Home equity is an effective way for homeowners to build wealth. It can also be a valuable financial resource when you need access to funds.

If you have enough equity in your home, you can borrow against it through a home equity line of credit (HELOC). While a HELOC has pros and cons, this loan can help you cover home renovations, emergency expenses, debt consolidation and more.

Here’s our expert list of some of the best HELOC lenders of 2025, along with a closer look at what a home equity line of credit is and how it works. To create this list, we consulted multiple certified financial planners and experts, plus evaluated each HELOC lender through a standardized methodology, which you can view at the bottom of this article. I’ve also been working in finance for the past decade, so it’s safe to say I know a thing or two about HELOCs. Let’s get into it, shall we?

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8 Best HELOC Lenders

• Best for Fast Payouts: Rate.com
• Best Overall HELOC Lender: Bethpage Federal Credit Union
• Best for A Variety of Options: New American Funding
• Best Fixed-Rate HELOC Lender: Figure
• Best HELOC for Veterans: Navy Federal Credit Union
• Best HELOC for Bad Credit: Lower
• Best HELOC for Self-Employed: PenFed Credit Union
• Best HELOC for Investment Property: Better

Best for Fast Payouts: Rate.com

Best For

Fast Payouts

Overall Rating

Read Review

Get started securely through Rate.com’s website

Minimum Credit Score: 620+
Max Loan-to-Value (LTV): 80% or less
Average Loan Payout Time: Typically 5-10 days
National or Regional Lender: National

Rate.com, previously known as Guaranteed Rate, offers home equity lines of credit (HELOCs) that cater to homeowners seeking flexible financing solutions. Whether you need funds for home renovations, debt consolidation, or unexpected expenses, Rate.com provides a competitive option with streamlined application processes and transparent terms.

A key advantage of Rate.com’s HELOC is its digital-first experience. The lender’s online platform allows users to apply, track progress, and manage their HELOC seamlessly. This is particularly beneficial for tech-savvy borrowers who prefer a fast, hassle-free lending process.

Borrowers can access funds as needed, similar to a credit card, with variable interest rates based on market fluctuations. Additionally, Rate.com provides fixed-rate conversion options, which can be ideal for those looking to stabilize payments in a rising interest rate environment.

For homeowners with strong credit and stable income, Rate.com’s HELOC is a reliable option with competitive interest rates and high borrowing limits. 

Best Overall HELOC Lender: Bethpage Federal Credit Union

Best For

Promotional Rates

Overall Rating

Get started securely through Bethpage Federal Credit Union’s website

More Details

APR

6.99%–10.99%

N/A

APR

6.99%–10.99%

Term Lengths

12–84 months

Min Credit Score

670

1 Minute Review

Bethpage offers a wide range of banking services for customers on Long Island and beyond. You can set up a checking account, save your money, get a mortgage, take out a loan and much more.

There are no closing costs or fees for loan application origination or appraisal. According to its site, members get access to their funds within 35 days on average.

Competitive rates for savings accounts are helpful for all customers, and you can easily access your account online or in the app at any time.

Best For

• Promotional introductory rate
• No closing costs
• Fixed-rate options

Pros

• Highly-rated mobile apps
• Excellent Trustpilot rating
• Lots of extra information on their website for customers and prospects

Cons

• Slower funding than other lenders
• Limited branches outside of Long Island
• Higher max LTV with other lenders

Ideal for: borrowers who want a personalized experience

Pros:

• Promotional introductory rate
• No closing costs
• Fixed-rate options
• Highly rated mobile apps
• Excellent Trustpilot rating

Cons:

• Higher max LTV with other lenders
• Slower funding than other lenders
• Limited branches outside of Long Island

With a Bethpage HELOC, you can secure a fixed rate as low as 6.99% for the first 12 months. After that, Bethpage bases your APR on your creditworthiness and the Prime Rate (currently 7.50%). The max loan-to-value (LTV) is 80%, but you can only withdraw up to 75% if you want the introductory rate.

There are no closing costs or fees for the application, origination or appraisal. Bethpage will pay closing costs for the first $500,000. However, they’ll become the borrower’s responsibility if the HELOC is closed within 36 months of opening. Typically, closing costs range from $500 to $15,000. According to its site, members get access to their funds within 35 days on average.

Bethpage has an excellent rating on Trustpilot, currently at 4.4 stars with over 80 reviews. Its mobile apps are also highly rated for both Apple and Android. I also contacted the credit union to ask some questions about this article. The representative responded promptly and was friendly and helpful.

What the experts had to say: “Bethpage Federal Credit Union really brings a member-first vibe with competitive rates and terms that feel tailored to your needs,” says Greg Clement, founder and CEO at Realeflow.

Minimum credit score: 670

National/regional: National

Max LTV: 80%

Best for A Variety of Options: New American Funding

Best For

A Variety of Options

Minimum Credit Score

620

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.

Minimum Credit Score: 620+
Max Loan-to-Value (LTV): Up to 80%
Average Loan Payout Time: Around 5 business days
National or Regional Lender: National

New American Funding (NAF) offers a versatile HELOC designed to cater to homeowners looking for quick and convenient access to their home’s equity. With high LTV limits, up to 80% in some cases, NAF’s HELOC is an excellent choice for borrowers who need to maximize their borrowing potential.

The application process is streamlined, with competitive interest rates and the ability to convert portions of the balance into fixed-rate payments. This hybrid structure helps borrowers manage interest rate fluctuations while still enjoying the flexibility of a traditional HELOC.

One standout feature is NAF’s commitment to working with a diverse range of borrowers, including those with non-traditional credit profiles. They emphasize personalized service, making them a solid option for homeowners who value a lender that prioritizes customer relationships over one-size-fits-all lending.

NAF’s HELOC is best suited for borrowers who want a lender with a strong customer service reputation, competitive rates, and the option to borrow a higher percentage of their home’s equity.

