Bob Haegele, Author at Benzinga https://www.benzinga.com/money/author/bobhaegele Fri, 10 Jul 2026 11:45:17 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.15 https://cdnwp-s3.benzinga.com/wp-content/uploads/2022/05/12155024/V5-Rounded-Border-Green_adobespark-96x96.png Bob Haegele, Author at Benzinga https://www.benzinga.com/money/author/bobhaegele 32 32 Best Mortgage Lenders for First Time Home Buyers in 2025 https://www.benzinga.com/money/best-mortgage-lenders-for-first-time-buyers https://www.benzinga.com/money/best-mortgage-lenders-for-first-time-buyers#respond Fri, 10 Jul 2026 11:45:15 +0000 https://www.benzinga.com/?p=47795 The post Best Mortgage Lenders for First Time Home Buyers in 2025 by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

When buying your first home, these lenders have some of the best options available. When buying your first home, you consider where you want to live, the home type you prefer and how many bedrooms the house must have. Equally important is securing financing, as you may not have a substantial amount of cash available … Continued

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first-time homebuyer
Photo Courtesy of jack_the_sparow/Shutterstock

When buying your first home, these lenders have some of the best options available.

When buying your first home, you consider where you want to live, the home type you prefer and how many bedrooms the house must have. Equally important is securing financing, as you may not have a substantial amount of cash available for a down payment. 

Benzinga has combed through dozens of options to identify the best mortgage lenders for first-time homebuyers. These lenders offer several features that make them excellent choices for first-time homebuyers, including lenient credit and low down payment requirements. Consider these options to make your dream home a reality.

Quick Winners List

Table of contents [Show]

Best for Fast Closing: CrossCountry Mortgage

CrossCountry Mortgage
get started securely through CrossCountry Mortgage’s website
More Details
Disclosure: Available in: CA, CO, CT, DC, FL, GA, IL, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VA, WA 
Avg. Days to Close Loan
30 – 40
Minimum Credit Score
620
1 Minute Review

CrossCountry Mortgage was started in 2003 by Ronald Leonhardt Jr., founder and CEO. Its headquarters is located in Cleveland, Ohio, but it’s licensed in all 50 states, D.C. and Puerto Rico, and it has over 700 branch locations across the country. Hopeful homeowners turn to CrossCountry Mortgage for its diverse portfolio of loan options, including conventional loans, Federal Housing Administration (FHA) loans, United States Department of Veterans Affairs (VA) loans and United States Department of Agriculture (USDA) loans.

 

Best For
  • Self-employed professionals
  • Retirees
  • Investors
  • Condo buyers
Pros
  • Provides loans across all 50 states, D.C. and Puerto Rico
  • 120 mortgage purchase, refinance and home equity solutions
  • Can work with credit scores as low as 500
  • Tax returns aren’t required
  • Ideal for first-time homebuyers
Cons
  • Doesn’t post rates online
  • Underwriting process may take longer

Pros

  • Close in as little as 10 days
  • Licensed in all 50 states, D.C. and Puerto Rico
  • 120 mortgage purchase, refinance and home equity solutions
  • Can work with credit scores as low as 500
  • Doesn’t require tax returns

Cons

  • Doesn’t post rates online
  • Underwriting process may take longer

CrossCountry Mortgage is a Cleveland-based lender that offers mortgages nationwide. With CrossCountry, you can choose from conventional, jumbo, non-QM and government-backed FHA, VA or USDA loans. It offers pre-approval to gauge your approval odds, but FHA and VA loans may allow credit scores as low as 500.

CrossCountry offers a FastTrack Credit Approval program that can help close in as few as 10 days after signing a purchase agreement. The lender also offers resources for first-time homebuyers on its website, including a comprehensive guide and various informative articles.

Minimum credit score: 500

Minimum down payment: As little as 1% for first-time homebuyers

Loan types offered: Conventional, FHA, VA, USDA and jumbo loans

States served: All 50 states, D.C. and Puerto Rico

Best for Variety of Options: New American Funding

New American Funding
get started securely through New American Funding’s website
More Details
Avg. Days to Close Loan
31-40
Minimum Credit Score
620
1 Minute Review

New American Funding is a lender that offers several types of mortgages, including conventional, FHA and VA loans. It has relatively low interest rates but a limited number of term options.

Best For
  • Conventional loans: This is the most popular type of mortgage. These loans usually have the lowest fees but often have stricter requirements.
  • FHA loans: These loans are designed for those with fair credit or who can’t afford as much of a down payment.
  • Jumbo loan: These loans have larger maximum loan amounts and are geared toward high-income borrowers.
  • VA loans: Veterans and current service members are eligible for VA loans with no down payment requirement.
  • Refinancing: If you have a mortgage with a high interest rate, you can refinance to get a better deal.
  • Adjustable rates: An adjustable-rate mortgage is desirable for those who believe interest rates will come down soon.
  • Fixed rates: Fixed-rate mortgages are popular for people who want stability in their monthly payment.
Pros
  • Offers mortgage refinance as well as new loan origination. Both new homebuyers and existing homeowners can shop for a mortgage with New American Funding.
  • Has low interest rates. Borrowers looking for a good rate can find one with New American Funding.
  • Several types of mortgages available. A few different mortgage options are available, so you’re not stuck with one type.
  • Website offers homebuying resources. New American Funding’s website includes articles and tools that help buyers understand more about the homebuying process.
Cons
  • Limited local branches. The lack of a local branch can be frustrating if you prefer an in-person experience. Not available in every state.
  • New American Funding does not service New York and Hawaii residents.

Pros

  • Many loan types and programs available
  • Competitive interest rates
  • Offers new loan origination and refinancing
  • Offers down payment assistance
  • Loans can cover closing costs

Cons

  • Limited in-person locations
  • Origination fees can be high

New American Funding offers a variety of loan products including government-backed mortgages, ITIN loans and construction loans. Some loan types it offers are conventional fixed and adjustable-rate mortgages and home equity, reverse and jumbo loans. It regularly publishes rates on its website for several popular loan programs, giving you an idea of what to expect.

New American Funding accepts credit scores as low as 500. You can also choose from flexible mortgage options, selecting terms ranging from eight to 30 years. The lender also offers down payment assistance programs, which provide up to $6,000 toward purchasing a home. It can also help you make an all-cash offer, making it easier to close on a home.

Minimum credit score: 500

Minimum down payment: 0%

Loan types offered: Conventional, FHA, VA, USDA, jumbo, I CAN and other loan options

States served: All 50 states plus D.C. and Puerto Rico

Best for FHA Loans: Rocket Mortgage (formerly Quicken Loans)

Rocket Mortgage (formerly Quicken Loans)
Get started securely through Rocket Mortgage (formerly Quicken Loans)’s website
More Details
Avg. Days to Close Loan
30
Minimum Credit Score
580
1 Minute Review

Rocket Mortgage (formerly known as Quicken Loans) is one of the best mortgage lenders on the market, making it easy to apply for a home loan entirely online. Its streamlined preapproval process and quick access to customer service set it apart from other online lenders. Rocket Mortgage offers a large variety of mortgages and is backed by the largest mortgage lender, Quicken Loans. Whether you need help or know exactly what you’re looking for, Rocket Mortgage matches you with the right mortgage type and helps you quickly complete your online application.

Best For
  • Homebuyers who are looking to complete the mortgage application process on their own
  • Homebuyers who have found their dream home and are looking to move through the approval process quickly
  • Homebuyers with good credit scores looking to review their mortgage options
  • Current homeowners looking to refinance within the next few months
Pros
  • Rocket Mortgage allows you to move at your own pace, guiding you through each step of the process. After you answer all the application questions, Rocket Mortgage lets you know if you’re approved and show your personalized mortgage recommendations
  • You can submit checking and savings account information, tax returns and other financial documents online — a feature that sets Rocket Mortgage apart from online competitors
  • RateShield allows you to lock in your Rocket Mortgage approved rate for up to 90 days
  • The home loan application process can be completed in minutes, allowing you to find out if you qualify for a mortgage right away
  • The online software allows you to navigate through the entire home buying process, from approval to home closing. Once you’re approved and you make an offer on your home, Rocket Mortgage offers online tools that will help you move through the rest of the closing process
Cons
  • While Rocket Mortgage has customer specialists ready to answer your questions and provide guidance, if you prefer sitting across from a person when filling out financial forms, this lender might not be right for you
  • You can’t easily view all of Rocket Mortgage’s home loan options prior to applying. It offers conventional, FHA, USDA and VA loans, but you’ll need to apply to find out more about the mortgage types within these offerings and which ones you’re eligible for

Pros

  • Largest FHA lender in the country
  • Rate reduction programs may lower your rate
  • Closing credit of up to $10,000
  • Put as little as 1% down

Cons

  • Rates may not be the lowest available
  • No in-person locations
  • Limited options for borrowers without traditional credit profiles

Rocket Mortgage (formerly known as Quicken Loans) is the largest FHA lender in the country, helping first-time homebuyers with limited funds secure a mortgage. You can use the website or the app to apply for a mortgage and manage your loan application. Rocket Mortgage utilizes a streamlined loan application process, allowing you to track all your progress in one convenient location.

With Rocket Mortgage, you can apply for conventional, refinance, jumbo, fixed, adjustable, FHA, VA and home equity loans. Its Rate Drop Advantage program lets you refinance starting four months after your closing and up to 18 months afterward, waiving certain closing costs. Additionally, Rocket Mortgage offers the convenience of working with loan officers over the phone, allowing for remote interactions if you prefer this approach.

Minimum credit score: 580

Minimum down payment: 1% with ONE+ program

Loan types offered: Conventional, FHA, VA and jumbo loans

States served: All 50 states and D.C.

Best for Credit Monitoring: loanDepot

loanDepot Mortgage
Compare Lenders
More Details
Avg. Days to Close Loan
15
Minimum Credit Score
620
1 Minute Review

Loandepot is a clearinghouse for anyone to get a competitive loan quote and preapproval. There are several partners on the site who can provide  loans to consumers with a range of rates and terms available based on your credit rating.

Best For
  • Comparing lenders
  • Lots of information on the partners on the site
  • Quality interface
Pros
  • Apply quickly
  • Get competitive rates
  • Choose the loan that works best for your situation
Cons
  • Not all partners can give you the best rates

Pros

  • Offers free credit monitoring
  • Apply quickly
  • Entirely online application
  • Direct lender
  • “No steering” policy

Cons

  • Rates not posted online
  • Not all partners can give you the best rates
  • No USDA loans

loanDepot is a non-bank lender that offers convenience and efficiency online with the option to visit a branch in person. loanDepot offers fixed-rate and adjustable-rate conventional mortgages. When applying for a mortgage with loanDepot, you can choose from jumbo, FHA or VA loans. LoanDepot also offers 10-, 15-, 20- and 30-year mortgage terms.

Because your credit score is crucial when purchasing and refinancing a home, loanDepot offers a free credit monitoring service called SavvyMoney. You need a credit score of at least 620 to apply for a mortgage with loanDepot, so you can also use the service to determine when you qualify. According to loanDepot, its status as a direct lender allows it to close 50% faster than the industry average.

Minimum credit score: 620

Minimum down payment: 0% (VA); 3.5% (FHA)

Loan types offered: Conventional, FHA, VA and jumbo loans

States served: All 50 states

Best for Borrowers with No Credit Score: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions
get started securely through Angel Oak Mortgage Solutions’s website
More Details
Disclosure: Angel Oak Licensing and Disclosure Information
Avg. Days to Close Loan
30
Minimum Credit Score
600
1 Minute Review

Angel Oak Mortgage Solutions specializes in non-traditional mortgage products, making it a go-to for borrowers with unique financial situations, like self-employed individuals or those without traditional income verification. Angel Oak stands out for its flexible qualification options, including bank statement loans, asset-based loans, and programs for foreign nationals. However, these specialized loans often come with higher rates compared to conventional loans, and the company’s service area is limited, meaning not everyone can take advantage of their offerings.

Best For
  • Self-employed borrowers or small business owners
  • Investors seeking cash flow-based financing
  • Borrowers with non-traditional income sources
  • Individuals seeking flexible qualification criteria
Pros
  • Offers a wide range of non-QM (non-qualified mortgage) loan products
  • Flexible income verification options, including bank statements and assets
  • Loans available for foreign nationals and ITIN holders
  • Dedicated loan officers for personalized service
Cons
  • Limited availability in some states
  • Higher interest rates compared to conventional loans

Pros

  • Offers various non-QM loan options
  • Dedicated loan officers available
  • Verify your income with bank statements
  • Loans available to foreign nationals and ITIN holders

Cons

  • Loans not available in all states
  • Higher interest rates than conventional loans
  • Requires higher credit score than government-backed options

Angel Oak Mortgage Solutions offers non-QM loan options for borrowers who do not have a traditional credit profile. Bank statement loans are available for up to $4 million with a minimum loan amount of $150,000. Angel Oak is licensed in 45 states and offers competitive mortgage rates and quick closing times. The lender is not currently licensed to operate in New York.

Angel Oak has options for primary residences, second homes and investment properties. It accommodates various property types including single-family homes, townhomes and condominiums. Borrowers with 1099 income and those with sufficient assets may qualify. It also offers HELOCs and P&L loans as well as government programs such as FHA, USDA and VA.

Minimum credit score: 640

Minimum down payment: 5%

Loan types offered: Various non-QM loan programs

States served: All states except Alaska, New York, Vermont, Massachusetts and Connecticut

Best for Quick Application: Rate

Rate.com
Get started securely through Rate.com’s website

Pros

  • Approval in as little as 24 hours
  • Apply online
  • Available in all 50 states and D.C.
  • Hundreds of branches nationwide
  • Posts rates online

Cons

  • Most loans require a 620 credit score
  • Some higher fees than other lenders
  • No USDA loans

Rate is a major mortgage lender based in Chicago, Illinois. It offers various home loans including conventional fixed-rate and adjustable-rate mortgages (ARMs), jumbo loans, interest-only loans, HELOCs, home renovation loans and government-backed FHA and VA loans. With Rate, you may qualify with a down payment as little as 3%.

Rate offers flexible mortgage application options and accepts non-traditional credit. For instance, you may provide your rent or utility payment history to qualify for a conventional or government-backed loan. It offers various down payment assistance programs, educational resources, mortgage calculators and personalized guidance from dedicated loan officers.

Minimum credit score: 620

Minimum down payment: 3%

Loan types offered: Conventional, FHA, VA and jumbo loans

States served: All 50 states

How Do I Choose a Lender as a First-Time Home Buyer?

To choose a mortgage lender as a first-time homebuyer, you must know what to look for. Generally, you must weigh the type of lender, interest rates and available mortgage products. First, consider the lender type. You can choose from online lenders, physical bank locations, credit unions and other mortgage lenders. Credit unions sometimes offer lower rates to members, but you must compare rates from multiple lenders to find the best options.

Lindsey Harn, a top real estate agent at Christie’s International Real Estate, recommends always shopping local. “Depending on your market, a local lender can make or break getting your offer accepted, Harn says. “A reputable, well respected lender can make a huge difference when it comes to getting your offer accepted.” Harn recommends asking friends and family for referrals, then checking with local banks and credit unions.

Additionally, consider the various types of loans. While many borrowers choose conventional loans, there are also government-backed options such as FHA, VA and USDA loans. These loans often have lower down payments and more flexible credit score requirements.

Rates and Terms

Interest rates and fees are also crucial because they can add up to thousands of dollars over the lifetime of your mortgage. Compare at least three lenders online to find the best available options, taking into account their interest rates and fees. Consider the total required closing costs and other expenses to ensure you have enough for the down payment, plus closing costs, to help ensure you can save more.

While rates are important, they aren’t the only thing that matters, says Ryan Leahy, CEO at MORE Direct Seller Financing. “You want to find the best financing solution and option that works for your real life, through the entire process,” Leahy says. “For first time buyers, look for lenders or seller-financing partners that provide transparency, flexibility, honesty and effort in regards to the terms that reflect your current financial situation.”

Leahy adds, “Make sure to compare offers and understand all the terms, not just the monthly payment.”

Loan terms are also crucial. Consider interest rates, fees and early repayment penalties. Remember that a longer term typically means paying more interest overall even if the monthly payment is lower. Having a real estate attorney review the mortgage contract and explain unfamiliar terms may be worthwhile. These tips can help you as a first-time homebuyer.

Why You Should Trust Us

As someone who purchased their first home in 2024, I know all too well what it’s like to be a first-time homebuyer. It can be overwhelming and at times, you might feel lost. My experience with buying my first home has given me the insights necessary to choose the best lenders for first-time homebuyers. Additionally, I interviewed industry experts who shared their valuable insights.

Lindsey Harn, whom I interviewed for this piece, is a top real estate agent in San Luis Obispo County, California. Harn has closed over 1,200 real estate transactions since 2019. Ryan Leahy, whom I also interviewed, is the founder and CEO of MORE Direct Seller Financing. Leahy has 22 years of experience in the mortgage industry, having closed over 4,000 transactions.

Benzinga was founded in 2010 and is trusted by over 25 million readers. It regularly publishes authoritative, research-backed content on investing, insurance, mortgages and other related subjects.

Methodology 

Using Benzinga’s multi-point evaluation criteria, I analyzed mortgage products from 23 lenders to determine which ones are best suited to first-time homebuyers. Some of the key criteria I considered are interest rates, fees, loan variety and overall customer experience. I looked for lenders who allow lower down payments and have more flexible credit score requirements, which is often helpful for first-time homebuyers.

I also factored in ratings and reviews from independent sources such as TrustPilot, the Better Business Bureau (BBB) and Zillow. Those that ranked highest consistently received strong feedback on one or more of these platforms. Weighing these factors allowed me to identify those with the best overall customer service.

Applying for a mortgage can be challenging and first-time homebuyers may feel more comfortable applying online or through a mobile app. Lenders allowing borrowers to apply online without inundating them with too many questions received high marks. Those that don’t require an in-person visit also fared the best.

See Benzinga’s full methodology for a complete overview of how we determine the best mortgage lenders.

FAQ

Q

How much money should I put down on a house as a first-time buyer?

1
How much money should I put down on a house as a first-time buyer?
asked
A
1

Most first-time homebuyers can qualify for a mortgage with as little as 3% down on a conventional mortgage or 3.5% down for an FHA loan. Other loan types such as USDA and VA may require as little as 0% down. However, the actual down payment varies depending on the local real estate market and your credit history.

answered
Q

What credit score do you need for a mortgage?

1
What credit score do you need for a mortgage?
asked
A
1

The minimum credit score required for a mortgage varies depending on the loan type. Conventional mortgages typically require a credit score of at least 620. However, a score of at least 650 will open more options. However, FHA loans require a minimum score of 580 or 500 with a 10% down payment. Lender requirements may also affect the minimum credit score; check with individual lenders to learn about their requirements.

answered
Q

How far back do mortgage lenders look at credit history?

