Best online mortgage lenders in 2023
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Editor’s note: The Bankrate Score considers a mortgage lender’s products and services only; it is not a reflection of a lender’s internal operations or practices. We continuously evaluate each lender we review to ensure the Bankrate Score is consistent with this methodology. If you’d like to consider other lenders, visit Bankrate’s lender review hub.
Best online mortgage lenders
Ally Bank
| Availability | Available in all U.S. states |
| Loans offered | Conventional, jumbo, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing |
| Credit requirements | 620 for conventional loans, 700 for jumbo loans |
| Down payment minimum | Varies |
| Where to find | Online or by app only |
Better
| Availability | Available in all U.S. states |
| Loans offered | Conventional, jumbo, FHA |
| Credit requirements | 620 for conventional and FHA loans |
| Down payment minimum | 3% for conventional loans; 10.01% for jumbo loans; 3.5% for FHA loans |
| Where to find | Online |
- No fees
- Can close as fast as three weeks
- No VA or USDA loans
- No home equity lines of credit (HELOCs) or home equity loans (second mortgages)
eClick Lending
eClick Lending mortgage review
| Availability | Available in 49 U.S. states (not available in NY) |
| Loans offered | Conventional, jumbo, FHA, VA, USDA |
| Credit requirements | 620 for conventional loans |
| Down payment minimum | 3% for conventional loans; 3.5% for FHA loans; none for VA and USDA loans |
| Where to find | Online |
- Can close as fast as two weeks
- No HELOCs or home equity loans
Homefinity
| Availability | Available in all U.S. states except Nevada and New York |
| Loans offered | Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; physician loans |
| Credit requirements | 620 for conventional loans; 600 or higher for FHA loans and VA loans (can be lower in some cases) |
| Down payment minimum | Varies by loan type |
| Where to find | Online or 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
LowRates.com
| Availability | Available in 48 U.S. states (not available in GA or MA) |
| Loans offered | Conventional, jumbo, FHA, VA, USDA |
| Credit requirements | 620 for conventional loans; 700 for jumbo loans; 500 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 |
- No fees
- Can close as fast as 20 days
- Offers HELOCs and home equity loans
Mr. Cooper
| Availability | Available in all U.S. states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands |
| Loans offered | Conventional, FHA, VA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; investment property |
| Credit requirements | 620 for conventional loans; 580 for FHA loans; 600 for VA loans |
| Down payment minimum | Varies |
| Where to find | Online or by app only |
- Customized terms
- Easy-to-use app that allows borrowers to check application status and make payments
New American Funding
New American Funding mortgage review
| Availability | Available in all U.S. states |
| Loans offered | Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; home equity line of credit (HELOC); investment property; flex-term; non-QM; reverse mortgages |
| Credit requirements | 620 for conventional loans |
| Down payment minimum | Varies |
| Where to find | Online or at branch locations |
- Focus on lending to minority borrowers
- Showcases current rates online
Sebonic Financial
Sebonic Financial mortgage review
| Availability | Available in all U.S. states |
| Loans offered | Conventional, jumbo, FHA, VA, USDA, fixed-rate; rate-and-term refinancing |
| Credit requirements | 580 for conventional loans, 550 for FHA loans |
| Down payment minimum | Varies |
| Where to find | Online only |
- Proprietary system streamlines the loan process
SoFi
| Availability | Available in all states except Hawaii (no refinances in New York) |
| Loans offered | Conventional, jumbo, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing; home equity loan; investment property |
| Credit requirements | 620 for conventional loans |
| Down payment minimum | Varies |
| Where to find | Online or by app only |
- No fees
- Can close as fast as 20 days
- Offers home equity loans
Tomo
| Availability | Available in Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Maryland, Michigan, New Jersey, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, Washington, D.C. and Wisconsin |
| Loans offered | Conventional, jumbo, FHA; investment property |
| Credit requirements | 621 for conventional loans |