Best Fixed-Rate HELOC Lender: Figure

Best For

High Loan to Value

Overall Rating

Read Review

get started securely through Figure’s website

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

Ideal for: digital-savvy borrowers

Pros:

• Fixed-rate HELOCs
• Competitive interest rates
• Quick funding
• Option for secondary and investment properties
• Excellent Trustpilot rating

Cons:

• Origination fee up to 4.99%
• Must withdraw full loan amount at origination
• Higher max credit limits with other lenders

Most traditional HELOCs have a variable APR, meaning your interest rate can change anytime. Figure, however, offers a fixed-rate HELOC with rates ranging from 6.95% to 16.35%.

You may be able to prequalify with Figure’s 100% online application and receive your funding within five days. The credit limit is $400,000. However, you can redraw up to 100% of your original credit limit as you pay it off.

There aren’t any prepayment penalties, meaning if you pay off your HELOC faster and potentially avoid more interest costs, you won’t be dinged for it.

Customers have rated Figure 4.5 stars on Trustpilot. I contacted Figure with questions for this article. Although it took a few days to respond, a representative did get back to me. I sent my email on New Year’s Day, though, so it may have gotten lost in the shuffle with the holidays.

What the experts had to say: “Figure’s all about digital ease — they make the process simple and the numbers crystal clear,” says Clement.

Minimum credit score: 640

National/regional: National

Max LTV: 85%

Best HELOC for Veterans: Navy Federal Credit Union

Best For

Military Personnel and Their Families

Overall Rating

Get started securely through Navy Federal’s website

More Details

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

Ideal for: a long draw period

Pros:

• High max LTV
• 20-year draw period
• No closing costs
• Home Equity Line Platinum Credit Card
• Excellent Trustpilot rating

Cons:

• Slower funding than other lenders
• Poor Android app reviews
• Membership requirements

Navy Federal is a credit union that provides banking products to veterans. To qualify for membership, you or someone in your family or household must be a service member of the armed forces, DoD or National Guard.

Although you can potentially find a lower APR elsewhere, 7.75% is still a highly competitive HELOC rate. Navy Federal also lets you draw up to 95% of your loan-to-value ratio ($500,000 limit) – one of the highest max LTVs on this list. On top of that, the draw period lasts 20 years instead of the typical 10 and you get a Home Equity Line Platinum Credit Card.

If you decide to pay off your HELOC faster than originally planned, you can have peace of mind knowing you won’t face any penalty costs.

Members rate Navy Federal highly, with 4.5 stars from over 38,000 Trustpilot reviews. Its customer service is available 24/7 and there are over 360 branches worldwide. Although the Navy Federal Android app has received poor reviews on Google Play, it’s rated highly by Apple users.

What the experts had to say: “If you qualify for Navy Federal Credit Union (active duty, retired, veteran or family member of someone who served), their HELOC is a rather attractive option. You can seamlessly apply through your online account, and they don’t have any application, annual or origination fees. They offer a 20-year draw term, double the typical timeline of 10 years,” says Ryan Dossey, co-founder of SoldFast. “They also allow you to borrow up to 95% of the value of your home.”

Minimum credit score: Not disclosed

National/regional: National

Max LTV: 95%

Best HELOC for Bad Credit: Lower

Best For

High LTV Loan Options

Overall Rating

Get started

More Details

Best For

High LTV Loan Options

N/A

1 Minute Review

Lower is one of the more unique HELOC platforms, offering a low minimum credit score requirement of 580. Interest rates are competitive, sitting near 10%, with a max LTV of 95%. TrustPilot scores are high for this brand, and the experts say that, “Lower is modern and user-friendly, cutting through the clutter with a transparent approach that speaks to today’s borrower.”

Best For

• Competitive rates
• Simple application
• National coverage

Pros

• High LTV options
• Transparent and simple communication options
• Quality customer care

Cons

• Not everyone will qualify, please see terms and conditions and review your application carefully before submitting

Ideal for: borrowers who need a lot of money

Pros:

• High LTV
• Can qualify with a fair credit score
• Prequalify with a soft credit inquiry
• Customer support via text
• Excellent Trustpilot rating

Cons:

• Lower rates with other lenders
• 1% origination fee
• Not available in all states

Many lenders have HELOC requirements that include a credit score of 680 or higher. With Lower, however, you only need a score of 580. This makes it easier for subprime consumers to access credit.

Its HELOC interest rates are higher, ranging between 8.75% and 13.50% APR. However, the maximum LTV is 95% (up to $500,000), tying Navy Federal for the highest loan-to-value ratio on this list. Remember, though, that there’s a 1% origination fee for HELOC transactions.

Lower is one of the best HELOC lenders for Trustpilot ratings, with 96% of reviewers giving the company a 5-star review. Customers praise the company for its transparency, easy application process and outstanding service from its representatives.

What the experts had to say: “Lower is modern and user-friendly, cutting through the clutter with a transparent approach that speaks to today’s borrower,” says Clement.

Minimum credit score: 580

National/regional: National

Max LTV: 95%

Best HELOC for Self-Employed: PenFed Credit Union

Best For

Low HELOC Rates

Minimum Credit Score

N/A

Get started

More Details

Avg. Days to Close Loan

N/A

Minimum Credit Score

N/A

1 Minute Review

PenFed Credit Union is an excellent place to manage your finances, and the credit union offers home equity lines of credit for consumers with lower rates and more flexibility. You can use the 10-year draw period to manage your finances better, but you get 20 years to repay the loan, making it much more manageable.

