Best mortgage lenders with no origination fee in 2024

When shopping around for a mortgage, you’ll find that many mortgage lenders charge an origination fee, which is the cost to cover processing and underwriting the loan. You’ll also find that some lenders don’t have this fee at all, or can discount or waive it for certain customers. Here is Bankrate’s guide to the best mortgage lenders with no origination fee in 2024.

Best mortgage lenders with no origination fee

First Mortgage Direct

Learn morein our Bankrate review

• Lender details

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

• Pros and cons

  

  Pros

  • Customized online quote tool; no origination or hidden fees

  

  Cons

  • Preapprovals take slightly longer compared to other lenders

PenFed Credit Union

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states
  • Loans offered: Conventional, jumbo, FHA, VA
  • Credit requirements: 650 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

  • No lender fees; offers lender credits up to $2,500

  

  Cons

  • Higher minimum credit score requirements; no USDA loans

Better

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states
  • Loans offered: Conventional, FHA, VA
  • Credit requirements: 620 for conventional loans, 580 for FHA 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

  • Completely digital process, with daily online rates, three-minute preapprovals and hybrid closings; no fees; Price Guarantee matches or beats competitor offers

  

  Cons

  • No branch locations; no home equity loans or USDA loans

Alliant Credit Union

Learn morein our Bankrate review

• Product details

  • Availability: All U.S. states except Hawaii, Maryland and New York
  • Loans offered: Conventional, jumbo
  • Credit requirements: Undisclosed
  • Down payment minimum: 5% for conventional loans
  • Where to find: Online

• Pros and cons

  

  Pros

  • Easy-to-use website with breakdown of customized rates and closing cost estimates; low- and no-down payment options, plus no-PMI product; up to $6,500 back through Alliant Home Rewards program

  

  Cons

  • No government-backed loans; doesn’t disclose minimum borrower requirements online

LowRates.com

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states except Georgia and Massachusetts
  • Loans offered: Conventional, jumbo, FHA, VA, USDA
  • Credit requirements: 620 for conventional loans, 700 for jumbo loans, 580 for FHA loans, 500 for VA loans
  • Down payment minimum: 3.5% for FHA loans, none for VA and USDA loans
  • Where to find: Online

• Pros and cons

  

  Pros

  • Complete credit underwriting in under 24 hours; closings in as few as 20 days; down payment assistance

  

  Cons

  • Sun West Mortgage branch locations only available in some states; no mortgages in Georgia or Massachusetts

Allied Mortgage Group

Learn morein our Bankrate review

• Lender details

  • Availability: 34 states and Washington, D.C.
  • Loans offered: Conventional, FHA, VA, USDA
  • Credit requirements: 620 for conventional loans, 700 for jumbo loans, 580 for FHA, VA and USDA loans
  • Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans
  • Where to find: Branch locations and online

• Pros and cons

  

  Pros

  • Flexible options like interest-only and self-employed loans; loans for creditworthy borrowers who lost a home due to job loss or medical bills in the last two years

  

  Cons

  • Online information about interest rates limited; not available in all states

Ally Bank

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states
  • Loans offered: Conventional, jumbo
  • Credit requirements: 620 for conventional loans, 700 for jumbo loans
  • Down payment minimum: 3% for conventional loans, 10.01% for jumbo loans
  • Where to find: Online

• Pros and cons

  

  Pros

  • Preapprovals in as few as three minutes; displays mortgage rates on its website

  

  Cons

  • No FHA, VA or USDA loans, or home equity products; no branch locations

Guild Mortgage

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states except New York
  • Loans offered: Conventional, jumbo, FHA, VA USDA
  • Credit requirements: 620 for conventional loans, 680 for jumbo loans, 540 for FHA, VA and USDA 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

  • Large variety of loan options; offers e-closings

  

  Cons

  • Doesn’t offer HELOCs or home equity loans; not available in New York

Homefinity

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states except Nevada and New York
  • Loans offered: Conventional, jumbo, FHA, VA, USDA
  • Credit requirements: 620 for conventional loans, 600+ for FHA and VA loans
  • Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans
  • Where to find: Online

• Pros and cons

  

  Pros

  • Apply online, by phone or via Xpress app; loan originators available around the clock, and borrowers communicate with same person from start to finish; real-time prequalification or same- or next-day preapproval

  

  Cons

  • Not available in Nevada or New York; not all loan originators licensed across all states

How to choose the best mortgage lender with no origination fee

While the best mortgage lender ultimately depends on individual circumstances and what feels “right” to you, it’s helpful to narrow down your options. Here are some tips:

• Set your priorities. Do you want to talk to a loan officer in person? Do you need a faster closing? Want to apply for and track your mortgage status through an app? Consider these and other questions as you come up with your short list of lenders.
• Get prequalified or preapproved. If you haven’t determined a homebuying budget, get prequalified for a mortgage first. This can help you understand how much a lender might allow you to borrow based on some preliminary financial information. If you’re ready to shop for homes, skip the prequalification and ask for a preapproval, which involves a credit check.
• Understand rate-lock fees. While the lender might not charge an origination fee, you might still need to pay to lock your interest rate as you look for homes. Clarify this cost, including any rate-lock extension fees, with each lender you’re considering.

FAQ

• 
  

  What is an origination fee and why do lenders charge them?

  An origination fee is an upfront fee a mortgage lender charges to cover the cost of initiating and processing a loan. This one-time fee compensates the lender for services such as gathering the borrower’s information to process and fund the loan, and sometimes handling the escrow account as well.
  
  Some lenders also include the cost of underwriting — the risk assessment the lender does for every borrower — in the origination fee, while others charge a separate processing or underwriting fee.
  
  Origination fees exist for many types of loans, including mortgages and personal loans.
• 
  

  How much is the origination fee?

  Mortgage origination fees are typically based on a percentage of your home loan. In general, you’ll pay anywhere from 0.5 percent to 1 percent. If you were to take out a $350,000 loan, the origination fee could set you back $1,750 to $3,500.
• 
  

  Is the origination fee negotiable?

  You might be able to negotiate the origination fee by simply asking the lender to reduce the cost or waive it, especially if you’re a strong borrower with good credit. This might also be an option if you’re obtaining a loan from a bank or credit union that you already have a relationship with.
  
  Another way to get out of paying the origination fee is to ask the home seller to cover it — although this tactic typically only works in a buyer’s market, when sellers have fewer offers to choose from, or if the seller needs to move quickly or has had a hard time unloading the property.
  
  Some lenders also offer no-closing-cost mortgages, which include the cost of the origination fee in the loan itself. This can be a good route to take if you don’t have a lot of cash available for closing costs upfront, but be aware: You’ll pay more for your loan overall.

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  Methodology

  To determine the best no-fee mortgage lenders, Bankrate periodically evaluates more than 80 lenders for factors relating to affordability, availability and borrower experience, assigning each a Bankrate Score out of five stars. The best no-fee mortgage lenders generally have a Bankrate Score of 3.5 stars or higher. Learn more about our methodology.