1
How far back do mortgage lenders look at credit history?
asked
A
1

Every lender is different, but they typically review the last two to six years of your credit history when assessing your application. The last two years are particularly important, as lenders typically check for negative indicators such as late payments and collection actions. However, negative remarks like late payments and defaults may stay on your credit report for up to six years, which can affect your approval odds.

answered

Sources

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]]> https://www.benzinga.com/money/best-mortgage-lenders-for-first-time-buyers/feed 0 https://cdnwp-s3.benzinga.com/wp-content/uploads/2025/04/23104821/IMG_7096.jpeg Best Low-Income Home Loan Mortgage Lenders to Purchase Your Next Property https://www.benzinga.com/money/best-low-income-home-loan-options Fri, 25 Apr 2025 14:43:28 +0000 https://www.benzinga.com/?p=211566 The post Best Low-Income Home Loan Mortgage Lenders to Purchase Your Next Property by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

Lenders like New American Funding, Rocket Mortgage and CrossCountry Mortgage top our list of the best options for those with lower incomes. Buying a home is the most significant financial decision most people will make in their lifetimes. However, qualifying for a home loan can seem challenging if you don’t have a high income. Fortunately, … Continued

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low income mortgage
Photo Courtesy of Andrey_Popv/Shutterstock

Lenders like New American Funding, Rocket Mortgage and CrossCountry Mortgage top our list of the best options for those with lower incomes.

Buying a home is the most significant financial decision most people will make in their lifetimes. However, qualifying for a home loan can seem challenging if you don’t have a high income. Fortunately, the best low-income home loan mortgage lenders have options even if you aren’t bringing in a ton of money every month. These are our top picks for those with a limited income.

Table of contents [Show]

Best for Flexible Credit Requirements: New American Funding

New American Funding
get started securely through New American Funding’s website
More Details
Avg. Days to Close Loan
31-40
Minimum Credit Score
620
1 Minute Review

New American Funding is a lender that offers several types of mortgages, including conventional, FHA and VA loans. It has relatively low interest rates but a limited number of term options.

Best For
  • Conventional loans: This is the most popular type of mortgage. These loans usually have the lowest fees but often have stricter requirements.
  • FHA loans: These loans are designed for those with fair credit or who can’t afford as much of a down payment.
  • Jumbo loan: These loans have larger maximum loan amounts and are geared toward high-income borrowers.
  • VA loans: Veterans and current service members are eligible for VA loans with no down payment requirement.
  • Refinancing: If you have a mortgage with a high interest rate, you can refinance to get a better deal.
  • Adjustable rates: An adjustable-rate mortgage is desirable for those who believe interest rates will come down soon.
  • Fixed rates: Fixed-rate mortgages are popular for people who want stability in their monthly payment.
Pros
  • Offers mortgage refinance as well as new loan origination. Both new homebuyers and existing homeowners can shop for a mortgage with New American Funding.
  • Has low interest rates. Borrowers looking for a good rate can find one with New American Funding.
  • Several types of mortgages available. A few different mortgage options are available, so you’re not stuck with one type.
  • Website offers homebuying resources. New American Funding’s website includes articles and tools that help buyers understand more about the homebuying process.
Cons
  • Limited local branches. The lack of a local branch can be frustrating if you prefer an in-person experience. Not available in every state.
  • New American Funding does not service New York and Hawaii residents.

Pros

  • Minimum credit score of 500
  • Receive up to $7,500 in down payment assistance
  • Gives buyers the option for all-cash offers
  • You can combine down payment assistance with other offers
  • Loans can cover closing costs

Cons

  • Fees can be high
  • The online quote tool asks for personal information

New American Funding (NAF) is a mortgage lender founded in 2003. It opened its first branch in 2012 and has quickly grown to hundreds of branches nationwide. The company is licensed in all 50 states and services loans worth over $71 million. NAF is a direct lender that works with Fannie Mae, Freddie Mac and Ginnie Mae.

NAF offers several loan types, including conventional, FHA, USDA and VA. FHA loans have a flexible credit score requirement. The minimum credit score is 580 or as low as 500 with a larger down payment. The down payment range is 3.5% to 10%, making it accessible for various buyers. In addition, FHA loans allow a higher debt-to-income ratio of up to 57%.

Minimum credit score: 500

Minimum down payment: 0%

Loan types offered: Conventional, FHA, VA, USDA, jumbo, I CAN and other loan options

States served: All 50 states plus D.C. and Puerto Rico

Best for Low Down Payment: Rocket Mortgage

Rocket Mortgage (formerly Quicken Loans)
Get started securely through Rocket Mortgage (formerly Quicken Loans)’s website
More Details
Avg. Days to Close Loan
30
Minimum Credit Score
580
1 Minute Review

Rocket Mortgage (formerly known as Quicken Loans) is one of the best mortgage lenders on the market, making it easy to apply for a home loan entirely online. Its streamlined preapproval process and quick access to customer service set it apart from other online lenders. Rocket Mortgage offers a large variety of mortgages and is backed by the largest mortgage lender, Quicken Loans. Whether you need help or know exactly what you’re looking for, Rocket Mortgage matches you with the right mortgage type and helps you quickly complete your online application.

Best For
  • Homebuyers who are looking to complete the mortgage application process on their own
  • Homebuyers who have found their dream home and are looking to move through the approval process quickly
  • Homebuyers with good credit scores looking to review their mortgage options
  • Current homeowners looking to refinance within the next few months
Pros
  • Rocket Mortgage allows you to move at your own pace, guiding you through each step of the process. After you answer all the application questions, Rocket Mortgage lets you know if you’re approved and show your personalized mortgage recommendations
  • You can submit checking and savings account information, tax returns and other financial documents online — a feature that sets Rocket Mortgage apart from online competitors
  • RateShield allows you to lock in your Rocket Mortgage approved rate for up to 90 days
  • The home loan application process can be completed in minutes, allowing you to find out if you qualify for a mortgage right away
  • The online software allows you to navigate through the entire home buying process, from approval to home closing. Once you’re approved and you make an offer on your home, Rocket Mortgage offers online tools that will help you move through the rest of the closing process
Cons
  • While Rocket Mortgage has customer specialists ready to answer your questions and provide guidance, if you prefer sitting across from a person when filling out financial forms, this lender might not be right for you
  • You can’t easily view all of Rocket Mortgage’s home loan options prior to applying. It offers conventional, FHA, USDA and VA loans, but you’ll need to apply to find out more about the mortgage types within these offerings and which ones you’re eligible for

Pros

  • Put as little as 1% down
  • Extended contact hours
  • Government and conventional loans available
  • Works with investors and second homes
  • Offers closing credits

Cons

  • No in-person service
  • Doesn’t offer home equity loans or HELOCs

Rocket Mortgage is an online mortgage lender that simplifies the process for prospective homebuyers, whether purchasing or refinancing. Rocket Mortgage’s seamless application process is easy to follow for first-time homebuyers. It offers various loan types, but ONE+ by Rocket Mortgage® lets you buy a home with as little as 1% down. In addition, homebuyers can earn a credit for 1.25% of closing costs with a limit of $10,000.

Rocket has award-winning, easy-to-access customer service. You can talk to loan experts by phone or chat whenever you have questions. For new loans, phone lines are open from 7 a.m. until midnight Eastern during the week and into the evening on weekends. Contact hours are similar for live chat.

Minimum credit score: 580

Minimum down payment: 0%

Loan types offered: Conventional, FHA, VA, jumbo, refinance

States served: All 50 states and D.C.

Best for Home-Buyers in Rural or Suburban Areas: CrossCountry Mortgage

CrossCountry Mortgage
get started securely through CrossCountry Mortgage’s website
More Details
Disclosure: Available in: CA, CO, CT, DC, FL, GA, IL, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VA, WA 
Avg. Days to Close Loan
30 – 40
Minimum Credit Score
620
1 Minute Review

CrossCountry Mortgage was started in 2003 by Ronald Leonhardt Jr., founder and CEO. Its headquarters is located in Cleveland, Ohio, but it’s licensed in all 50 states, D.C. and Puerto Rico, and it has over 700 branch locations across the country. Hopeful homeowners turn to CrossCountry Mortgage for its diverse portfolio of loan options, including conventional loans, Federal Housing Administration (FHA) loans, United States Department of Veterans Affairs (VA) loans and United States Department of Agriculture (USDA) loans.

 

Best For
  • Self-employed professionals
  • Retirees
  • Investors
  • Condo buyers
Pros
  • Provides loans across all 50 states, D.C. and Puerto Rico
  • 120 mortgage purchase, refinance and home equity solutions
  • Can work with credit scores as low as 500
  • Tax returns aren’t required
  • Ideal for first-time homebuyers
Cons
  • Doesn’t post rates online
  • Underwriting process may take longer

Pros

  • Finance up to 100% of your loan with USDA
  • Buy or refinance in as little as 21 days
  • 120 options for buying, refinancing and home equity
  • Large number of branches

Cons

  • Rates not available online
  • No online pre-approval
  • Rates aren’t the lowest

CrossCountry Mortgage was founded in 2003 by Ronald Leonhardt, Jr., who still serves as its CEO. The company’s headquarters are in Cleveland, Ohio. Since its founding, the company has grown to thousands of employees and hundreds of branches. CrossCountry doesn’t require tax returns and you only need year-to-date proof of income with a minimum credit score of 580.

CrossCountry Mortgage stands out because of its loan options, with 120 choices between purchase, refinance and home equity. Purchase options include conventional, FHA, VA and jumbo loans. CrossCountry offers USDA loans with up to 100% financing for those in rural and suburban areas. The lender notes that many small towns and suburban areas fall within the USDA eligibility areas.

Minimum credit score: 500

Minimum down payment: Not disclosed

Loan types offered: Conventional, FHA, VA, USDA, jumbo

States served: All 50 states plus D.C. and Puerto Rico

Best for Variety of Loan Types: loanDepot

loanDepot Mortgage
Compare Lenders
More Details
Avg. Days to Close Loan
15
Minimum Credit Score
620
1 Minute Review

Loandepot is a clearinghouse for anyone to get a competitive loan quote and preapproval. There are several partners on the site who can provide  loans to consumers with a range of rates and terms available based on your credit rating.

Best For
  • Comparing lenders
  • Lots of information on the partners on the site
  • Quality interface
Pros
  • Apply quickly
  • Get competitive rates
  • Choose the loan that works best for your situation
Cons
  • Not all partners can give you the best rates

Pros

  • Four term lengths for FHA
  • Abides by a “no steering” policy
  • Strong customer support
  • Transparent fee structure
  • Acts as a direct mortgage lender

Cons

  • Rates not available on website
  • Prepayment penalties in some states
  • Rates and fees can be high

loanDepot is a non-bank direct mortgage lender. As such, it can originate and fund loans without a middleman. Because it eliminates this extra step, loanDepot offers lower rates and faster approvals, making it one of the best mortgage refinance lenders.

loanDepot offers several refinancing options, including fixed and adjustable-rate mortgages and FHA and VA loans. When applying for an FHA loan, you can opt for terms of 10, 15, 20 or 30-year fixed rates. Its strict “no steering” policy won’t pressure you to choose a loan that isn’t the right fit. However, you must apply for the available rates, which aren’t published online.

Best for Self-Employed: Angel Oak Lending

Angel Oak Mortgage Solutions
get started securely through Angel Oak Mortgage Solutions’s website
More Details
Disclosure: Angel Oak Licensing and Disclosure Information
Avg. Days to Close Loan
30
Minimum Credit Score
600
1 Minute Review

Angel Oak Mortgage Solutions specializes in non-traditional mortgage products, making it a go-to for borrowers with unique financial situations, like self-employed individuals or those without traditional income verification. Angel Oak stands out for its flexible qualification options, including bank statement loans, asset-based loans, and programs for foreign nationals. However, these specialized loans often come with higher rates compared to conventional loans, and the company’s service area is limited, meaning not everyone can take advantage of their offerings.

Best For
  • Self-employed borrowers or small business owners
  • Investors seeking cash flow-based financing
  • Borrowers with non-traditional income sources
  • Individuals seeking flexible qualification criteria
Pros
  • Offers a wide range of non-QM (non-qualified mortgage) loan products
  • Flexible income verification options, including bank statements and assets
  • Loans available for foreign nationals and ITIN holders
  • Dedicated loan officers for personalized service
Cons
  • Limited availability in some states
  • Higher interest rates compared to conventional loans

Pros

  • Self-employed income verification options, such as bank statements
  • Various non-QM loan products
  • Loans are available for foreign nationals and ITIN holders
  • Dedicated loan officers

Cons

  • Limited availability in some states
  • Interest rates can be high

Angel Oak Mortgage Solutions is a full-service mortgage lender offering traditional and portfolio non-QM loans. It is licensed in most states and offers competitive mortgage rates and quick closing times. The lender is not licensed to operate in New York, among a handful of other states.

Angel Oak offers self-employed individuals bank statement loans, HELOCs and P&L loans. Borrowers can also qualify by showing proof of sufficient assets. Angel Oak provides opportunities for those with 1099 income and offers government loan products like FHA, USDA and VA loans. Those who have struggled to qualify with other lenders may prefer Angel Oak, whether they have low or high income.

Minimum credit score: 640

Minimum down payment: 5%

Loan types offered: Various non-QM loan programs

States served: All states except Alaska, New York, Vermont and Massachusetts

What is Considered Low-Income When Getting a Mortgage?

There isn’t a specific income amount that is typically considered low-income when getting a mortgage. One reason is that incomes can drastically differ depending on the city and state. For instance, incomes can be much higher in large coastal cities than in small Midwest towns. 

Because they often vary so much by location, there isn’t a single figure indicating low income, says Adam Hamilton, cofounder of REI Hub. “But, there are also specific mortgage lenders and programs that cater to individuals who do have lower incomes, offering options like lower down payments and even lowering the minimum qualification requirements,” Hamilton says.

One figure to consider is the federal poverty level (FPL). The FPL is a guideline the federal government uses to determine eligibility for Medicaid and CHIP. Although lenders don’t specifically use the FPL, it can give a rough idea of what may be considered low-income. In 2025, the FPL for a single-person household is $15,650 or $32,150 for a family of four.

Why You Should Trust Us

As a personal finance writer with over six years of experience, I understand how tough it can be to find the best mortgage lenders. When your income is low, you may have even fewer options. However, I have gone to great lengths researching products and services, including the lenders in this article. As a writer, I’ve interviewed countless industry experts who provided their best insights.

Adam Hamilton, whom I interviewed for this article, is a cofounder of REI Hub, a rental property accounting software company. Hamilton writes about various real estate topics on his company’s blog, including rental property investment guides, rental property finances and mortgage payment accounting.

Benzinga was founded in 2010 and is a trusted source for news on investing, insurance, mortgages and other topics. Our audience of over 25 million readers trusts Benzinga to provide consistently informative, high-quality content.

Methodology 

Using Benzinga’s multi-point methodology, I compared mortgage products from 23 lenders to identify the best choices for borrowers with a low income. Rates and fees, variety of options and customer service were among the most important factors. Lenders approving borrowers with lower credit scores received a boost, which correlates with lower incomes.

I also considered scores and reviews on independent platforms, including TrustPilot, BBB and Zillow. Lenders can often have significantly different scores on different platforms. None have perfect scores on any of these sites, but the lenders that fared well often have high scores on one or more.

Applying for a mortgage can be challenging, so I looked for lenders with a simple application process. Those that allow borrowers to apply online without a barrage of questions received higher marks.

See Benzinga’s full methodology for a complete overview of how we determine the best mortgage lenders.

Frequently Asked Questions

Q

What is the lowest income to qualify for a mortgage?

1
What is the lowest income to qualify for a mortgage?
asked
A
1

No single number acts as the lowest income to qualify for a mortgage. Lenders consider several factors when you apply for a mortgage, such as your income, debt-to-income ratio, employment history and credit score. Generally, lenders want to ensure you won’t have difficulty making your monthly payments.
Even if your income is low, that may not be a problem if your other debt is minimal, you have a high credit score and the home’s purchase price is low.

While income is a factor in lending decisions, what’s more important is the complete picture of you as a potential homeowner.

answered
Q

What is the best home loan for low-income people?

1
What is the best home loan for low-income people?
asked
A
1

The best home loan for low-income people depends on what you are looking for in a lender. This article highlights some of the best options, including those with a low down payment, flexible credit options or those with various loan options.
If you’re unsure where to start, use a mortgage loan marketplace such as eMortgage. These platforms allow you to quickly see several lenders while comparing rates and terms. From there, you can research lender options further, requesting quotes for a more personalized offer.

answered
Q

What mortgage does not require a down payment?

1
What mortgage does not require a down payment?
asked
A
1

While most mortgage loans require at least 3% down, USDA loans and VA loans may not require a down payment. However, requirements vary and you may still need to cover closing costs. Check with various lenders to determine whether you qualify for a USDA or VA loan with no down payment.

answered

Sources

The post Best Low-Income Home Loan Mortgage Lenders to Purchase Your Next Property by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

]]> https://cdnwp-s3.benzinga.com/wp-content/uploads/2025/04/25104513/IMG_7133.jpeg Best Cash-Out Refinance Lenders https://www.benzinga.com/money/best-cash-out-refinance-lenders https://www.benzinga.com/money/best-cash-out-refinance-lenders#respond Tue, 08 Apr 2025 20:46:54 +0000 https://www.benzinga.com/?p=82321 The post Best Cash-Out Refinance Lenders by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

The best cash-out refinance lenders let you pay off your original loan with fast closings, low fees and reasonable terms. Your home may be your most valuable asset, but you can’t always access its cash value. However, that changes with a cash-out refinance, which lets you take out a larger mortgage and pay off your … Continued

The post Best Cash-Out Refinance Lenders by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

]]> The post Best Cash-Out Refinance Lenders by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

cash out refinance
Photo Courtesy of Stocktr/Shutterstock

The best cash-out refinance lenders let you pay off your original loan with fast closings, low fees and reasonable terms.

Your home may be your most valuable asset, but you can’t always access its cash value. However, that changes with a cash-out refinance, which lets you take out a larger mortgage and pay off your existing one, pocketing the difference. While this method doesn’t let you access your home equity directly, it gives you a lump sum for almost any purpose. Benzinga has selected the best cash-out refinance lenders to help you access the money you need.

Quick Winners List

Table of contents [Show]

Best for Bank Statement Loans: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions
get started securely through Angel Oak Mortgage Solutions’s website
More Details
Disclosure: Angel Oak Licensing and Disclosure Information
Avg. Days to Close Loan
30
Minimum Credit Score
600
1 Minute Review

Angel Oak Mortgage Solutions specializes in non-traditional mortgage products, making it a go-to for borrowers with unique financial situations, like self-employed individuals or those without traditional income verification. Angel Oak stands out for its flexible qualification options, including bank statement loans, asset-based loans, and programs for foreign nationals. However, these specialized loans often come with higher rates compared to conventional loans, and the company’s service area is limited, meaning not everyone can take advantage of their offerings.

