Best mortgage lenders for first-time homebuyers of 2025 in the US

Introduction

Choosing the right mortgage lenders for first-time homebuyers can be challenging due to the abundance of options available.

One of the biggest decisions you’ll make early on is choosing who to borrow from.

Where should you begin your search? Which lenders provide the most competitive rates, the lowest fees, or the most assistance for those with less-than-perfect credit?

Don’t worry; you’re in the right place. In this guide, we’ll break down the top mortgage lenders based on what actually matters to first-time buyers like you. We’re not just listing names; we’re showing you why each lender stands out and who they’re best for.

Ready to find the one that fits your budget, lifestyle, and homeownership goals? Let’s get into it.

Best Overall Mortgage Lenders for First-Time Homebuyers (2025)

In this section, we’ll walk you through some of the best overall mortgage lenders for first-time homebuyers in 2025. These lenders stand out not because they’re the flashiest, but because they consistently deliver where it counts: affordability, support, speed, and trust.

What Makes a Lender “Best Overall” for First-Time Buyers?

There is no universally applicable mortgage. The best lender for you depends on factors such as your budget, credit score, savings, and preferred method of communication (some people prefer phone calls, while others want a fully digital process).

Nevertheless, the lenders listed below cater to a diverse range of consumers. Here’s what we looked for:

Competitive interest rates and reasonable fees
Low down payment options
Flexible credit score requirements
First-time buyer programs or tools
Easy pre-approval and application process
Strong customer reviews and support

Rocket Mortgage

Best for: Fast pre-approvals and a smooth digital experience

If you want to apply from your couch and get pre-approved fast, Rocket Mortgage is a solid pick. They’ve built a reputation for making the mortgage process almost too easy. With just a few clicks, you can get a personalized rate quote and move through the entire process online.

For first-time homebuyers, Rocket offers a 1% down option, helpful educational tools, and clear explanations at every step. Plus, they don’t shy away from borrowers with modest credit or limited savings.

Why they’re one of the best mortgage lenders for first-time homebuyers:

Instant pre-approval decisions
24/7 access to your loan dashboard
Streamlined document uploads
Friendly support if you want to speak to someone

U.S. Bank

Best for: In-person guidance + low-down-payment programs

If you are looking for a traditional bank with a strong local presence, U.S. Bank could be an excellent choice. They offer both digital tools and in-person help. This makes them ideal for those seeking guidance at every stage of the process.

They also offer a 3% down payment option for qualified buyers, and they’re well-known for working with first-time homeowners through personalized mortgage advice.

What sets them apart for new buyers:

Local branches for face-to-face support
Low down payment options for first-time homebuyers
Tools to help estimate costs and monthly payments
Good customer satisfaction ratings

Better Mortgage

Best for: No lender fees and transparent pricing

Want to avoid hidden costs and unnecessary junk fees? Your kind of lender might be better. They’re an online-only mortgage provider that offers zero lender fees, competitive rates, and a clean, straightforward process.

First-time buyers love the fact that there’s no pressure and everything is handled digitally.

The service better matches competitor offers and even allows users to upload documents from their phones.

Why they stand out for first-time homebuyers:

No origination, application, or underwriting fees
Price match guarantee
100% online application
Fast pre-approval (often same day)

Chase

Best for: First-time buyer grants and perks

Chase is a powerhouse bank with some surprising first-time buyer perks. In 2025, they’re continuing their $5,000 Chase Homebuyer Grant, which can be stacked with other state programs to reduce closing costs or your down payment.

They provide user-friendly online tools and offer mortgage coaching for buyers seeking guidance throughout the entire process.

Why Chase is one of the best mortgage lenders for first-time homebuyers:

Up to $5,000 in grants for eligible buyers
Pre-qualification without impacting your credit
Personalized support through loan advisors
Strong mobile app for managing the process

Ally Home

Best for: Transparent process + no lender fees

Ally is newer to the mortgage game, but they’ve made a name by offering simple, transparent loans without hidden fees. You can get pre-approved in minutes, track everything online, and chat with real humans when you need help.

While they don’t offer government-backed loans (like FHA), Ally is ideal for buyers with good credit who want a clean, fee-free experience.

What makes Ally a great choice for first-time homebuyers?

Competitive fixed-rate mortgages
No application, origination, or processing fees
Fully digital process with live support
Great educational content for beginners

Quick Comparison Table

Lender	Best For	Min. Down Payment	Lender Fees	Online or In-Person
Rocket Mortgage	Fast, digital pre-approvals	1%	Some	Online only
U.S. Bank	Personal support + low down payment	3%	Varies	Online & branches
Better Mortgage	No lender fees + fast close	3%	None	Online only
Chase	First-time buyer grants	3%	Some	Online & branches
Ally Home	Simplicity + no hidden fees	5%+	None	Online only

Best Mortgage Lenders for Low Down Payment Options

Is it possible to save up for a 20% down payment? Most first-time buyers find it challenging to save up for a 20% down payment.

