When you're looking for a mortgage, one of the best ways to ensure you're getting a good deal is to compare offers from multiple lenders. Online mortgage lenders make this part of the process easier by offering an entirely digital application process. Not only will this save you time, but it can expand your options beyond what local brick-and-mortar banks offer.
CNBC Select compared online mortgage lenders based on factors such as loan types, down payment requirements and nationwide availability. (See our methodology for more information on how we choose the best online mortgage lenders.)
Best online mortgage lenders
Best for no lender fees
Ally Home
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Conventional loans, HomeReady loan and Jumbo loans
Terms
15 – 30 years
Credit needed
620
Minimum down payment
3% if moving forward with a HomeReady loan
Terms apply.
Pros
- No lender fees
- Preapproval in as little as three minutes
- Available in all 50 states
- HomeReady loan only requires a 3% down payment
Cons
- No FHA, USDA or VA loans
- No home equity line of credit (HELOC) loans
- No physical branches
Who's this for? Ally Home is great for those seeking to lower the upfront fees they need to pay.
Standout benefits: Lender fees can often be a big part of the upfront closing costs you have to pay when you're buying a home or refinancing, but Ally stands out for having no lender fees, including no application fees, no origination fees, no processing fees and no underwriting fees.
Best for loan options
Flagstar® Bank Loans
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, adjustable-rate mortgages, fixed-rate mortgages, construction loans, professional loans and Community Loans
Terms
8 – 30 years
Credit needed
580 for certain types of loans; 620 to access the most loan options
Minimum down payment
0% with a USDA loan or VA loan
Terms apply. Flagstar® Bank is a Member FDIC.
Pros
- Offers a wide variety of loans to suit an array of customer needs
- Fixed-rate and adjustable-rate mortgages available
- Has an online process but also in-person branches
Cons
- Home equity loans are only available in limited geographic areas
Who's this for? Flagstar Bank caters to a range of homebuyers thanks to its widespread availability and the variety of mortgages it offers, including some more niche options.
Standout benefits: Flagstar Bank offers a large variety of home loan types, including conventional loans, FHA loans, VA loans, USDA loans, construction loans, renovation loans, fixed-rate loans, adjustable-rate mortgages (ARM) and jumbo loans.
Best for refinancing
LoanDepot
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loan, FHA loan, Jumbo loan, VA loan, renovation loan, HELOC and adjustable-rate mortgage (ARM)
Terms
10–30 years
Credit needed
As low as 500 for FHA loans with a 10% downpayment; 580 for FHA loans with a 3.5% down payment
Minimum down payment
Starting at 3.5% for an FHA loan
Terms apply.
Pros
- No lenders fees for existing LoanDepot borrowers when refinancing with LoanDepot
- Wide range of loans offered, including FHA loans, VA loans, HELOC and Jumbo loans
- Options for an adjustable-rate mortgage (ARM)
Cons
- Doesn't offer USDA loans
Who's this for? LoanDepot is a great pick for those who plan to refinance their mortgage down the line, such as when rates drop.
Standout benefits: Once you've taken out a mortgage with LoanDepot, you can take advantage of its Lifetime Guarantee to refinance in the future without a lender fee. It also offers a half-point waiver to existing LoanDepot borrowers when refinancing a home equity line of credit (HELOC) with an eligible mortgage. To qualify for this benefit, you'll need to keep your original LoanDepot mortgage for at least 12 months.
Best for low down payment
Rocket Mortgage
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, FHA loans, VA loans and Jumbo loans
Terms
8 – 29 years, including 15-year and 30-year terms
Credit needed
Typically requires a 620 credit score but will consider applicants with a 580 credit score as long as other eligibility criteria are met
Minimum down payment
3.5% if moving forward with an FHA loan
Already have a mortgage through Rocket Mortgage or looking to start one? Check out the Rocket Visa Signature Card to learn how you can earn rewards
Pros
- Can use the loan to buy or refinance a single-family home, second home or investment property, or condo
- Can get pre-qualified in minutes
- Rocket Mortgage app for easy access to your account
Cons
- Runs a hard inquiry in order to provide a personalized interest rate, which means your credit score may take a small hit
- Doesn't offer USDA loans, HELOCs, construction loans, or mortgages for mobile homes
- Doesn't manage accounts for jumbo loans after closing
Who's this for? Rocket Mortgage is ideal for those who want to put less than the usual 20% down on their home purchase.