Best For
  • Self-employed borrowers or small business owners
  • Investors seeking cash flow-based financing
  • Borrowers with non-traditional income sources
  • Individuals seeking flexible qualification criteria
Pros
  • Offers a wide range of non-QM (non-qualified mortgage) loan products
  • Flexible income verification options, including bank statements and assets
  • Loans available for foreign nationals and ITIN holders
  • Dedicated loan officers for personalized service
Cons
  • Limited availability in some states
  • Higher interest rates compared to conventional loans

Pros

  • Offers a wide range of non-QM loan products
  • Flexible income verification options including bank statements and assets
  • Loans available for foreign nationals and ITIN holders
  • Dedicated loan officers for personalized service

Cons

  • Limited availability in some states
  • Higher interest rates compared to conventional loans

Angel Oak Mortgage Solutions is a full-service mortgage lender offering traditional and portfolio non-QM loans. It is licensed in 45 states and offers competitive mortgage rates and quick closing times. The lender is not currently licensed to operate in New York.

Through its various programs, loans of $100,000 to $4 million are available, allowing you to finance properties of almost any value. They cater to primary residences, second homes and investment properties and accommodate various properties such as single-family homes, townhomes and condos.

Angel Oak offers self-employed individuals bank statement loans, HELOCs and P&L loans. It also provides opportunities for those with 1099 income and offers government loan products like FHA, USDA and VA loans.

Minimum credit score: 640

Minimum down payment: 5%

Loan types offered: Various non-QM loan programs

States served: All states except Alaska, New York, Vermont, Massachusetts and Connecticut

Best for Service: Rocket Mortgage (formerly Quicken Loans)

Rocket Mortgage (formerly Quicken Loans)
Get started securely through Rocket Mortgage (formerly Quicken Loans)’s website
More Details
Avg. Days to Close Loan
30
Minimum Credit Score
580
1 Minute Review

Rocket Mortgage (formerly known as Quicken Loans) is one of the best mortgage lenders on the market, making it easy to apply for a home loan entirely online. Its streamlined preapproval process and quick access to customer service set it apart from other online lenders. Rocket Mortgage offers a large variety of mortgages and is backed by the largest mortgage lender, Quicken Loans. Whether you need help or know exactly what you’re looking for, Rocket Mortgage matches you with the right mortgage type and helps you quickly complete your online application.

Best For
  • Homebuyers who are looking to complete the mortgage application process on their own
  • Homebuyers who have found their dream home and are looking to move through the approval process quickly
  • Homebuyers with good credit scores looking to review their mortgage options
  • Current homeowners looking to refinance within the next few months
Pros
  • Rocket Mortgage allows you to move at your own pace, guiding you through each step of the process. After you answer all the application questions, Rocket Mortgage lets you know if you’re approved and show your personalized mortgage recommendations
  • You can submit checking and savings account information, tax returns and other financial documents online — a feature that sets Rocket Mortgage apart from online competitors
  • RateShield allows you to lock in your Rocket Mortgage approved rate for up to 90 days
  • The home loan application process can be completed in minutes, allowing you to find out if you qualify for a mortgage right away
  • The online software allows you to navigate through the entire home buying process, from approval to home closing. Once you’re approved and you make an offer on your home, Rocket Mortgage offers online tools that will help you move through the rest of the closing process
Cons
  • While Rocket Mortgage has customer specialists ready to answer your questions and provide guidance, if you prefer sitting across from a person when filling out financial forms, this lender might not be right for you
  • You can’t easily view all of Rocket Mortgage’s home loan options prior to applying. It offers conventional, FHA, USDA and VA loans, but you’ll need to apply to find out more about the mortgage types within these offerings and which ones you’re eligible for

Pros

  • Extensive customer service availability
  • Government-backed and conventional loan options for home buyers
  • Works with investors and people buying second homes
  • Closing credits available

Cons

  • No in-person service options
  • No home equity loans or lines of credit

Rocket Mortgage® (formerly known as Quicken Loans) offers a user-friendly online platform that makes applying for a refinance a breeze. You can also access your application on-the-go using the Rocket Mortgage® app. Homebuyers can earn a credit for 1.25% of closing costs with a limit of $10,000.

Rocket has award-winning, easy-to-access customer service. You can talk to loan experts by phone or chat whenever you have questions. For new loans, phone lines are open until midnight Eastern during the week and into the evening on weekends. It offers cash-out refinances, rate and term refinances and refinances for investment properties.

It offers a robust learning center so you can learn more about the refinancing process and the platform accesses your financial preferences and goals to match you with the best loan for your needs.

Minimum credit score: 580

Minimum down payment: 0%

Loan types offered: Conventional, FHA, VA, jumbo, refinance

States served: All 50 states and D.C.

Best for Veterans: Veterans United

Veterans United Mortgage
Get started
More Details
Avg. Days to Close Loan
30
Minimum Credit Score
620
1 Minute Review

Veterans United focuses on VA Loans, which are government-backed loans guaranteed by the U.S. Department of Veterans Affairs to help veterans and active-duty servicemembers buy homes. Veterans United is licensed in all 50 states and the District of Columbia and is the top VA lender in the country. If you’re currently serving or if you’re a veteran, Veterans United is worth considering due to its outstanding customer service and range of mortgage options.

Veterans United’s advisors come from each military branch to ensure it’s taking care of its clients. You can visit its website to learn more about VA loans and the homebuyer process in general and its Lighthouse Program can help you get ready to buy if you’re not quite there yet. It offers strong support if you’ve served our country.

“Nobody handles VA loans better than Veterans United,” says real estate investor Sergio Aguinaga, owner and founder of Michigan Houses for Cash. “Their process is smooth, the support is great and they truly get military buyers. But, of course, the con is that they are only for veterans.”

Best For
  • Current service members
  • Veterans
  • First-time home buyers
Pros
  • 24/7 customer service
  • Offers VA purchase and refinance loans
  • Offers credit consulting through its Lighthouse Program
  • Staff from every military branch
Cons
  • Only has branches in only 18 states
  • Must be a veteran to qualify

Pros

  • 24/7 customer service
  • Offers VA purchase and refinance loans
  • Offers credit consulting through its Lighthouse Program
  • Competitive refinance rates
  • Largest VA home lender

Cons

  • Branches in only 17 states
  • No renovation loans
  • No live chat

Veterans United specializes in VA loans and refinancing. Whether your branch of service is Army, Navy, Marine Corps, Coast Guard or any other area, Veterans United has you covered. It offers around-the-clock customer care, so you can reach them overseas.

Veterans United’s refinance offerings include interest rate reduction refinance loans (IRRRLs), which help you take advantage of lower interest rates and cash-out refinances. To use a VA refinance loan, you must be a qualified service member, veteran or surviving spouse.

Best for a Variety of Options: loanDepot

loanDepot Mortgage
Compare Lenders
More Details
Avg. Days to Close Loan
15
Minimum Credit Score
620
1 Minute Review

Loandepot is a clearinghouse for anyone to get a competitive loan quote and preapproval. There are several partners on the site who can provide  loans to consumers with a range of rates and terms available based on your credit rating.

Best For
  • Comparing lenders
  • Lots of information on the partners on the site
  • Quality interface
Pros
  • Apply quickly
  • Get competitive rates
  • Choose the loan that works best for your situation
Cons
  • Not all partners can give you the best rates

Pros

  • Four term length options for FHA
  • Strict “no steering” policy
  • Good customer support
  • Transparent fee structure
  • Direct mortgage lender

Cons

  • Rates not published on the website
  • Some states may have prepayment penalties
  • Rates and fees can be high in some cases

loanDepot is a non-bank direct mortgage lender. This structure allows it to originate and fund loans without using a middleman. By eliminating this extra step, loanDepot offers lower rates and faster approvals, making it one of the best mortgage refinance lenders.

When refinancing through loanDepot, you can choose from fixed- and adjustable-rate mortgages and FHA and VA loans. With an FHA loan, you can opt for terms of 10, 15, 20 or 30-year fixed rates. It has a “no steering” policy, meaning it won’t pressure you to choose a loan that isn’t the right fit. However, you must apply to find out what rates are available.

Best for Traditional Banks: Bank of America

Bank of America Mortgage
Compare Lenders
More Details
Avg. Days to Close Loan
45
Minimum Credit Score
620
1 Minute Review

Bank of America is one of the largest financial institutions in the U.S., offering a wide variety of mortgage options for first-time homebuyers, conventional borrowers, and those looking to tap into home equity. The bank stands out for its strong digital tools paired with in-person service through its nationwide branches. Bank of America’s specialized programs, like the Affordable Loan Solution and Preferred Rewards, are particularly appealing for those seeking low down payment options or discounts. While it doesn’t offer USDA loans, and its preferred rewards program is limited to those with higher balances, it’s still a solid choice for most homebuyers.

Best For
  • First-time homebuyers seeking low down payment options
  • Homebuyers who prefer the option of in-person support at a branch
  • Existing Bank of America customers who qualify for preferred rewards
  • Borrowers interested in a range of refinance options and home equity loans
Pros
  • Wide range of mortgage products, including low down payment options
  • Strong digital tools, including the Home Loan Navigator for tracking your loan
  • Access to in-person customer service at branches across the country
  • Discounts available through the Preferred Rewards program
Cons
  • No USDA loans offered
  • Preferred Rewards discounts require high account balances

Pros

  • Wide range of mortgage products
  • Strong digital tools, including a loan tracker
  • Access to in-person customer service
  • Discounts available through the Preferred Rewards program

Cons

  • No USDA loans offered
  • Preferred Rewards discounts require high account balances

Bank of America offers the best of both worlds – a digital mortgage application and in-person assistance from loan officers. As a large national bank, it gives you access to a strong set of digital tools such as the Home Loan Navigator for tracking your loan. You can view its rates online, which makes comparison shopping easier.

In addition, its Preferred Rewards program offers a discount to Bank of America customers with $20,000 or more in their checking accounts. With higher balances, you can qualify for bigger discounts. You can save $200 or more on your origination fees if you qualify. Bank of America offers FHA, VA, fixed-rate, adjustable-rate and cash-out refinances. 

What is a Cash-Out Refinance?

A cash-out refinance refers to applying for a new mortgage loan for more than you owe on your existing mortgage. The new mortgage pays off the existing one and you pocket the difference in cash. You then begin making payments on the new mortgage instead.

For instance, suppose you owe $150,000 on your mortgage and decide to apply for a cash-out refinance mortgage for $200,000. The new mortgage pays off the existing one and you pocket the remaining $50,000. Often, people use the money for home renovations, debt consolidation or other significant purchases.

However, a cash-out refinance loan typically works much the same as your original mortgage. This means there are usually closing costs such as origination and appraisal fees, underwriting, title services etc. If you don’t have cash to cover these costs, the amount you receive from the refinancing may be reduced.

How to Choose a Cash-Out Refinance Lender

As mentioned, a cash-out refinance loan works much the same as other mortgages, so choosing one is usually similar. A cash-out refinance can have numerous benefits. Still, choosing the right cash-out refinance lender can notably affect the overall experience.

Sarah DeFlorio, vice president of mortgage banking at William Raveis Mortgage, recommends working with a broker who can shop with many investors and lenders. “Many banks apply a ‘hit’ or increase to the rate for this type of product and can also limit loan-to-value or cash-out amounts, so it is important to shop the market broadly before deciding to apply,” DeFlorio says.

Here are some steps to take when choosing:

  1. Compare interest rates and terms: Regardless of the mortgage type, rates and terms are always critical. One or two percentage points can make an enormous difference. Get quotes from multiple lenders and pay attention to APR and the repayment term. Paying longer often means more total interest even with a lower rate.
  1. Check closing costs and fees: Closing costs can be a considerable upfront cost when getting a cash-out refinance. Research costs and fees for each lender including origination, appraisal, title and other closing costs.
  1. Read customer service reviews: See what customers have to say about the company and its customer support on third-party review sites. Having a loan officer who lays out all the information you need to know while giving you updates about the loan’s progress is always preferable.
  1. See if you qualify: Each lender has its own qualification criteria considering factors like credit scores, debt-to-income (DTI) and loan-to-value (LTV). These aren’t always published online, but many lenders let you prequalify.
  1. Confirm cash-out refinancing limits: Lenders typically limit the equity you can tap into. Double-check that the loan amount you need will be available.

There are many factors to consider when choosing a mortgage broker. Matt Schwartz, founder of VA Loan Network, says low rates aren’t everything. “Those rates are often the lowest possible rate they could offer a borrower with perfect credit and an ideal situation,” Schwartz says.

His recommendation? Try shopping around. “Instead it is best to shop around with a handful of different lenders, both big and small, complete a loan application and get a loan estimate from each one showing a breakdown of the rate and fees,” Schwartz says this ensures you are getting the best deal.

Why You Should Trust Us

I started covering personal finance in 2018 and have contributed to several well-known personal finance publications. Finding the right cash-out refinance lender can be challenging, as lenders typically have rigorous criteria for this type of financing. I dug into the weeds researching leading cash-out refinance providers, zeroing in on those that offer competitive terms. I also consulted industry experts who helped me pinpoint the best available options.

Sarah DeFlorio, whom I interviewed for this piece, is a licensed mortgage broker who has teamed up with her mother to close over $870 in volume since joining William Raveis Mortgage in 2020. She is licensed in New York, New Jersey, Connecticut and Florida. Matt Schwartz, my other source, is cofounder of VA Loan Network, a company that guides veterans through the VA loan process.

Founded in 2010, Benzinga has established itself as a trusted authority on investing, insurance and mortgages including mortgage refinancing. Over 25 million readers rely on Benzinga for its consistent delivery of insightful, high-quality content.

Methodology 

I evaluated 23 mortgage lenders using Benzinga’s comprehensive methodology to identify the best cash-out refinance lenders. Key factors that informed my rankings included interest rates and fees, product options and customer service ratings. Additionally, lenders that accommodate borrowers with lower credit scores received extra consideration, as this can open up options for a larger number of borrowers.

Independent reviews and ratings from real estate platforms like TrustPilot, BBB and Zillow were also important considerations. While no lender is perfect, those consistently earning strong reviews on multiple third-party sites stood out.

Recognizing the complexities of mortgage applications, I prioritized lenders offering straightforward application processes. Lenders providing a convenient online application scored higher, as ease of application is crucial when seeking a cash-out refinance for investment properties.

See Benzinga’s full methodology for selecting the best mortgage lenders for a detailed explanation of our selection criteria.

Frequently Asked Questions

Q

How hard is it to get a VA cash-out refinance?

1
How hard is it to get a VA cash-out refinance?
asked
A
1

Getting a VA cash-out refinance loan can be easier than qualifying for other types because VA loans tend to have more lenient requirements. However, you generally must meet additional qualification requirements such as having military experience or being the spouse of someone who does.

answered
Q

What is the current interest rate for a cash-out refinance?

1
What is the current interest rate for a cash-out refinance?
asked
A
1

Each lender sets rates for cash-out refinancing independently; there isn’t a single average that applies to all lenders. In addition, your rate will differ from others’ based on factors like your credit score, income and DTI. The best way to determine your rate is to request a quote from a lender.

answered
Q

How much are closing costs on a cash-out refinance?

1
How much are closing costs on a cash-out refinance?
asked
A
1

Closing costs on a cash-out refinance are typically similar to those on other mortgage loans. You can typically expect costs of about 2% to 6% of the mortgage loan, though the amount can sometimes be less.

answered

Sources

  1. Programs Archive | Angel Oak Mortgage Solutions
  2. What credit score do you need to buy a house? | Rocket Mortgage
  3. How Much Do You Need For A Down Payment To Buy A House? | Rocket Mortgage
  4. Find a Branch Near You | Veterans United Home Loans
  5. Mortgage Refinancing: Home Refinancing, FAQs & More | loanDepot
  6. FHA Loan Rates | loanDepot

The post Best Cash-Out Refinance Lenders by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

]]> https://www.benzinga.com/money/best-cash-out-refinance-lenders/feed 0 https://cdnwp-s3.benzinga.com/wp-content/uploads/2025/04/08164837/IMG_6870.jpeg Best HELOC for Investment Properties https://www.benzinga.com/money/best-heloc-for-investment-property Thu, 27 Mar 2025 17:51:42 +0000 https://www.benzinga.com/?p=356363 The post Best HELOC for Investment Properties by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

These lenders can help you supercharge your real estate business. Accessing the cash you need can be challenging as a real estate investor, and you may feel like insufficient capital is a significant factor holding your business back. You could take out a second mortgage on your home, but it might seem too risky. However, … Continued

The post Best HELOC for Investment Properties by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

]]> The post Best HELOC for Investment Properties by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

best heloc for investment property
Courtesy of Shutterstock

These lenders can help you supercharge your real estate business.

Accessing the cash you need can be challenging as a real estate investor, and you may feel like insufficient capital is a significant factor holding your business back. You could take out a second mortgage on your home, but it might seem too risky. However, if you already own at least one investment property, you can also use the equity in that property to access cash.

One way to accomplish this is with a home equity line of credit (HELOC). The best HELOC for investment property makes it relatively easy to get cash, whether for a down payment on a new property or to make repairs. Benzinga has selected the best HELOC options to consider.

Quick Winners List

Get a Purchase or Refinance Quote

Get a Purchase or Refinance Quote

Get the most out of your mortgage company. Get started with your purchase or refinance in seconds!

Find a Lender
Table of contents [Show]

Best HELOC for Fast Funding: Rate.com

Rate.com
Get started securely through Rate.com’s website

Pros

  • Funding within five business days
  • Competitive rates
  • Online application
  • Fixed interest rate
  • Possible to close with no upfront costs

Cons

  • Smaller amounts than traditional HELOCs
  • Relatively short draw period
  • Lowest APR requires an origination fee


Rate.com is a Chicago-based financial services company. Its mission is to provide more value to customers than any other bank or mortgage lender. Rate.com has worked to achieve that goal by providing low rates and excellent customer service nationwide. The company offers HELOCs for primary and secondary residences and investment properties.

One of the main benefits of applying with Rate.com is speed: it says the application takes 5-10 minutes. Better yet, funding is typically complete in 5-10 days, compared to traditional lenders, which can take up to 60 days. However, loan amounts top out at $400,000, which won’t work for everyone. Traditional lenders may offer larger loan amounts.

Minimum credit score: 500

Maximum LTV: 85%

Local or national: National

Best HELOC for Self-Employed: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions
get started securely through Angel Oak Mortgage Solutions’s website
More Details
Disclosure: Angel Oak Licensing and Disclosure Information
Avg. Days to Close Loan
30
Minimum Credit Score
600
1 Minute Review

Angel Oak Mortgage Solutions specializes in non-traditional mortgage products, making it a go-to for borrowers with unique financial situations, like self-employed individuals or those without traditional income verification. Angel Oak stands out for its flexible qualification options, including bank statement loans, asset-based loans, and programs for foreign nationals. However, these specialized loans often come with higher rates compared to conventional loans, and the company’s service area is limited, meaning not everyone can take advantage of their offerings.

Best For
  • Self-employed borrowers or small business owners
  • Investors seeking cash flow-based financing
  • Borrowers with non-traditional income sources
  • Individuals seeking flexible qualification criteria
Pros
  • Offers a wide range of non-QM (non-qualified mortgage) loan products
  • Flexible income verification options, including bank statements and assets
  • Loans available for foreign nationals and ITIN holders
  • Dedicated loan officers for personalized service
Cons
  • Limited availability in some states
  • Higher interest rates compared to conventional loans

Pros

  • Option to qualify with bank statements
  • Up to 90% LTV
  • Up to $750,000 loan with business bank statements
  • Interest-only payments during the draw period

Cons

  • Only allowed on investment properties in Tennessee and Maryland
  • Minimum 660 credit score

Angel Oak Mortgage Solutions is a non-QM mortgage provider, making it our top pick for self-employed individuals. While traditional lenders typically require income from a job, Angel Oak allows other qualification methods, such as bank statements and proof of assets. One of its programs allows you to qualify for a HELOC with bank statements, and investment properties are eligible. You can make interest-only payments during the draw period, making this an affordable option.

