5 Best Mortgage Lenders for Borrowing $250,000+, According to Experts

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Bob Haegele
Contributor, Benzinga
March 13, 2025
edited by Caroline Lubinsky
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Many consumers borrow $250,000 or more; identifying providers with generous lending practices is crucial.

With housing prices rising rapidly in many areas, new homeowners must borrow increasingly larger amounts to close a deal on their homes. If you are in one of the places where prices are rising, you may need to borrow $250,000 or more. Lenders in this category may require a certain income or credit score, but borrowers meeting their qualifications will have several options.

This guide will cover the best lenders for borrowing $250,000+. Each has pros and cons, and we will mention the best choices for different situations. We’ll also discuss what sets each lender apart and the potential downsides to consider.

Quick Winners List

Table of Contents

Best for Fast Approval: Rate

Pros:

  • Approval in as little as 24 hours
  • Available in all 50 states and D.C.
  • Several loan types and terms
  • Hundreds of branch locations
  • Online rates are updated frequently

Cons:

  • Requires a minimum 620 credit score
  • Some states don’t have branches
  • Fees may be higher than other lenders

Rate (previously Guaranteed Rate) is a financial services company based in Chicago, Illinois. The company offers several financial products but specializes in mortgages. It offers purchase and refinance loans and regularly publishes rates for each loan type on its website. In addition to conventional loans, the lender offers FHA, VA and jumbo loans.

If you need service in person, Rate has hundreds of branches nationwide. However, the largest concentration of branches is in Illinois. Some states only have a handful of branches, and a few have none. Also, note that fees may be higher than those of some lenders.

Best for a Variety of Options: CrossCountry Mortgage

Pros:

  • 120 mortgage purchase, refinance and home equity options
  • Hundreds of branch locations nationwide
  • Down payment assistance available
  • Relatively quick closing
  • Good for first-time homebuyers

Cons:

  • No rates available online
  • No online pre-approval
  • Rates aren’t the lowest available

CrossCountry Mortgage was founded in 2003 by Ronald Leonhardt, Jr., who still serves as its CEO. The company’s headquarters is in Cleveland, Ohio. Since its founding, the company has grown to thousands of employees and hundreds of branches.

CrossCountry Mortgage stands out because of its loan options, with 120 choices between purchase, refinance and home equity. Purchase options include conventional, FHA, VA, USDA and jumbo loans. It has many options for refinancing, such as cash-out refinance, FHA streamline and FHA cash-out refinance. Home equity options include HELOC, renovation HELOC and reverse mortgages.

Minimum credit score: 500

Minimum down payment: Not disclosed

Loan types offered: Conventional, FHA, VA, USDA, jumbo

States served: All 50 states plus D.C. and Puerto Rico

Best for Non-QM: Angel Oak Mortgage Solutions

Pros:

  • Offers a variety of non-QM loans
  • Qualify for a loan with bank statements
  • Loans available for 1099 income
  • Loan-to-value (LTV) of up to 95%
  • Options for foreign nationals

Cons:

  • Not available in all states
  • Rates are not the lowest

Angel Oak Lending is a mortgage lender that specializes in non-traditional mortgage products, such as non-QM loans. With 13 different non-QM loan programs, Angel Oak allows borrowers without a typical profile to get a mortgage loan. Its programs include bank statement loans, 1099 income loans, ITIN mortgage loans and foreign national loans. Some of its programs have credit score requirements starting at 640, with LTVs of up to 95%.

While Angel Oak Mortgage is a convenient option for some borrowers, the rates could be higher than those from other lenders. In addition, the broker is not licensed in all states, so not all borrowers can take advantage of its services.

Minimum credit score: 640

Minimum down payment: 5%

Loan types offered: Various non-QM loan programs

States served: All states except Alaska, New York, Vermont, Massachusetts and Connecticut

Best for Customizable Terms: New American Funding

Pros:

  • Variety of customizable loan terms
  • Down payment assistance available
  • Loans can cover closing costs
  • Offers non-traditional loan options
  • Special program provides all-cash offers

Cons:

  • Must provide personal information to request an online quote
  • Origination fees may be high

New American Funding is a mortgage lender offering conventional mortgages and FHA, VA and USDA loan options. Its portfolio expands beyond typical loans, offering options for self-employed people in addition to jumbo loans, interest-only loans and refinancing options. Its I CAN mortgages have flexible terms, letting you choose from terms between eight and 30 years. This level of flexibility lets borrowers find the loan that works for them.

While New American Funding has an online tool for requesting a quote, you cannot complete the request without providing personal information. Carefully review the lender's loan options and programs before providing your information. Also, be aware of the lender’s origination fees, which could be higher than those of competitors.

Minimum credit score: 500

Minimum down payment: 0%

Loan types offered: Conventional, FHA, VA, USDA, jumbo, I CAN and other loan options

States served: All 50 states plus D.C. and Puerto Rico

Best for Low Credit: Unlock

Pros:

  • Minimum FICO score of 500
  • No monthly payments or interest charges
  • Use for multiple purposes
  • Apply without impacting your credit score
  • Access up to $500,000 in home equity

Cons:

  • You may get less from your home when you sell
  • Limited state availability
  • Only a 10-year term

Unlock is a company offering a way to access your home equity without taking out another loan. Instead of home equity loans, Unlock offers home equity agreements (HEAs). To accomplish this, it offers homeowners cash for a claim on part of their home’s future appreciation. This allows Unlock to offer this service without monthly payments or interest charges. The minimum credit score requirement is 500, allowing borrowers to access up to $500,000 in home equity.