Standout benefits: Through Rocket Mortgage's One+ program, eligible borrowers may be able to put as little as 1% down on a conventional loan for a home purchase, with Rocket Mortgage adding 2% of the purchase price to the down payment (or $2,000).
More about the best online mortgage lenders
Ally Home
Ally Home offers a straightforward online application process and a fast mortgage pre-approval. However, it offers fewer types of loans than some other lenders.
Minimum credit score
620
Types of mortgage loans offered
Conventional, ARM loans, fixed-rate loans, jumbo loans
Down payment minimum
3% with the Fannie Mae HomeReady Mortgage program
Flagstar Bank
Flagstar Bank is a regional bank that originates mortgages in all 50 states. In addition to the most common types of conventional and government-backed mortgages, Flagstar Bank offers more niche professional loans and loans for borrowers without Social Security numbers.
Minimum credit score
580 for certain specialty loans, 620 for many other types of mortgages
Types of mortgage loans offered
Conventional loans, FHA loans, VA loans, USDA loans, construction loans, renovation loans, fixed-rate loans, adjustable-rate mortgages (ARM), jumbo loans, professional loans, specialty low-to-moderate-income loans, loans for people without Social Security numbers, multiple property loans, fixed-rate loans, ARM loans, HELOC
Down payment minimum
0% down for VA loans and USDA loans
LoanDepot
LoanDepot offers mortgages in all 50 states and Washington D.C. It has physical locations but offers a fully online application process with its proprietary mello smartloan software. It's ranked as the top retail lender in 2023 (by volume) by Scotsman Guide, a mortgage industry publication.
Minimum credit score
As low as 500-580 for FHA loans (depending on your down payment)
Types of mortgage loans offered
Conventional, FHA loans, VA loans, Jumbo, fixed-rate, ARM loans, HELOC
Down payment minimum
0% with a VA loan
Rocket Mortgage
Rocket Mortgage is J.D. Power's top-ranked mortgage servicer for customer satisfaction. It offers a variety of loan terms, loan types and special programs for buying a home and refinancing a mortgage loan.
The maximum loan amount you can get through Rocket Mortgage's One+ program is $350,000 and the maximum grant is $7,000. To qualify, you must have a minimum credit score of 620, a debt-to-income ratio of under 50% and meet income eligibility requirements.
Minimum credit score
Usually, 620, 580 when other criteria are met
Types of mortgage loans offered
Conventional loans, FHA loans, VA loans, jumbo loans, fixed-rate loans, ARM loans
Down payment minimum
0% for VA loans; 1% with the ONE+ program
FAQs
Do online mortgage lenders have better rates?
Online mortgage lenders may have lower rates than brick-and-mortar lenders, but it's not guaranteed. It's always important to compare offers from a variety of lenders to ensure you're getting the lowest interest rate and fees.
How can I get a lower rate on my mortgage?
Improving your credit score and saving up for a larger down payment are two of the best ways to secure a lower interest rate on your mortgage. You can also negotiate your mortgage rate, so it's important to get multiple quotes to see what rates you're eligible for.
Are online mortgage lenders legitimate?
Online mortgage lenders are as reputable as other types of licensed mortgage lenders. However, if you prefer an in-person experience, you may want to work with a local lender that operates a physical branch.
Bottom line
Online mortgage lenders offer the convenience of a fully digital mortgage application. This can make it easier to submit multiple mortgage applications and shop around for the best deal. And there are online lenders to meet almost any need. Some lenders offer niche types of loans and others feature programs designed for borrowers who need to make a smaller down payment.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best online mortgage lenders.
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Our methodology
To determine which mortgages are the easiest to get approved for, CNBC Select analyzed U.S. online mortgage lenders offered by both online and brick-and-mortar banks. When narrowing down the options, we focused on publicly available information regarding credit score requirements, types of loans offered, fees and down payment requirements.
Note that the rates and fee structures advertised for mortgages are subject to fluctuate under market rates. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee the interest rate and monthly payment remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
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