Best For

• Low HELOC Rates
• Government employees
• Financial flexibility

Pros

• Use HELOC loans to manage debt and expenses
• Flexible repayment plans
• Long draw period

Cons

• Minimum credit score is very high

Ideal for:  borrowers who dislike origination fees

Pros:

• Competitive interest rates
• Fast closing
• No origination fees
• Clear documentation requirements 
• Excellent mobile app reviews

Cons:

• Expensive closing costs
• Higher max LTV with other lenders
• Better Trustpilot rating with other lenders

Applying for credit can be more challenging when you’re self-employed. PenFed makes it simple by clearly listing on its website the documentation that both W2 and self-employed workers need to qualify for a HELOC.

The credit union provides competitive rates on HELOCs, starting at 7.37% APR. Although closing costs range from $500 to $8,500, it has no origination fees and you can close in as little as 15 days. It’s also an interest-only HELOC during the 10-year draw period, meaning you’ll have lower payments.

PenFed won’t enforce any penalties if you pay off your HELOC early.

While there’s room for improvement, PenFed has a Trustpilot rating of 3.9 stars from over 1,500 reviews. Its mobile app also has excellent reviews on Google Play and the App Store.

Minimum credit score: 680

National/regional: National

Max LTV: 80%

What the experts had to say: “I’ve personally used PenFed Credit Union for a HELOC on one of my investment properties in Indiana, and I can confidently say they are one of the best options available—especially for real estate investors,” says Rich Kaul, owner at 702 Cash Buyers. “PenFed is among the few lenders that extend HELOCs to investment properties, a feature typically reserved for primary residences.”

*Rate update — APR as low as 7.375%

Best HELOC for an Investment Property: Better

Best For

The Online Experience

Minimum Credit Score

620

Get started

More Details

Avg. Days to Close Loan

21

Minimum Credit Score

620

1 Minute Review

Better.com is a fully digital mortgage lender known for its user-friendly online experience and lack of origination fees. Unlike traditional lenders, Better.com operates without commissioned loan officers, ensuring that their priority is finding the best mortgage for your needs, not theirs. The streamlined process is ideal for tech-savvy homebuyers who prefer a fast, transparent, and hassle-free experience. While Better.com’s digital approach is a major plus, it lacks certain government-backed loans like VA and USDA options, and it isn’t available in all states.

Best For

• Tech-savvy homebuyers who prefer an online experience
• First-time homebuyers looking for quick pre-approval
• Homebuyers seeking a no-fee mortgage process
• Borrowers interested in competitive refinancing options

Pros

• No application, origination, or commission fees
• Quick and straightforward online pre-approval process
• Rate lock available once tasks are completed
• User-friendly platform with 24/7 document upload capability

Cons

• Not available in all 50 states
• Does not offer VA or USDA loan

Ideal for: borrowers looking for money fast

Pros:

• Available for secondary and investment homes
• High max LTV
• Quick funding
• Prequalification with a soft credit inquiry
• Excellent Trustpilot rating

Cons:

• Lower rates with other lenders
• High minimum withdrawal
• No mobile apps

Many of the best HELOCs are only available for your primary residence. So if you want to take out a HELOC on investment properties or a second home, Better could be the ideal choice.

Rates start as low as 8.00% APR, but you must withdraw a minimum of $50,000 or 75% of your credit limit at closing, whichever is greater. You can get approved online within minutes, close as soon as three days and receive funding in as little as seven days.

If you choose to, you can pay off your Better HELOC sooner without the risk of prepayment penalties.

Better has an excellent Trustpilot score and is Better Business Bureau (BBB) accredited with an A rating. It doesn’t have a mobile app, which may be a turnoff if you like managing your finances from your phone.

What the experts had to say: “And then there’s Better—efficient, low fees and a straightforward process that keeps things honest from start to finish,” says Clement.

Minimum credit score: 680

National/regional: National

Max LTV: 90%

What is a HELOC?

A home equity line of credit, or HELOC, is a loan that allows you to borrow money using the equity in your home.

Your home equity is the value of your property minus the amount you owe on your mortgage.

Property Market Value – Remaining Mortgage Balance = Home Equity

So, as you pay down your mortgage, your home equity will increase if your property value goes up.

When you’ve built enough equity in your home, you can open a revolving line of credit with a HELOC. However, since your home secures the loan, you risk foreclosure if you can’t make the payments.

How Does a HELOC Work?

HELOCs typically have a set credit limit. Some of the best HELOC lenders let you borrow up to 80% of your home’s loan-to-value ratio (LTV), which is the value of your home minus the amount you owe on your mortgage.

You can use the line of credit as needed during the draw period (usually five to 10 years). Many lenders only require interest payments during this time. Then, once the HELOC draw period ends, you start paying the principal and interest during the repayment period (normally 10-20 years). But this might not always be the case:

“Some HELOCs require that you begin paying back interest and principal immediately after use, meaning not all loans allow you to continuously use and pay off your line of credit,” said Joseph Eck, CFP and owner of Stage Ready Financial Planning.

“A HELOC also typically comes with an annual fee and sometimes costs associated with the application and underwriting, whether you use the line of credit or not.”

You should also be aware that although some HELOCs offer fixed-rate options, most have variable interest rates, meaning the APR can change at any time.

Who Should Open a HELOC? 

Homeowners often use HELOCs to fund home repairs and renovations, which can be a strategic move that boosts the property’s value and increases home equity in the long run.

However, there may be other instances where you can use a HELOC:

“I often recommend opening a HELOC to create a liquid resource when a homeowner doesn’t have strong cash reserves,” said Eck. “If someone is trying to build up their emergency fund, a HELOC can be a great way to have access to cash in the meantime for an emergency.”

You might also use a HELOC to pay off credit card debt, cover educational costs or start a new business.

Fixed-Rate and Interest-Only HELOCs

Typically, a HELOC comes with a variable interest rate, meaning the interest amount can vary monthly. That’s not ideal for people who want to know exactly how much they need to budget, so you might want to look for a fixed-rate HELOC, which locks the interest rate in from when you open it. This type provides stability, and you can plan without any surprises.

