With so many mortgage lenders out there, it can be challenging to know where to start, especially if you’re a first-time home buyer. We’ve explored several key ways to reduce the top mortgage lenders for beginners, including first-time homebuyer loans, low-payment loans and down-payment assistance. Here’s our guide to the best mortgage lenders for first-time buyers in 2026.
|
The lender |
Credit requirements |
Minimum down payment |
Bank School |
|---|---|---|---|
|
First Federal Bank |
620 for regular loans; 680 for jumbo loan |
3% of first-time buyers with conventional loans; 5% for other regular consumers; 3.5% on FHA loans; not with VA loans |
4.8 |
|
Navy Federal Credit Union |
Undisclosed |
3% for conventional loans, no VA loans |
4.8 |
|
PenFed Credit Union |
620 for regular loans; 700 for jumbo loans; 620 for FHA loans |
3% of conventional loans; 3.5% on FHA loans; not with VA loans |
4.8 |
|
Pennymac |
620 for regular loans; 580 for FHA loans; 620 for VA loans |
3% of conventional loans; 3.5% on FHA loans; none with VA loans and USDA loans |
4.8 |
|
Zillow Home Loans |
620 for multiple loans |
3% of conventional loans; 3.5% on FHA loans; not with VA loans |
4.8 |
|
New American Funding |
620 for a regular loan |
|
4.7 |
|
Movement Mortgage |
620 for regular loans; 580 for FHA loans; 580 for VA loans |
3% of conventional loans; 3.5% on FHA loans; none with VA loans and USDA loans |
4.5 |
There are several different types of mortgage lenders you may come across in your loan search, including banks, credit unions and private and non-banking institutions. You can also meet with real estate agents, who can help you get loan offers from various lenders.
As you look for a lender, consider your goals and what you value in your mortgage experience. What type of loan are you looking for? How long do you plan to stay in the area? Would you feel better with 24/7 support? Need home buying education? Your answers can help you narrow down your choices.
Once you have a short list, shop around and compare loan offers. Lenders include the APR (annual percentage rate) and the interest rate in the sale, but you’ll really want to consider the APR, which reflects the actual cost of the mortgage. Generally, the lower the APR, the cheaper the loan.
Read more: How to compare mortgages as a first-time buyer
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Who qualifies as a first home buyer?
A first-time home buyer is anyone who has never bought a home before. That could mean you’re a tenant, or you’re moving from your family home to your first home. To qualify for a first-time home loan or assistance, however, it doesn’t mean you have to be a novice homeowner. You are classified as a first home buyer if you have not purchased a home in the past three years.
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What are the plans for a first time home buyer?
A first-time homebuyer plan usually includes a loan with a low interest rate, a down payment requirement and other savings, such as lower home insurance premiums. There are many different types of first-time home buyer programs, including 3% low standard loans, 3.5% low FHA loans and no-low loans for qualified military members or rural buyers.
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What are the first time home buyer allowances?
If you’re a first-time home buyer and don’t have a down payment or closing costs, you may be eligible for a first-time home loan. Grants are a one-time lump sum that usually does not have to be paid back if you stay at home for a period of time or meet other conditions.
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How much do I need to save for a down payment as a first home buyer?
It varies a lot. If you have a credit score of at least 620, for example, you may qualify for a conventional loan with a down payment of up to 3% of the home’s purchase price. If your credit isn’t that good, you may choose to put down a little – like a 3.5% FHA loan. If you’re in the military or buying a home in a rural area, you may not need to put anything aside for a down payment. In addition: Some lenders offer a 1% down loan, which comes with free grants so you only need to put down 1% (the lender covers the other 2%). There is also income-based payment assistance, which can cover some or all of your expenses. Ultimately, how much you should save depends on your home buying budget, your credit, income and many other factors.
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How to do it
To find the best mortgage lenders for first-time home buyers, Bankrate surveyed 75 lenders across the country and scored each one based on its own self-reported data and research by Bankrate staff. We assign scores based on the lender’s purchasing power, availability and borrower experience, giving equal weight to each category. Lenders with a Bankrate score of 4.5 out of 5 or higher appear on this page.
To earn a high score on Bankrate, lenders must offer mortgage rates lower than the averages tracked by Bankrate, and often offer low-down payment loan options and assistance to first-time homebuyers. In addition, lenders are often licensed in more than 30 US states, offer conventional and government-backed loans and often offer a single product for borrowers with credit scores of 620 or less. Finally, our top-rated lenders often make it easy for borrowers to compare rates and manage much of the loan process online, and they offer multiple customer support options and rate lock-in periods. Bankrate’s evaluations are independent and are not influenced by lender partnerships or advertising relationships. Learn more about how Bankrate scores are determined here.
In addition, lenders must appear on Bankrate’s list of the best lenders for VA or FHA loans and advertise HomeReady or Home Possible loans or home equity loans that increase access to first-time buyers on their websites.
Some lenders may appear as honorable mentions, despite receiving a Bankrate score of 4.5 or higher, due to eligibility restrictions or limited availability (15 or fewer states).
