6 Best Online Mortgage Lenders of 2025, According to Experts

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A great mortgage lender isn’t just about low interest rates — it’s about clear terms, helpful customer support and an easy application process.

Exploring home loan options from your couch has never been easier. Instead of multiple in-person meetings and mountains of paperwork, you can apply straight from your phone.

“The digital world has drastically changed the mortgage process,” said John Dustman, senior vice president (SVP) and head of consumer lending and advisor banking at Axos Bank. “Today, consumers can enjoy a streamlined and convenient experience when shopping for and obtaining a mortgage.”

As a financial writer for nearly five years, I’ve used Benzinga’s standardized methodology to compile a list of some of the best online mortgage lenders.

6 Best Online Mortgage Lenders in 2025

• Best Overall Online Mortgage Lender: New American Funding
• Best Online Mortgage Lender for First-Time Buyers: NorthPointe Bank
• Best Online Mortgage Lender for Refinancing: Pennymac
• Best Online Mortgage Lender for Bad Credit: Sage Home Loans
• Best Online VA Mortgage Lender: Navy Federal Credit Union
• Best Online Mortgage Lenders for Ease of Use: Sofi

Best Overall Online Mortgage Lender: New American Funding

Pros

• First-time home buyers program
• Cash offer program
• 14-business-day close guarantee
• Credit score flexibility
• Highly rated mobile app ratings
• Excellent Trustpilot ratings

Cons

• Lower rates with other lenders
• Advertised rates include 3.0 discount points

New American Funding (NAF) won the best overall online mortgage lender award due to its variety of loan options, transparent fees, flexible credit score requirements, competitive rates and other fantastic perks it offers borrowers. It also made our list as one of the best conventional mortgage lenders.

The lender has a cash buyers program, so it will buy the home for you in cash and sell it to you at the original price (with a fee). Since you're purchasing with cash, your offer may be more attractive to the seller.

NAF also provides Pathway to Homeownership to qualifying first-time home buyers. The program can provide up to $7,500 in assistance for your down payment, closing costs and other upfront expenses.

Minimum credit score: 580 

Minimum down payment: 3% 

Loan types offered: Conventional, FHA, USDA, VA

States served: All 50 states

Best Online Mortgage Lender for First-Time Buyers: Northpointe Bank

Pros

• Simple application process
• 0% down for some loans
• Fast closing time
• Several financing options 
• Transparent fees
• Highly-rated mobile apps

Cons

• Rates not listed on its website
• Limited phone support hours

Northpointe Bank offers a wide range of borrowing options, including conventional mortgages (fixed and variable) as well as FHA, VA, USDA and home equity loans. On top of that, some of its home loans don’t require a down payment, making it one of the best mortgage lenders for first-time home buyers.

This lender also provides a speedy closing time. According to its website, your loan could be ready to close in 15 business days or less. 

Northpointe’s HOME app, which has excellent reviews, lets you apply, upload documents, monitor your loan progress and message your loan advisor. These features can make the application and closing process much more streamlined, which is a great perk for first-time home buyers.

Minimum credit score: 580

Minimum down payment: 0%

Loan types offered: Conventional, FHA, USDA, VA

States served: All 50 states

Best Online Mortgage Lender for Refinancing: Pennymac

Pros

• Refinance credit
• Competitive rates
• Transparent fees
• Bonus toward closing costs
• Several financing options 
• Highly rated mobile apps

Cons

• Limited phone support hours
• Mixed customer reviews

Pennymac took the spot as one of the best online mortgage lenders for refinancing because of its excellent rates and perks, including a refi credit. When you purchase your home through Pennymac, you may be able to receive $2,000 if you refinance within three years.

Along with home refinance loans and cash-out refinancing, Pennymac offers many different loan options, including fixed and adjustable rate mortgages, home equity loans and government-backed home loans. 

When you're preapproved, the lender offers a $1,000 bonus toward your closing costs, as well as a 1% rate discount for the first 12 months.

Minimum credit score: 580

Minimum down payment: 3%

Loan types offered: Conventional, FHA, VA, USDA

States served: All 50 states

Best Online Mortgage Lender for Bad Credit: Sage Home Loans

Pros

• Flexible credit score requirements
• Excellent rates
• Preapproval letter
• Dedicated loan officer
• No origination fees
• $500 on-time close guarantee

Cons

• Fees not listed on website
• Not many customer reviews

Sage Home Loans, owned by Red Ventures, offers some of the best mortgage rates. It also has no origination fees and a $500 close-on-time guarantee. 

You apply for your mortgage by phone or online and will receive a dedicated loan officer to help you. Even if your credit score is less than stellar, you might still qualify for a mortgage through Sage. According to its website, the company offers FHA loans, which only require a minimum 500 credit score. 

There aren’t many customer reviews online, but most borrowers are happy with Sage overall. I tried to email the lender with a couple of questions for this article, but two business days later, I haven't heard back.

Minimum credit score: 500

Minimum down payment: 3%

Loan types offered: Purchase and refinance

States served: All U.S. states except NY

Best Online VA Mortgage Lender: Navy Federal Credit Union

Pros

• Great rates with flexible credit requirements
• Loan options with no down payment
• No PMI required
• Transparent fees
• 24/7 customer service
• Excellent Trustpilot ratings

Cons

• No FHA or USDA loans
• Membership requirements

You might want to consider Navy Federal for a mortgage lender if you're a veteran. The credit union only serves current and former military members and their families, so it often provides exclusive rates and discounts for our nation’s heroes. However, If you find a better APR elsewhere, Navy Federal will match it if certain conditions are met. 