Another common type of loan is an interest-only HELOC. During the draw period (when you can access the money in your HELOC), you’ll only pay the interest associated with the loan and not toward the principal. Many HELOCs have a draw period of 10 years, so it’s not until after that that you’re paying off the loan itself. It’s important to be prepared for that jump in monthly payment when the draw period ends.

Alternatives to HELOC

While a HELOC can be a great option if you’re low on cash or need to fund a project, it may not be the best choice for everyone. According to Eck, there are some potential downsides to consider:

“Payback terms and interest rates can vary dramatically and in many cases, your interest rate can fluctuate or increase over time,” Eck said. “If you use your HELOC, there’s always a risk that you would struggle to repay the loan, potentially putting your house at risk.”

If you’re not sure if a HELOC is right for you, here are some possible alternatives:

• Home equity loan: Similar to a HELOC, a home-equity loan lets you use your home equity to borrow money. The main difference is that you receive a lump sum instead of opening a line of credit. So, is a home-equity loan a good idea? It depends. A home-equity loan provides a fixed APR, making it more stable and predictable, while a HELOC offers more flexibility and often a lower interest rate.
• Cash-out refinance: If receiving a lump sum instead of a line of credit interests you, a cash-out refinance is another option. You take out a new mortgage to pay off your old one plus the amount you want to borrow. The loan may have different terms than your first mortgage, though, along with a new interest rate and amortization schedule.
• Reverse mortgage line of credit: People aged 62 or older can borrow from their home equity with a reverse mortgage line of credit. A reverse mortgage accrues interest but doesn’t require payments until the homeowner sells, moves out or passes away.
• Personal loan: Unlike a home-equity loan or HELOC, personal loans are unsecured, meaning you don’t need to provide collateral. You’ll likely pay a higher interest rate, but you won’t risk losing your home if you miss any payments.
• 0% introductory APR credit card: You can make interest-free purchases with some credit cards if you pay off the balance before the introductory period ends (usually within 12-18 months). This option is risky, though, because if you miss a payment or don’t pay the card off in time, you’ll likely get hit with back interest at a rate as high as 25% to 35% APR.

Why You Should Trust Us

Benzinga provides approximately 25 million monthly readers with up-to-date data and news so they can stay informed and learn more about the financial world. Since 2010, we’ve helped individual investors navigate the capital markets and improve their financial health without analyst and brokerage fees.

As for the author of this article, Carley Clark (yours truly), I have been writing about finance since 2020. In 2015, I earned my bachelor’s degree in business from Spring Arbor University and later worked in finance at a casino before transitioning to writing professionally.

For this piece, I consulted Joseph Eck, CFP, owner of Stage Ready Financial Planning. Eck has extensive financial education and about 10 years of experience in the industry.

HELOC Methodology 

To find the best HELOC lenders, I analyzed 25 financial institutions, which included a mixture of banks, credit unions and fintech companies. The interest rate was the most heavily weighted factor, followed by the max LTV. Trustpilot and BBB ratings, as did mobile app ratings, also factored in substantially. I also considered other aspects, including fixed-rate options, fees for underwriting, closing and funding time, max credit limits, minimum credit score requirements and any other standout features or drawbacks. For more info, read Benzinga’s full mortgage methodology.

Frequently Asked Questions

Sources

• Joseph Eck, CFP, owner of Stage Ready Financial Planning, via email interview on Dec. 27, 2024.
• Experian, “How to Get a HELOC,” retrieved on Jan. 5, 2025.
• HELOC lender information sourced from company websites, including Bethpage Federal Credit Union, Figure, Navy Federal Credit Union, Lower, PenFed Credit Union and Better.
• Greg Clement, founder and CEO at Realeflow, a real estate investing software company
• Ryan Dossey, co-founder of SoldFast, a real estate brokerage/home-buying franchise
• Rich Kaul, owner at 702 Cash Buyers, a house-buying company
• Review data sourced from the Better Business Bureau, Trustpilot, Apple App Store and Google Play.

The post Best HELOC Lenders for 2025 by Carley Clark appeared first on Benzinga. Visit Benzinga to get more great content like this.

Learn how refinancing works and how to compare lenders so you can save money, lower your monthly mortgage payments or access your home equity.

If you’re looking to reduce your monthly payments, lower your rate or cut back on fees, consider your mortgage refinance options. 

Ana Lopez, community development lending manager for Community Partners of South Florida, explained that refinancing could help you increase your home equity and pay off your mortgage faster:

“Refinancing is typically best for a homeowner when there are tangible benefits, such as a rate reduction, removing someone from the title or term reduction,” Lopez explained. 

Using my five years of financial writing experience and Benzinga’s in-depth methodology, I researched and found some of the best refinance lenders.

Quick Winners List

• Best VA Refinance Lender: Navy Federal Credit Union
• Best Cash-Out Refinance Lender: LoanDepot
• Best FHA Streamline Refinance Lender: New American Funding
• Best Online Refinance Lender: SoFi
• Best Refinance Lender for Bad Credit: NorthPointe Bank
• Best Refinance Lender for Investment Properties: Rocket Mortgage

Best VA Refinance Lender: Navy Federal Credit Union

Best For

Military Personnel and Their Families

Overall Rating

Get started securely through Navy Federal’s website

More Details

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: 

• Several financing options for service members
• Fantastic interest rates
• Credit score flexibility
• High max LTV
• Transparent fees
• Excellent Trustpilot rating

Cons: 

• Membership requirements
• Poor Android app rating

Navy Federal specializes in financial products with competitive rates and lower fees for military members, making it one of the best VA refinance lenders. You may be eligible for a no-refi rate drop if you already have your mortgage through the credit union.

