Best mortgage lenders for first-time homebuyers in 2026

With so many mortgage lenders out there, it can be challenging to know where to start, especially if you’re a first-time homebuyer. We assessed several key criteria to narrow down the top mortgage lenders for first-timers, including first-time buyer loans, low-down-payment loans and down payment assistance. Here is our guide to the best mortgage lenders for first-time homebuyers in 2026.

Best mortgage lenders for first-time homebuyers

First Federal Bank

Rating: 4.8 stars out of 5

4.8

Learn more in our Bankrate review

• Why we chose First Federal Bank

  We picked this lender because it has several mortgages that cater to first-time buyers, including FHA loans and conventional loans with a 3% minimum down payment. It also has below-average rates and offers online preapprovals in just minutes.

• Lender details

  • Availability: All U.S. states
  • Loans offered: Conventional, jumbo, FHA, VA, USDA, refinancing
  • Credit requirements: 620 for conventional loans, 680 for jumbo loans
  • Down payment minimum: 3% for first-time buyers with conventional loans, 5% for other conventional buyers, 3.5% for FHA loans, none for VA loans
  • Where to find: Branch location and online

• Pros and cons

  

  Pros

  • Specializes in VA loans
  • Offers a temporary interest-rate buydown
  • Uses manual underwriting to work with borrowers who have less-established credit histories

  

  Cons

  • Limited branch network

Navy Federal Credit Union

Rating: 4.8 stars out of 5

4.8

Learn more in our Bankrate review

• Why we chose Navy Federal Credit Union

  If you’re an active-duty military member, veteran or eligible family member, you can save on your first home by taking advantage of Navy Federal Credit Union’s competitive rates and rate match guarantee. The lender also offers 24/7 customer service, so you can get help with your application at any time of day.

• Lender details

  • Availability: All U.S. states
  • Loans offered: Conventional, jumbo, VA, refinancing
  • Credit requirements: Undisclosed
  • Down payment minimum: 3% for conventional loans, none for VA loans
  • Where to find: Branch locations and online

• Pros and cons

  

  Pros

  • Allows up to two rate relocks
  • Provides rate-match guarantee or pays $1,000

  

  Cons

  • Membership required (only available to current/veteran military and family)
  • No FHA or USDA loans

PenFed Credit Union

Rating: 4.8 stars out of 5

4.8

Learn more in our Bankrate review

• Why we chose PenFed Credit Union

  PenFed Credit Union scores well for affordability, availability and borrower experience. The credit union is open to anyone for membership, and while it specializes in VA loans, it also offers a low-down-payment conventional option with no income limit. Borrowers can also save an average of $2,300 in closing costs by working with a partner real estate agent to buy their home.

• Lender details

  • Availability: All U.S. states
  • Loans offered: Conventional, jumbo, FHA, VA
  • Credit requirements: 620 for conventional loans; 700 for jumbo loans; 620 for FHA loans
  • Down payment minimum: 3% for conventional loans; 3.5% for FHA loans; none for VA loans
  • Where to find: Branch locations and online

• Pros and cons

  

  Pros

  • Competitive rates
  • Closing credits available for using an institution-affiliated agent
  • First-time homebuyer program

  

  Cons

  • No ability to customize rates online
  • No USDA loans

Pennymac

Rating: 4.8 stars out of 5

4.8

Learn more in our Bankrate review

• Why we chose Pennymac

  Pennymac ranked highly thanks to its various borrower incentives, including closing cost and interest rate discounts. Also, the lender’s website features an extensive first-time homebuyer guide, which explains everything from credit score requirements to mortgage insurance to down payment assistance.

• Lender details

  • Availability: All U.S. states
  • Loans offered: Conventional, jumbo, FHA, VA, USDA, refinancing and more
  • Credit requirements: 620 for conventional loans, 580 for FHA loans, 620 for VA loans
  • Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans
  • Where to find: Online

• Pros and cons

  

  Pros

  • Large lender with national presence
  • $1,000 off closing costs if preapproved (not applicable to jumbo loans or refinancing) and a rate reduction of 1% for 12 months
  • $2,000 if you purchase your home with Pennymac and refinance within three years
  • Additional discounts if using a partner agent

  

  Cons

  • No branch locations
  • Below-average customer service ranking

Zillow Home Loans

Rating: 4.8 stars out of 5

4.8

Learn more in our Bankrate review

• Why we chose Zillow Home Loans

  Zillow Home Loans scored well because it has a variety of low-down-payment mortgages, including FHA and VA loans. It also offers conventional mortgages with down payments as low as 3%.

• Lender details

  • Availability: All U.S. states except New York
  • Loans offered: Conventional, jumbo, FHA, VA, refinancing
  • Credit requirements: 620 for most loans
  • Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans
  • Where to find: Online

• Pros and cons

  

  Pros

  • History of delivering fast closing timelines
  • Online resources, including calculators and checklists

  

  Cons

  • Doesn’t offer USDA loans
  • Requires a minimum credit score of 620 for most loans
  • Limited customer service contact options

New American Funding

Rating: 4.7 stars out of 5

4.7

Learn more in our Bankrate review

• Why we chose New American Funding

  This lender earned a spot on our list partly due to its Pathway to Homeownership initiative, which provides first-time homebuyers with up to $6,000 in down payment and closing cost assistance. New American Funding also offers all kinds of online resources for first-time (and repeat) buyers, including calculators and worksheets.

