NerdWallet chose some of the best non-bank mortgage lenders in a variety of categories so you can determine which one is right for you. Better offers a 3% down payment on conventional loans. Pennymac offers several different home loan options for borrowers with a down payment of less than 20%. New American Funding works with down payment assistance programs in 14 states, including California, Texas, Florida and Illinois.
The guaranteed rate offers conventional loans with as little as 3% down payment. One of its most notable products is the YourGage mortgage, which is a fixed-rate mortgage that allows you to choose a custom term of eight to 29 years. Mortgage pre-approval represents an offer by a lender to lend money to the buyer based on certain financial circumstances and specific terms. Start by collecting the documents your lender will need, including a copy of your Social Security card and recent W-2 forms, payment receipts, bank statements and tax returns.
Chase offers conventional and jumbo mortgages with fixed and adjustable rates, Federal Housing Administration (FHA) loans, Veterans Affairs (VA) loans, and low down payment loans. Flagstar Bank offers conventional and jumbo fixed-rate and adjustable (ARM) mortgages, and loans from the FHA, VA and USDA. Traditional financial institutions, even those with active residential mortgage transactions, have largely been calling back. With flexible customer service hours and a strong network of some 43,000 loan agents from some 10,000 mortgage agencies across the country, borrowers can access customer service day and night.
One of its unique offerings is YourGage, a fixed-rate mortgage that allows you to choose a custom term of eight to 29 years. Its Home Intelligence mobile app helps customers manage not only a mortgage, but also their overall financial well-being. When lenders rank by volume in dollars rather than by the number of loans originated, PennyMac and Fairway Independent Mortgage fall out of the top 10. PNC offers an innovative online experience called Home Insight, which provides an in-depth analysis of the homebuying process and allows customers to determine the mortgage payment they can afford and start searching for homes with real-time rate quotes and loan products. The change highlights both the aggressive growth of non-bank lenders and the decline in the interest of some traditional banks in the origination of mortgages.
Both megabanks served borrowers with high mortgage balances, reflecting a focus on mortgages as part of their overall services to their best customers. Chase is a leading mortgage lender because of its competitive interest rates, loan programs for borrowers with smaller down payments and relatively fast closing times. The lender has low minimum credit rating requirements for some of their loans, which is useful for first-time home loan applicants or for people who are repairing their credit.