Navy Federal provides other excellent perks, including a no-refinance rate drop, up to $9,000 cash back with RealtyPlus, and loan options with no down payment or PMI required. These benefits can be especially helpful for veterans who may not have significant savings.

The credit union is well known for its excellent customer service, earning 4.5 stars on Trustpilot. It also offers 24/7 customer support and has over 360 branches worldwide to assist service members overseas.

Minimum credit score: Not disclosed 

Minimum down payment: 0%

Loan types offered: Conventional and VA 

States served: Not disclosed

Best Online Mortgage Lender for Ease of Use: SoFi

Pros

• Simple application process
• Competitive rates
• $10,000 on-time close guarantee
• Potential cashback after close
• Highly rated mobile apps
• Excellent Trustpilot rating

Cons

• Doesn’t list all fees on website
• No USDA loans

If you want an online lender with an easy application process, great mobile apps, and competitive rates, SoFi could be your best bet. The lender offers a variety of loans and may require only a 3% down payment for first-time home buyers. 

Once you’re tentatively approved, SoFi will provide a Verified Preapproval Letter, which can show sellers your loan type and amount, helping you secure a home faster.

Additionally, SoFi guarantees that you’ll close on time, or you’ll receive a $10,000 credit toward closing costs and any other expenses caused by the delay. You could also qualify for up to $9,500 in cashback when buying a home with a participating HomeStory real estate agent.

Minimum credit score: 500 

Minimum down payment: 3%

Loan types offered: Conventional, FHA, VA

States served: All 50 states (no refinance in NY)

What is an Online Mortgage Lender?

An online mortgage lender lets you complete your home loan application and closing process digitally. 

You may be asking, "Can I really get a mortgage completely online?" According to John Dustman, SVP and head of consumer lending and advisor banking at Axos Bank, we’re not quite there yet. 

“While technology and the origination process has evolved at light speed over recent years, some of the documents required at closing still must be completed with a notary, in person,” Dustman explained.

“Fortunately, most lenders send a notary directly to you at a location of your choice, so this too has become easier than it once was.”

Pros and Cons of Using an Online Mortgage Lender

Now, let’s look at some advantages and disadvantages of using an online mortgage lender.

Pros

Aside from the convenience factor, one of the biggest benefits of online mortgage lenders is their lower rates and fees:

“This can be achieved through lower operating costs passed through to the end consumer,” Dustman said. 

Using an online lender also gives you time to research rates, fees, customer reviews, average closing times and more. You might also consider going through a mortgage broker to help you find the best lender for you.

Cons

Online lenders can offer convenience and lower costs, but some important drawbacks exist.

While many borrowers will happily forgo the in-person experience, some would rather meet with their lender face-to-face to ask questions and express concerns.

“Consumers with complex income or multiple co-signers may prefer having a lender who can help with the application submission and conditions of the loan,” explained Dustman. 

Although many online lenders offer excellent customer support, others may be difficult to reach or communicate with over the phone. 

Before choosing a lender, read about other customers’ experiences on sites like Trustpilot, BBB and Reddit.

Why You Should Trust Us

Benzinga has been helping everyday investors navigate market complexities since 2010. Our site is now a go-to source for financial news and data for about 25 million monthly readers. 

I, Carley Clark, the author of this article, have worked in finance since 2019 and have a bachelor’s degree in business from Spring Arbor University. Before writing about finance, I worked as a revenue auditor at a casino.

For this piece, I consulted John Dustman, SVP and head of consumer lending and advisor banking at Axos Bank, about the benefits and drawbacks of working with an online mortgage lender. Dustman has worked in finance for over 20 years and holds an M.B.A. from Northern Arizona University. 

Methodology for Choosing the Best Online Mortgage Lenders

For this ranking, I collected data from over 25 online mortgage lenders. Following Benzinga’s standard mortgage methodology, I placed the highest weight on competitive interest rates. The next most important factors were the available loan options, customer service and application process. 

To evaluate customer service, I primarily referenced Trustpilot to gauge consumer experiences with a lender. However, if the company didn’t have many reviews there, I also considered feedback from Zillow, the BBB website and forums like Reddit. 

The application process was another important piece of the methodology. I assessed whether the lender offered an online application, the average time to close and overall ease of use, including mobile app ratings, live chat options, educational resources and other features that would improve the borrower experience.

I also noted any standout perks or drawbacks outside of the standard criteria. If I couldn’t verify a lender's specific details, I assigned a medium score in that category. 

For a closer look at how we determined these rankings, check out Benzinga’s full mortgage methodology. 

FAQ

Sources

• John Dustman, SVP and head of consumer lending and advisor banking at Axos Bank, via email interview on Feb. 6, 2025.

• Experian, “Do Online Banks Offer Better Rates?” retrieved on Feb. 7, 2025.

• Federal Housing Finance Agency, “FHFA Announces Conforming Loan Limit Values for 2025,” retrieved on Feb. 7, 2025.

• Online lender information sourced from company websites, including New American Funding, NorthPointe Bank, Pennymac, Sage Home Loans, Navy Federal Credit Union and SoFi.

• Review data sourced from Trustpilot, the Better Business Bureau (BBB), the Apple App Store and Google Play.