Best Online Mortgage Lenders of July 2023

Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.

Because there are so many options to choose from when it comes to online mortgage lenders, it can be hard to know which one is right for you. 

Our favorite online mortgage lenders offer things like automated document retrieval, digital closings, and more. 

The Best Online Mortgage Lenders of 2023

*Minimum credit scores are for conforming loans. If you qualify for another type of loan, you might be able to secure a loan with a lower score.

The Best Online Mortgage Lenders

Experts’ Advice on Choosing the Best Online Mortgage Lender

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To help you learn more about homebuying, mortgages, and lenders, four experts weighed in:

Here’s their advice about how to evaluate mortgage lenders, and how to decide which type of mortgage is best for you. (Some text may be lightly edited for clarity.)

What factors should someone take into consideration when choosing a mortgage lender?

Anthony Park, author:

“The canned answer is to just go with the lowest rate. However, you also want to take into account who’s going to serve your loan best. Are repayments going to be easy for you? Who is most likely to be able to help you if you need to take out a HELOC or refinance later, versus somebody who’s more of a one-off type?

“They may have the lowest rates to get you involved, but they might have very, very little hand holding after the fact. I wouldn’t recommend paying an exorbitant amount more for potential services in the future, but just don’t always necessarily go with the rock-bottom lowest rate. There’s sometimes a cost with that.”

Molly Grace, Personal Finance Insider:

“Remember that you’re not just choosing a mortgage lender — you’re also building a homebuying team. To snag the home you want in this competitive market, you need a lender that can move quickly and has good communication with you and your real estate agent.

When I was looking for a house, I was able to text my loan officer (whom my real estate agent recommended) and get quick replies when I had questions or needed an updated preapproval letter for an offer. As you compare lenders, pay attention to how responsive they are, and ask your agent if they have any experience with the lenders you’re considering.”

How can someone decide between a conventional mortgage vs. a government-backed mortgage?

Molly Grace, Personal Finance Insider

“An FHA mortgage is a really helpful option for borrowers with low scores or kind of rocky credit histories. But if you have great credit, you may get a better rate and pay less for mortgage insurance on a conventional mortgage. 

VA mortgages are really great deals. If you qualify for one, you should definitely go for it. You get zero down with no mortgage insurance — plus some of the best rates available.”

Julie Aragon, Aragon Lending Team:

“The most common government loan that’s widely available to almost everyone is the FHA loan. There’s a couple of reasons why somebody would go with FHA instead of conventional one. Their credit is a little on the crummy side, let’s say below 700. You can get conventional with down to a 620 score, but the mortgage insurance gets really expensive. FHA doesn’t discriminate — no matter how perfect or crappy your credit is, the mortgage insurance is the same.”

How can someone know whether they’re financially ready to buy a home?

Lauryn Williams, CFP:

“You should have funds left over after everything is said and done as it pertains to purchasing the home. So if you don’t have an emergency fund plus a down payment, you’re probably not ready to purchase a home. Another thing I think about is credit card debt. While you can be approved for a mortgage with credit card debt and student loans and very little cash on hand, you put yourself in a very risky situation.”

Molly Grace, Personal Finance Insider

“You have to be ready to dedicate a chunk of your budget to homeownership — and I don’t mean your mortgage payment. When you own your house, there’s always something that needs taking care of, especially in the first year. We got to our new house on moving day to find that the A/C was out. We paid $700 to have it fixed.”

