Best mortgage lenders for first-time homebuyers in 2026

Chase beats other lenders' rates on about 67% of its loans, earning 4 stars for rate competitiveness. It also lands in the second-best of five tiers for overpayment cost — choosing Chase over the single best offer in the market costs the average borrower about 6.4% of the loan amount over eight years, one of the smaller gaps on this list.

Even against that toughest possible bar, 86.7% of Chase's borrowers still paid more than the cheapest, similar deal in the market. But most lenders do worse: About two out of three lenders we rated show an even higher share. Chase probably won't give you the cheapest rate, but its pricing beats most of the market, so it’s worth getting a quote and comparing it against other lenders before you sign.

Chase's origination-related complaint volume alone would earn it 3 stars — the CFPB logs about 2.7 complaints per 1,000 loans for Chase. But because only about 4% of those complaints ended in relief for the consumer, it lost another star, landing at 2 stars for its complaint record. Keep in mind that this track record doesn't guarantee how your closing experience with Chase Bank will go. 

This is where Chase is weakest. Based on Bankrate’s data analysis, the likelihood that an approved loan will close is on the lower side: More than 15% of approved loans didn’t close in the period we reviewed. The data doesn’t tell us why those loans fell through, but the figure is important for a first-time homebuyer. A loan that falls through isn't just an inconvenience; it can mean losing your earnest money deposit and the home you'd already picked out. If a fast, certain closing timeline matters more than the lowest rate, ask your loan officer about the closing process up front to avoid any surprises later.

Chase does offer a closing guarantee — your loan will close on time and within three weeks of a complete application, or you get $5,000. But the fine print comes with caveats: it doesn’t apply to FHA or VA loans, your closing date can't shift, you need a complete application package with a signed purchase contract and you must respond to Chase's requests within two business days. Miss any of those and the guarantee doesn't apply.

Chase is a national lender that serves customers in all 50 states, plus Washington, D.C. With over 5,000 physical branches across the lower 48 states, Chase’s broad footprint makes it easy to find in-person support near you.

Chase’s homebuyer grant pays $2,500 or $5,000, depending on where you’re buying — Chase doesn’t disclose what sets the two amounts apart beyond the property’s location. It applies to DreaMaker, Standard Agency, VA or FHA loans in eligible census tracts, and it goes first toward buying down your rate, then toward closing costs.

Chase is also a major VA lender: at least 10% of its originations were VA loans in 2025, per Home Mortgage Disclosure Act data. Its DreaMaker mortgage, built for lower- and moderate-income buyers, allows down payments as low as 3%.

Mutual of Omaha's two ratings tell different stories. On Bankrate, its advertised rate beats 79.6% of the market, and choosing it over the single best offer there costs about 2.15% more of the loan over eight years — enough for a full 5 stars. But if you examine its full loan history, it's more middle-of-the-road: a 58% beat rate and a 7.7% overpayment cost put it at 3 stars.

Mutual of Omaha earns 2 out of 5 stars for its origination-related CFPB complaint history. The complaint rate alone would put it at 3 stars, but because none of its complaints ended in relief for the consumer, it lost a star. That doesn't mean you'll run into problems during the borrowing process if you choose Mutual of Omaha, but it's worth knowing going in. If you have an issue, be persistent — this lender's track record shows complaints haven't historically ended in the borrower's favor. 

Mutual of Omaha falls in the medium tier for closing likelihood — about 91% of approved loans closed in the period we reviewed, putting it near the median of the lenders we rate. Your own closing still depends on factors like income verification, the appraisal and the offer you get based on your information. A middle-of-the-pack track record means your own preparation matters as much as the lender’s history. Keep your paperwork organized and respond quickly to requests — those are the things you actually control.

Mutual of Omaha is licensed to lend in 49 states and Washington, D.C. — it doesn’t offer mortgages in New York. It also runs a network of branch and loan offices around the country, so in-person help is available in many areas.

You can buy a home with only 1% down and pay reduced (but not eliminated) private mortgage insurance (PMI) with Mutual of Omaha’s ONE+ Mortgage program — but it only applies to loan amounts under $350,000, and your household income can't exceed 80% of the area median. Its Mutual Assist down payment assistance program is tailored to FHA borrowers and allows them to buy the home with no down payment, though closing costs still apply.

Borrowers can also use 3% down conventional options, including the industry-standard HomeReady and Home Possible programs (run by Fannie Mae and Freddie Mac, not exclusive to Mutual of Omaha), plus state and local down payment assistance where available. If cash to close is your biggest obstacle, start with the ONE+ Mortgage program — it does more to shrink your upfront costs than anything else Mutual of Omaha offers.

Navy Federal beats other lenders' rates on about 69% of its loans, earning 4 out of 5 stars for rate competitiveness. It also scores 4 out of 5 for overpayment magnitude: Choosing Navy Federal over the single best offer in the market costs the average borrower about 6.4% of the loan amount over eight years. If you qualify for membership, this pricing alone is reason enough to put Navy Federal on your shortlist.

Navy Federal scores 4 out of 5 for origination-related complaint history. Its complaint rate is actually in the middle of the pack, but an unusually high 26% of its complaints ended in relief for the consumer, which lifted it two full stars. That relief rate is reassuring: If something goes wrong, Navy Federal has a strong track record of actually fixing the problem.