Here is the good news. You don’t need 20% down to buy your first home. In fact, many mortgage lenders for first-time homebuyers now offer loans with as little as 3% (or even 0%) down. Yep, zero.

We’ll walk you through the top lenders in 2025 offering low down payment mortgage options, perfect for buyers who are financially ready to own but haven’t been able to save a massive pile of cash.

READ THIS... Understanding Mortgages as a First-Time Home Buyer in the US

Bank of America

Best for: Low down payments + grant programs

Bank of America offers a solid 3% down mortgage for first-time buyers, no catch. Even better, they pair it with their Community Homeownership Commitment®, which can give you up to $10,000 in down payment and closing cost help, depending on your location and income.

Why first-time buyers love them:

3% down payment option
Up to $10K in grants (not a loan; you don’t repay it!)
No PMI (private mortgage insurance) on some loans
Great for buyers with low to moderate income

Navy Federal Credit Union

Best for: No down payment for military families

If you are a military member, veteran, or an eligible family member, Navy Federal is an excellent choice. They offer no down payment mortgages with competitive rates and without PMI.

What makes them stand out:

0% down payment with VA or their own “Homebuyers Choice” loan
No PMI
Flexible credit requirements
Dedicated loan specialists who understand VA lending

Rocket Mortgage (by Quicken Loans)

Best for: Easy online access + 1% down program

Rocket Mortgage has emerged as a preferred option for tech-savvy first-time buyers, and their 1% down mortgage is garnering significant attention in 2025. You put down 1%, and Rocket contributes 2%, giving you a total of 3% equity upfront.

Why Rocket is a smart choice:

Only 1% required from you
Fast online application process
Works with FHA loans too
Real-time rate quotes

Guild Mortgage

Best for: Working with down payment assistance programs

Guild specialises in helping buyers pair their loans with local and state downpayment assistance (DPA) programs. They even help you apply for them, which makes the whole process way less stressful.

Why they’re ideal for low-down-payment buyers:

Offers FHA, VA, USDA, and conventional loans
Assists with local/state grants and DPA
Personalized guidance through the process
Accepts lower credit scores (starting around 580 for FHA)

New American Funding

Best for: Flexible options and underserved buyers

New American Funding stands out for working with buyers who don’t always qualify elsewhere. They offer 3% down conventional loans, as well as FHA options for those with lower credit.

Why they make the list:

Offers 3% down loans
Bilingual loan officers for Spanish-speaking buyers
Strong support for self-employed and gig workers
In-house underwriting = faster approval times

Comparison Table: Low Down Payment Lenders

Lender	Min. Down Payment	Grant/DPA Support	Best For
Bank of America	3%	✅ Yes (up to $10K)	Grants + no PMI
Navy Federal	0%	❌ Not needed	Military/veteran families
Rocket Mortgage	1%	❌ No	Tech-savvy buyers
Guild Mortgage	3%	✅ Yes (local DPA)	Help with assistance programs
New American Funding	3%	✅ Yes	Flexible borrowers

Quick Tip: What to Watch For

While low down payment loans can be beneficial, it’s important to carefully review the details. Some come with PMI or slightly higher interest rates. Others require homebuyer education courses (which are honestly super helpful anyway). Ask your lender:

Do I need to repay any grant funds?
Will I have to pay mortgage insurance?
Is this a fixed- or adjustable-rate loan?

Knowing what you’re signing up for means no surprises later.

Best Mortgage Lenders for Down Payment Assistance & First-Time Buyer Programs

To be honest, saving up for a home is tough. That’s why down payment assistance (DPA) and first-time buyer programs are total game changers. Here’s the catch: not all lenders offer them, and many don’t advertise them clearly.

So if you’re a first-time buyer and you’re wondering, “Is there free money out there to help me buy a home?” The answer is yes, if you know where to look.

We’ll show you the best mortgage lenders for first-time homebuyers in 2025 that either offer their own assistance programs or partner with city, county, and state resources to help cover your down payment or closing costs.

Guild Mortgage

Best for: Local and state DPA support with expert guidance

Guild Mortgage has been in the game for decades, and they’ve earned a reputation for being one of the most DPA-friendly lenders in the U.S. They work closely with hundreds of local programs and guide you through applying for them, step by step.

Why they’re ideal for first-time buyers:

Works with tons of state/local grant programs
Offers FHA, VA, USDA, and conventional loans
Provides credit counseling and education tools
Great for low- to moderate-income buyers.