Although it doesn’t have USDA or FHA loans, Navy Federal provides various refinancing options for service members. Its Military Choice loan lets you borrow even if you’ve maxed out your VA loan benefit. 

The credit union offers top-tier customer service. Members rate Navy Federal highly on Trustpilot, with 4.5 stars. The lender provides 24/7 phone support and has over 360 branches worldwide for overseas military members.

Minimum credit score: Not disclosed

Minimum down payment: 0%

Loan types offered: Conventional, VA, jumbo

States served: Not disclosed

Best Cash-Out Refinance Lender: LoanDepot

Best For

Comparing Lenders

Minimum Credit Score

620

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: 

• Direct mortgage lender
• “No Steering” policy
• Fee transparency
• Extended customer support hours
• Great Trustpilot rating
• Excellent mobile app reviews

Cons: 

• Prepayment penalty in some states
• Some reported negative customer experiences

LoanDepot is a direct mortgage lender that can originate and fund loans without a broker or middleman. This means the lender could offer lower rates and faster approvals, making it potentially one of the best cash-out refinance lenders if you need money quickly.

The company has a “No Steering” policy, so its employees won’t pressure you into loans that aren’t in your best interest. LoanDepot also doesn’t list its rates online to avoid misleading customers with APRs for which they can’t qualify. 

The company has a great 4.0-star rating on Trustpilot. While some customers report communication issues and delays in the loan process, most reviewers say they’ve had an excellent experience with LoanDepot.

Minimum credit score: 580

Minimum down payment: 3.5%

Loan types offered: Conventional, FHA, VA

States served: All 50 states

Best FHA Streamline Refinance Lender: New American Funding

Best For

Refinancing

Minimum Credit Score

620

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 offers conventional, proprietary and government-backed mortgages. Its variety of mortgage options make it worth checking out, especially if you have unique financial needs. It also offers options for refinancing and tapping into your home equity. Its products aren’t available to New York or Hawaii residents.

Best For

• Self-employed individuals
• Those with lower credit scores
• Those who want access to a variety of mortgage options

Pros

• Offers several mortgage options
• Website and app to manage your mortgage
• Educational resources like calculators, blogs and home buyer guides

Cons

• Not available in New York or Hawaii

Pros: 

• Several refinance options (including streamline FHA)
• No appraisal required
• Credit score flexibility
• Great interest rates
• Highly rated mobile apps
• Excellent Trustpilot ratings

Cons: 

• Advertised rates include 3.0 discount points
• Refinance fees not disclosed

If you want a faster refinance, a streamline FHA with New American Funding (NAF) could be the way to go. NAF also offers FHA cash-out refinances if you want to access some of your home equity.

While NAF guarantees a 14-business-day closing for purchase loans, it doesn’t specify a timeline for refinances. However, with flexible credit requirements, no appraisal and less paperwork, an FHA streamline refinance could help you close faster than other financing options. 

NAF customers rate the lender highly on Trustpilot, commending its support team and simple application process. Its mobile apps also have excellent reviews on Google Play and the Apple App Store. 

Minimum credit score: 580

Minimum down payment: 3%

Loan types offered: Conventional, FHA, USDA, VA

States served: All 50 states

Best Online Refinance Lender: SoFi

Best For

Current SoFi Members

Minimum Credit Score

620

securely through SoFi Mortgage’s website

Pros: 

• Simple online application
• Highly rated mobile apps
• Competitive interest rates
• Various loan options
• High max LTV
• Excellent Trustpilot rating

Cons: 

• Must provide email to view rates
• Doesn’t list fees on its website

As a financial technology company, SoFi offers an easy online application and a mobile app with excellent ratings on Android and Apple, making it one of the best digital refinance lenders. Its customers rate SoFi highly on Trustpilot, praising its service representatives and streamlined loan process. 

SoFi has several financing options, including conventional, VA, FHA and jumbo loans; however, it doesn’t offer USDA loans. You can also access either rate-and-term or cash-out refinancing through SoFi. 

Along with some of the best student loan refinance rates, SoFi also has excellent mortgage APRs. However, you’ll have to provide your email address to view its refinance rates.

Minimum credit score: 580

Minimum down payment: 3%

Loan types offered: Conventional, VA, FHA, jumbo

States served: All 50 states (no refinance in NY)

Best Refinance Lender for Bad Credit: NorthPointe Bank

Pros: 

• Credit score flexibility
• Accepts borrowers with past significant credit events
• Loan amounts up to $1,000,000
• Rate/term and cash-out refinancing available
• Transparent fees
• Highly-rated mobile apps

Cons: 

• Rates not listed on its website
• No phone support on weekends

Through NorthPointe Bank’s New Start loan program, you can qualify for mortgage refinancing up to $1,000,000 with a minimum credit score of 580. This is more flexible than most lenders, who require a 620 credit score. 

The program is also open to borrowers who have experienced significant credit events up to the application date. While NorthPointe doesn’t specify which events qualify, they could include bankruptcy, foreclosure or repossession. 

NorthPointe Bank’s mobile apps on Apple and Android have great reviews. With its HOME feature, you can apply for a loan, upload documents, communicate with your advisor and track the status of your financing.

Minimum credit score: 580

Minimum down payment: 0%

Loan types offered: Conventional, FHA, USDA, VA

States served: All 50 states

Best Refinance Lender for Investment Property: Rocket Mortgage

Best For

Online Mortgages

Minimum Credit Score

580

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: 

• Several refinance options (including for investment properties)
• Competitive interest rates
• Easy application process
• Excellent Trustpilot rating
• Highly-rated mobile apps

Cons: 

• No USDA loans
• No branch locations

Rocket Mortgage offers diverse loan options, including refinancing for investment properties (it also made our list of best jumbo mortgages). Rocket’s great interest rates may provide much-needed relief if you’re paying a high APR on a rental property. 