| Down payment minimum | Varies |
| Where to find | Online or by phone |
- No fees
- Offers 120-day rate locks
Summary: Best online mortgage lenders
| Lender | Credit requirements | Down payment minimum | Bankrate review |
|---|---|---|---|
| Ally Bank | 620 for conventional loans; 700 for jumbo loans | 3%-5% for conventional loans; 10% for jumbo loans | Ally Bank mortgage review |
| Better | 620 for conventional and FHA loans | 3% for conventional loans; 10.01% for jumbo loans; 3.5% for FHA loans | Better mortgage review |
| eClick Lending | 620 for conventional loans | 3% for conventional loans; 3.5% for FHA loans; none for VA loans | eClick Lending review |
| Homefinity | 620 for conventional loans; 600 or higher for FHA loans and VA loans (can be lower in some cases) | Varies by loan type | Homefinity review |
| LowRates.com | 620 for conventional loans; 700 for jumbo loans; 500 for FHA and VA loans | 3% for conventional loans; 3.5% for FHA loans; none for VA or USDA loans | LowRates.com review |
| Mr. Cooper | 620 for conventional loans; 580 for FHA loans; 600 for VA loans | Varies by loan type | Mr. Cooper review |
| New American Funding | 620 for conventional loans | Varies by loan type | New American Funding review |
| Sebonic Financial | 580 for conventional loans, 550 for FHA loans | Varies by loan type | Sebonic Financial review |
| SoFi | 620 for conventional loans | Varies by loan type | SoFi mortgage review |
| Tomo | 621 for conventional loans | Varies by loan type | Tomo review |
What is an online mortgage?
An online mortgage is a home loan originated by a lender based either entirely online, with a digital end-to-end experience from application to closing, or a brick-and-mortar company with in-person locations and online services.
In recent years, many banks have built out their capabilities to include a digital mortgage platform, but a majority of mortgages are also being originated by non-bank institutions. Non-bank institutions include companies like loanDepot and Rocket Mortgage, while banks include well-known lenders like Bank of America and Wells Fargo.
In addition to digital lenders who are based either online or have a hybrid online and physical presence, there are digital mortgage brokers, such as Morty and Sage, that assist borrowers throughout the lending process, including finding loan products and comparing rates. For borrowers new to purchasing or refinancing, a broker can be a good place to start.
How does an online mortgage work?
With an online mortgage, all or many of the steps in the lending process can be completed electronically, whether through an app or online portal. These steps might include:
- Preapproval or prequalification
- Application and document upload
- Loan processing and underwriting
- Closing (sometimes called an e-closing)
By streamlining these steps — and, in the case of a digital lender, having no offices and overhead — online mortgages tend to have lower rates and overall costs, which can save borrowers thousands.
How to choose the best online mortgage lender
Getting financing for a home is a process, so many borrowers are attracted to online mortgage lenders simply for their convenience, efficiency and speed. These are important factors to consider when looking for the best online mortgage lender, but it’s also crucial to compare costs for your individual situation, and take the time to read mortgage lender reviews to learn what to expect from the online experience. When comparing digital lenders, look for:
- The kinds of loans they offer
- Credit and down payment requirements
- Application and origination fees
- Rate-lock and other perks
- What support options are available
Online mortgage pros and cons
Pros
- Lower mortgage rates and fees due to low overhead
- Online preapproval or prequalification, often in minutes, and shorter timelines overall
- Real-time status updates
Cons
- Can’t always connect with a human for questions or support
- Can’t always see rates upfront; preapproval may be required
- Chance of breach or fraud in a completely digital process
Methodology
To determine the best mortgage lenders, Bankrate evaluated more than 80 lenders for factors relating to affordability, availability and customer experience, assigning each a Bankrate Score out of five stars. Based on this methodology, the best online mortgage lenders in 2023 generally have a Bankrate Score of 4.8 stars or higher, and are available in all or most U.S. states.
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