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.
|
Lender |
Credit requirements |
Down payment minimum |
Bankrate score |
|---|---|---|---|
|
First Federal Bank |
620 for conventional loans; 680 for jumbo loans |
3% for first-time buyers with conventional loans; 5% for other conventional buyers; 3.5% for FHA loans; none for VA loans |
4.8 |
|
Navy Federal Credit Union |
Undisclosed |
3% for conventional loans, none for VA loans |
4.8 |
|
PenFed Credit Union |
620 for conventional loans; 700 for jumbo loans; 620 for FHA loans |
3% for conventional loans; 3.5% for FHA loans; none for VA loans |
4.8 |
|
Pennymac |
620 for conventional loans; 580 for FHA loans; 620 for VA loans |
3% for conventional loans; 3.5% for FHA loans; none for VA loans and USDA loans |
4.8 |
|
Zillow Home Loans |
620 for most loans |
3% for conventional loans; 3.5% for FHA loans; none for VA loans |
4.8 |
|
New American Funding |
620 for conventional loans |
|
4.7 |
|
Movement Mortgage |
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 |
4.5 |
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.
Learn more: How to compare mortgages as a first-time homebuyer
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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.
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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.
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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.
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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.
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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).