Navy Federal falls in the low band for closing likelihood — about 15% of its approved loans didn't close in the period we reviewed. That doesn't mean your loan won't close, but if it doesn't, you risk losing your earnest money and the home you chose, so keep it in mind. Ask your loan officer early what could delay your file, and submit your documentation before it's requested.

As a federally chartered credit union, Navy Federal operates in all 50 states and Washington, D.C. But its branch network leans heavily toward military communities — of its 386 locations worldwide, about half sit on or near a military installation, so don't expect to find one nearby unless you live near a base. Even if you don’t have a local office, you can do everything online or by phone.

Availability isn't the obstacle here — membership eligibility is. Confirm that you qualify before you get attached to Navy Federal's pricing or programs.

Navy Federal's Homebuyers Choice Loan allows eligible members to buy with no down payment and no private mortgage insurance (PMI). But this loan carries a noticeably higher rate than NFCU’s conventional loans, plus a funding fee, so the no-PMI, no-down-payment convenience comes at a cost. If you can put down just 3%, Navy Federal will waive that 1.75% funding fee and may offer a lower rate.

If you're eligible, a VA loan is usually the stronger first-time-buyer option. This government-backed loan requires no down payment, no PMI and typically offers Navy Federal's most competitive rates. VA loans have their own funding fee, but it's waived entirely for veterans receiving VA disability compensation. If you qualify for both loan options, ask Navy Federal to compare Homebuyers Choice against a VA loan side by side — which one wins depends on your eligibility and how much you can put down.

Like other lenders on this list, Northpointe's two ratings differ based on how you measure price. On Bankrate, its advertised rate beats 79.4% of the market, and choosing it over the single best offer there costs about 2.26% more of the loan over eight years — enough for 5 stars. But if you look at its full loan history, the picture is weaker: a 53% beat rate ties Mutual of Omaha for the lowest rate-competitiveness score on this list, and an 8.3% overpayment cost, the highest here, brings its Overall Rating down to 3 stars. Ask Northpointe for your specific rate and fees before you commit.

Northpointe scores a perfect 5 here — it has no CFPB complaints related to the origination process on record. That's a good sign, but it also means there's less history to judge how Northpointe handles problems if one comes up — pay close attention to your own experience as it unfolds.

Northpointe falls in the medium tier for closing likelihood, placing it around the middle of the lenders we reviewed in terms of how likely a loan is to close. During the period we reviewed, 7.7% of Northpointe’s approved loans failed to make it to the closing table. This doesn't guarantee that your loan will or won’t close, as approval depends on personal factors like your credit score, among other things.

Northpointe Bank is licensed to lend in all 50 states and Washington, D.C. It has physical loan offices in a limited number of cities — plus its Grand Rapids, Michigan headquarters — supplemented by loan officers who work remotely in other markets. If in-person guidance matters to you as a first-time buyer, ask whether Northpointe has a physical office near you or whether you'd be working with a remote loan officer — the experience differs.    

Northpointe Bank's 0% down program pairs a variety of low- and no-down-payment loan types, including a Chenoa Fund option that provides down payment assistance worth 3.5% to 5% of the purchase price for FHA borrowers. Northpointe also runs a community lending program, offering pricing incentives and low down payment options for designated areas in all 50 states. Because the assistance amount isn't a fixed dollar figure, get the exact number in writing before you count on it for your budget. 

Pennymac beats other lenders' rates on about 61% of its loans, earning 4 out of 5 stars for rate competitiveness. It also earns 4 out of 5 for overpayment magnitude: Choosing Pennymac over the single best offer in the market costs the average borrower about 6.6% of the loan amount in additional interest over eight years. That’s high compared to the other lenders on this page, but competitive against the full field of lenders nationwide. Pennymac is a safe bet on cost alone, but get at least one more quote to check — it's rarely the single cheapest lender in the room.

Pennymac scores 4 out of 5 for its history of origination-related complaints reported to the CFPB, thanks to a low complaint rate relative to its loan volume. Fewer borrowers report problems with Pennymac to begin with, which is a good sign heading into a process that already has enough unknowns. When complaints were filed, only 14.6% ended with relief to the borrower.

Pennymac falls in the low tier for closing likelihood — about 34% of its approved loans didn't close in the period we reviewed, the weakest closing rate among this list's picks. That's a real risk for a first-time buyer: A loan that doesn't close can cost you your earnest money deposit and set your home search back to square one. If you're on a tight timeline — a lease ending, a rate lock expiring — Pennymac's closing track record is something to keep in mind.

Pennymac is licensed to lend in all 50 states and Washington, D.C. It doesn't operate retail branches — it's a direct lender that works with borrowers online and by phone. Pennymac is an option wherever you’re buying, but be prepared for a digital and remote experience.

Pennymac offers loans through HUD's Good Neighbor Next Door program, in which eligible law enforcement officers, teachers, firefighters and EMTs can buy HUD-owned homes in designated revitalization areas at up to 50% off the list price, in exchange for a three-year occupancy commitment.

Separately, Pennymac partners with HomeStory Real Estate Services on a program called Home Connect, which pays buyers a cash rebate of $350 to $9,500 for using a partner real estate agent — but it's not available in nine states (Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon and Tennessee). Depending on your income and location, you may also qualify for state or local down payment and closing cost assistance.