us

Emily Sherman is a finance journalist who has written about topics including the best mortgage lenders for the past seven years for various applications. In addition to firsthand experience securing a mortgage as a self-employed borrower in 2024, she relies on industry experts and loan specialists to ensure all of the information presented here is accurate. 

Methodology 

To determine the best mortgage lenders, Benzinga analyzes lenders based on the most important features for borrowers, including rates and fees, loan options, customer service, application processes and credit score requirements. We prefer loan providers with many loan options, including those for nonconventional borrowers. We also favor lenders with accessible online application processes and responsive, available customer support. Review the full methodology here. 

Frequently Asked Questions

Sources: 

• Baruch Mann (Silvermann), founder at The Smart Investor
• Rose Krieger, senior home loan specialist at Churchill Mortgage Corporation

The post Best Mortgage Lenders for Self Employed by Emily Sherman appeared first on Benzinga. Visit Benzinga to get more great content like this.

Both home equity loans and home equity lines of credit (HELOCs) allow you to borrow against the value of your home, but their exact terms vary.

If you’re looking for a way to borrow money – whether you need to fund a home renovation, consolidate debt or pay for an emergency expense – you may wonder if the equity you have built in your home is useful. You’ve been paying your mortgage responsibly, so can you tap into that equity to fund other purchases? 

The good news is there are multiple ways to borrow funds against your home equity, including both home equity loans (HELs) and home equity lines of credit (HELOCs). Both are often lower-cost borrowing options than alternatives, coming with more favorable interest rates than personal loans. But these two types of loans differ and are better for different kinds of borrowers.

“A home-equity loan provides a lump sum of money at a fixed rate, while a home equity line of credit provides ongoing access to funds for flexible repayment options,” explained Werner Loots, executive vice president of consumer lending at U.S. Bank. 

While a home-equity loan is a one-time withdrawal you pay back in equal installments, HELOCs are revolving credit lines (like a credit card) you can pull from over a set period. We chatted with Loots and other financial experts to learn more about the differences between these two loan options and help you determine which is the best choice for you. 

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What is a HELOC?

A home equity line of credit or HELOC, is a flexible borrowing option that uses the equity you have built in your home to access funds for home repairs, debt consolidation or other large purchases. 

Similar to a credit card, HELOCs are revolving credit lines from which you can withdraw money on multiple occasions during the HELOC draw period. 

“A HELOC offers ongoing access to funds at rates lower than most credit cards,” said Loots. “If you’re not sure exactly how much money you’ll need and when and are OK with rates and payments changing over time, a HELOC offers [more] flexibility.” 

During your HELOC draw period, you as the borrower are typically responsible for paying only the interest on the amount you’ve withdrawn. A repayment period starts after your HELOC draw period ends and you pay back what you borrowed plus applicable interest. 

“While some lenders (including Achieve) are now offering fixed-rate HELOCs, most HELOCs are variable-rate, meaning that the rate – and therefore the monthly payment – can vary over the loan’s term,” said Kyle Enright, president of Achieve, a digital personal finance company in San Mateo, California. 

A HELOC is a secured loan, meaning that your home is collateral. So if you miss your payments, you run the risk of foreclosure and losing your home. Because of this, it is important to borrow no more than you can afford to pay back, even if you are extended a large line of credit. 

Pros

• Flexible line of credit you can pull from multiple times during your draw period
• Fixed-rate options available, though variable interest rates are more common
• More affordable borrowing option than a credit card and some other types of loans 

Cons

• Variable interest rates can lead to high payments if rates change
• Home serves as collateral, so you could lose your home if you don’t pay back what you owe
• Flexible line of credit could serve as a temptation to overborrow

What is a Home-Equity loan?

Like a HELOC, a home-equity loan is a secured loan that uses your home as collateral. The equity you’ve built in your home is also the baseline for how much you can borrow; though unlike a HELOC, HELs offer one set amount of money upfront, followed by fixed repayments. 