Refinancing an investment property can be more complex and may require more documentation. However, since Rocket Mortgage provides a streamlined online application process, it may be the best option to avoid unnecessary headaches.

The company had one of the best Trustpilot scores of the lenders I considered, with 4.9 stars from over 7,000 reviews. Its website is also packed with information on refinances and offers many great resources. 

Minimum credit score: 580 

Minimum down payment: 1%

Loan types offered: Conventional, FHA, VA, jumbo

States served: All 50 states

What is a Mortgage Refinance Lender?

A mortgage refinance lender is a financial institution, such as a credit union, bank or fintech company, that issues a new home loan to replace your existing one. 

You might want to refinance your mortgage to secure a better interest rate, decrease your monthly payments or reduce your term length. Refinancing also allows you to move to a different type of home loan. For example, you could switch from an adjustable-rate mortgage to a fixed-rate mortgage.

If you’re wondering how to refinance your mortgage, you can do so through your current lender or go to a different one. Comparing the best refinance lenders ensures you get the lowest rates and pay less in fees.

Costs of Refinancing

Although refinancing your mortgage can have many advantages, you should be fully aware of the costs associated with your new loan. 

“When refinancing, closing cost fees also play a big role in this process,” Lopez said. “Borrowers need to review the Loan Estimate that will show the closing cost amount.”

According to Freddie Mac, the closing costs for refinancing can range between 2% and 6% of the mortgage’s principal. 

“Closing costs can be rolled into the refinance loan if there’s enough equity,” continued Lopez. “But if not, then the borrowers will need to pay out of pocket.” 

Lopez also advised asking your lender about any additional fees and carefully reviewing the Loan Estimate to ensure no hidden charges. 

Types of Mortgage Refinancing

When you refinance your mortgage, a few options will likely be available. The best refinance lenders may offer the following types of loans:

• Rate-and-term refinance: This is the standard option for switching to a new mortgage with a different rate or term length.

• Cash-out refinance: When you switch to your new mortgage, you can add cash from your home equity to your total loan amount.

• Cash-in refinance: Instead of taking additional cash out when you refinance, you pay a lump sum toward your new mortgage to lower your total balance.

• Streamline refinance: With less paperwork and underwriting, you can speed up your VA, FHA or USDA loan refinance with this option.

• Reverse mortgage: Homeowners 62 and older can replace their existing mortgage with a new one to lower their interest rate, access their home equity or switch mortgage types. 

Why You Should Trust Us

Founded in 2010, Benzinga is a financial news and data platform that helps everyday investors manage their finances. We provide market news, investment insights, stock analysis and more to approximately 25 million monthly readers.

I, Carley Clark, the author of this piece, have been writing about finance since 2020. Before that, I worked at a casino as a revenue auditor in the finance department. I also earned a bachelor’s degree in business from Spring Arbor University in 2018. 

I interviewed Ana Lopez about some of the ins and outs of refinancing for this article. Lopez is the community development lending manager (NMLS #340649) at Community Partners of South Florida, a nonprofit organization. She has worked in finance for over 15 years and holds a Bachelor of Science in Business, Health Care Management and Human Resources from Park University.

Methodology 

I analyzed 28 mortgage companies using Benzinga’s multi-point methodology to find the best refinance lenders. Rate competitiveness and fees were weighted most heavily since they tend to have the greatest impact on borrowers.

Along with rates and fees, I considered the lender’s offerings of various loan types, including FHA, VA, USDA, jumbo and home equity loans.

Since customer service is another important aspect for borrowers, I checked reviews from Trustpilot, the BBB website, Zillow and Reddit. In addition to customers’ reported experiences, I also considered the available support channels and their hours and days of operation. 

The application process also factored into my evaluation. Lenders that let you apply online scored higher, along with those with faster closing times and highly rated mobile apps. 

Credit score flexibility was the last key part of the methodology. Most financial institutions require a 620 credit score to qualify for financing, so if a lender had lower minimum requirements, they scored higher.

If I couldn’t find the details of a lender’s refinancing, such as rates or closing times, I used the information for its mortgages. If I couldn’t find that information, I assigned a medium score for that category. When two lenders tied or scored very closely to each other, I considered any advantages or disadvantages outside of the standard methodology. 

You can read Benzinga’s full mortgage methodology to learn how we choose the best refinance lenders.

Frequently Asked Questions

Sources

• Ana Lopez, community development lending manager NMLS #340649 at Community Partners of South Florida, via email interview on Feb. 13, 2025.

• Freddie Mac, “Investment Property Mortgages,” retrieved on Feb. 17, 2025.

• Freddie Mac, “What Are the Costs of Refinancing,” retrieved on Feb. 17, 2025.

• Online lender information sourced from company websites, including Navy Federal Credit Union, LoanDepot, New American Funding, NorthPointe Bank, SoFi and Rocket Mortgage.

• Review data sourced from Trustpilot, the Better Business Bureau (BBB), the Apple App Store and Google Play.

The post 6 Best Mortgage Refinance Lenders of 2025 by Carley Clark appeared first on Benzinga. Visit Benzinga to get more great content like this.

A great mortgage lender isn’t just about low interest rates — it’s about clear terms, helpful customer support and an easy application process.

Exploring home loan options from your couch has never been easier. Instead of multiple in-person meetings and mountains of paperwork, you can apply straight from your phone.

“The digital world has drastically changed the mortgage process,” said John Dustman, senior vice president (SVP) and head of consumer lending and advisor banking at Axos Bank. “Today, consumers can enjoy a streamlined and convenient experience when shopping for and obtaining a mortgage.”

As a financial writer for nearly five years, I’ve used Benzinga’s standardized methodology to compile a list of some of the best online mortgage lenders.