The downside? Because Unlock claims a percentage of your home's future appreciation, you may receive less than expected when you sell your home. One way to avoid this is by refinancing the home before selling. Currently, Unlock only operates in a handful of states.

Minimum credit score: 500

Minimum down payment: N/A

Loan types offered: Home equity agreement (HEA)

States served: Available in 13 U.S. states

What Are the Requirements to Take Out a $250,000 Mortgage?

A $250,000 mortgage generally won’t have any specific requirements; instead, you must meet the lender’s requirements for approval. For instance, you must meet the lender’s minimum credit score requirements for the loan type you are considering. Many lenders offer several loan types, all of which may have different credit score requirements.

In addition, you must have sufficient and stable income to take out a loan of this size. This means you must often provide documents like pay stubs, bank statements and tax returns to verify the income figure you provided. “Some might also be required to prove reserves, confirming that they could live for several months paying their mortgage with nothing left for income,” says Daniel La Gamba of LD Law LLP.

Another key figure when applying for a $250,000 mortgage is your debt-to-income (DTI) ratio. This is the ratio of your monthly debt payments to your monthly income. Most lenders will look for a DTI of 50% or less. A higher income may increase the DTI a lender will permit, but a lower DTI will only help your chances of approval for a $250,000 mortgage.

How to Choose a Mortgage Lender

Choosing a mortgage lender is no small task. There's no shortage of options, including traditional banks, credit unions and online lenders. Often, asking friends and family for referrals is an excellent first step. Otherwise, you can search online for local and national mortgage lenders. Identify four or five lenders that could be a good fit.

Once you have a few lenders in mind, choose a lender by determining your budget. Various calculation methods exist, but your total housing costs (including insurance and taxes) should not be more than one-third of your budget. A mortgage calculator can help you estimate the total amount you can afford.

After estimating your budget, compare your preferred lenders’ loan terms. Most lenders offer 15- and 30-year terms, but some have additional terms for certain loan types. Also, compare rates for each loan term the lender offers. Some lenders publish their rates online, while others require you to request a quote before seeing the terms they offer.

"I always tell clients that it is not just about the interest rate; it is about the entire loan terms, fees, and lender reputation,” says La Gamba. This is important because you should consider the entire quote, not just the rate.

After comparing each lender’s options, you should have your choices narrowed down to two or three lenders. You can then prequalify with those lenders, which won’t affect your credit score. However, it will give you a more detailed quote, breaking down their rates, terms and fees. At this point, you can identify the best option and choose a lender from your shortlist.

Why You Should Trust Us

As a personal finance writer with over six years of experience, I understand the difficulty in identifying the best product or service. That’s why I have spent countless hours researching products and services, including those on this list. As a writer, I’ve interviewed dozens of industry professionals who have helped me identify the best consumer options.

Daniel La Gamba, whom I interviewed for this piece, is a founding partner of the firm LD Law LLP. As a real estate attorney, La Gamba has closed many transactions and caters to a diverse client base. He obtained his law degree from Osgoode Hall Law School and an honors bachelor's degree in psychology from the University of Guelph.

Benzinga was founded in 2010 and is a go-to source for news on investing, insurance, mortgages and other topics. Over 25 million readers trust Benzinga to provide high-quality content, and the team has consistently delivered.

Methodology 

I researched offerings from 23 mortgage lenders using Benzinga’s multi-point methodology to identify the best lenders for borrowing $250,000. Rates and fees, loan options, customer service and the application process are among the most important categories when finding the best mortgage lenders. Credit scores were also considered, meaning the lenders permitting lower credit scores received a boost.

Navigating the mortgage process can be complicated, so I also considered scores and reviews on independent platforms such as TrustPilot, BBB and Zillow. No mortgage lender has a perfect score, but the lenders that scored well generally fare well on at least one of these platforms.

The application process is also significant because it can be long and difficult, potentially confusing borrowers. Those with a simple online application fared well in this category.

See Benzinga's full methodology for a complete overview of how we determine the best mortgage lenders.

FAQ

How much would a 250k mortgage cost per month?

The monthly cost of a $250,000 mortgage can vary significantly depending on the lender, the type of loan, and your creditworthiness. For well-qualified buyers, the cost may be around $1,600 per month, with additional fees for taxes and insurance. 

What credit score do you need for a 250k loan?

The credit score you need for a $250,000 loan depends on the lender and the type of loan, among other factors. Conventional loans require a minimum credit score of 620, while FHA loans may allow scores as low as 580 (or 500 with a 10% down payment). 

Who is the easiest lender to get a mortgage with?

There isn’t one lender that is the easiest to get a mortgage with. However, CrossCountry Mortgage may be a good option for first-time buyers due to its friendly application process, many loan options and relatively quick closing.

Sources

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