An online mortgage lender is one that operates exclusively online, without branch locations or only some satellite offices. To assemble our list of the best online lenders, we’ve reviewed over 80 lenders for affordability, availability and borrower experience. Here are our top picks for 2024.

Bankrate’s picks for best online mortgage lenders

 

Online mortgage lender Bankrate Score Minimum credit score Minimum down payment
First Mortgage Direct 4.8 620 for conventional loans, 580 for FHA loans, 580 for VA loans 3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans
SoFi 4.6 620 for conventional loans, 600 for FHA loans, 600 for VA loans 3%-5% for conventional loans, 3.5% for FHA loans, none for VA loans
Rocket Mortgage 4.6 620 for conventional loans, 680 for jumbo loans, 580 for FHA loans, 580 for VA loans 3% for conventional loans, 10%-15% for jumbo loans, 3.5% for FHA loans, none for VA loans
Mr. Cooper 4.6 620 for conventional loans, 580 for FHA loans, 600 for VA loans 3% for conventional loans, 3.5% for FHA loans, none for VA loans
Better 4.6 620 for conventional loans, 580 for FHA loans 3% for conventional loans, 3.5% for FHA loans, none for VA loans
Alliant Credit Union 4.5 Undisclosed 5% for conventional loans
Homefinity 4.5 620 for conventional loans, 600 or higher for FHA loans and VA loans (can be lower in some cases) 3% for conventional loans, 3.5% for FHA loans, none for VA loans or USDA loans
Tomo 4.5 620 for conventional loans 3% for conventional loans, 3.5% for FHA loans, none for VA loans

First Mortgage Direct

First Mortgage Direct

Learn more in our Bankrate review

SoFi bank logo

SoFi

Learn more in our Bankrate review

rocket mortgage logo

Rocket Mortgage

Learn more in our Bankrate review

Mr Cooper logo

Mr. Cooper

Learn more in our Bankrate review

Better logo

Better

Learn more in our Bankrate review

Alliant credit union

Alliant Credit Union

Learn more in our Bankrate review

Homefinity logo

Homefinity

Learn more in our Bankrate review

Tomo logo

Tomo

Learn more in our Bankrate review
  • How we chose the best online mortgage lenders: To determine the best online mortgage lenders, Bankrate evaluated more than 80 lenders for factors relating to affordability, availability and borrower experience, assigning each a Bankrate Score out of five stars. Based on this methodology, the best online mortgage lenders in 2024 generally have a Bankrate Score of 4.3 stars or higher. 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.

How to find the best online mortgage lender for you

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

Does an online mortgage lender have lower rates?

Online lenders can have lower rates than their brick-and-mortar competition because they have less overhead. However, that doesn’t necessarily mean you’ll get a lower annual percentage rate (or APR) — the cost of the interest rate plus fees. The rate you’re offered often has more to do with your credit and financial profile and prevailing market trends. It can pay off to shop around with at least three different mortgage lenders.

Pros and cons of online mortgage lenders

There are several benefits to getting an online mortgage, including:

  • Lower mortgage rates and fees due to low overhead
  • Online preapproval or prequalification, often in minutes, and shorter timelines for underwriting and closing overall
  • Real-time status updates

However, they also come with downsides, like:

  • Can’t always connect with a human for questions or support
  • Might not be able to learn what rates you qualify for without getting preapproved
  • Potentially greater odds of a security breach, identity theft or fraud

Next steps to apply for an online mortgage

  • Step 1: Strengthen your credit score – Before applying for a loan, take a hard look at your credit history and work to improve your score by paying down outstanding balances. Also, resist taking on any more debt and/or applying for any other loans or lines of credit.
  • Step 2: Set a budget – It’s important to understand how much house you can afford before you go shopping. Note that you may be preapproved for more money than what you can comfortably afford.
  • Step 3: Understand your mortgage options – There are a few different types of mortgages. Know what they are and which one you want.
  • Step 4: Compare several lenders Rate-shop with at least three different lenders to get the best deal on rates, fees and terms.
  • Step 5: Get preapproved for a mortgage – Apply for mortgage preapproval with several lenders to compare offers and get accurate loan pricing for your specific situation. Preapproval shows sellers that you’re a serious shopper and that you have the financial backing to bid on a home.

Online mortgage FAQs

  • An online mortgage is a home loan originated by a lender based either entirely on the web, with a digital end-to-end experience from application to closing, or a brick-and-mortar company with in-person locations and online services. While several big banks have built out their capabilities to include a digital mortgage platform, many mortgages are also being originated by non-bank institutions, like LoanDepot and Rocket Mortgage.
  • 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; and 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.
  • Generally, yes. You can get an FHA loan through many online lenders with a minimum credit score of 580 and 3.5 percent down, or a credit score as low as 500 if you put 10 percent down. Most conventional loans with online lenders require a minimum credit score of 620.
  • To determine the best online 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 online mortgage lenders generally have a Bankrate Score of 4.5 stars or higher. Learn more about our methodology.