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.
If you aren't sure if you can qualify for a mortgage because your credit isn't great, you might be able to buy a home with an FHA mortgage. These mortgages are backed by the Federal Housing Administration, which enables lenders to offer mortgages to a larger range of borrowers.
FHA mortgages are geared toward first-time homebuyers and those with poor credit or lower incomes. They also tend to have better interest rates than conforming loans.
But not all FHA lenders are the same, and FHA loan requirements and benefits can vary quite a bit from lender to lender.
The Best Mortgage Lenders for FHA Loans
- New American Funding: Best overall
- Carrington Mortgage Services: Best for low credit scores
- Guild Mortgage: Best for those with no credit history
- Rocket Mortgage: Best for an easy online experience
- Fairway Independent Mortgage Corporation: Best for home renovations
Below you'll find the full details on our top picks for the best FHA loan lenders.
Compare the Best Mortgage Lenders for FHA Loans
FHA Lenders Frequently Asked Questions
An FHA loan is a mortgage backed by the Federal Housing Administration. This means that if you default on your mortgage, the FHA will compensate your lender. These loans allow lower scores, higher DTIs, and come with lower rates.
The FHA insures a few different types of mortgages, the most popular being the 203(b) loan, which is the standard FHA loan. You can also get a 203(k) loan, which is a mortgage that lets you finance the cost of repairs or upgrades to the home in addition to the purchase price.
Think about what you need from a lender. Do you prefer to apply online? Maybe you also want to close digitally, or you're looking for a company with live online chat features so you don't have to wait on hold over the phone. Then apply for preapproval with your favorites and compare the interest rates and fees between each one.
No, you don't have to be a first-time homebuyer to get an FHA loan. FHA loans are often marketed as first-time homebuyer programs because the lenient credit score and debt-to-income ratio requirements can be ideal for younger people who don't have the most robust financial profiles yet. But you can apply for an FHA loan even if this isn't your first time owning a home.
-
New American Funding
-
Carrington Mortgage Services
-
Guild Mortgage
-
Rocket Mortgage
-
Fairway Independent Mortgage
FHA Lender Reviews
Best Overall FHA Lender
New American Funding
*You may be able to get an FHA loan from this lender with a score below 580 with compensating factors.
New American Funding is our top pick for FHA borrowers because it accepts borrowers with lower scores and rocky credit histories on its FHA loans. If you don't have a credit score, you can use non-traditional credit to apply with this lender. You may also still be able to get an FHA loan with New American Funding if you have recent negative credit events (such as a late payment) on your credit report.
What to look out for: It's not available to residents of Hawaii or New York. New American Funding doesn't let you explore personalized rates without providing contact information.
Best FHA Lender for Low Credit Scores
Carrington Mortgage Services
Carrington Mortgage Services is a good FHA lender for borrowers with low credit scores, but you'll need a large down payment if your score is below 580. It accepts scores as low as 500 on its FHA loans and has flexible requirements for borrowers with "less than perfect" credit.
What to look out for: Carrington doesn't lend in Massachusetts or North Dakota. It also doesn't show its rates online.
Carrington has an NR, or "no rating" from the BBB because the lender is in the process of responding to previously closed complaints. Additionally, 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.
Best FHA Lender for Those With no Credit History
Guild Mortgage
Guild Mortgage is an extremely affordable lender. It allows scores as low as 540 on its FHA loans and accept non-traditional credit from borrowers who don't have a traditional score. It also offers a hybrid closing option that lets you sign documents ahead of time and keep your closing appointment quick. Your Guild loan officer can help connect you with down payment assistance in your area.
What to look out for: Guild doesn't display any rates online, making it difficult to get an idea of exactly how affordable this lender is.
Best FHA Lender for an Easy Online Experience
Rocket Mortgage
Rocket Mortgage is a good option if you want a smooth online experience and prioritize customer support. It was ranked as the top lender for customer satisfaction in J.D. Power's 2022 study. It offers a simple online experience and live online chat with a mortgage professional. But it doesn't accept non-traditional credit — you must have a traditional credit score of at least 580 to qualify
What to look out for: Rocket doesn't have any in-person branches.