Methodology: How We Chose the Best Online Mortgage Lenders for 2023

We considered lenders that let you do most of your application process online, and many of them help you track your payments and balance online. To choose the best online mortgage lenders, we evaluated the following factors: 

• Loan types. Did a lender offer several types of loans to suit customers’ needs, such as conventional loans, government-backed loans, and home equity loans?
• Customer satisfaction. If the lender appeared in the J.D. Power 2022 Mortgage Origination Satisfaction Study, we looked at its ranking. If it wasn’t in the study, then we read online customer reviews.
• Affordability. We looked at lenders’ minimum credit scores and down payment amounts. We also checked whether they offer government-backed loans, which can be more affordable for borrowers with less-than-perfect financial profiles. Finally, we looked at whether they have flexible credit requirements on any of their mortgages. This includes allowing borrowers to have recent negative events on their credit reports or accepting non-traditional credit from those with no credit score.
• Ethics. Each of our top picks received a B or higher from the Better Business Bureau, which measures companies’ trustworthiness. We also considered any public controversies in the last three years.

See our full ratings methodology for mortgage lenders »

Online Mortgage Lender Frequently Asked Questions

Best Overall

Guild Mortgage

Guild Mortgage can help connect you with down payment assistance programs in your county, making it a particularly good choice for first-time homebuyers and others having trouble coming up with a down payment. It also offers a hybrid digital closing option and has an A+ rating from the BBB.

In 2021, Guild ranked above the industry average on J.D. Power’s 2022 Mortgage Origination Satisfaction Study.

Guild Mortgage Review

Best for Low-Income Borrowers

Bank of America Mortgage

Bank of America is a good mortgage lender for first-time or low-income homebuyers and current Bank of America customers. When you get a mortgage with this lender, you may be able to get up to $7,500 in closing cost assistance and up to $10,000 in down payment assistance. If you already have an account with Bank of America, you may be able to get a discount on your origination fee.

With its Community Affordable Loan Solution, you could get a zero-down mortgage with no closing costs and no minimum credit score required. But this mortgage option is currently only available in a handful of cities.

Bank of America has an A+ rating from the BBB. It ranked above average in J.D. Power’s customer satisfaction study.

Bank of America Mortgage Review

Best for First-Time Homebuyers

Better Mortgage

Better.com is a good choice for borrowers looking for a quick, easy preapproval process. It also stands out for having no lender fees. However, its loan options are limited; if you’re looking for a VA or USDA mortgage, you’ll need to look elsewhere.

Better.com has a B rating from the BBB. It ranked below average in J.D. Power’s 2022 Mortgage Origination Satisfaction Study.

Better Mortgage Review

Best for Low Credit Scores

Carrington Mortgage Services

For borrowers with poor credit, Carrington is a strong option. It’s Carrington Flexible Advantage mortgage is available to borrowers with scores as low as 550 or negative credit events like bankruptcy on their credit reports. Borrowers can get a government-backed loan from this lender with scores as low as 500.

Carrington has an NR (“no rating”) from the BBB. 

Carrington Mortgage Services Review

Best for Remote Closings

Fairway Independent Mortgage

If you’re looking for a faster, streamlined closing experience, you might find Fairway Independent’s digital closing option attractive. It’s also a solid option if you need a renovation loan.

This lender has an A+ rating from the BBB and ranked No. 4 on J.D. Power’s 2022 study.

Fairway Independent Mortgage Corporation Review

Best for Exploring Rates

Guaranteed Rate Mortgage

Guaranteed rate is an overall strong online lender, particularly for borrowers looking for a digital closing option. You may also be able to use non-traditional credit (such as rent or utility payment history) to qualify with this lender if you don’t have a credit score.

This lender has an A+ rating from the BBB, and ranked above average on J.D. Power’s annual study.

Guaranteed Rate Mortgage Review

Best for Government-Backed Loans

New American Funding

New American Funding offers all three of the most popular government-backed mortgages to borrowers with lower scores (you’ll need a 580 score to get an FHA or USDA loan, while VA borrowers can have “less than perfect” credit, the lender says). 

Its I CAN mortgage is also a good option for borrowers who want to tailor their term lengths to their exact needs. With this mortgage, you can pick any loan term from eight to 30 years.

This lender has an A- rating from the BBB and accepts alternative forms of credit. It currently doesn’t originate mortgages in Hawaii or New York.

