By Team Consumer, 18 May 2022

Learn More About Pre-Approved FHA Loans

Are you looking for a home loan with low rates? Do you want to compare mortgage options available despite bad credit? Are you interested in applying for a FHA Loan or Home Financing Loan? You can read yourself through our guide about home loans and find the best offer to finance your home!

The Best Home Loans/ Mortgage Loans in the US

We know firsthand how overwhelming it is to navigate the world of home loans and mortgages. There are many types of loans, all with different requirements, benefits and drawbacks. While it’s important to shop around and talk to different people and lenders, it’s always good to have a place to start. If you’re looking for that place to start, then you’ve come to the right page. Keep reading for information on different kinds of loans and what they mean, some things to be aware of before you apply for a loan, what to think about when budgeting, and some of the many places to go for home loans and mortgages!

Types of home loans/mortgages

Conventional mortgages: Offered by private lenders, Freddie Mac or Fannie Mae (two government-backed lenders). Not secured by the government. Adjustable-rate mortgages (ARM): The interest rate changes throughout the time you’re paying back the loan.

Jumbo mortgages: NOT a conventional mortgage- the amount being loan is larger than the limits set by the Federal Housing Finance Agency (FHFA) Fixed-rate mortgages: The interest rate stays the same for the entire time you’re paying back the loan.

Government-insured mortgages

FHA mortgages: Federal Housing Authority insured loans. VA mortgages: Some private lenders offer loans specifically for veterans, but the Veterans’ Affairs also offers VA direct loans, where you’re borrowing straight from them. USDA mortgages: The United States Department of Agriculture offers loans with no down payment and low interest rates.

Where to find loans

See our list below! Check out local loan providers for your area!

What to be aware of when applying for them:

Conforming versus non-conforming mortgages. The main difference between conforming and non-conforming loans is that conforming loans can be sold to Freddie Mac and Fannie Mae, and non-conforming loans cannot. These are two of the biggest mortgage loan buyers in the states. In order to be sold to these loan buyers, the loans have to conform to certain guidelines, including a limit on the size of the loan.

Know your credit score. Many loans have a minimum credit score in order to qualify. You can get a free credit report from many websites online, and this will help you know what loans you might qualify for! Watch out for interest rates! Make sure to shop around and find the best interest rates for you!

Think about potential, upcoming employment changes: A mortgage is a big commitment, so you’re going to want to think about what your income is going to look like for years to come.

Be aware of how many accounts you have open. This is something to be mindful of whenever you open any account or take out any kind of loan. How much can you afford to spend on a down-payment? How much your down payment is can affect your mortgage and interest rates, so it’s important to know this number going in.

Lookout for prepayment penalties. Some loans will actually penalize you for paying your loan off early. If that’s something that appeals to you, be sure to find out whether the loan you’re looking at has any prepayment penalties. Some things to keep in mind while budgeting:

Mortgage principal: The total amount you’re borrowing. Mortgage interest: The interest charged on the loan while you’re paying it off. Property taxes: The amount you’ll pay in taxes each year for owning property. This amount depends on where you live.

Homeowner and mortgage insurance: Mortgage insurance protects the lender, in the case that you default on your loan, whereas homeowner’s insurance protects you (the homeowner) in the case that something happens to your home. Utilities (electricity, water, gas, cable, internet, etc.): Be sure to factor these in when you’re budgeting!

Repair expenses: Unlike renting, when you’re the homeowner you can’t call the landlord when something requires a repair… you’ve got to cover that yourself! Condo or homeowner’s association dues: Make certain to find out if there’s a homeowner’s association affiliated with your area.

Companies/services that offer home loans/mortgage loans:

Disclaimer: there are thousands of loan service providers throughout the US. Our list has some reliable lenders, but it’s important to do your own research to find the best service provider for you.

Chase Bank

  • Types of mortgages offered: Conventional, VA, FHA, ARM, Jumbo
  • Minimum credit score: 620
  • Where they service: More than half of the United States
  • How long it takes: Chase guarantees that you’ll close on the loan within 3 business days after receiving a satisfactory final inspection. If they don’t meet this three day deadline, they’ll give you $2,500.
  • Where to apply: You can begin the application process online, in person or over the phone, but in order to complete the application process, you will have to speak with a home loan advisor.

Wells Fargo

  • Types of mortgages offered: Conventional, ARM, FHA, Jumbo, VA, USDA
  • Minimum credit score: 620
  • Where they service: They service all 50 states, and have offices in every state except VT
  • How long it takes: 30-90 days to close
  • Where to apply: Online or in person!
  • Navy Federal
  • Types of mortgages offered: Conventional, VA, Jumbo, ARM
  • Minimum credit score: 620
  • Where they service: Across the US, but they only serve veterans and current military members, some federal employees, retirees and contractors.
  • How long it takes: Around 30 days to close
  • Where to apply: Online, in person or over the phone!

New American Funding

  • Types of mortgages offered: Conventional, VA, FHA, ARM, Jumbo, USDA
  • Minimum credit score: 620
  • Where they service: 49 states (all except Hawaii) and the District of Columbia
  • How long it takes: The average closing takes less than 35 days
  • Where to apply: Online, in person, or over the phone!

Alterra Home Loans

  • Types of mortgages offered: Conventional, VA, FHA, USDA- They also offer a Taxpayer Identification Number (ITIN) Loan for borrowers who are also undocumented immigrants.
  • Minimum credit score: 620
  • Where they service: They have branches in 16 states, but service over half the US
  • How long it takes: Data not published
  • Where to apply: Online or in person, if they have a branch near you!

Rocket Mortgage (Formerly Quicken Loans)

  • Types of mortgages offered: Conventional, Jumbo, ARM, FHA, VA
  • Minimum credit score: 620
  • Where they service: All 50 states and DC
  • How long it takes: 30-45 days on average to close
  • Where to apply: Online!

Better Loans

  • Types of mortgages offered: Conventional, FHA, Jumbo, ARM
  • Minimum credit score: 620
  • Where they service: All states except HI, MA, MN, NV, NH, VT and VA
  • How long it takes: 30-45 days to close
  • Where to apply: Process is completely online!
  • Guaranteed Rate

  • Types of mortgages offered: Conventional, VA, FHA, ARM, Jumbo, USDA
  • Minimum credit score: 6-700 depending on the type of loan
  • Where they service: All 50 states
  • How long it takes: Between 21 and 30 days to close
  • Where to apply: Online or at a branch near you!

Flagstar

  • Types of mortgages offered: Conventional, VA, FHA, ARM, Jumbo, USDA
  • Minimum credit score: 580
  • Where they service: All 50 states
  • How long it takes: An average of 35 days to close
  • Where to apply: Online, or at a branch near you!

PNC Bank

  • Types of mortgages offered: Conventional, VA, FHA, ARM, Jumbo
  • Minimum credit score: 620-700, depending on the type of loan
  • Where they service: All 50 states
  • How long it takes: Average 45 days to close
  • Where to apply: Online or at a branch near you!

Long story short: you have a lot of options. Whether you’re worried your credit score is too low to be approved for a mortgage, you’ve got a time crunch, or you can’t get online to apply for a home loan, there’s a lender for you. The above lenders all have different pros and cons, requirements and options… don’t be afraid to shop around to ensure you get the best deal. And lastly, congratulations on your new home!