6 Best Online Mortgage Lenders in 2025

• Best Overall Online Mortgage Lender: New American Funding
• Best Online Mortgage Lender for First-Time Buyers: NorthPointe Bank
• Best Online Mortgage Lender for Refinancing: Pennymac
• Best Online Mortgage Lender for Bad Credit: Sage Home Loans
• Best Online VA Mortgage Lender: Navy Federal Credit Union
• Best Online Mortgage Lenders for Ease of Use: Sofi

Best Overall Online Mortgage Lender: New American Funding

Best For

A Variety of Options

Minimum Credit Score

620

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

• First-time home buyers program
• Cash offer program
• 14-business-day close guarantee
• Credit score flexibility
• Highly rated mobile app ratings
• Excellent Trustpilot ratings

Cons

• Lower rates with other lenders
• Advertised rates include 3.0 discount points

New American Funding (NAF) won the best overall online mortgage lender award due to its variety of loan options, transparent fees, flexible credit score requirements, competitive rates and other fantastic perks it offers borrowers. It also made our list as one of the best conventional mortgage lenders.

The lender has a cash buyers program, so it will buy the home for you in cash and sell it to you at the original price (with a fee). Since you’re purchasing with cash, your offer may be more attractive to the seller.

NAF also provides Pathway to Homeownership to qualifying first-time home buyers. The program can provide up to $7,500 in assistance for your down payment, closing costs and other upfront expenses.

Minimum credit score: 580 

Minimum down payment: 3% 

Loan types offered: Conventional, FHA, USDA, VA

States served: All 50 states

Best Online Mortgage Lender for First-Time Buyers: Northpointe Bank

Pros

• Simple application process
• 0% down for some loans
• Fast closing time
• Several financing options 
• Transparent fees
• Highly-rated mobile apps

Cons

• Rates not listed on its website
• Limited phone support hours

Northpointe Bank offers a wide range of borrowing options, including conventional mortgages (fixed and variable) as well as FHA, VA, USDA and home equity loans. On top of that, some of its home loans don’t require a down payment, making it one of the best mortgage lenders for first-time home buyers.

This lender also provides a speedy closing time. According to its website, your loan could be ready to close in 15 business days or less. 

Northpointe’s HOME app, which has excellent reviews, lets you apply, upload documents, monitor your loan progress and message your loan advisor. These features can make the application and closing process much more streamlined, which is a great perk for first-time home buyers.

Minimum credit score: 580

Minimum down payment: 0%

Loan types offered: Conventional, FHA, USDA, VA

States served: All 50 states

Best Online Mortgage Lender for Refinancing: Pennymac

Best For

Quick Closings

Minimum Credit Score

620

Get started

More Details

Avg. Days to Close Loan

10

Minimum Credit Score

620

1 Minute Review

PennyMac is a unique marketplace that allows you to find affordable mortgages and competitive rates for a range of loan products. You can get rate and purchase bonuses along with other special offers throughout the year.

Best For

• Quick closings
• Rate bonuses
• Purchases bonuses

Pros

• Easy to apply online
• Simple preapproval process
• Home equity loans are also available

Cons

• Certain types of specialty loans are not available

Pros

• Refinance credit
• Competitive rates
• Transparent fees
• Bonus toward closing costs
• Several financing options 
• Highly rated mobile apps

Cons

• Limited phone support hours
• Mixed customer reviews

Pennymac took the spot as one of the best online mortgage lenders for refinancing because of its excellent rates and perks, including a refi credit. When you purchase your home through Pennymac, you may be able to receive $2,000 if you refinance within three years.

Along with home refinance loans and cash-out refinancing, Pennymac offers many different loan options, including fixed and adjustable rate mortgages, home equity loans and government-backed home loans. 

When you’re preapproved, the lender offers a $1,000 bonus toward your closing costs, as well as a 1% rate discount for the first 12 months.

Minimum credit score: 580

Minimum down payment: 3%

Loan types offered: Conventional, FHA, VA, USDA

States served: All 50 states

Best Online Mortgage Lender for Bad Credit: Sage Home Loans

Pros

• Flexible credit score requirements
• Excellent rates
• Preapproval letter
• Dedicated loan officer
• No origination fees
• $500 on-time close guarantee

Cons

• Fees not listed on website
• Not many customer reviews

Sage Home Loans, owned by Red Ventures, offers some of the best mortgage rates. It also has no origination fees and a $500 close-on-time guarantee. 

You apply for your mortgage by phone or online and will receive a dedicated loan officer to help you. Even if your credit score is less than stellar, you might still qualify for a mortgage through Sage. According to its website, the company offers FHA loans, which only require a minimum 500 credit score. 

There aren’t many customer reviews online, but most borrowers are happy with Sage overall. I tried to email the lender with a couple of questions for this article, but two business days later, I haven’t heard back.

Minimum credit score: 500

Minimum down payment: 3%

Loan types offered: Purchase and refinance

States served: All U.S. states except NY

Best Online VA Mortgage Lender: Navy Federal Credit Union

Best For

Active and Retired Military

Overall Rating

Get started

More Details

APR

7.49%–18.00%

N/A

APR

7.49%–18.00%

Origination Fee

$0

Term Lengths

12–60 Months

1 Minute Review

Navy Federal Credit Union serves active and retired military personnel with a wide range of banking options, including mortgages that may include VA, conventional, FHA, USDA, jumbo, construction and/or investment loans. Check your eligibility on the Navy Fed website and apply today, speak to a loan officer or visit your local branch for more information.

