Best Mortgage Lenders For First-Time Homebuyers in August 2025

The homebuying process can be daunting, especially if you’ve never done it before.

Rates and terms are always important, but new homebuyers may need flexible down payment options, generous grants and first-rate customer service.

CNBC Select has rounded up the best mortgage lenders for first-time homebuyers in a variety of categories, including military families and those with bad credit or looking to close quickly. (See our methodology for information on how we made our selections).

Who’s this for? You can put 1% down for Rocket Mortgage‘s RocketONE+ loan with no private mortgage insurance, making this digital-only lender a no-brainer if you have less saved up for your down payment.

Standout benefits: If you buy your house through the Rocket Homes network, you could get a 1.25% rebate for closing costs, up to $10,000. Using the Rocket Visa Signature Card earns points toward a down payment on a future mortgage.

Who’s this for? Guild Mortgage has more flexible credit requirements than many competitors, especially for FHA loans and other government-backed mortgages. It also considers non-traditional credit sources, like on-time payments for rent and utilities.

Standout benefits: Guild’s Payment Advantage mortgage pays 1% of your interest rate for the first year. If rates go down, you may be eligible to refinance with no lender fees. Guild also has a 17-day closing guarantee, with qualified buyers receiving a $500 closing-cost credit if they don’t close on time.

Who’s this for? Better Mortgage offers a discount of up to $2,000 on closing costs for those who use Better Real Estate to buy their home.

Standout benefits: With Better’s HOPE Grant, homebuyers who meet income requirements can receive 2% of their home value, up to $5,000 to put towards their down payment.

Who’s this for? PNC Bank‘s conventional fixed-rate mortgages can have terms as short as 10 years or as long as 30. There’s no minimum loan amount and PNC approves jumbo mortgages for up to $5 million, higher than many competitors.

Standout benefits: PNC Bank offers a closing cost grant of up to $7,500 to first-time homebuyers. The Eligible borrowers can qualify for a PNC Community Loan with a down payment of 3% and no private mortgage insurance.

Who’s this for? J.D. Power ranks Bank of America highly for both mortgage origination and servicing and it received an A- from the Better Business Bureau.

Standout benefits: BoA’s Down Payment Grant provides up to 3% of a home’s purchase price in select markets, while the America’s Home Grant offers up to $7,500 toward closing costs.

Who’s this for? Flagstar Bank‘s Gift Program allows first-time homebuyers in designated areas to receive grants and gifts covering as much as 3% of their purchase price, up to $10,000.

Standout benefits: Through the Flagstar Power-Up program, first-time buyers in select census tracts can receive up to $8,000.

Who’s this for? Chase guarantees eligible mortgages will close on time or borrowers get a $5,000 cash payment.

Standout benefits: Chase’s Standard Agency mortgage allows first-time buyers to put down as little as 3%. Current Chase customers may qualify for a discount on their mortgage rate.

Who’s this for? The largest issuer of VA loans in the U.S., Veterans United specializes in lending to active-duty service members, veterans and eligible reservists and surviving spouses.

Standout benefits: Veterans United customer service team is available 24/7, making it easier for troops stationed overseas to access. Free credit counseling is also available to help get you approved for the best rate.

A mortgage is a loan used to finance the purchase of a home. In most cases, borrowers need to make a down payment upfront — usually between 3% and 20% of the home price. The remainder of the total is broken into smaller monthly mortgage payments made over a set number of years, with interest and other charges added.

Lenders set interest rates for their mortgages, which can change almost daily depending on market forces. Your personalized rate depends on your credit score, income, debt and other factors.

Some people still think you need 20% down to be approved for a mortgage. But the average down payment in 2024 was 9% for first-time buyers and 18% for borrowers overall.

Because they’re backed by the federal government, VA loans and USDA loans don’t require any down payment. And, depending on your credit score, you can get approved for an FHA loan with as little as 3% down.

Most private lenders have community lending mortgages aimed at low- and middle-income buyers that have flexible down payment requirements: Chase‘s DreaMaker loan requires just 3% down, for example, and Rocket Mortgage will accept as little as 1% with its RocketONE+ loan.

Some lenders have special mortgages for physicians or other professionals: Truist, for example, offers zero-down mortgages of up to $1 million to residents, interns and fellows.

Putting less than 20% on a conventional mortgage does typically mean you’ll have to pay for private mortgage insurance, however.

State and federal government agencies, private lenders and non-profits all sponsor programs that help first-time buyers and others achieve homeownership.

Many are grants that can be used toward closing costs or a down payment and come with income or location requirements.

Bank of America‘s Down Payment Grant provides 3% of a house’s purchase price, up to $10,000, in select markets.

Chase Bank’s Homebuyer Grant provides eligible borrowers with up to $7,500 to lower their interest rate, put towards closing costs or bolster their down payment.

PNC Bank has a $5,000 grant for low-income borrowers that can be put toward closing costs, a down payment or other prepaid costs.