However, availability is limited when getting a HELOC for investment properties with Angel Oak, as this is only permitted in Tennessee and Maryland. In addition, you must have at least a 660 credit score for this program. Despite these limitations, it can be a viable option for those who qualify.

Minimum credit score: 660

Maximum LTV: 90% 

Local or national: National

Best HELOC for a Variety of Options: loanDepot

loanDepot Mortgage
Compare Lenders
More Details
Avg. Days to Close Loan
15
Minimum Credit Score
620
1 Minute Review

Loandepot is a clearinghouse for anyone to get a competitive loan quote and preapproval. There are several partners on the site who can provide  loans to consumers with a range of rates and terms available based on your credit rating.

Best For
  • Comparing lenders
  • Lots of information on the partners on the site
  • Quality interface
Pros
  • Apply quickly
  • Get competitive rates
  • Choose the loan that works best for your situation
Cons
  • Not all partners can give you the best rates

Pros

  • Use the money for various purposes
  • Application is fully online
  • Extended support hours
  • Offers HELOCs of $45,000 or more
  • Get a rate quote with no credit score impacts

Cons

  • Variable interest rate
  • May require closing costs
  • Short draw period

loanDepot is a mortgage lender founded in 2010 by Anthony Hsieh. Despite its relatively brief history, it has become the fifth-largest retail mortgage lender and second-largest nonbank retail mortgage originator. It offers several purchase and refinance options, including fixed- and adjustable-rate mortgages, plus VA and FHA loans. It also offers home equity loans, personal loans, and HELOCs.

loanDepot allows you to use a HELOC for many purposes, such as a down payment on an investment property or paying off your mortgage. You can also use it to pay for remodeling, a major purchase, or to consolidate debt. Support is available until 9 p.m. Eastern to help with any questions. However, it uses a variable interest rate, and the draw period only lasts three years. While you can make interest-only payments during the draw period, the repayment period lasts 27 years.

Best HELOC for Online Loans: Figure

Figure
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More Details
Disclosure: * Our APRs can be as low as 3.00% for the most qualified applicants and will be higher for other applicants, depending on credit profile and the state where the property is located. For example, for a borrower with a CLTV of 45% and a credit score of 800 who is eligible for and chooses to pay a 4.99% origination fee in exchange for a reduced APR, a five-year Figure Home Equity Line with an initial draw amount of $50,000 would have a fixed annual percentage rate (APR) of 3.00%. The total loan amount would be $52,495. Alternatively, a borrower with the same credit profile who pays a 3% origination fee would have an APR of 4.00% and a total loan amount of $51,500. Your actual rate will depend on many factors such as your credit, combined loan to value ratio, loan term, occupancy status, and whether you are eligible for and choose to pay an origination fee in exchange for a lower rate. Payment of origination fees in exchange for a reduced APR is not available in all states. In addition to paying the origination fee in exchange for a reduced rate, the advertised rates include a combined discount of 0.50% for opting into a credit union membership (0.25%) and enrolling in autopay (0.25%). APRs for home equity lines of credit do not include costs other than interest. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.
APR
from 3.00% to 3.25% APR*
N/A
APR

from 3.00% to 3.25% APR*

Origination Fee

3 points and 4.99% points

Min Credit Score

<small>620; 720 for OK; 680 for investment properties</small>

1 Minute Review

If you already own a home, Figure may help you access your equity or improve your loan terms. You can get a speedy home equity line of credit (HELOC) or mortgage refinancing if you live in any of the 30 states it serves, and the application is all online (except in a few select states).

Best For
  • Homeowners with equity
  • Borrowers that are in search of home equity or refinancing options
  • Those with a credit score of 620 or higher
Pros
  • Funding in as few as five days on HELOCs
  • Fixed interest rates
  • All-online application
  • Competitive rates
Cons
  • Some complaints of misleading terms
  • Not available in all states

Pros

  • Funding in as little as five days
  • Specializes in HELOCs
  • Fixed rates
  • Fully online application
  • No pre-payment penalties

Cons

  • Not available in all states
  • Rates may be higher for additional draws
  • Origination fee up to 4.99%

Figure is an online lender that specializes in HELOCs. It uses AI to help pair partner lenders with customers more quickly and effectively. This makes it possible to receive funding in as little as five days, with loans between $15,000 and $400,000. Rates are fixed, and the application is entirely online. Figure’s fixed-rate HELOC has rates ranging from 6.60% to 15.00%.

You can also redraw up to 100% of the original loan while repaying it. However, rates may be higher for additional draws on the line of credit. In addition, the origination fee may be up to 4.99% of the original draw. Figure is not yet available in all states, though the wording on its website suggests it is working to expand.

Minimum credit score: 680

Maximum LTV: Up to 100% (for additional draws)

Local or national: National

Best Marketplace: eMortgage

eMortgage
Compare Lenders

Pros

  • Connects you to multiple lenders
  • Quickly compare rates
  • Specify details like your loan amount when comparing lenders
  • Minimum 500 credit score
  • Rates updated daily

Cons

  • No option to filter for investment properties
  • Relies on a middleman
  • Potentially limited options for fair or poor credit

eMortgage is a mortgage comparison service owned by HSH.com. On the eMortgage website, you can quickly compare rates for refinancing, home purchase and home equity loans, and reverse mortgages. Regardless of the product you need, eMortgage presents you with a list of multiple lenders and their rates, updated daily. For HELOCs, it lets you specify your loan amount, property value, and remaining loan balance.

Upon checking the lenders it presented, I noticed that some, such as Figure, offer HELOCs for investment properties. However, your lender options may vary depending on your state and financial situation. You must check with each lender to see if HELOCs are available for investment properties.

Minimum credit score: Varies by lender

Maximum LTV: Varies by lender

Local or national: National

Best HELOC for Bad Credit: Point

Point.com
Get started securely through Point.com’s website
More Details
Avg. Days to Close Loan
6 to 8 weeks
Minimum Credit Score
N/A
1 Minute Review

Point Home Equity is a home equity investment lender. The company was founded in 2015 by Eddie Lim and Eoin Matthews. They wanted to create a company that makes it easier for people to tap into their wealth. Since its humble beginnings, Point Home Equity has served homeowners in 25 states plus Washington, DC. It offers home equity for people with less-than-perfect credit and has more generous guidelines than most home equity loan and HELOC requirements. Borrowers also don’t have to make monthly payments throughout the term.

Best For
  • Homeowners with significant equity who want to avoid debt
  • Those looking to access funds without monthly payments
  • People who may not qualify for traditional loans
Pros
  • No monthly payments on loan
  • Borrowers can get approved with bad credit
  • Offers terms up to 30 years
  • Generous debt-to-income ratio requirements
  • Ability to exit at any time
Cons
  • Entire payment is due at the end of the term
  • The more the property appreciates, the more expensive it will be to buy out Point Home Equity’s stake
  • You cannot get a HELOC, home equity loan or refinance while you have a home equity investment

Pros

  • Minimum 500 credit score
  • No monthly loan payments
  • No income requirements
  • Close as quickly as three weeks
  • Application is entirely online

Cons

  • The full payment is due at the end of the term
  • The amount you pay depends on your home appreciation
  • Not available in all states

Point is a company offering a home equity investment (HEI) product. While different from a HELOC, an HEI can be a good choice for those with imperfect credit or irregular income. The company was founded in 2015 after its founders had difficulty qualifying for traditional financing.

With an HEI, you receive a lump-sum cash payment in exchange for a share of your home’s future appreciation. This approach differs from a HELOC, which provides a line of credit similar to a credit card. With an HEI, there are no monthly payments, but you can pay off the HEI at any point during the 30-year term. Otherwise, the entire payment is due at the end.

This unique approach only requires a 500 credit score, making it a viable option for those with imperfect credit. However, it can be costly if your home appreciates significantly. It isn’t yet available in all states, though you can join the waitlist to find out when it is available in yours.

Minimum credit score: 500

Maximum LTV: N/A

Local or national: National

What is a HELOC?

A HELOC is a line of credit that uses your home’s equity as collateral. You can typically use a HELOC for various purposes, such as paying for renovations, covering major expenses, or putting money down on an investment property loan. Typically, a HELOC lets you borrow up to around 80% of your home equity, though the exact percentage might be higher or lower.

How Does a HELOC Work?

HELOCs are revolving lines of credit, similar to credit cards. They often require you to draw a certain amount of your home equity initially. Then, you can borrow as much as you need during the draw period and pay it off, freeing up credit to borrow again. You typically must make payments during the draw period, but some lenders allow interest-only payments. The draw period typically lasts 2-10 years. 

After the draw period ends, the repayment period begins. You must repay the HELOC’s principal during this period, meaning your monthly payment will likely increase. In addition, you won’t be able to make additional draws on the HELOC. Instead, you’ll focus on repaying the loan over 10 to 20 years. Sometimes, the repayment period might be longer.

Your HELOC should be fully paid off by the end of the repayment period. You can often pay principal and interest during the draw period, though some lenders might charge prepayment penalties. Check with your lender to see if prepaying without penalties is possible.

How to Get a HELOC for an Investment Property

Getting a HELOC for an investment property is similar to getting one for your primary residence. The most significant difference is that getting a HELOC on an investment property means your investment secures the loan, not your primary or secondary residence. This may cause lenders to view investment property HELOCs as riskier, potentially making them more challenging.

As an investor, you may need good or excellent credit to qualify for an investment property HELOC. The lender may have other requirements, such as three months of cash reserves for the property and proof of income from your tenants. Lenders might also prefer a lower debt-to-income (DTI) ratio when you want an investment property HELOC.

Follow these steps to get a HELOC for an investment property:

  1. Determine your loan amount: First, determine the amount you want to borrow based on your home equity. Remember, lenders typically let you borrow up to 80% of your home equity, but the limit may vary by lender.
  1. Research lenders: Next, see which lenders offer HELOCs where you live. Availability is state-specific, so you may not be eligible with all the lenders on this list. A site like eMortgage can help you quickly find HELOC lenders in your state.
  1. Check whether investment properties qualify: Not all lenders offer HELOCs for investment properties. Double-check that investment properties are eligible before adding a lender to your short list.
  1. Compare rates and fees: Rates and fees may vary significantly, but you often must pay some fees on a HELOC, such as origination fees. Currently, rates range from about 6.5% to around 15%.
  1. Apply: Once you have found a lender that meets your needs, it’s time to apply. Many lenders have entirely online applications. However, your investment property may have to undergo standard checks, such as an appraisal.

Rates are important when comparing HELOC options, says Paul Gabrail, founder & host of Everything Money. “In the past, when HELOC rates were low (sub 5%), it made a great deal of sense to take a HELOC in order to buy an investment property.”

However, Gabrail says rates are now 8-12% in some areas, which can make investing tougher. “Even though it can make sense if you are making 15% on an investment property, those rates are still quite steep,” Gabrail says.

Why You Should Trust Us

I began writing about personal finance in 2018 and have written for many of the most popular publications. Finding a HELOC for an investment property can be challenging, as lenders often place high levels of scrutiny on these products. I have spent hours researching the best HELOC lenders, focusing on those offering their products for investment properties. I’ve also polled experts who helped me identify the best choices available.

Paul Gabrail, whom I interviewed for this piece, is an experienced real estate investor. He began investing in real estate in 2004 and continued through the 2007-2008 financial crisis. His YouTube channel, Everything Money, has over 265,000 subscribers and focuses on evaluating stocks and real estate as long-term investments. 

Benzinga was founded in 2010 and is a trusted source for news on investing, insurance, mortgages and other topics. Our audience of over 25 million readers trusts Benzinga to provide consistently informative, high-quality content.

Methodology 

Using Benzinga’s multi-point methodology, I compared 23 mortgage lenders to find the best HELOCs for investment property. The factors that weighed heavily in my selections were rates and fees, various choices, and customer service ratings. In addition, lenders that approve borrowers with lower credit scores received a boost. Lenders sometimes have high requirements for investment property HELOCs, so more lenient requirements work in their favor.

I also considered scores and reviews on independent real estate platforms, including TrustPilot, BBB and Zillow. Although none are perfect, the lenders that fared well often score high on one or more third-party review sites.

Applying for a mortgage can be challenging, so I looked for lenders with a simple application. Those allowing borrowers to apply online received high marks. The application process shouldn’t be a barrier to applying for a HELOC for investment property.

See Benzinga’s full methodology for a complete overview of how we determine the best mortgage lenders.

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FAQ

Q

Is a HELOC a good idea for an investment property?

1
Is a HELOC a good idea for an investment property?
asked
A
1

A HELOC can be a good idea for an investment property, as it may allow you to expand your business faster than you otherwise would. However, investment properties are risky on their own. “If you have cash flow issues, short term it could be quite the squeeze; not to mention you are also taking more debt on your personal residence to do so,” Gabrail says. If these issues make it challenging to repay the HELOC, you risk losing your investment property. This is why it is necessary to have sufficient cash reserves and reliable tenants.

 

answered
Q

What is the monthly payment on a $50,000 HELOC?

1
What is the monthly payment on a $50,000 HELOC?
asked
A
1

A $50,000 HELOC with a 6.60% interest rate, 5-year draw period and 10-year repayment period would initially have a monthly payment of $275. During the repayment period, the full monthly payment would be $570.29. This is one example, but your payments will likely differ.

 

answered
Q

Who offers HELOCs for investment properties?

1
Who offers HELOCs for investment properties?
asked
A
1

You can potentially get a HELOC for investment properties in many places, including large traditional banks, local and regional credit unions, online nonbank lenders, and mortgage brokers.

answered

Sources

  1. Current HELOC Rates – Home Equity Line of Credit | Rate.com
  2. How Much Can I Borrow with a HELOC? | Rate.com
  3. loanDepot Adds Home Equity Loan to its equityFREEDOM Suite of Home Equity Products | loanDepot
  4. About Us | loanDepot
  5. Home Equity Line of Credit (HELOC) | Figure
  6. FAQs: Loan Officers | Figure
  7. Home Equity Line FAQs | Figure
  8. In what states is Point available now? | Point

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]]> https://cdnwp-s3.benzinga.com/wp-content/uploads/2025/03/27115414/IMG_6610.jpeg Best Mortgage Lenders for a 620 Credit Score: Experts Weigh In https://www.benzinga.com/money/best-mortgage-lenders-for-a-620-credit-score Fri, 14 Mar 2025 13:41:59 +0000 https://www.benzinga.com/?p=354737 The post Best Mortgage Lenders for a 620 Credit Score: Experts Weigh In by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

These lenders offer mortgages that make qualifying possible, starting with a 500 credit score. The best mortgage lenders often require a minimum credit score of 620 to qualify for a loan. However, lenders also consider factors like your income and existing debt in their approval decisions. This can make qualifying tricky if you barely meet … Continued

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These lenders offer mortgages that make qualifying possible, starting with a 500 credit score.

The best mortgage lenders often require a minimum credit score of 620 to qualify for a loan. However, lenders also consider factors like your income and existing debt in their approval decisions. This can make qualifying tricky if you barely meet the 620 mark. 

However, the best mortgage lenders for a 620 credit score often have lower requirements and consider factors beyond your credit score. We’ve broken down the best lenders in this category to help simplify your search.

Quick Winners List

Table of contents [Show]

Best for Down Payment Assistance: CrossCountry Mortgage

CrossCountry Mortgage
get started securely through CrossCountry Mortgage’s website
More Details
Disclosure: Available in: CA, CO, CT, DC, FL, GA, IL, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VA, WA 
Avg. Days to Close Loan
30 – 40
Minimum Credit Score
620
1 Minute Review

CrossCountry Mortgage was started in 2003 by Ronald Leonhardt Jr., founder and CEO. Its headquarters is located in Cleveland, Ohio, but it’s licensed in all 50 states, D.C. and Puerto Rico, and it has over 700 branch locations across the country. Hopeful homeowners turn to CrossCountry Mortgage for its diverse portfolio of loan options, including conventional loans, Federal Housing Administration (FHA) loans, United States Department of Veterans Affairs (VA) loans and United States Department of Agriculture (USDA) loans.

 

Best For
  • Self-employed professionals
  • Retirees
  • Investors
  • Condo buyers
Pros
  • Provides loans across all 50 states, D.C. and Puerto Rico
  • 120 mortgage purchase, refinance and home equity solutions
  • Can work with credit scores as low as 500
  • Tax returns aren’t required
  • Ideal for first-time homebuyers
Cons
  • Doesn’t post rates online
  • Underwriting process may take longer

Pros

  • Offers several down payment assistance programs
  • Buy or refinance in as little as 21 days
  • 120 options for buying, refinancing, and home equity
  • Numerous branches

Cons

  • No online pre-approvals
  • Doesn’t advertise rates
  • Rates aren’t the lowest available

CrossCountry Mortgage is a mortgage lender based in Cleveland, Ohio. Founded in 2003, it has expanded to hundreds of branches nationwide and services mortgages in all 50 states, including D.C. and Puerto Rico. The company has grown to thousands of employees and has been recognized on the Inc. 5000 list.

CrossCountry offers several down payment assistance programs, making it a good choice for first-time homebuyers. Most of these programs are grants, meaning they don’t require repayment. Depending on the program and requirements, you may qualify for up to $6,000 or up to 5% of the purchase price. However, several have income and geographic restrictions, so you must work with a loan officer to determine your options.

Minimum credit score: 500

Minimum down payment: Not disclosed

Loan types offered: Conventional, FHA, VA, USDA, jumbo

States served: All 50 states plus D.C. and Puerto Rico

Best Mortgage Marketplace: eMortgage

eMortgage
get started
More Details
Avg. Days to Close Loan
Depends on Lender
Minimum Credit Score
650
1 Minute Review

eMortgage bills itself as a fast and easy mortgage lender that offers you both purchase and refinancing options. Moreover, you get more out of eMortgage because the lender makes it easy for you to understand the rates you might get, refinance your mortgage with flexible rates, jumbo loans, reverse mortgages, non-QM loans, refinancing and more.

Best For
Pros
Cons

Pros

  • Connect with up to five competing mortgage lenders
  • Quick comparison of rates
  • Minimum credit score of 500
  • Mortgage loans for self-employed people
  • Website includes a rate comparison page

Cons

  • Using a marketplace could create added complexity
  • Some borrowers may prefer a more traditional process

Minimum credit score: 500

Minimum down payment: 0% (for VA loans)

Loan types offered: Conventional, FHA, VA, USDA, jumbo

States served: All 50 states plus D.C.

eMortgage is an independent mortgage advertising and comparison service. The site is owned and operated by HSH.com, a mortgage comparison service based in Las Vegas, Nevada. eMortgage lets borrowers quickly compare multiple lenders, showing up to five options based on their information. Because it pairs people with multiple potential lenders, it can help borrowers find almost any loan type.

