Best FHA Loan Lenders of 2019

ByTop10.com StaffMar. 07, 2019
Enjoy Your Own Home With the Best FHA Mortgages
FHA mortgage loans are an attractive option for first-time homebuyers. If you’re looking for your first home and don’t have 20% of the home purchase price for a conventional loan down payment, FHA loans backed by the U.S. government can offer between 3.5% and 10% down payments, which can save you a bundle.

There are some costs to FHA loans, and different rates and terms with different lenders, so compare these top 5 lenders to get the FHA mortgage that works for you.

Loan Provider
Credit Score
Top Pro
View Rates

J.G. Wentworth

580+
Accepts most borrowers

Quicken Loans

580+
Largest FHA lender

Rocket Mortgage

580+
Quote in minutes

First Internet Bank

580+ or less
Rates listed on homepage

CrossCountry Mortgage

Varies
Covers home repairs

1. J.G. Wentworth

Minimum credit score: 500+ for 10% down payment, 580+ for 3.5% down payment

Minimum down payment: 3.5% based on qualifying credit

  • Useful reading materials on website
  • Submit all documents digitally
  • Experience with borrowers with low credit scores

J.G. Wentworth issues home loans for every type of borrower, including FHA loans and FHA 203(K) loans. Its website offers plenty of free educational resources, which can be particularly useful if you’re purchasing your first home and would like to learn more from your lender without committing to anything.

Like a number of lenders, J.G. Wentworth has streamlined its application process to allow applicants to fill out paperwork and submit documents online. An additional advantage to J.G. Wentworth is its experience with borrowers with low credit scores: in addition to FHA loans, this lender only requires the bare-minimum credit score of 620 for conventional mortgages.

Best for: FHA 203(K) loan for home renovations or improvements

Best perk: Digital document submission

J.G. Wentworth J.G. Wentworth View Rates

2. Quicken Loans

Minimum credit score: 500+ for 10% down payment, 580+ for 3.5% down payment

Minimum down payment: 3.5% based on qualifying credit

  • Largest FHA lender
  • Streamlined application process
  • Extensive education resources

Quicken Loans is the largest FHA lender in the U.S., and one of the largest lenders in general. It offers lots of educational resources to prospective borrowers, as well as a streamlined application process. Prospective borrowers may open an application for an FHA loan or FHA refinance loan by talking to one of Quicken’s home loan experts or by applying online through its Rocket Mortgage platform (more on that below).

As the name suggests, everything about Quicken is designed to save time: it offers borrowers the option of filing documents online, the support team is available outside of regular bank hours, and it will provide you constant real-time updates to keep your FHA loan application moving.

Best for: FHA refinance without appraisal

Best perk: Speedy applications

Quicken Loans Quicken Loans View Rates

3. Rocket Mortgage

Minimum credit score: 500+ for 10% down payment, 580+ for 3.5% down payment

Minimum down payment: 3.5% based on qualifying credit

  • Entire application is done online
  • Quick and responsive service
  • Backed by Quicken Loans

As mentioned above, Rocket Mortgage is Quicken Loans’ 100% online solution. To obtain an estimated FHA loan rate, simply create an account, and then spend a few minutes entering details about yourself, the area you’d like to purchase, your estimated purchase price, and a few other things of relevance to your application.

Whether you’re applying for a conventional loan or an FHA loan, Rocket’s automated platform cuts down on much of the hassle and time it takes to share your full credit and financial information, which is all required in order to get a personalized quote.

After submitting your information, you’ll receive a quote in a matter of minutes. You can change the monthly payments until you’re happy with the terms, and there are no pre-payment fees if you want to pay off your loan early. Once you’re happy, just submit your approval request, and the Rocket Mortgage team will be in touch with you shortly through your online account. Everything is done online, including filing paperwork and e-signing when you’re done.

Best for: FHA loans with no pre-payment penalties

Best perk: Automated online platform

Rocket Mortgage Rocket Mortgage View Rates

4. First Internet Bank

Minimum credit score: 500+ for 10% down payment, 580+ for 3.5% down payment

Minimum down payment: 3.5% based on qualifying credit

  • Complete entire process online
  • Closure within 40 days
  • All rates advertised on home page

First Internet Bank is another one of the lenders that has abandoned traditional in-person applications in favor of an all-online solution. It offers a large selection of home loan, personal loan, and business loans, including FHA insured loans. Unlike many other lenders, it advertises its current rates on its home page; at time of writing, it was offering a 30-year fixed rate FHA loan at 4.312% interest.

FIB will ask you to register an account and enter a few basic details before proceeding with your application. Although some people might find this off-putting, the good news is your information will be saved and you won’t have to enter it again.

FIB’s website has an extensive FAQ section, and customer support can be reached for any further questions by telephone (from 7am – 9pm weekdays and 9am – 3pm ET Saturdays, ET).

Best for: FHA loans with no underwriting fees

Best Perk: Large selection of lender

First Internet Bank First Internet Bank View Rates

5. CrossCountry

Minimum credit score: 500+ for 10% down payment, 580+ for 3.5% down payment

Minimum down payment: 3.5% based on qualifying credit

  • Offers additional FHA loan for homes needing repairs
  • Responsive customer service and real-time updates throughout application
  • Extensive educational resources on website, including information on FHA loans

In addition to standard FHA loans, CrossCountry Mortgage offers 2 types of FHA 203(k) home loans: these allow borrowers to buy a home and finance qualifying improvements or repairs. CrossCountry makes this loan available in 2 forms: Streamline, allowing the borrower to finance up to $35,000 in renovations, though only certain types of repairs are eligible; Standard, allowing the borrower to finance a minimum of $5,000 in repairs with no maximum, although all repairs must be supported by the property appraisal.

Eligible non-structural repairs include: roofs, gutters, and downspouts; existing HVAC systems, plumbing and electrical systems, flooring and carpeting, interior and exterior paint, appliances (purchase and installation), accessibility improvements, exterior decks, patios and porches, basement finishing (non-structural), basement waterproofing, weatherization upgrades, window and door replacements, wall residing, septic and well systems.

CrossCountry’s FHA 203(k) is particularly useful, given that under the terms of a regular FHA loan, an FHA-approved appraiser must conduct an appraisal to ensure the property meets certain minimum standards. If a home is deemed to not be up to standard and the seller doesn’t agree to make the required repairs, the borrower must pay for the repairs at closing. Under CrossCountry’s FHA 203(k) loans, the additional costs of appraisers, consultants, contractors, and inspectors are added to the terms of the loan.

Best for: Standard FHA loans with $5,000 for repairs

Best perk: Offers 203(k) FHA loans

Cross Country Cross Country View Rates

How to Choose the Best FHA Lender For You

As you can see, FHA lenders vary in their level of customer support, rates, requirements and even the types of loans. Some lenders will supply refinance loans or loans without fees, while others will move faster and have more online support. 

Choose your FHA lender based on your unique needs. There's tons more to know about FHA loans if you're just starting out, so read up and consider your personal preferences and budget. 

Consider these 5 things before you pick your lender:

  1. Your credit score, so you know what kind of down payment and interest rates you can expect to pay. 
  2. Check the lender's approval with the Department of Housing and Urban Development so you get a qualified lender. 
  3. Compare lenders terms, rates and conditions to find the situation that's best for your budget. 
  4. Pick a lender with the support you need and customer service that's there for you throughout your home buying process. 

Because of the unique specifications, it’s worth seeking out a top FHA lender that has experience with these loans, such as the 5 lenders listed above.  If you're interested in finding out about more lenders, read our reviews  to learn more.