New American Funding Review

Best for Refinancing

Rocket Mortgage

Rocket Mortgage ranked as the top lender for customer satisfaction from J.D. Power in 2022. It currently has an A+ rating from the BBB. This lender provides a quick, easy online experience and offers mortgages with terms as short as eight years.

If you get a mortgage with Rocket Mortgage, you’ll complete the application process remotely, because it doesn’t have any physical branches. You’ll also need a decent credit score, since this lender doesn’t accept non-traditional credit.

Rocket Mortgage Review

Best Big Bank

Chase Mortgage

Chase offers robust rate customization tools that let you see personalized sample rates without having to provide contact information. It also offers multiple types of assistance that can help low-income or first-time homebuyers afford a home, including its affordable DreaMaker mortgage and down payment assistance up to $5,000. 

This lender has A+ rating from the BBB, and it ranked No. 2 in J.D. Power’s annual study.

Chase Mortgage Review

Best for Live Online Chat

Citizens Bank Mortgages

Citizens is another good lender for affordable mortgage features. It offers down payment assistance in certain areas and its Destination Home Mortgage allows 3% down payments with no monthly mortgage insurance.

Citizens Bank has an NR (“no rating”) from the BBB, and it ranks slightly below the industry average in J.D. Power’s 2022 study.

Citizens Bank Mortgage Review

Other Online Mortgage Lenders We Considered

We evaluated over two dozen mortgage lenders before picking our favorites. Here are the other lenders we looked at and reasons they didn’t make the cut:

• Navy Federal Credit Union: Navy Federal does have a good online application process, but membership is limited to certain people.
• Pentagon Federal Credit Union: If you have a 650 credit score, PenFed offers $500 to $2,500 in lender credit for all members, depending on how much you borrow. The credit union doesn’t have FHA or USDA mortgages, though.
• USAA: USAA only offers VA mortgages right now.
• LoanDepot: LoanDepot is a solid lender, but it doesn’t have any features that set it apart from the crowd.
• Wells Fargo: Wells Fargo has had multiple public controversies over the past few years regarding claims of racist lending practices, creating fake bank accounts, and charging customers for insurance products they didn’t sign up for.
• Caliber Home Loans: Caliber is a strong lender, but there are no standout features.
• Truist: Truist has a good low down payment option with no mortgage insurance, but it only ranks average in J.D. Power’s annual survey.
• Veterans United: Veterans United offers several types of mortgages, not just VA mortgages. It’s difficult to find information for non-VA mortgages on its website, though.
• CMG Financial: CMG has unique grant opportunities and mortgages. They could be good options, but these programs aren’t for everyone.
• Flagstar Bank: This lender offers several types of home loans, but none of its features make it stand out.
• Movement Mortgage: Movement Mortgage will process your mortgage within seven business days, so it’s a good option if you’re in a hurry.
• Ally: Ally has a fully online process, but the bank only has conventional mortgages.
• NBKC Bank: NBKC is a solid mortgage lender, but it didn’t have as many standout features as the lenders we included.
• US Bank: This bank ranked low on J.D. Power’s annual study.

Are These Online Mortgage Lenders Trustworthy?

The Better Business Bureau grades companies based on responses to customer complaints, honesty in advertising, and transparency about business practices. Here are the BBB grades for our top online mortgage lenders:

Most of our picks have an A+ from the BBB. The exceptions are Better.com, Carrington, New American Funding, and Citizens.

Better.com has a B due to the high volume of complaints on the BBB website. Carrington is currently responding to complaints that were previously closed. New American Funding has recent government action against the business. Citizens has an NR because “the business’s BBB file information is being reviewed and/or updated.”

Broker Solutions Inc., New American Funding’s legal name, entered into a consent order with the Commonwealth of Massachusetts in January 2023 to settle allegations that the company facilitated unlicensed mortgage activities in the state.