In addition to conventional loans, it offers FHA, VA and USDA loans and options for self-employed individuals. Some of its top lending partners underwrite loans nationwide, and getting a loan with a credit score as low as 500 is possible. The website also features a page that lets you quickly compare rates from various top lenders and a mortgage calculator.

Best for Flexible Terms: New American Funding

New American Funding
get started securely through New American Funding’s website
More Details
Avg. Days to Close Loan
31-40
Minimum Credit Score
620
1 Minute Review

New American Funding is a lender that offers several types of mortgages, including conventional, FHA and VA loans. It has relatively low interest rates but a limited number of term options.

Best For
  • Conventional loans: This is the most popular type of mortgage. These loans usually have the lowest fees but often have stricter requirements.
  • FHA loans: These loans are designed for those with fair credit or who can’t afford as much of a down payment.
  • Jumbo loan: These loans have larger maximum loan amounts and are geared toward high-income borrowers.
  • VA loans: Veterans and current service members are eligible for VA loans with no down payment requirement.
  • Refinancing: If you have a mortgage with a high interest rate, you can refinance to get a better deal.
  • Adjustable rates: An adjustable-rate mortgage is desirable for those who believe interest rates will come down soon.
  • Fixed rates: Fixed-rate mortgages are popular for people who want stability in their monthly payment.
Pros
  • Offers mortgage refinance as well as new loan origination. Both new homebuyers and existing homeowners can shop for a mortgage with New American Funding.
  • Has low interest rates. Borrowers looking for a good rate can find one with New American Funding.
  • Several types of mortgages available. A few different mortgage options are available, so you’re not stuck with one type.
  • Website offers homebuying resources. New American Funding’s website includes articles and tools that help buyers understand more about the homebuying process.
Cons
  • Limited local branches. The lack of a local branch can be frustrating if you prefer an in-person experience. Not available in every state.
  • New American Funding does not service New York and Hawaii residents.

Pros:

  • Choose from loan terms of eight to 30 years
  • Up to $7,500 in down payment assistance
  • Use loans to cover closing costs
  • Can combine down payment assistance with other offers
  • Program available for all-cash offers

Cons:

  • Online quote tool requires personal information
  • Fees can be high

New American Funding (NAF) was founded in 2003 by Rick and Patty Arvielo. Since then, the company has grown rapidly to hundreds of branches nationwide. Its portfolio is valued at over $71 billion and has hundreds of thousands of loans. It operates in all 50 states and works with Fannie Mae, Freddie Mac, and Ginnie Mae.

NAF offers several loan types, including the I CAN mortgage program. With I CAN, you choose from repayment plans ranging from eight to 30 years. Loans of up to $806,500 are available through the program, with down payments starting at 5% for primary residences. NAF also offers up to $7,500 in down payment assistance when you purchase a home. If you’ve experienced financial difficulties, NAF may work with Chapter 7 bankruptcies.

Minimum credit score: 500

Minimum down payment: 0%

Loan types offered: Conventional, FHA, VA, USDA, jumbo, I CAN and other loan options

States served: All 50 states plus D.C. and Puerto Rico

Best for Fast Approval: Rate

Rate.com
Get started securely through Rate.com’s website

Pros:

  • Approval in as little as 24 hours
  • Serves all 50 states and D.C.
  • Offers several loan types
  • Wide footprint of branches
  • Online rates updated frequently

Cons:

  • 620 is the minimum credit score
  • Not all states have branches
  • Fees could be higher than other lenders

Rate (previously Guaranteed Rate) is a financial services company and mortgage lender based in Chicago, Illinois. While it also offers products like personal loans and insurance, mortgage lending is the company’s focus. It offers purchase and refinance loans, and you can quickly view rates on its website. Rate’s mortgages include conventional, FHA, VA and jumbo loans. No USDA loans are available.

Rate has hundreds of branches in the U.S., though it has more branches in Illinois than other states. Depending on where you live, there may not be any physical branches nearby. However, Rate has a simple online application, so handling everything from the comfort of your home is possible.

Best for Discounts: SoFi

SoFi®
get started securely through SoFi®’s website
More Details
Avg. Days to Close Loan
28
Minimum Credit Score
620
1 Minute Review

SoFi is an online lender most well known for its student loan refinancing services. It first began offering mortgages in 2014 and became a great asset for current SoFi members looking for a mortgage. It was one of the first lenders to offer an entirely online mortgage lending process. In the mortgage space, SoFi is known for offering as little as 10% down payments on all of its mortgage products, including jumbo loans.

Best For
  • Borrowers who want a lower down payment
  • Current SoFi members
  • Homeowners looking to refinance
Pros
  • Down payments can be as low as 10%
  • Can finance mortgages for up to $3 million
  • Discounts for SoFi members
Cons
  • Not available in every state
  • Does not offer government-backed loans such as FHA, USDA or VA loans

Pros

  • Several discounts for closing costs
  • Customizable rates
  • Simple application process
  • Up to a $10,000 close-on-time guarantee

Cons

  • No USDA loans
  • Requires 600 credit score for FHA and VA
  • Only a handful of bank branches

SoFi (also known as Social Finance) is a financial technology company founded in 2011 at Standford University. Initially focusing on student loan refinancing, it expanded its offerings to include mortgages beginning in 2014. It later added personal loans, banking, and investing. The company officially became a nationally chartered bank in 2022.

SoFi primarily operates online, though it acquired California-based Golden Pacific Bank in 2022, along with the bank’s three branches. Most SoFi customers will go through the simple online mortgage application. SoFi offers several discounts, including a $500 discount on the origination fee. SoFi Plus members can get an additional $500 discount. During the application process, you’ll see a personalized rate quote indicating what rate you may receive based on factors like your credit history and the purchase price.

Minimum credit score: 600

Minimum down payment: 0% (VA loans)

Loan types offered: Conventional, FHA, VA, jumbo, refinance, home equity

States served: All 50 states except NY

What Kind of Credit Score is a 620?

A 620 credit score is considered fair, according to FICO. It is one step above poor credit, FICO’s lowest credit score range, and one step below the “good” range.

FICO’s credit score ranges are as follows:

  • Poor: 300 to 579
  • Fair: 580 to 669
  • Good: 670 to 739
  • Very good: 740 to 799
  • Excellent: 800 to 850

In this context, it becomes clear that while 620 is not a bad credit score, it leaves significant room for improvement. If you have a 620 credit score, you may have missed several payments in the past and perhaps had a major adverse event, such as a bankruptcy declaration.

Although a 620 credit score is not the best, you still have options. The lenders mentioned in this article may be willing to work with borrowers with a 620 credit score or higher. Those offering government-backed loans like FHA and VA may be willing to lend to borrowers with scores as low as 500. However, you may need to put more money down if your credit score is low. Generally, a higher credit score increases your approval odds. 

Requirements for Getting a Mortgage with a 620 Credit Score

Requirements for a mortgage with a 620 credit score vary, sometimes significantly, depending on the loan type. A 620 credit score is often the minimum score for conventional loans, which are not government-backed. You generally must put at least 5% down with a conventional mortgage. However, if your credit score is right at the minimum, you may struggle to qualify for a conventional mortgage.

Some government-backed mortgages, such as FHA loans, have lower credit score requirements. Many lenders require a credit score of at least 580 and a down payment of at least 3.5%. FHA lenders are sometimes willing to work with borrowers with credit scores as low as 500, but that often comes with certain caveats, such as making a larger down payment (usually 10%).

However, it’s important to vet the lender, says Carlie Ransom, CFP and co-founder of Equal Path Investments LLC. “Most loan officers can facilitate FHA loans, but prospective homebuyers should verify that their chosen lender is FHA-approved,” Ransom says. “Additionally, certain lenders specialize in guiding clients with lower credit scores through the application process, providing valuable support and education throughout.”

Another option is a non-QM loan, which is intended for borrowers who don’t meet the typical requirements. You may qualify for a non-QM loan through various methods, such as showing sufficient income with bank statements or providing proof of sufficient assets.

Other requirements are similar regardless of the loan type. For instance, borrowers typically look for a debt-to-income (DTI) of 50% or lower. Your DTI is the ratio of your monthly debt payments to your monthly income. Borrowers may also ask for proof of income with W-2s, pay stubs, or tax returns.

Another common requirement is having enough cash reserves, such as two months of expenses. “A common oversight among borrowers with lower credit scores is insufficient post-closing liquidity – having one to three months of mortgage payments in reserve significantly improves lender confidence,” Ransom says.

Why You Should Trust Us

As a personal finance writer with over six years of experience, I understand how tough it can be to find the best mortgage lender, especially with a 620 credit score. That’s why I have spent countless hours researching products and services, including the lenders mentioned here. As a writer, I’ve meticulously interviewed industry experts who have given their best insights.

Carlie Ransom, who provided expert input for this piece, has been a Certified Financial Planner (CFP) and Accredited Investment Fiduciary (AIF) since 2015. Ransom has worked directly with clients with debt and student loans and is familiar with borrowers with less-than-perfect credit.

Benzinga was founded in 2010 and is a trusted source for news on investing, insurance, mortgages and other topics. Our audience of over 25 million readers trusts Benzinga to consistently provide informative, high-quality content.

Methodology 

Using Benzinga’s multi-point methodology, I compared mortgage products from 23 mortgage lenders to identify the best lenders for a 620 credit score. The factors that weighed heavily in my selections were rates and fees, various options, and customer service. In addition, lenders that approve borrowers with lower credit scores received a boost.

Customer service experiences can be subjective, so I also considered scores and reviews on independent platforms. This includes places like TrustPilot, BBB and Zillow. No mortgage lender has a perfect score, but the lenders that fared well often have high scores on one or more third-party review sites.

Applying for a mortgage can be challenging, so I looked for lenders with a simple application. Those allowing borrowers to apply online without inundating them with too many questions received high marks.

See Benzinga’s full methodology for a complete overview of how we determine the best mortgage lenders.

FAQ

Q

What mortgage rate can I get with a 620 credit score?

1
What mortgage rate can I get with a 620 credit score?
asked
A
1

The rate you can get with a 620 credit score may vary depending on how the lender calculates its rates, but factors like your DTI and income often play a significant role. According to Zillow, average mortgage rates are 6.33% right now, but your rate will likely be higher.

“With FHA loans, a 620 credit score will generally increase interest rates by 0.5% to 1% compared to borrowers with higher scores, with variation depending on the specific lender,” Ransom says.

 

answered
Q

How big of a loan can you get with a 620 credit score?

1
How big of a loan can you get with a 620 credit score?
asked
A
1

The size of the mortgage loan you can get with a 620 credit score depends on factors like the loan type and where you live. Take FHA loans, for example. In some states, loan amounts top out at around $500,000. In others, loan limits can be upwards of $2 million.

 

answered
Q

What tier is a 620 credit score?

1
What tier is a 620 credit score?
asked
A
1

A 620 credit score is “fair,” according to FICO. This is the second-lowest tier on FICO’s scale, with poor being the lowest. There are five tiers on FICO’s credit-scoring model.

answered

Sources

The post Best Mortgage Lenders for a 620 Credit Score: Experts Weigh In by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

]]> https://cdnwp-s3.benzinga.com/wp-content/uploads/2025/03/14092628/IMG_6505.jpeg 5 Best Mortgage Lenders for Borrowing $250,000+, According to Experts https://www.benzinga.com/money/best-mortgage-lenders-for-borrowing-two-hundred-and-fifty-thousand-dollars Thu, 13 Mar 2025 15:01:52 +0000 https://www.benzinga.com/?p=354560 The post 5 Best Mortgage Lenders for Borrowing $250,000+, According to Experts by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

Many consumers borrow $250,000 or more; identifying providers with generous lending practices is crucial. With housing prices rising rapidly in many areas, new homeowners must borrow increasingly larger amounts to close a deal on their homes. If you are in one of the places where prices are rising, you may need to borrow $250,000 or … Continued

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Courtesy of Shutterstock

Many consumers borrow $250,000 or more; identifying providers with generous lending practices is crucial.

With housing prices rising rapidly in many areas, new homeowners must borrow increasingly larger amounts to close a deal on their homes. If you are in one of the places where prices are rising, you may need to borrow $250,000 or more. Lenders in this category may require a certain income or credit score, but borrowers meeting their qualifications will have several options.

This guide will cover the best lenders for borrowing $250,000+. Each has pros and cons, and we will mention the best choices for different situations. We’ll also discuss what sets each lender apart and the potential downsides to consider.

Quick Winners List

Table of contents [Show]

Best for Fast Approval: Rate

Guaranteed Rate Mortgage
get started
More Details
Avg. Days to Close Loan
28 – 32
Minimum Credit Score
620
1 Minute Review

No matter where you live in the U.S., you can use Rate’s services. It has an online application that could get you a mortgage loan in just a day. As of Feb. 13, 2025, Rate says that the national mortgage rate is 6.905% for a 30-year fixed loan, 6.217% for a 15-year fixed loan, 6.552% for a Federal Housing Administration (FHA) loan and 6.47% for a United States Department of Veterans Affairs (VA) loan.

Best For
  • All online process
  • Low down payment options
  • Conventional, FHA and VA loans available
Pros
  • Approval in as little as 24 hours
  • Online application process
  • Available in all 50 states and Washington, D.C.
  • Hundreds of branches across the country
  • Posts rates online
Cons
  • A 620 credit score is generally needed for every loan type
  • Some higher fees than other lenders
  • No United States Department of Agriculture (USDA) loans

Pros:

  • Approval in as little as 24 hours
  • Available in all 50 states and D.C.
  • Several loan types and terms
  • Hundreds of branch locations
  • Online rates are updated frequently

Cons:

  • Requires a minimum 620 credit score
  • Some states don’t have branches
  • Fees may be higher than other lenders

Rate (previously Guaranteed Rate) is a financial services company based in Chicago, Illinois. The company offers several financial products but specializes in mortgages. It offers purchase and refinance loans and regularly publishes rates for each loan type on its website. In addition to conventional loans, the lender offers FHA, VA and jumbo loans.

If you need service in person, Rate has hundreds of branches nationwide. However, the largest concentration of branches is in Illinois. Some states only have a handful of branches, and a few have none. Also, note that fees may be higher than those of some lenders.

Best for a Variety of Options: CrossCountry Mortgage

CrossCountry Mortgage
get started securely through CrossCountry Mortgage’s website
More Details
Disclosure: Available in: CA, CO, CT, DC, FL, GA, IL, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VA, WA 
Avg. Days to Close Loan
30 – 40
Minimum Credit Score
620
1 Minute Review

CrossCountry Mortgage was started in 2003 by Ronald Leonhardt Jr., founder and CEO. Its headquarters is located in Cleveland, Ohio, but it’s licensed in all 50 states, D.C. and Puerto Rico, and it has over 700 branch locations across the country. Hopeful homeowners turn to CrossCountry Mortgage for its diverse portfolio of loan options, including conventional loans, Federal Housing Administration (FHA) loans, United States Department of Veterans Affairs (VA) loans and United States Department of Agriculture (USDA) loans.

 

Best For
  • Self-employed professionals
  • Retirees
  • Investors
  • Condo buyers
Pros
  • Provides loans across all 50 states, D.C. and Puerto Rico
  • 120 mortgage purchase, refinance and home equity solutions
  • Can work with credit scores as low as 500
  • Tax returns aren’t required
  • Ideal for first-time homebuyers
Cons
  • Doesn’t post rates online
  • Underwriting process may take longer

Pros:

  • 120 mortgage purchase, refinance and home equity options
  • Hundreds of branch locations nationwide
  • Down payment assistance available
  • Relatively quick closing
  • Good for first-time homebuyers

Cons:

  • No rates available online
  • No online pre-approval
  • Rates aren’t the lowest available

CrossCountry Mortgage was founded in 2003 by Ronald Leonhardt, Jr., who still serves as its CEO. The company’s headquarters is in Cleveland, Ohio. Since its founding, the company has grown to thousands of employees and hundreds of branches.

CrossCountry Mortgage stands out because of its loan options, with 120 choices between purchase, refinance and home equity. Purchase options include conventional, FHA, VA, USDA and jumbo loans. It has many options for refinancing, such as cash-out refinance, FHA streamline and FHA cash-out refinance. Home equity options include HELOC, renovation HELOC and reverse mortgages.

Minimum credit score: 500

Minimum down payment: Not disclosed

Loan types offered: Conventional, FHA, VA, USDA, jumbo

States served: All 50 states plus D.C. and Puerto Rico

Best for Non-QM: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions
get started securely through Angel Oak Mortgage Solutions’s website
More Details
Disclosure: Angel Oak Licensing and Disclosure Information
Avg. Days to Close Loan
30
Minimum Credit Score
600
1 Minute Review

Angel Oak Mortgage Solutions specializes in non-traditional mortgage products, making it a go-to for borrowers with unique financial situations, like self-employed individuals or those without traditional income verification. Angel Oak stands out for its flexible qualification options, including bank statement loans, asset-based loans, and programs for foreign nationals. However, these specialized loans often come with higher rates compared to conventional loans, and the company’s service area is limited, meaning not everyone can take advantage of their offerings.

Best For
  • Self-employed borrowers or small business owners
  • Investors seeking cash flow-based financing
  • Borrowers with non-traditional income sources
  • Individuals seeking flexible qualification criteria
Pros
  • Offers a wide range of non-QM (non-qualified mortgage) loan products
  • Flexible income verification options, including bank statements and assets
  • Loans available for foreign nationals and ITIN holders
  • Dedicated loan officers for personalized service
Cons
  • Limited availability in some states
  • Higher interest rates compared to conventional loans

Pros:

  • Offers a variety of non-QM loans
  • Qualify for a loan with bank statements
  • Loans available for 1099 income
  • Loan-to-value (LTV) of up to 95%
  • Options for foreign nationals

Cons:

  • Not available in all states
  • Rates are not the lowest

Angel Oak Lending is a mortgage lender that specializes in non-traditional mortgage products, such as non-QM loans. With 13 different non-QM loan programs, Angel Oak allows borrowers without a typical profile to get a mortgage loan. Its programs include bank statement loans, 1099 income loans, ITIN mortgage loans and foreign national loans. Some of its programs have credit score requirements starting at 640, with LTVs of up to 95%.

While Angel Oak Mortgage is a convenient option for some borrowers, the rates could be higher than those from other lenders. In addition, the broker is not licensed in all states, so not all borrowers can take advantage of its services.

Minimum credit score: 640

Minimum down payment: 5%

Loan types offered: Various non-QM loan programs

States served: All states except Alaska, New York, Vermont, Massachusetts and Connecticut

Best for Customizable Terms: New American Funding

New American Funding
get started securely through New American Funding’s website
More Details
Avg. Days to Close Loan
31-40
Minimum Credit Score
620
1 Minute Review

New American Funding is a lender that offers several types of mortgages, including conventional, FHA and VA loans. It has relatively low interest rates but a limited number of term options.