• Lender details

  • Availability: All U.S. states
  • Loans offered: Conventional, jumbo, FHA, VA, USDA, refinancing and more
  • Credit requirements: 620 for conventional loans
  • Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans
  • Where to find: Branch locations and online

• Pros and cons

  

  Pros

  • Operates 285 branch locations
  • Financing initiatives for Latino, Black and LGBTQ+ buyers
  • Wide range of loan options, including programs for self-employed borrowers and USDA loans
  • All-cash buying program

  

  Cons

  • Lowest advertised rates require paying points and a hefty 40% down payment
  • Doesn’t disclose lender fees online

Movement Mortgage

Rating: 4.5 stars out of 5

4.5

Learn more in our Bankrate review

• Why we chose Movement Mortgage

  Movement earned high marks for its diverse mix of loan options, including Fannie Mae HomeReady mortgages, which are targeted at low- to moderate-income borrowers. In addition, its Movement Boost program provides down payment and closing cost assistance for FHA borrowers.

• Lender details

  • Availability: All U.S. states
  • Loans offered: Conventional, jumbo, FHA, VA, USDA, refinancing and more
  • Credit requirements: 620 for conventional loans, 580 for FHA loans, 580 for VA loans
  • Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans
  • Where to find: Branch locations and online

• Pros and cons

  

  Pros

  • Speedy underwriting and loan processing
  • Programs to help borrowers with down payments
  • Operates an extensive network of branch locations

  

  Cons

  • Doesn’t display rates or fees online
  • Process doesn’t allow for an all-digital experience — you’ll likely wind up speaking with a loan officer early on

How to find the best mortgage lender as a first-time homebuyer

There are several different kinds of mortgage lenders you might come across in your search for a loan, including banks, credit unions and independent and non-depository institutions. You might also encounter mortgage brokers, who can help you uncover loan offers from a variety of lenders.

As you look for a lender, consider your goals and what you value in your mortgage experience. What kind of loan are you looking for? How long do you plan to stay in the area? Would you feel better with 24/7 support? Do you need homebuyer education? Your answers can help you narrow down your choices.

Once you have a short list, shop around and compare mortgage offers. Lenders include the APR (annual percentage rate) and interest rate on an offer, but you’ll really want to consider the APR, which reflects the actual cost of the mortgage. In general, the lower the APR, the cheaper the loan will be.

Frequently asked questions

• Who classifies as a first-time homebuyer?

  A first-time homebuyer is anyone who hasn’t bought a home previously. That might mean you’re a renter, or you’re moving from your family home to your first home. For you to qualify for a first-time homebuyer loan or assistance, however, doesn’t mean you have to genuinely be a novice at homeownership. You’re classified as a first-time homebuyer if you haven’t bought a home in the past three years.

• What are first-time homebuyer programs?

  A first-time homebuyer program typically includes a mortgage with a lower interest rate, lower down payment requirement and other ways to save, such as lower mortgage insurance premiums. There are many different kinds of first-time buyer programs, including 3% down conventional loans, 3.5% down FHA loans and no-down payment loans for eligible military members or buyers in rural areas.

• What are first-time homebuyer grants?

  If you’re a first-time homebuyer and lack funds for a down payment or closing costs, you might be eligible for a first-time homebuyer grant. Grants are a one-time lump sum that often don’t have to be repaid if you stay in the home for a certain period of time or meet other criteria.

• How much do I need to save for a down payment as a first-time homebuyer?

  It varies widely. If you have a credit score of at least 620, for example, you might qualify for a conventional loan with a down payment as low as 3% of the home’s purchase price. If your credit isn’t that great, you might opt to put down slightly more — like 3.5% for an FHA loan. If you’re in the military or buying a home in a rural area, you might not need to set aside anything for a down payment. What’s more: Some lenders offer 1% down mortgages, which come with free grants so that you only need to put down 1% (the lender covers the other 2%). There’s also income-based down payment assistance, which could cover some or all of yours. Ultimately, how much you should save depends on your homebuying budget, your credit, income and many other factors.

• Methodology

  To identify the best mortgage lenders for first-time homebuyers, Bankrate surveyed 75 lenders nationwide and scored each based on its self-reported data and research by Bankrate staff. We assigned scores based on a lender’s affordability, availability and borrower experience, giving equal weight to each category. Lenders that received a Bankrate Score of 4.5 out of 5 or higher appear on this page.

  To receive a top score from Bankrate, lenders must offer mortgage rates lower than Bankrate’s tracked averages, and they generally also offer low-down-payment loan options and assistance for first-time homebuyers. In addition, lenders are usually licensed in more than 30 U.S. states, offer conventional and government-backed loans and typically provide at least one product for borrowers with credit scores of 620 or lower. Finally, our top-scoring lenders tend to make it easy for borrowers to compare rates and manage much of the loan process online, and they offer multiple options for customer support and generous rate-lock periods. Bankrate’s evaluations are independent and are not influenced by lender partnerships or advertising relationships. Read more about how Bankrate scores are determined here.

  In addition, lenders must appear on Bankrate’s list of best lenders for VA or FHA loans and publicize either HomeReady or Home Possible loans or a proprietary loan that increases access for first-time buyers on their websites.

  Some lenders may appear as honorable mentions, despite earning a Bankrate score of 4.5 or higher, due to eligibility restrictions or limited availability (15 or fewer states).