“Home equity loans provide homeowners with a set amount of money and an interest rate fixed for the entire term of the loan. That means the payments will not change for the life of the loan,” explained Enright.

HELs offer less flexibility than HELOCs since you have to know exactly how much you plan to borrow upfront. On the flip side, however, repayments are more predictable and fixed interest rates can result in less owed over the life of the loan. 

Pros

• Straightforward repayment plan with fixed interest rate
• More affordable borrowing option than other kinds of loans

Cons

• One-time loan offers less flexibility than a line of credit
• Home serves as collateral, so you could lose your home if you fail to repay what you owe

HELOC vs Home Equity Loan

How to Choose Between a HELOC and Home Equity Loan

Now that you understand the difference between a HELOC and a HEL, you can better decide which might be your best choice. According to Enright, home equity loans are best for borrowing money when you have a clear plan for how to spend it, as you’ll know exactly how much you need. Plus, fixed interest and payments make repayment planning easier and remove the temptation to overdraw your available credit. 

Meanwhile, he added that someone who doesn’t know exactly when they need the money or how much (like when you’re doing a home renovation project with an uncertain budget) may appreciate the flexibility of a HELOC. If you can handle the payments associated with a changing rate and avoid borrowing more than you can repay, HELOCs can still be a great option. 

“The one interesting caveat is the fixed-rate option within the HELOC, which combines the best of both worlds – it creates a flexible borrowing facility and also lets you choose to draw that down in ‘chunks’ that you can choose to fix at that point,” said Loots. 

“For example, you may have a $50K HELOC and choose to take out $10k in the form of a fixed-rate option, which would make that $10k function just like a HE Loan and still leave the additional borrowing capacity in the HELOC,” he explained. Just keep in mind that fixed-rate HELOCs may be more difficult to find and qualify for. 

Alternatives to HELOCs and Home Equity Loans

While HELOCs and home equity loans can be affordable borrowing options, they are best for those with a fair amount of equity in their homes. If you are looking to borrow a sum of money and don’t have access to this kind of equity, other borrowing options can include: 

• Personal loans or lines of credit: Personal loans or lines of credit are usually unsecured loans, meaning they don’t require collateral. That can make them more difficult to qualify for than home equity loans. However, many personal loans offer favorable fixed interest rates and relatively high sums, so they can be a good option if you don’t qualify for an HEL or HELOC. 
• Credit cards: For some large purchases, you can use a credit card with a 0% introductory APR to pay off the balance over time before your regular interest rate kicks in. However, your credit limit will limit this option. 
• Debt consolidation loans: If you’re looking for a way to consolidate debt, debt consolidation loans are designed specifically for this purpose. While rates and repayment terms may not be as favorable as some HELs or HELOCs, they are still a good choice for reducing your debt. 
• The Bottom Line

HELOCs and home equity loans are both secured borrowing options that use your home as collateral, allowing you to tap into the equity you’ve built in your home to finance purchases like home repairs, medical expenses or debt consolidation. Choosing between the two borrowing options will come down to your preferred level of flexibility compared to repayment terms: HELOCs are more flexible, but variable interest can lead to higher payments, while HELs require more careful upfront planning but can be more affordable over time. 

No matter what you choose, be sure to research rates and options carefully before applying for any loan and make a repayment plan.

Why You Should Trust Us

Emily Sherman has written about credit and loans – including HELs and HELOCs – for a variety of financial publications for the last seven years. Combined with her personal knowledge of these topics, she relies on industry experts in loans and borrowing options, including a VP of consumer lending at a major U.S. bank and president of lending at a top finance company to ensure all the information presented here is accurate. 

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FAQ

Sources 

• Werner Loots, executive vice president of consumer lending at U.S. Bank
• Kyle Enright, president of lending at Achieve, a digital personal finance company in San Mateo, California.

The post HELOCs vs Home Equity Loans: Which is Best for You? by Emily Sherman appeared first on Benzinga. Visit Benzinga to get more great content like this.