Best For
  • Conventional loans: This is the most popular type of mortgage. These loans usually have the lowest fees but often have stricter requirements.
  • FHA loans: These loans are designed for those with fair credit or who can’t afford as much of a down payment.
  • Jumbo loan: These loans have larger maximum loan amounts and are geared toward high-income borrowers.
  • VA loans: Veterans and current service members are eligible for VA loans with no down payment requirement.
  • Refinancing: If you have a mortgage with a high interest rate, you can refinance to get a better deal.
  • Adjustable rates: An adjustable-rate mortgage is desirable for those who believe interest rates will come down soon.
  • Fixed rates: Fixed-rate mortgages are popular for people who want stability in their monthly payment.
Pros
  • Offers mortgage refinance as well as new loan origination. Both new homebuyers and existing homeowners can shop for a mortgage with New American Funding.
  • Has low interest rates. Borrowers looking for a good rate can find one with New American Funding.
  • Several types of mortgages available. A few different mortgage options are available, so you’re not stuck with one type.
  • Website offers homebuying resources. New American Funding’s website includes articles and tools that help buyers understand more about the homebuying process.
Cons
  • Limited local branches. The lack of a local branch can be frustrating if you prefer an in-person experience. Not available in every state.
  • New American Funding does not service New York and Hawaii residents.

Pros:

  • Variety of customizable loan terms
  • Down payment assistance available
  • Loans can cover closing costs
  • Offers non-traditional loan options
  • Special program provides all-cash offers

Cons:

  • Must provide personal information to request an online quote
  • Origination fees may be high

New American Funding is a mortgage lender offering conventional mortgages and FHA, VA and USDA loan options. Its portfolio expands beyond typical loans, offering options for self-employed people in addition to jumbo loans, interest-only loans and refinancing options. Its I CAN mortgages have flexible terms, letting you choose from terms between eight and 30 years. This level of flexibility lets borrowers find the loan that works for them.

While New American Funding has an online tool for requesting a quote, you cannot complete the request without providing personal information. Carefully review the lender’s loan options and programs before providing your information. Also, be aware of the lender’s origination fees, which could be higher than those of competitors.

Minimum credit score: 500

Minimum down payment: 0%

Loan types offered: Conventional, FHA, VA, USDA, jumbo, I CAN and other loan options

States served: All 50 states plus D.C. and Puerto Rico

Best for Low Credit: Unlock

Unlock Mortgage
Get started securely through Unlock Mortgage’s website
More Details
Avg. Days to Close Loan
N/A
Minimum Credit Score
N/A
1 Minute Review

American homeowners are collectively sitting on nearly $28.7 trillion worth of home equity. For perspective, that’s over $334,000 of equity per owner-occupied housing unit in the U.S. While traditional mortgage-lending models like home equity line of credit,  cash-out refinancing and home equity loans provide a means of tapping into your home equity, they have drawbacks, especially in a rising interest rate environment. For instance, the variable interest that characterizes the home equity line of credit can lead to unpredictable and potentially higher borrowing costs, Cash-out refinance can exacerbate your overall mortgage debt, and like home equity loans, there’s a risk of foreclosure if you don’t pay on time. Additionally, these models require strict eligibility or qualification criteria. 

What if you could access your home equity without undergoing stringent eligibility requirements or worrying about interest rates? That’s where Unlock Technologies comes in. Unlock Technologies offers a home equity agreement  — an alternative to traditional lending models that lets you tap into your home equity without loans. The company invests in your home’s future appreciation by offering you cash upfront. A combination of factors, including the current value of your home, pre-existing mortgage debt and credit history, determines the size (amount of cash) and terms of the agreement. 

Since it involves no loans, there are no interest rates and monthly payments to worry about. You only repay Unlock when you sell your home. For instance, you could receive 15 percent of your home’s equity upfront, which you can use as you see fit. In return, Unlock would acquire a 20 percent share in your home’s future appreciation. You could also buy back Unlock’s stake in your home over time without having to sell your home. Unlock accepts a FICO score as low as 500, making it an ideal option if you’ve got a poor credit history and limited cash flow but require a substantial loan for an expense that will enhance your long-term financial stability.

Read on for a constructive review of the platform, its pros and cons and how it can compare with other mortgage models.

Best For
  • Homeowners with damaged credit history and limited cash flow seeking substantial cash to invest in projects that guarantee long-term financial security
  • Entrepreneurs and small business owners seeking to leverage their home equity and access capital to invest in their businesses or expand operations
  • Homeowners who wish to undertake renovation projects to enhance property value, as well as those interested in building an emergency fund or financial safety net using their home equity
  • Real estate investors who want to access equity for new investment opportunities or fund higher education expenses
  • Homeowners with substantial home equity who are considering moving within the next 10 years, which is the maximum term length for Unlock’s services
Pros
  • Low minimum credit requirements (FICO) of 500
  • Flexible income and limited debt-to-income (DTI) requirements — Unlock is only interested in your home value
  • No monthly payments — you don’t have to pay until you sell your house at the end of the agreement
  • No interest rate — Unlock is not a loan or lending firm
  • Access funding in 30 to 60 days with little or no restrictions on fund use
  • Streamlined application process from getting quotes to accessing funding
  • The application process doesn’t require hard credit pull and doesn’t impact your credit score
  • Access up to $500,000 worth of funding, and there’s no need to refinance
Cons
  • Could potentially complicate the process of obtaining another mortgage
  • Receive less from your home when you finally sell your home
  • Relatively low loan term of 10 years
  • Operates in only 15 states

Pros:

  • Minimum FICO score of 500
  • No monthly payments or interest charges
  • Use for multiple purposes
  • Apply without impacting your credit score
  • Access up to $500,000 in home equity

Cons:

  • You may get less from your home when you sell
  • Limited state availability
  • Only a 10-year term

Unlock is a company offering a way to access your home equity without taking out another loan. Instead of home equity loans, Unlock offers home equity agreements (HEAs). To accomplish this, it offers homeowners cash for a claim on part of their home’s future appreciation. This allows Unlock to offer this service without monthly payments or interest charges. The minimum credit score requirement is 500, allowing borrowers to access up to $500,000 in home equity.

The downside? Because Unlock claims a percentage of your home’s future appreciation, you may receive less than expected when you sell your home. One way to avoid this is by refinancing the home before selling. Currently, Unlock only operates in a handful of states.

Minimum credit score: 500

Minimum down payment: N/A

Loan types offered: Home equity agreement (HEA)

States served: Available in 13 U.S. states

What Are the Requirements to Take Out a $250,000 Mortgage?

A $250,000 mortgage generally won’t have any specific requirements; instead, you must meet the lender’s requirements for approval. For instance, you must meet the lender’s minimum credit score requirements for the loan type you are considering. Many lenders offer several loan types, all of which may have different credit score requirements.

In addition, you must have sufficient and stable income to take out a loan of this size. This means you must often provide documents like pay stubs, bank statements and tax returns to verify the income figure you provided. “Some might also be required to prove reserves, confirming that they could live for several months paying their mortgage with nothing left for income,” says Daniel La Gamba of LD Law LLP.

Another key figure when applying for a $250,000 mortgage is your debt-to-income (DTI) ratio. This is the ratio of your monthly debt payments to your monthly income. Most lenders will look for a DTI of 50% or less. A higher income may increase the DTI a lender will permit, but a lower DTI will only help your chances of approval for a $250,000 mortgage.

How to Choose a Mortgage Lender

Choosing a mortgage lender is no small task. There’s no shortage of options, including traditional banks, credit unions and online lenders. Often, asking friends and family for referrals is an excellent first step. Otherwise, you can search online for local and national mortgage lenders. Identify four or five lenders that could be a good fit.

Once you have a few lenders in mind, choose a lender by determining your budget. Various calculation methods exist, but your total housing costs (including insurance and taxes) should not be more than one-third of your budget. A mortgage calculator can help you estimate the total amount you can afford.

After estimating your budget, compare your preferred lenders’ loan terms. Most lenders offer 15- and 30-year terms, but some have additional terms for certain loan types. Also, compare rates for each loan term the lender offers. Some lenders publish their rates online, while others require you to request a quote before seeing the terms they offer.

“I always tell clients that it is not just about the interest rate; it is about the entire loan terms, fees, and lender reputation,” says La Gamba. This is important because you should consider the entire quote, not just the rate.

After comparing each lender’s options, you should have your choices narrowed down to two or three lenders. You can then prequalify with those lenders, which won’t affect your credit score. However, it will give you a more detailed quote, breaking down their rates, terms and fees. At this point, you can identify the best option and choose a lender from your shortlist.

Why You Should Trust Us

As a personal finance writer with over six years of experience, I understand the difficulty in identifying the best product or service. That’s why I have spent countless hours researching products and services, including those on this list. As a writer, I’ve interviewed dozens of industry professionals who have helped me identify the best consumer options.

Daniel La Gamba, whom I interviewed for this piece, is a founding partner of the firm LD Law LLP. As a real estate attorney, La Gamba has closed many transactions and caters to a diverse client base. He obtained his law degree from Osgoode Hall Law School and an honors bachelor’s degree in psychology from the University of Guelph.

Benzinga was founded in 2010 and is a go-to source for news on investing, insurance, mortgages and other topics. Over 25 million readers trust Benzinga to provide high-quality content, and the team has consistently delivered.

Methodology 

I researched offerings from 23 mortgage lenders using Benzinga’s multi-point methodology to identify the best lenders for borrowing $250,000. Rates and fees, loan options, customer service and the application process are among the most important categories when finding the best mortgage lenders. Credit scores were also considered, meaning the lenders permitting lower credit scores received a boost.

Navigating the mortgage process can be complicated, so I also considered scores and reviews on independent platforms such as TrustPilot, BBB and Zillow. No mortgage lender has a perfect score, but the lenders that scored well generally fare well on at least one of these platforms.

The application process is also significant because it can be long and difficult, potentially confusing borrowers. Those with a simple online application fared well in this category.

See Benzinga’s full methodology for a complete overview of how we determine the best mortgage lenders.

FAQ

How much would a 250k mortgage cost per month?

The monthly cost of a $250,000 mortgage can vary significantly depending on the lender, the type of loan, and your creditworthiness. For well-qualified buyers, the cost may be around $1,600 per month, with additional fees for taxes and insurance. 

What credit score do you need for a 250k loan?

The credit score you need for a $250,000 loan depends on the lender and the type of loan, among other factors. Conventional loans require a minimum credit score of 620, while FHA loans may allow scores as low as 580 (or 500 with a 10% down payment). 

Who is the easiest lender to get a mortgage with?

There isn’t one lender that is the easiest to get a mortgage with. However, CrossCountry Mortgage may be a good option for first-time buyers due to its friendly application process, many loan options and relatively quick closing.

Sources

The post 5 Best Mortgage Lenders for Borrowing $250,000+, According to Experts by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

]]> https://cdnwp-s3.benzinga.com/wp-content/uploads/2025/03/13095808/IMG_6492.jpeg Best VA Refinance Lenders in 2025 According to Experts https://www.benzinga.com/money/best-va-refinance-lender https://www.benzinga.com/money/best-va-refinance-lender#respond Mon, 03 Mar 2025 16:04:36 +0000 https://www.benzinga.com/?p=60887 The post Best VA Refinance Lenders in 2025 According to Experts by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

VA refinance lenders can reduce your rate and give you access to cash with low down payments and easy qualification. Refinancing a loan can be a solid financial decision. In fact, the best VA refinance lenders can help you lower your mortgage interest rate or take out some much-needed cash. Benzinga has done the work … Continued

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best va refinance lenders
Courtesy of Shutterstock

VA refinance lenders can reduce your rate and give you access to cash with low down payments and easy qualification.

Refinancing a loan can be a solid financial decision. In fact, the best VA refinance lenders can help you lower your mortgage interest rate or take out some much-needed cash. Benzinga has done the work to boil down the VA refinance process and recommends mortgage lenders to help you start weighing your options. That research has identified the best options from lenders that specialize in working with veterans as well as more general lenders.

VA refinance loans have several advantages, including low down payments and easy qualification. Knowing the ins and outs of these loans can help you select the best lender.

Quick Winners List

Table of contents [Show]

Best Overall VA Refinance Lender: Veterans United Home Loans

Veterans United Mortgage
Get started
More Details
Avg. Days to Close Loan
30
Minimum Credit Score
620
1 Minute Review

Veterans United focuses on VA Loans, which are government-backed loans guaranteed by the U.S. Department of Veterans Affairs to help veterans and active-duty servicemembers buy homes. Veterans United is licensed in all 50 states and the District of Columbia and is the top VA lender in the country. If you’re currently serving or if you’re a veteran, Veterans United is worth considering due to its outstanding customer service and range of mortgage options.

Veterans United’s advisors come from each military branch to ensure it’s taking care of its clients. You can visit its website to learn more about VA loans and the homebuyer process in general and its Lighthouse Program can help you get ready to buy if you’re not quite there yet. It offers strong support if you’ve served our country.

“Nobody handles VA loans better than Veterans United,” says real estate investor Sergio Aguinaga, owner and founder of Michigan Houses for Cash. “Their process is smooth, the support is great and they truly get military buyers. But, of course, the con is that they are only for veterans.”

Best For
  • Current service members
  • Veterans
  • First-time home buyers
Pros
  • 24/7 customer service
  • Offers VA purchase and refinance loans
  • Offers credit consulting through its Lighthouse Program
  • Staff from every military branch
Cons
  • Only has branches in only 18 states
  • Must be a veteran to qualify

Pros:

  • First-time homebuyer programs available
  • Possible to buy with $0 down
  • Largest VA home loan lender
  • Competitive refinance rates

Cons:

  • No home equity loans
  • No renovation loans
  • Small number of branch locations

Veterans United Home Loans specializes in providing home loans to veterans. From 2016 to 2024, it was the largest VA purchase lender. Veterans United offers an affordable alternative to the average rates for general consumers. It is also licensed in all 50 states, allowing veterans to secure a reasonable rate regardless of location.

Veterans United has several programs for veterans, including cash-out refinancing, first-time homebuyer programs and $0 down options. Its 30-year VA cash-out refinance loan has a 6.625% interest rate and a 6.952% APR. The typical minimum credit score is 620, and the loan-to-value (LTV) is up to 100%.

Typical closing costs are 3% to 5%, with an additional VA funding fee of 2.15% to 3.3%. Depending on the home’s value, these costs can lead to a high cash-to-close amount. However, the competitive rates make this an affordable option in the long run.

Best VA Refinance Lender for Bad Credit: Freedom Mortgage

Freedom Mortgage
get started
More Details
Avg. Days to Close Loan
30
Minimum Credit Score
620
1 Minute Review

Freedom Mortgage is a non-bank lender offering a wide range of mortgage products, including government-backed options like VA, FHA, and USDA loans. With availability in all 50 states, as well as the U.S. Virgin Islands and Puerto Rico, Freedom Mortgage provides accessible options for a variety of borrowers, from first-time buyers to veterans. The lender lacks a fully online prequalification and application process, which may be a drawback for those who prefer a seamless digital experience. It doesn’t offer home equity loans or lines of credit, limiting options for those seeking to tap into their home’s value.

Best For
  • First-time homebuyers seeking personalized guidance
  • Veterans looking for multiple VA loan options
  • Borrowers interested in government-backed loans like FHA and USDA
  • Buyers who may relocate and need a lender with nationwide coverage
Pros
  • Extensive range of mortgage products, including specialized loans
  • Available in all 50 states plus U.S. territories
  • Offers refinancing options with streamlined processes for existing customers
  • Dedicated loan officers provide personalized service
Cons
  • No online prequalification or application process
  • Doesn’t offer home equity loans or lines of credit

Pros:

  • Minimum credit score of 550 for VA home loans
  • Qualify after a bankruptcy or foreclosure
  • No mortgage insurance
  • Low funding fees for first use

Cons:

  • Requires a funding fee
  • Rates not available online
  • No home equity loans

Freedom Mortgage offers several options for veterans, including VA cash-out refinancing. According to the lender, the minimum credit score is often 550, meaning you can potentially refinance with bad credit. The lender has experience working with bad-credit borrowers, allowing you to qualify even after a financial hardship. This includes borrowers who have experienced bankruptcy or foreclosure.

Like most lenders, you can expect to pay closing costs, with fees between 2% and 6%. There is also a VA funding fee, though the fee can be as low as 1.25% if this is the first time you will use your VA loan entitlement. Freedom Mortgage doesn’t post its rates online, but the lender says this is because it personalizes each borrower’s offers.

Best VA Refinance Lender for First-time Home Buyers: Rocket Mortgage

Rocket Mortgage (formerly Quicken Loans)
Get started securely through Rocket Mortgage (formerly Quicken Loans)’s website
More Details
Avg. Days to Close Loan
30
Minimum Credit Score
580
1 Minute Review

Rocket Mortgage (formerly known as Quicken Loans) is one of the best mortgage lenders on the market, making it easy to apply for a home loan entirely online. Its streamlined preapproval process and quick access to customer service set it apart from other online lenders. Rocket Mortgage offers a large variety of mortgages and is backed by the largest mortgage lender, Quicken Loans. Whether you need help or know exactly what you’re looking for, Rocket Mortgage matches you with the right mortgage type and helps you quickly complete your online application.

Best For
  • Homebuyers who are looking to complete the mortgage application process on their own
  • Homebuyers who have found their dream home and are looking to move through the approval process quickly
  • Homebuyers with good credit scores looking to review their mortgage options
  • Current homeowners looking to refinance within the next few months
Pros
  • Rocket Mortgage allows you to move at your own pace, guiding you through each step of the process. After you answer all the application questions, Rocket Mortgage lets you know if you’re approved and show your personalized mortgage recommendations
  • You can submit checking and savings account information, tax returns and other financial documents online — a feature that sets Rocket Mortgage apart from online competitors
  • RateShield allows you to lock in your Rocket Mortgage approved rate for up to 90 days
  • The home loan application process can be completed in minutes, allowing you to find out if you qualify for a mortgage right away
  • The online software allows you to navigate through the entire home buying process, from approval to home closing. Once you’re approved and you make an offer on your home, Rocket Mortgage offers online tools that will help you move through the rest of the closing process
Cons
  • While Rocket Mortgage has customer specialists ready to answer your questions and provide guidance, if you prefer sitting across from a person when filling out financial forms, this lender might not be right for you
  • You can’t easily view all of Rocket Mortgage’s home loan options prior to applying. It offers conventional, FHA, USDA and VA loans, but you’ll need to apply to find out more about the mortgage types within these offerings and which ones you’re eligible for

Pros:

  • Simple, streamlined application process
  • Extended support hours for new customers
  • Several loan terms available
  • Save up to $10,000 on closing costs

Cons:

  • Rates can be high
  • Pre-qualification may require a hard credit inquiry
  • No USDA home loans

Best VA Streamline Refinance Lender: USAA

USAA Mortgage
Contact a Lender
More Details
Avg. Days to Close Loan
40
Minimum Credit Score
620
1 Minute Review

USAA is a program that is aimed at veterans and their family members, offering banking, loans, insurance, mortgages and investing. Remember that you can check on your eligiblity through the platform or a direct family member who is already a member.