Wells Fargo‘s Homebuyer Access grant provides up to $10,000 towards a down payment for buyers who make no more than 120% of the average median income.

One of the nation’s largest lenders, Rocket Mortgage, routinely ranks high on J.D. Power’s mortgage origination and servicing surveys. There are no physical branches, but the easy-to-use website and mobile app allow you to check current rates, apply for a home loan and chat with agents.

Mortgage types: Conventional, FHA, VA, jumbo, RocketONE+, HomeReady, HomePossible, refinancing, home equity loans

Minimum credit score: 620 for conventional, 580 for FHA

Minimum down payment: 0% for VA loans, 1% for RocketONE+, 3.5% for FHA

Started in 1960, San Diego-based Guild Mortgage has more than 200 branches in 32 states and lends in all U.S. states except New York. It ranked highly as a mortgage servicer on J.D. Power’s 2025 survey and earned an A+ from the Better Business Bureau.

Mortgage types: Conventional, FHA, USDA, VA, jumbo, construction, refinancing

Minimum credit score: Not disclosed

Minimum down payment: 0% for USDA, VA, Arrive Home™ or Zero Down, 1% for conventional loan

Founded in 2014, online lender Better Mortgage is available to homebuyers nationwide. It has an average closing time of 22 days, nearly half the industry average.

Mortgage types: Conventional, FHA, VA, HomeReady, HomeOne, jumbo, refinancing

Minimum credit score: 620 for conventional, 500 for FHA

Minimum down payment: 3% for conventional, 3.5% for FHA, 0% for VA

With over 2,300 branches in 28 states, PNC Bank is one of the largest mortgage lenders in the U.S. PNC customers with at least $500,000 in deposits or investments may qualify for a rate discount.

Mortgage types: Conventional, FHA, USDA, VA, jumbo, PNC Community, medical professional, construction, renovation, refinancing, HELOCs

Minimum credit score: 620 for conventional loan, 580 for FHA

Minimum down payment: 0% for USDA and VA, 3% for PNC Community Loan

Bank of America has over 4,600 branches and loan officers in more than 40 states. Existing BoA customers with at least $20,000 in deposits may qualify for a discount on their origination fee.

Mortgage types: Conventional, FHA, USDA, VA, Affordable Loan Solution, jumbo, physician loan, refinancing, HELOCs

Minimum credit score: 580 for FHA

Minimum down payment: 0% for USDA or VA, 3% for Affordable Loan Solution

Flagstar has nearly 400 branches across 10 states. It received an A- from the Better Business Bureau and was not ranked in J.D. Power’s most recent customer satisfaction surveys.

Availability: Flagstar Bank finances home loans in all U.S. states except Texas

Mortgage types: Conventional, USDA, VA, FHA, jumbo, refinancing, home equity loans, HELOCs

Minimum credit score: Not disclosed

Minimum down payment: 0% for VA and USDA loans, 3% for conventional, 3.5% for FHA

Chase is a division of JPMorgan Chase, one of the nation’s oldest financial institutions. It has over 4,700 branches nationwide and dedicated home loan advisors in 37 states.

Mortgage types: Conventional, FHA, VA, jumbo, DreaMaker℠, Standard Agency, refinancing

Minimum credit score: 620 for conventional, 580 for FHA

Minimum down payment: 0% for VA, 3% for DreaMaker or Standard Agency; 3.5% for FHA

Columbia, Missouri-based Veterans United focuses on VA loans, though it also offers other government-backed and conventional mortgages to current and former service members. It received the highest score in J.D. Power’s 2024 U.S. Mortgage Origination Satisfaction Study.

Mortgage types: Conventional, FHA, VA, USDA, jumbo, refinancing

Minimum credit score: 620 for conventional

Minimum down payment: 0% for USDA or VA, 3.5% for FHA

To determine which mortgage lenders are the best for first-time homebuyers, CNBC Select analyzed dozens of U.S. mortgages. We focused on the following features:

Loan types: We weighed lenders more heavily if they offered government-backed FHA, VA and USDA loans, jumbo mortgages and specialty loans aimed at low-income borrowers

Minimum down payment: We noted when lenders had loans with lower minimum down payment requirements or offered down payment assistance. 

Credit scores: We weighed lenders more heavily if they had loan options for borrowers with lower credit scores or no credit.

Fees: The mortgage process includes origination, application and underwriting fees, as well as charges for appraisals, title insurance, attorneys and other closing costs. We noted if a lender had lower fees, discounts or waived certain fees.

Application process: We considered whether lenders offered an online preapproval and application process and if there were physical branches for an in-person experience. 

Customer service: We gave more weight to lenders that scored highly on J.D. Power’s mortgage origination and servicing surveys. We also noted if they had robust customer service phone hours and a website with an online chat feature and educational resources.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Based on those criteria, our selections for the best mortgage lenders for first-time homebuyers are:   

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