Best FHA Lender for Home Renovations
Fairway Independent Mortgage Corporation
Fairway Independent Mortgage Corporation is a good option for borrowers looking to purchase a fixer-upper or those who prefer a remote closing experience. Fairway offers a few different FHA loan options, including limited or standard 203(k) rehabilitation mortgages, which can be used to finance renovation or repair costs into your mortgage.
What to look out for: Fairway doesn't show sample rates online.
How to Choose an FHA Lender
The best FHA lender for you will depend on your needs and your financial situation.
If you don't have a credit score, you'll want to work with a lender that will let you apply using non-traditional credit, such as rent payment history. Guild Mortgage, for example, offers this ability.
If you have a low credit score, you'll need to find a lender that will work with you. The Federal Housing Administration will back loans with scores as low as 500, but not all lenders will work with borrowers who have a score this low.
Whatever lenders you're considering, be sure to get preapproval from at least two or three different companies so you can compare rates and ensure you're getting a good deal.
Other Mortgage Lenders We Considered
- Bank of America Mortgage: Bank of America offers competitive down payment assistance programs, but you'll need at least a 640 credit score to get an FHA loan.
- Chase Mortgage: Chase is a good lender overall, but it also requires a 640 credit score.
- Better Mortgage: Better.com provides a smooth online experience and charges low fees, but you'll need a minimum 620 credit score.
- Veterans United Mortgage: Although Veterans United is a strong lender that offers FHA loans, its main focus is VA loans.
- Regions: You might like using Regions, but the bank only has branches in certain parts of the US.
- US Bank Mortgage: US Bank requires a 640 credit score to get an FHA loan.
- Citibank Mortgage: This bank received decent customer satisfaction ratings from J.D. Power, but an F rating from the BBB.
- Paramount Bank: You might like Paramount as an online lender, but it doesn't show customized rates on its website.
- NBKC Bank Mortgage: You'll need at least a 640 credit score to get an FHA loan with this lender.
- Pennymac Mortgage: Pennymac requires a 620 score on its FHA loans, and it ranks low on J.D. Power's customer satisfaction survey.
- Flagstar Bank Mortgage: This bank has received an A+ from the BBB, but J.D. Power ranks it pretty low in customer satisfaction.
- Mr. Cooper Mortgage: J.D. Power ranks Mr. Cooper as below average for customer satisfaction.
- Caliber Home Loans: You can find lenders with better customer satisfaction ratings from J.D. Power.
- LoanDepot Mortgage: Loan Depot doesn't provide FHA loan interest rates on its website.
- Guaranteed Rate Mortgage: Guaranteed Rate is a solid FHA lender, but in 2020 it settled allegations that it pressured underwriters into lying so that the government would insure FHA and VA loans
- Freedom Mortgage: J.D. Power ranks Freedom Mortgage low for customer service.
- Wells Fargo Mortgage: Due to some recent scandals, Wells Fargo has received an F rating from the BBB.
- Truist Mortgage: You might like Truist, but it just scored average on J.D. Power's annual survey.
- PNC Bank Mortgage: This is a good lender overall, but you'll need a 620 credit score to get an FHA loan.
Why You Should Trust Us: Experts' Advice on Choosing an FHA Mortgage Lender
Our experts have provided advice about how to know whether you should get an FHA loan or another type of mortgage.
- Anthony Park, author of "How to Buy Your Perfect First Home"
- Lauryn Williams, certified financial planner, founder of Worth Winning Financial Planning
- Julie Aragon, mortgage broker, founder of Aragon Lending Team
- Molly Grace, mortgage reporter at Personal Finance Insider
Here's what they had to say. (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, like an FHA loan?
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 FHA Lenders
To choose the top FHA loan lenders, we looked at three main factors:
- Credit score. FHA loans' main appeal is that you don't need a great credit score to qualify. While the official FHA guidelines allow for scores as low as 580 (or 500 with a 10% down payment), some lenders have higher minimum credit score requirements, which can make it difficult for some borrowers to qualify. All of the FHA lenders on our list allow scores of 580, and many will allow even lower scores with a higher down payment. Most of our lenders also have some form of flexible credit guidelines, such as letting borrowers apply with non-traditional credit or allowing borrowers to have recent negative events on their credit reports.
- 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 survey, then we read online customer reviews.
- Ethics. Each of our top picks received an A+ from the Better Business Bureau, which measures companies' trustworthiness. The exception is Guild Mortgage. We also researched and considered any scandals in the past three years.