Best For
  • Veterans and Direct Family Members
  • Easier access to financial products
  • Insurace is also available
Pros
  • Preferred service for members
  • Younger family members can more easily get the help they need
  • Exclusive programs
Cons
  • You may not be eligible based on rules in your state

Pros:

  • Competitive rates for VA IRRRL
  • Refinance with no money out of pocket
  • No origination fees
  • Covers your title and funding fees

Cons:

  • Monthly payment could increase in some cases
  • Must apply for jumbo loan to cash out up to $500,000

USAA is a financial services organization that exclusively serves members and families of the armed forces. It charges no origination fees for VA IRRRLs. It also covers the title and VA funding fees, reducing the amount you must pay to close on a refinancing loan. Rates are competitive compared to other IRRRLs, potentially leading to a low monthly payment.

However, USAA doesn’t guarantee your monthly payments will be lower. It says your payment may be higher in some situations, such as when adding closing costs or points to the loan. While VA loans are often available to borrowers with lower credit scores, USAA doesn’t specify a minimum score on its website. There is also no option to apply online, so you must call if you are interested.

Best VA Cash Out Refinance Lender: Navy Federal Credit Union

Navy Federal
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Best For
Military Personnel and Their Families
N/A
1 Minute Review

Navy Federal Credit Union is available for military personnel and their families, offering a wide range of financial services and no minimum balance requirements on entry-level checking accounts. Plus, competitive rates are available for savings accounts, along with loans, CDs and much more.

Best For
  • Savings rates
  • Low fees
  • Military personall and their families
Pros
  • No minimum balance requirement
  • Free checks
  • ATM rebates
Cons
  • Must qualify before opening an account

Pros:

  • Competitive rates
  • Low origination fees
  • Several loan types for refinancing
  • Permits seller contributions to closing costs

Cons:

  • No FHA, construction or renovation loans
  • Requires membership

What is a VA Refinance?

A VA refinance means refinancing an existing Veterans Affairs (VA) loan to obtain a new loan with better terms. Typically, this means a loan with a lower rate or monthly payment. A VA cash-out refinance loan could mean applying for a new, larger loan to access your home equity. VA loans typically have competitive interest rates, and refinancing to a new VA loan may allow you to qualify for a lower rate.

In addition to low rates, VA loans have several benefits, such as putting as little as $0 down and a loan-to-value ratio of up to 100%. Borrowers can often qualify with poor credit, even after a foreclosure or bankruptcy. Another benefit is that private mortgage insurance (PMI) is often not required, even if the borrower doesn’t put 20% down.

How Does a VA Refinance Work?

A VA refinance replaces your existing VA loan with a new one. There are two main types of VA refinancing: VA interest rate reduction refinance loans (IRRRLs) and VA cash-out refinance loans. VA IRRRLs aim to reduce the borrower’s interest rate, while VA cash-out refinance loans allow the borrower to tap into their existing home equity.

VA refinance loans are government-backed loans available to veterans, service members and surviving spouses. Because they are government-backed, they often have similar benefits. For instance, the ability to put $0 down and avoid PMI generally applies regardless of the lender. These loans allow veterans to access affordable home loans and refinancing, even if they don’t have excellent credit.

How to Choose a VA Refinance Mortgage Lender

You may be eligible for a VA mortgage refinance lender if you are a veteran, service member or surviving spouse. As noted, VA loans have favorable rates and terms for eligible people. However, VA loans have these favorable terms regardless of the lender, so you must evaluate each lender to see if they align with your goals.

Start by checking that the lender is VA-approved and can offer VA loans and refinancing. Although this is basic, not all lenders can offer VA loans. Once you have found VA-approved lenders, compare rates and APRs from several lenders. You might only see a one- or two-tenths of a percent difference between lenders, which can greatly impact your monthly payments.

You should also ask lenders what percentage of their business is VA Loans, says Rebecca Richardson, AMP at One ΓEA⅃ Mortgage. “Although the VA loan is very much a common-sense loan, most loan officers don’t do them frequently enough to understand the nuances that, if missed, can cause big issues later on,” Richardson says. You want someone experienced who knows the ins and outs of the process.

Also, pay close attention to the fees and closing costs. Closing fees are always involved in a loan, even when refinancing. However, lenders often waive some or all of these costs for VA refinance loans. Avoiding these costs can reduce your cash to close, though they can also impact interest rates and APRs.

Next, review each lender’s refinance options. As mentioned, the main types of VA refinancing are VA IRRRL and VA cash-out refinancing. VA IRRRL is best for lowering your interest rate, while VA cash-out refinancing lets you access a portion of your home’s equity. The lender you are considering should offer the loan type you need with competitive rates.

Richardson also recommends asking for a Certificate of Eligibility from the VA. “This is a helpful competency test because this should be one of the first things that happens (like pulling credit) because eligibility needs to be confirmed before the lender can even say if a VA loan is an option,” she says. Richardson adds that if the VA indicates the certificate was pulled during processing or underwriting or the lender doesn’t know when it was pulled, it’s a red flag.

Reviewing these details will help you find the best VA refinance mortgage lender. Remember, each lender has pros and cons. Carefully considering each lender’s benefits and determining which one most closely aligns with your goals will help you make the best choice.

Why You Should Trust Us

Finding a VA refinance loan that matches your goals and a lender who will act in your best interest is crucial. As a personal finance writer with over six years of experience, I’ve spent countless hours researching the best financial products available. This has helped me become intimately familiar with the details of various products. While they all have advantages and disadvantages, the information presented here can help you become more knowledgeable as you search for the best product to meet your needs.

Methodology

Choosing a VA refinancing lender can be stressful, so Benzinga is here to help. Over 25 million readers trust us for advice and news on investing, cryptocurrency, insurance and VA mortgages.

To properly evaluate lenders, our methodology focuses on what matters most to homebuyers: rates, fees, loan options, customer service, credit score requirements and the application process. 

We’ve evaluated the best mortgage lenders for HELOCs, options for bad credit, self-employed borrowers and many others. Below are the details of our scoring framework.

Category Breakdown

  • Rates and Fees: 25 points
  • Loan Options: 20 points
  • Customer Service: 20 points
  • Application Process: 20 points
  • Credit Scores: 15 points
HELOC Methodology Chart
Courtesy of Benzinga

Rates and Fees: 25 points

Rates and fees might be the biggest consideration when evaluating a VA refinance mortgage lender since they directly affect the borrower’s monthly cost. This is why we weigh them the heaviest of all categories. This section evaluates the competitiveness of each lender’s rates and how transparent their fees are.

We also consider discount points, penalty fees and fee caps in this category.

  • Competitive Rates: 10 points
  • Transparent Fee Structure: 10 points
  • Discount points, penalty fees and fee caps: 5 points 

Loan Options: 20 points

Benzinga analyzes the specific types of loans the provider offers to evaluate a VA refinance mortgage lender. This includes conventional loans, FHA loans, VA loans, jumbo loans and specialized loans (non-conventional loans). 

Another plus in this category is a lender offering better term flexibility, refinancing options, first-time homebuyer programs or adjustable-rate mortgages (ARMs).

If a lender has all the basic loan types plus various non-conventional options, they will score at the top end in this category.

  • Purchase and refinance: 5 points
  • Fixed and adjustable: 5 points
  • USDA, VA or FHA loans: 5 points
  • Home equity loan or home equity line of credit: 5 points

Customer Service: 20 points

Customer service is an essential part of the overall borrower experience. This category assesses customer support’s helpfulness, availability and support time. We consider support hours, contact methods and multi-language support. 

  • Customer Support Helpfulness (reviews, responsiveness, language options): 10 points
  • Customer Support Availability (hours, channels): 5 points
  • Response time (under 24 hours): 5 points

Application Process: 20 points

Borrowers applying for a VA refinance loan look for an easy and convenient application process. This category considers factors like online application availability, mobile app functionality, the ease of the process and the speed of closing. VA refinance lenders offering guidance before, during and after the process score well in this category. This might include live chat options and educational materials about VA refinance loans.

  • Closing Time (within 30 days or less): 10 points
  • Online Application: 5 points
  • Ease of Use: 5 points

Credit Scores: 15 points

VA mortgages typically permit credit scores of around 580, which is lower than conventional mortgages and other types. However, some VA refinance mortgage lenders allow lower credit scores than others. Those accepting lower credit scores fare well in this category.

  • Borrowing options for different credit scores: 15 points

Frequently Asked Questions

Q

What is the best company to use for a VA loan?

1
What is the best company to use for a VA loan?
asked
A
1

The best company to use for a VA loan depends on the type of loan you need. However, Veterans United is the best company overall, thanks to various loan options, availability and low rates and fees.

 

answered
Q

What are the disadvantages of a VA loan?

1
What are the disadvantages of a VA loan?
asked
A
1

VA loans have many advantages, such as low credit score requirements and the option to put $0 down. However, they can also have disadvantages, such as the VA funding fee and the inability to use them for investments or vacation homes.

 

answered
Q

How to choose a VA loan lender?

1
How to choose a VA loan lender?
asked
A
1

Choosing a VA loan lender requires carefully evaluating each lender based on several criteria. For instance, they should offer the loan type you need, have competitive rates and fees and have excellent customer support.

answered

Sources

1. Veterans United Home Loans | Veterans United

2. VA Loan Rates Today | Veterans United

3. Find a Branch Near You | Veterans United

4. VA Cash-Out Refinance | Veterans United

5. VA Loans for Bad Credit Scores | Freedom Mortgage

6. VA Cash Out Refinances | Freedom Mortgage

7. What Is a VA Funding Fee? | Freedom Mortgage

8. Talk to Us | Rocket Mortgage

9. Home | Rocket Mortgage

10. VA Refinancing & VA IRRRL Rates | USAA

11. Refinance Mortgage Loan | USAA

12. Current Mortgage Refinancing Rates | Navy Federal Credit Union

13. VA Loans: Apply for a VA Home Loan Today | Navy Federal Credit Union

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]]> https://www.benzinga.com/money/best-va-refinance-lender/feed 0 https://cdnwp-s3.benzinga.com/wp-content/uploads/2025/03/03130523/IMG_6395.jpeg Best Mortgage Lenders That Work With Chapter 7, According to Experts https://www.benzinga.com/money/best-mortgage-lenders-that-work-with-chapter-7 Tue, 11 Feb 2025 13:47:31 +0000 https://www.benzinga.com/?p=217721 The post Best Mortgage Lenders That Work With Chapter 7, According to Experts by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

These lenders are among the best to consider if you’ve previously declared Chapter 7 bankruptcy. Getting a mortgage or personal loan when you’ve recently declared bankruptcy can be challenging, but it’s far from impossible. Despite the uphill battle, several lenders that work with Chapter 7 bankruptcy exist. You generally must allow the waiting period to … Continued

The post Best Mortgage Lenders That Work With Chapter 7, According to Experts by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

]]> The post Best Mortgage Lenders That Work With Chapter 7, According to Experts by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

best mortgage lenders for chapter 7 bankruptcy
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These lenders are among the best to consider if you’ve previously declared Chapter 7 bankruptcy.

Getting a mortgage or personal loan when you’ve recently declared bankruptcy can be challenging, but it’s far from impossible. Despite the uphill battle, several lenders that work with Chapter 7 bankruptcy exist. You generally must allow the waiting period to pass, and then you may be able to qualify for a mortgage.

Lenders in this category have experience dealing with bankruptcies, so they can help you navigate the process. I worked with experts to uncover the best bankruptcy lenders. Now, we’ll look at those lenders and what sets them apart.

Quick Winners List

Table of contents [Show]

Best for a Variety of Options: New American Funding

New American Funding
get started securely through New American Funding’s website
More Details
Avg. Days to Close Loan
31-40
Minimum Credit Score
620
1 Minute Review

New American Funding is a lender that offers several types of mortgages, including conventional, FHA and VA loans. It has relatively low interest rates but a limited number of term options.

Best For
  • Conventional loans: This is the most popular type of mortgage. These loans usually have the lowest fees but often have stricter requirements.
  • FHA loans: These loans are designed for those with fair credit or who can’t afford as much of a down payment.
  • Jumbo loan: These loans have larger maximum loan amounts and are geared toward high-income borrowers.
  • VA loans: Veterans and current service members are eligible for VA loans with no down payment requirement.
  • Refinancing: If you have a mortgage with a high interest rate, you can refinance to get a better deal.
  • Adjustable rates: An adjustable-rate mortgage is desirable for those who believe interest rates will come down soon.
  • Fixed rates: Fixed-rate mortgages are popular for people who want stability in their monthly payment.
Pros
  • Offers mortgage refinance as well as new loan origination. Both new homebuyers and existing homeowners can shop for a mortgage with New American Funding.
  • Has low interest rates. Borrowers looking for a good rate can find one with New American Funding.
  • Several types of mortgages available. A few different mortgage options are available, so you’re not stuck with one type.
  • Website offers homebuying resources. New American Funding’s website includes articles and tools that help buyers understand more about the homebuying process.
Cons
  • Limited local branches. The lack of a local branch can be frustrating if you prefer an in-person experience. Not available in every state.
  • New American Funding does not service New York and Hawaii residents.

Pros

  • Many loan and refinance options available
  • Branch locations in several states
  • Option to buy with all cash
  • Competitive rates
  • Interest-only loans available

Cons

  • Lowest rates require purchasing points
  • Conventional loan requires 40% down for the lowest rates
  • Fees not disclosed on the lender’s website

New American Funding (NAF) offers non-QM services to customers who recently filed for bankruptcy. It uses a one-year tax return, 12-month bank statement and asset qualifier programs to verify income, creating a complete financial picture rather than relying solely on a credit score.

NAF’s non-QM loans have several benefits, such as fixed and adjustable-rate loan options. Loan amounts of up to $2.5 million are available with a cash-out option of up to $500,000. In addition to your primary residence, you can also use these loans for a secondary residence or investment property.

Best for Short Waiting Periods: First National Bank of America

First National Bank Mortgage
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More Details
Avg. Days to Close Loan
30
Minimum Credit Score
580
1 Minute Review

Those who are looking for a mortgage soon after filing for bankruptcy can work with FNBA to apply and get into a new home. While no application is guaranteed to be approved, the bank makes it easier for you to apply after you have filed for bankruptcy, allows you to obtain a down payment from any source and offers relatively low minimum credit score options of around 600.

 

Best For
  • Easier to obtain mortgage soon after bankruptcy
  • Short waiting period before closing
  • Short waiting period of 30 days after a bankruptcy before applying
Pros
  • Can obtain down payment from third parties
  • Low minimum credit score
  • Quality customer support
Cons
  • May require 20% down

Pros

  • Own a home in as little as 30 days
  • Allows the use of gift funds
  • Accepts multiple income verification methods
  • Only requires a 600 credit score

Cons

  • May require a 20% down payment
  • Only three branch locations

First National Bank of America (FNBA) offers alternative mortgage loans suitable for those who don’t fit the typical homeowner mold. Its non-qualified mortgages are intended for those without traditional income streams or who have experienced bankruptcy or foreclosure. FNBA has a one-month waiting period after bankruptcy. You could close on a new home mortgage in around 30 days.

FNBA’s program for borrowers with recent credit events is bank statement loans, which require 20% down and a credit score of 600 or higher. However, these are lower hurdles than you may find with some competitors. The lender also permits gift funds, allowing you to ask for help with your down payment. It also allows a debt ratio of up to 55%, whereas many lenders won’t accept a ratio higher than around 40%.

Best for Online Mortgages: Rocket Mortgage (formerly Quicken Loans)

Rocket Mortgage (formerly Quicken Loans)
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More Details
Avg. Days to Close Loan
30
Minimum Credit Score
580
1 Minute Review

Rocket Mortgage (formerly known as Quicken Loans) is one of the best mortgage lenders on the market, making it easy to apply for a home loan entirely online. Its streamlined preapproval process and quick access to customer service set it apart from other online lenders. Rocket Mortgage offers a large variety of mortgages and is backed by the largest mortgage lender, Quicken Loans. Whether you need help or know exactly what you’re looking for, Rocket Mortgage matches you with the right mortgage type and helps you quickly complete your online application.

Best For
  • Homebuyers who are looking to complete the mortgage application process on their own
  • Homebuyers who have found their dream home and are looking to move through the approval process quickly
  • Homebuyers with good credit scores looking to review their mortgage options
  • Current homeowners looking to refinance within the next few months
Pros
  • Rocket Mortgage allows you to move at your own pace, guiding you through each step of the process. After you answer all the application questions, Rocket Mortgage lets you know if you’re approved and show your personalized mortgage recommendations
  • You can submit checking and savings account information, tax returns and other financial documents online — a feature that sets Rocket Mortgage apart from online competitors
  • RateShield allows you to lock in your Rocket Mortgage approved rate for up to 90 days
  • The home loan application process can be completed in minutes, allowing you to find out if you qualify for a mortgage right away
  • The online software allows you to navigate through the entire home buying process, from approval to home closing. Once you’re approved and you make an offer on your home, Rocket Mortgage offers online tools that will help you move through the rest of the closing process
Cons
  • While Rocket Mortgage has customer specialists ready to answer your questions and provide guidance, if you prefer sitting across from a person when filling out financial forms, this lender might not be right for you
  • You can’t easily view all of Rocket Mortgage’s home loan options prior to applying. It offers conventional, FHA, USDA and VA loans, but you’ll need to apply to find out more about the mortgage types within these offerings and which ones you’re eligible for

Pros

  • Several loan programs available
  • Rate reduction programs can lower your interest rate
  • Save up to $10,000 when buying through Rocket Homes
  • Down payment assistance programs in select markets

Cons

  • Requires a two-year waiting period
  • Rates are not the lowest available

Rocket Mortgage (formerly known as Quicken Loans) does not service non-QM loans that might allow for an immediate loan after negative financial events. However, it is one of the largest home loan providers. Rocket Mortgage has several conventional and government-backed home loan options if you are beyond the two-year waiting period.

Rocket Mortgage offers FHA or VA loans just two years after bankruptcy. After four years, you can apply for most loan types. It has many loan programs, including ONE+, which helps you get a conventional loan with as little as 1% down. Rocket Mortgage also has resources to help with credit repair, and its all-online mortgage process makes it easy to complete a mortgage application.

Best for Low Credit: Alpine Mortgage Services

Pros

  • Some programs require a credit score of only 500
  • FHA and VA loans available
  • Interest-only loan option
  • Competitive rates

Cons

  • Only available in select states
  • Best rates require a 25% down payment

Alpine Mortgage Services is a New Jersey-based lender providing mortgages to various customers. In addition to loans for imperfect credit, its programs include fixed-rate and adjustable-rate mortgages, FHA and VA loans, and first-time buyer loans. Its bad-credit loans require a minimum credit score of just 500 and have no waiting period after a Chapter 7 or Chapter 13 Bankruptcy.

The lender offers flexible payment options, including credit card installments and late payments. Alpine’s non-QM mortgage requires only a 500 credit score, though the minimum down payment is 20%. You can cut that in half with its FHA Low Score program, which still requires a 500 credit score but only requires a 10% down payment. The biggest downside for this lender is that it only operates in eight states: CA, CT, FL, GA, NJ, NY, PA and TX.