In 2020, Guild Mortgage paid the United States $24.9 million when it was accused of approving FHA mortgages for people who didn’t qualify, resulting in loan defaults.

The Department of Justice required JPMorgan & Chase to pay $920 million for wrongful trading in 2020.

Some of the other lenders on our list have some recent controversies, too, despite strong BBB grades.

Guaranteed Rate is paying the government $15 million. A former employee claimed that the lender pressured underwriters into lying so that the government would insure FHA and VA loans. The Department of Justice said that the lender attempted to stop these illegal practices even before the federal investigation began, though.

In 2020, the Department of Justice charged Bank of America for unfairly denying home loans to adults with disabilities, even though they qualified for loans. Bank of America paid around $300,000 total to people who were refused loans.

In November 2022, the Consumer Financial Protection Bureau ordered Carrington to pay $5.25 million in fines for supposedly violating borrowers’ CARES Act rights. The CFPB claims that the lender misled borrowers seeking CARES Act forbearance and denied them key protections provided by the pandemic-era law.

Citizens was the subject of a 2020 complaint filed by the Consumer Financial Protection Bureau alleging that Citizens violated the Truth in Lending Act by inappropriately handling billing errors on consumers’ credit card accounts.

Things to Consider When Choosing an Online Lender

Not sure how to find the online mortgage lender that’s right for you? Here are some questions to think about as you search:

• Which lenders offer the mortgage I’m looking for? Some online lenders have limited mortgage options. If you’re looking for a specific type of mortgage such as an FHA mortgage, be sure the lenders you’re considering offer them.
• What features and benefits are most important to me? Do you just want the lowest rates? Good customer service? Easy-to-use digital tools? Finding a lender that offers the amenities you want will help you have a better experience.
• What fees do they charge? Many lenders charge lender fees, such as application or underwriting fees, that you’ll pay as part of your closing costs. These fees can vary, so it’s important to compare both rates and fees from any lenders you’re considering.
• Do they offer mortgages in my state? Online lenders aren’t always licensed to originate mortgages in all 50 US states.
• What down payment do they require? Some lenders will allow you to put down as little as 3% on your mortgage, while others have higher minimum down payments.
• What has others’ experience been? Reading online customer reviews can help you get an idea of how satisfied borrowers are with a particular lender. You can also check out J.D. Power’s annual ranking of the top lenders in customer satisfaction.

Mortgage and refinance rates by state

Check the latest rates in your state at the links below. 

Alabama
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Delaware
Florida
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Hawaii
Idaho
Illinois
Indiana
Iowa
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Louisiana
Maine
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Michigan
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Washington
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Wyoming

Laura Grace Tarpley, CEPF

Personal Finance Reviews Editor

Laura Grace Tarpley (she/her) is a personal finance reviews senior editor at Insider. She oversees coverage about mortgage rates, refinance rates, lenders, bank accounts, investing, retirement , and borrowing and savings tips for Personal Finance Insider. She was a writer and editor for Insider’s “The Road to Home” series, which won a Silver award from the National Associate of Real Estate Editors. She is also a Certified Educator in Personal Finance (CEPF).
She has written about personal finance for seven years. Before joining the Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU. You can reach Laura Grace at ltarpley@insider.com.
Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services »

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Molly Grace

Mortgage Reporter

Elias Shaya

Jr Compliance Associate

Elias Shaya is a junior compliance associate on the Personal Finance Insider team based in New York City.
Personal Finance Insider is Insider’s personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that readers already know and love. The compliance team’s mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions.
The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up to date and accurate.
He joined Insider in February 2022 as a fellow on the compliance team.
Elias has a Bachelor of Science in International Business from the CUNY College of Staten Island. Prior to joining Insider, he volunteered at the New York Presbyterian Hospital, where he worked with the biomedical engineering department. In his spare time, Elias enjoys exploring new restaurants, traveling to visit his family in Lebanon, and spending time with friends.

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