Best For

• Active and retired military
• Military families
• Getting the same loans you would get at any other bank

Pros

• Simple for military personnel to manage accounts
• Many other banking services are available
• The credit union keeps costs and fees down

Cons

• Remember that spouses or children need to verify their eligibility before opening accounts

Pros

• Great rates with flexible credit requirements
• Loan options with no down payment
• No PMI required
• Transparent fees
• 24/7 customer service
• Excellent Trustpilot ratings

Cons

• No FHA or USDA loans
• Membership requirements

You might want to consider Navy Federal for a mortgage lender if you’re a veteran. The credit union only serves current and former military members and their families, so it often provides exclusive rates and discounts for our nation’s heroes. However, If you find a better APR elsewhere, Navy Federal will match it if certain conditions are met. 

Navy Federal provides other excellent perks, including a no-refinance rate drop, up to $9,000 cash back with RealtyPlus, and loan options with no down payment or PMI required. These benefits can be especially helpful for veterans who may not have significant savings.

The credit union is well known for its excellent customer service, earning 4.5 stars on Trustpilot. It also offers 24/7 customer support and has over 360 branches worldwide to assist service members overseas.

Minimum credit score: Not disclosed 

Minimum down payment: 0%

Loan types offered: Conventional and VA 

States served: Not disclosed

Best Online Mortgage Lender for Ease of Use: SoFi

Best For

Current SoFi Members

Minimum Credit Score

620

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

• Simple application process
• Competitive rates
• $10,000 on-time close guarantee
• Potential cashback after close
• Highly rated mobile apps
• Excellent Trustpilot rating

Cons

• Doesn’t list all fees on website
• No USDA loans

If you want an online lender with an easy application process, great mobile apps, and competitive rates, SoFi could be your best bet. The lender offers a variety of loans and may require only a 3% down payment for first-time home buyers. 

Once you’re tentatively approved, SoFi will provide a Verified Preapproval Letter, which can show sellers your loan type and amount, helping you secure a home faster.

Additionally, SoFi guarantees that you’ll close on time, or you’ll receive a $10,000 credit toward closing costs and any other expenses caused by the delay. You could also qualify for up to $9,500 in cashback when buying a home with a participating HomeStory real estate agent.

Minimum credit score: 500 

Minimum down payment: 3%

Loan types offered: Conventional, FHA, VA

States served: All 50 states (no refinance in NY)

What is an Online Mortgage Lender?

An online mortgage lender lets you complete your home loan application and closing process digitally. 

You may be asking, “Can I really get a mortgage completely online?” According to John Dustman, SVP and head of consumer lending and advisor banking at Axos Bank, we’re not quite there yet. 

“While technology and the origination process has evolved at light speed over recent years, some of the documents required at closing still must be completed with a notary, in person,” Dustman explained.

“Fortunately, most lenders send a notary directly to you at a location of your choice, so this too has become easier than it once was.”

Pros and Cons of Using an Online Mortgage Lender

Now, let’s look at some advantages and disadvantages of using an online mortgage lender.

Pros

Aside from the convenience factor, one of the biggest benefits of online mortgage lenders is their lower rates and fees:

“This can be achieved through lower operating costs passed through to the end consumer,” Dustman said. 

Using an online lender also gives you time to research rates, fees, customer reviews, average closing times and more. You might also consider going through a mortgage broker to help you find the best lender for you.

Cons

Online lenders can offer convenience and lower costs, but some important drawbacks exist.

While many borrowers will happily forgo the in-person experience, some would rather meet with their lender face-to-face to ask questions and express concerns.

“Consumers with complex income or multiple co-signers may prefer having a lender who can help with the application submission and conditions of the loan,” explained Dustman. 

Although many online lenders offer excellent customer support, others may be difficult to reach or communicate with over the phone. 

Before choosing a lender, read about other customers’ experiences on sites like Trustpilot, BBB and Reddit.

Why You Should Trust Us

Benzinga has been helping everyday investors navigate market complexities since 2010. Our site is now a go-to source for financial news and data for about 25 million monthly readers. 

I, Carley Clark, the author of this article, have worked in finance since 2019 and have a bachelor’s degree in business from Spring Arbor University. Before writing about finance, I worked as a revenue auditor at a casino.

For this piece, I consulted John Dustman, SVP and head of consumer lending and advisor banking at Axos Bank, about the benefits and drawbacks of working with an online mortgage lender. Dustman has worked in finance for over 20 years and holds an M.B.A. from Northern Arizona University. 

Methodology for Choosing the Best Online Mortgage Lenders

For this ranking, I collected data from over 25 online mortgage lenders. Following Benzinga’s standard mortgage methodology, I placed the highest weight on competitive interest rates. The next most important factors were the available loan options, customer service and application process. 

To evaluate customer service, I primarily referenced Trustpilot to gauge consumer experiences with a lender. However, if the company didn’t have many reviews there, I also considered feedback from Zillow, the BBB website and forums like Reddit. 

The application process was another important piece of the methodology. I assessed whether the lender offered an online application, the average time to close and overall ease of use, including mobile app ratings, live chat options, educational resources and other features that would improve the borrower experience.

I also noted any standout perks or drawbacks outside of the standard criteria. If I couldn’t verify a lender’s specific details, I assigned a medium score in that category. 

For a closer look at how we determined these rankings, check out Benzinga’s full mortgage methodology. 

FAQ

Sources

• John Dustman, SVP and head of consumer lending and advisor banking at Axos Bank, via email interview on Feb. 6, 2025.

• Experian, “Do Online Banks Offer Better Rates?” retrieved on Feb. 7, 2025.

• Federal Housing Finance Agency, “FHFA Announces Conforming Loan Limit Values for 2025,” retrieved on Feb. 7, 2025.

• Online lender information sourced from company websites, including New American Funding, NorthPointe Bank, Pennymac, Sage Home Loans, Navy Federal Credit Union and SoFi.

• Review data sourced from Trustpilot, the Better Business Bureau (BBB), the Apple App Store and Google Play.

The post 6 Best Online Mortgage Lenders of 2025, According to Experts by Carley Clark appeared first on Benzinga. Visit Benzinga to get more great content like this.