Best for Non-QM: Peoples Bank Mortgage

Pros

  • Offers mortgages as soon as one day after completing a bankruptcy plan
  • Mortgages available in all 50 states
  • Specific focus on mortgages after bankruptcy
  • Simple process to get a mortgage with a Chapter 7 bankruptcy

Cons

  • Doesn’t publish rate information
  • Only two branches

Peoples Bank Mortgage is a lender offering many mortgages, including those for Chapter 7, Chapter 11 and Chapter 13 bankruptcy. Customers may qualify for conventional mortgages and FHA, USDA and VA home loans. However, the lender particularly emphasizes helping borrowers who recently declared Chapter 7 or Chapter 11 bankruptcy or are currently in Chapter 13 bankruptcy. This makes it our top choice for non-QM loans, as it is intimately familiar with customers who don’t fit the traditional financial profile.

Peoples Bank Mortgage doesn’t provide many specifics on its website; for example, it doesn’t mention its rates, fees or minimum credit score for approval. However, it does show 620 at the low end of its credit score spectrum and recommends keeping your score above this threshold. Its website provides a number and consultation form to connect you with a loan officer. It operates in all 50 states, so geography won’t prevent the lender from approving you.

How to Get a Mortgage After Bankruptcy

If you’ve gone through bankruptcy recently, you may wonder whether you can still get a mortgage. The answer is yes, but it may be more challenging than it would be for someone with a clean credit history. The key is to find a mortgage company specializing in providing home mortgages to individuals who have gone through bankruptcy.

Step 1: Understand the Different Types of Bankruptcies

The key to getting a mortgage after bankruptcy is understanding the different bankruptcy filing types and how they impact your eligibility for various loan programs.

People can file two types of bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is known as a straightforward bankruptcy and involves liquidating most of one’s assets to pay off debts. Chapter 13 involves restructuring one’s debts into a repayment plan. Both types of bankruptcy stay on one’s credit report for seven to 10 years.

Obtaining a Mortgage After a Chapter 7 Bankruptcy

If you have filed for Chapter 7 bankruptcy, you will have to wait at least two years after discharge to qualify for a conventional mortgage. However, if you’re willing to go with a government-backed loan, such as an FHA or U.S. Department of Agriculture (USDA) loan, you may be able to qualify for a home mortgage after just one year. Remember that these types of loans may require a higher down payment and interest rate.

“A lot of how lenders treat your Chapter 7 bankruptcy depends on the recency of the filing and discharge of your case,” says Derek Jacques, an attorney at Mitten Law with experience in Chapter 7 bankruptcy cases. Jacques says your chances of approval will be much greater if your bankruptcy was discharged three years ago versus six months ago, for example.

Obtaining a Mortgage After a Chapter 13 Bankruptcy

If you have filed for Chapter 13 bankruptcy, you may be able to qualify for a mortgage sooner, as long as you have completed at least one year of payments on your repayment plan and have received permission from the bankruptcy court to take on new debt. Additionally, you must have a good credit history since filing for bankruptcy.

Step 2: Focus on Improving Your Credit Score

Start by reviewing your credit report in detail to understand your credit score, history and outstanding debts. You can obtain a free credit report once per year from the three primary credit bureaus: Experian, TransUnion and Equifax. Check your credit report carefully for any errors or inaccuracies and dispute them immediately.

From there, you’ll need to focus on making on-time payments on all existing credit accounts. You may also want to explore options for rebuilding credit. This can include opening a secured credit card or obtaining a credit-builder loan. These credit options are designed for people with poor credit who want to rebuild their credit. Keep in mind that credit-builder loans can be pricey.

Jacques recommends paying off all debts and making new payments on time. He says this communicates to lenders that you are responsible enough to be considered for a mortgage loan.

Remember, your credit score influences how likely you are to receive a mortgage approval and plays a critical role in determining the mortgage rate you will receive. Maintaining a stronger credit score can help you obtain a lower mortgage rate.

Step 3: Consider the Type of Mortgage Loan

Two main options are available to homebuyers with bankruptcies – a non-qualified home loan and a standard home loan.

Non-Qualified Mortgage Loan

Non-qualified home loans are types of mortgages that allow borrowers who cannot qualify for a traditional mortgage to purchase a home. These loans are often granted to borrowers with credit scores that don’t meet the usual requirements, irregular income or lack of documentation to verify their income.

Keep in mind that although non-qualified home loans provide an opportunity for people unable to obtain traditional mortgages, they also carry higher interest rates. It’s important to understand what you are getting into before committing to repayments.

Standard Mortgage Loan

If you decide to pursue a standard loan, you will likely be subject to a waiting period, which can provide ample opportunity to focus on repairing your credit and determine your ideal loan type. Below, you will find the standard waiting period for each type of loan as well as the type of bankruptcy that each waiting period applies to.

  • Conventional: four years for Chapter 7; two years for Chapter 13
  • FHA: two years for Chapter 7; one year for Chapter 13
  • VA Loan: two years for Chapter 7; one year for Chapter 13
  • USDA: three years for Chapter 7; one year for Chapter 13

Step 4: Shop Around for a Mortgage Company

You’ll need to find a lender that offers mortgages to homebuyers with bankruptcy on their record. Make sure to compare different lenders and their offers. A great place to start is with the mortgage companies outlined in this guide. 

Once you have identified potential lenders, gather all necessary documentation such as tax returns, pay stubs and bank statements. This will help demonstrate your ability to make mortgage payments and improve your approval chances.

How to Prepare for a Bank Statement Mortgage

As you prepare for a mortgage loan following bankruptcy, there are steps that you can take to improve your chances of finding an affordable home loan.

Prepare Your Documentation

Before applying for your mortgage loan, gather documents proving your assets. This may include bank statements, statements from retirement accounts and taxable brokerage accounts and documentation of business assets. The more assets you can prove you own, the more financing you can take advantage of.

“The best mortgage lenders for post-Chapter 7 borrowers will look at more than a credit score and consider the borrower’s overall big financial picture, including employment stability and the size of the down payment,” says Leon Turkin, a mortgage broker at Turkin Mortgage. Turkin says that while some lenders are willing to lend to those who don’t fit the typical borrower profile, that can mean higher down payments and interest rates.

Save a Larger Down Payment

If you can afford to take some more time to save a larger down payment, you may be able to access lower rates.

Consult with a Loan Professional

If you aren’t sure which type of loan is right for you, consider consulting with a qualified and non-QM lender to explore your options. After speaking with both types of lenders, you can compare your options directly and choose the loan that fits your situation.

How Does Getting a Mortgage After Bankruptcy Work?

The process for getting a mortgage after bankruptcy varies by lender and the type of bankruptcy. However, you generally must wait one to four years after the bankruptcy is discharged to get a mortgage. Once the waiting period ends, you usually have a consultation with a loan officer about your situation.

After an initial consultation, the loan officer walks you through the application process. Often, borrowers applying with a Chapter 7 bankruptcy have imperfect credit, so the loan officer may also make recommendations such as improving your credit or they may verify your income or assets as part of the application. This can help strengthen your application if your credit score is low due to your bankruptcy declaration. Other steps may help, such as writing a letter explaining the situation and how you are working to get your finances on track.

Apart from these considerations, applying for a mortgage after bankruptcy is similar to any other application. Lenders offer various loan programs for Chapter 7, including conventional and non-QM loans, FHA, VA and USDA. You typically work with a loan officer and lender to get preapproved and submit your loan application, at which point, the loan is sent to underwriting. Once you provide all the relevant documentation and details, you can wait for approval and close on the loan.

Chapter 7 Mortgage Alternatives

Although many lenders offer Chapter 7 mortgages, they aren’t always the best option. Borrowers in this category often face high rates, particularly if they cannot make a sizable down payment. This can lead to difficulty gaining approval or difficult-to-manage monthly payments.

Consider the following options if you need an alternative to Chapter 7 bankruptcy loans:

  • Cash-out refinance: If you are already a homeowner, you can cash out your existing mortgage, take out a larger one and use the difference to make a significant down payment.
  • Debt management plan: Work on a plan with a credit counselor who can help you manage and reduce how much debt you have. This can help make your monthly payments easier to manage.
  • Debt consolidation: Combining your debts into a single payment can make them more manageable. If your credit has improved, it can also reduce your interest rate and, in turn, your monthly payments.
  • Government assistance: Various government programs are available to provide funds for down payments, lower your rate, or reduce monthly payments.

Why You Should Trust Us

Applying for a mortgage is often a daunting process, with many steps and endless pages of documents to sign. As a personal finance writer with over six years of experience, I’ve spent countless hours researching the best financial products available. During that time, I’ve become familiar with the ins and outs of each product. While none are perfect, the information presented here can help you become more knowledgeable as you search for the best product to meet your needs.

In addition, the experts I consulted are among the best qualified to answer your questions about the topic. One is a lawyer who helps people navigate Chapter 7 bankruptcy proceedings; the other is a mortgage broker who matches customers to the best mortgage. This provides professional opinions from different parts of the process, creating a well-rounded perspective.

The Bottom Line

Having a bankruptcy on record can make applying for a mortgage intimidating. Bankruptcies can result in higher rates and the need to make a larger down payment, but the lenders we discussed aren’t strangers to working with bankruptcy. As our top picks in this category, they can help you navigate the process with relative ease and secure the best rates possible in your situation.

Methodology: How We Found the Best Mortgage Lenders for Chapter 7

Finding the best lender isn’t easy, especially when you have a bankruptcy on record. But Benzinga is here to help. Over 25 million readers trust us for advice and news on stocks, investing, insurance and of course, mortgages.

We evaluated lenders using several key criteria to help find the best lenders for Chapter 7. The factors we used to determine the best lenders in this category are rates, fees, loan options, customer service, credit score and the application process. Check out our full methodology here. 

Frequently Asked Questions

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Who is the most lenient mortgage lender?

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Who is the most lenient mortgage lender?
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Determining the most lenient mortgage lender is tricky because they often use many criteria in their approval decisions. However, the simplest answer is to consider lenders like Alpine Mortgage Services. Based on my research, this is among the most lenient of lenders, as its minimum credit score requirement is only 500.

 

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Q

Can a mortgage be forgiven in bankruptcies?

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Can a mortgage be forgiven in bankruptcies?
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Forgiving a mortgage in bankruptcy is possible, especially with Chapter 7. The mortgage is discharged or eliminated during this process. This can significantly damage your credit, but the advantage is it is no longer your responsibility to pay the debt.

 

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How long after Chapter 7 can I get an FHA loan?

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How long after Chapter 7 can I get an FHA loan?
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You generally must wait two years after a Chapter 7 bankruptcy is discharged before getting an FHA loan. One exception is if you file for bankruptcy due to circumstances beyond your control. If this happens, you may be able to reduce the waiting period to one year.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?
The main difference between Chapter 7 and Chapter 13 is that Chapter 7 is considered a liquidation, while Chapter 13 allows you to reorganize your debts. In other words, with Chapter 7, all your non-exempt assets are sold to credits, with debts wiped from your record. In a Chapter 13 bankruptcy, you create a plan to repay your debts over time.

answered

Sources

  1. About | Mitten Law
  2. Our Team of Dedicated Mortgage Professionals | Turkin Mortgage

The post Best Mortgage Lenders That Work With Chapter 7, According to Experts by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

]]> https://cdnwp-s3.benzinga.com/wp-content/uploads/2025/02/11084814/IMG_6220.jpeg HELOC vs Personal Loan: Which Should You Choose? https://www.benzinga.com/money/heloc-vs-personal-loan Thu, 09 Jan 2025 17:25:58 +0000 https://www.benzinga.com/?p=347438 The post HELOC vs Personal Loan: Which Should You Choose? by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

HELOCs and personal loans have pros and cons and the best choice can vary significantly from person to person. Numerous options are available when you need access to some extra cash. Two potential options are home equity line of credit (HELOC) vs. a personal loan. A HELOC uses your home as collateral, while a personal … Continued

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heloc vs personal loan

HELOCs and personal loans have pros and cons and the best choice can vary significantly from person to person.

Numerous options are available when you need access to some extra cash. Two potential options are home equity line of credit (HELOC) vs. a personal loan. A HELOC uses your home as collateral, while a personal loan is usually unsecured. As a homeowner and personal finance expert, I can help you understand each approach’s benefits and drawbacks.

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What is a HELOC?

A HELOC is a revolving line of credit that uses your home as collateral. With a HELOC, you can borrow up to 85% of your home’s appraised value. For instance, suppose your home is appraised at $500,000 and you still owe $300,000 on your mortgage. If you can borrow up to 75% of your home’s value, you can get a HELOC of up to $75,000. This is because you must subtract the amount you owe on your mortgage to find the HELOC amount. Still, HELOCs sometimes let you borrow more than personal loans, often capped at $50,000.

“A HELOC will often help a borrower get a lower interest loan and qualify for a higher amount, but you are exposing your house to risk,” says Ashley Morgan, Attorney/Owner at Ashley F Morgan Law, PC. Morgan says that while we can’t imagine foregoing a payment, one missed installment on a HELOC puts your home at risk.

Because a HELOC is a secured loan, interest rates are typically lower than rates on personal loans. However, creditworthiness is a significant factor and rates can be competitive for either product. HELOC interest rates are often variable, which can make budgeting for them difficult. However, there are some options for a fixed-rate HELOC.

There is usually a draw period of 10 years, during which you can borrow money against your credit line. You can also make interest-only payments during the draw period. This increases the amount you can borrow, much like making payments on a credit card. Once the draw period ends, you begin the repayment period, during which you repay the principal on the loan. The repayment period typically lasts 10 or 15 years.

Pros

  • Potentially low interest rates
  • Traditionally, it lets you borrow more than a personal loan
  • May be tax-deductible if you use the money for home improvements

Cons

  • Could put your home at risk if payments are missed
  • Often requires closing costs and other fees
  • Application process may take longer than a personal loan

What is a Personal Loan?

A personal loan is typically an unsecured loan requiring fixed monthly payments. Funding is often completed within a few business days and loan amounts can be relatively generous. For instance, many lenders offer personal loans ranging from $1,000 to $50,000, with some offering loans up to $100,000. Repayment terms usually range from two to seven years.

Because personal loans are typically unsecured, they are generally less risky. For instance, there is usually no risk of losing your home or other assets if you can’t make payments. “A personal loan likely is at a higher Interest (possibly lower than credit card rates) and typically has a lower amount financed, but it has no collateral attached to the loan,” Morgan says. However, this also means it can be tougher to qualify and receive favorable interest rates, especially for those who don’t have good to excellent credit.

Another benefit of personal loans is their flexibility. You can use the money for almost anything, though these loans are often marketed for specific purposes. For instance, you might find loans for debt or student loan consolidation, medical bills or paying for a large expense. However, the interest on personal loans usually isn’t tax-deductible, unlike the interest on a HELOC when you use it for home improvement.

Pros

  • Funds may be available within a few business days
  • Interest rates can be low
  • Generally no risk to your home or other assets
  • Interest rates are often fixed

Cons

  • Interest is not tax-deductible
  • Typically require good to excellent credit
  • May include origination and other fees

HELOC vs Personal Loan

FeatureHELOCPersonal Loan
Collateral RequirementUses your home as collateralUsually no collateral
Loan AmountsUp to 85% of your home’s appraised valueTypically $1,000–$50,000, with some lenders offering up to $100,000
Interest RatesTypically lower due to being securedGenerally higher
Repayment TermsInterest-only payments during the draw period; repayment period typically lasts 20 yearsFixed monthly payments over the loan term
FlexibilityRevolving line of creditLump sum amount
Tax BenefitsInterest may be tax-deductible if used for home improvementsInterest is not tax-deductible
RiskYour home is at risk if you fail to make paymentsNo risk to your home or other assets
Approval TimeLonger approval process; may require closing costs and other feesTypically faster approval, with funds available in a few business days
Credit RequirementsCreditworthiness is a factor, but collateral can help offset lower creditGenerally requires good to excellent credit
FeesMay include closing costs and other feesMay include origination fees

How to Choose Between a HELOC and a Personal Loan 

When deciding between a HELOC and a personal loan, you must carefully consider your finances and ability to assume risk. Each choice has pros and cons, so neither is always better in every circumstance. For instance, a HELOC can allow you to borrow more, possibly at a lower rate. 

“A HELOC could be a better choice if the borrower is looking to take out a large amount,” says Kyle Enright, president of Achieve Lending. “Personal loans for as much as $50,000 can be relatively easy to find, but for more than that, it can be harder,” Enright says.

However, funding for a HELOC can take longer than a personal loan, the fees can be higher and it may risk foreclosure on your home if you can’t make your payments.

If you have a stable job and money isn’t an issue, you might prefer a HELOC for its potentially higher borrowing limits and lower rates. If you plan to use the money from your HELOC for home improvement, the interest can be tax-deductible. But if you are a freelance worker with variable income, the risk of foreclosure might be too much to bear. In this case, a personal loan might be better.

You should also consider a personal loan if you need the money quickly. Funds from some personal loans can be available within a few business days, while a HELOC generally takes two to six weeks to process. HELOCs work like a second mortgage, including the associated closing costs. Personal loans may have fees, but the fees that come with a HELOC are often higher.

Either a HELOC or personal loan has pros and cons. The best choice depends on the situation.

Why You Should Trust Us

Choosing between two financial products can be daunting, each with advantages and disadvantages. As a personal finance writer with over five years of experience, I’ve spent countless hours researching the best financial products available. During that time, I’ve become familiar with the ins and outs of each product. While none are perfect, the information presented here can help you become more knowledgeable as you search for the best product to meet your needs.

In addition, the experts I consulted are among the best qualified to answer your questions about the topic. Ashley F. Morgan is a debt and bankruptcy lawyer who helps people with their debt issues and HELOCs and personal loans are two common debt consolidation tools. Kyle Enright is president of Achieve Lending, a personal finance company that helps people find loans, such as personal and home equity loans.

Get a Purchase or Refinance Quote

Get a Purchase or Refinance Quote

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FAQ

Q

What is the difference between a personal loan and HELOC?

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What is the difference between a personal loan and HELOC?
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There are several differences between a personal loan and a HELOC, but the two main differences are the type of loan and the collateral requirement. A HELOC is a line of credit that works like a credit card, while a personal loan is an installment loan you pay off over months or years. HELOCs use your home as collateral, while personal loans are usually unsecured.

 

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Is a HELOC cheaper than a loan?

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Is a HELOC cheaper than a loan?
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A HELOC can be cheaper than a personal loan because HELOCs often have lower rates. However, creditworthiness is a big factor in the rate you pay on either type of loan. HELOCs also have closing costs, which can significantly add to your pay.

 

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Do you need an appraisal for a HELOC?

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Do you need an appraisal for a HELOC?
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You typically need an appraisal for a HELOC. A HELOC acts as a second mortgage, so you may need to pay many of the closing costs you did when you first purchased your home. These include application, attorney and title search fees.

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Sources 

1. What you should know about Home Equity Lines of Credit (HELOC) – CFPB

2. Are HELOC Rates Fixed or Variable? – PenFed

2. Understanding a HELOC: draw vs. repayment period – Citizens Bank

2. Personal Loan Agreements: Terms and Possible Fees – Discover

3. How Long Does It Take It Get a HELOC? – Credit Union of Southern California

4. HELOC Closing Costs & HELOC Fees – Discover

The post HELOC vs Personal Loan: Which Should You Choose? by Bob Haegele appeared first on Benzinga. Visit Benzinga to get more great content like this.

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