Bank of America

Best for: Upfront grants. No repayment required

Bank of America doesn’t just connect you with assistance; they give it. Their Community Homeownership Commitment® includes:

Up to $7,500 toward closing costs
Up to $10,000 toward your down payment (or 3% of the home price)

And here’s the best part: you don’t pay it back. Ever. It’s a grant, not a loan.

Why it stands out:

No repayment or second-lien catch
Available in many urban and suburban markets
Can be used with 3% down loans
Offers online eligibility checker

Chase

Best for: Combining national and local programs

Chase goes big on first-time homebuyer help, offering a $5,000 Chase Homebuyer Grant in eligible areas, and they’ll help you stack it with local and state programs.

They also partner with housing nonprofits and HUD-certified counsellors, so if you need guidance, they’ve got your back.

Perks for new buyers:

$5,000 grant for eligible ZIP codes
Access to additional city/state programs
Pre-purchase education available
Branches across the U.S. for face-to-face help

Movement Mortgage

Best for: First-time buyers with low income or limited savings

Movement Mortgage offers a wide variety of state-specific DPA programs, and they specialize in working with buyers who might not qualify at traditional banks.

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They also provide 100% financing options through VA and USDA loans, and their “Movement Boost” program can help cover closing costs or down payments depending on your situation.

Why they make the list:

Flexible credit guidelines
Strong nonprofit and community partnerships
Faith-based, service-first company values
Fast approvals, even with DPA involved

New American Funding

Best for: Diverse communities and multilingual buyers

New American Funding is known for helping underserved communities become homeowners. They have bilingual loan officers, custom DPA matching tools, and strong partnerships with city housing departments.

Top features for first-time buyers:

3% down loans + DPA options
Active in promoting Hispanic, Black, and female homeownership
Flexible underwriting for non-traditional income
Online DPA tools to see what you qualify for

Comparison Table: DPA-Friendly Mortgage Lenders

Lender	Offers Own Grants?	Works with State/Local DPA?	Best For
Guild Mortgage	❌ No	✅ Yes	Local DPA matching & guidance
Bank of America	✅ Yes	✅ Yes	No-repayment grants
Chase	✅ Yes	✅ Yes	Grant stacking + HUD counseling
Movement Mortgage	❌ No	✅ Yes	Faith-based, low-income buyers
New American Funding	❌ No	✅ Yes	Bilingual support, flexible income

Quick Tip: How to Know If You Qualify

Most down payment assistance programs have income limits or location requirements, but they vary by city and state. Some are only for first-time buyers (meaning you haven’t owned a home in the past 3 years), while others are more flexible.

Here’s how to check:

Visit your state housing finance agency website
Ask your lender, “Do you partner with any down payment assistance programs?”
Use tools like downpaymentresource.com

Fastest and Easiest Mortgage Approval Process (Fully Digital Lenders)

Nobody particularly enjoys dealing with mortgage paperwork. If you’re a first-time homebuyer, the thought of faxes, endless back-and-forth, and in-person appointments might sound exhausting.

That’s why fully digital lenders are a revolutionary solution. These companies are streamlining the mortgage experience, cutting approval times from weeks to days, and letting you apply, upload documents, and track progress, right from your phone.

If you’re tech-savvy, short on time, or just want to avoid the traditional banking hassle, these are the mortgage lenders for first-time homebuyers you’ll want to know about in 2025.

Why Go Digital?

You might be wondering: Is it safe to apply for a mortgage online?
The answer is yes, especially with established lenders. In fact, many online lenders use secure portals, real-time tracking, and automated tools that make the process faster and more transparent than some big banks.

What makes a fantastic digital lender for first-time buyers?

Lightning-fast pre-approvals
Online document uploads (no printing!)
Easy-to-use apps or dashboards
Real-time rate quotes
Minimal (or no) lender fees

Better Mortgage

Best for: Zero fees + fast, fully online application

Better is one of the most popular mortgage lenders for first-time homebuyers looking for a 100% digital process. You can get a custom rate quote in seconds and a verified pre-approval in minutes; no phone calls are required unless you want one.

They charge no lender fees, which means no surprises at closing, and their user interface is incredibly clean and intuitive.

Why first-time buyers love Better:

No origination, application, or underwriting fees
Fast rate quotes and instant pre-approvals
Secure online document portal
Price match guarantee

Rocket Mortgage

Best for: User-friendly mobile experience

Rocket Mortgage (a branch of Quicken Loans) has been leading the online mortgage wave for years. Their app and website are easy enough for anyone to use, even if this is your first time buying a home.

You’ll get personalised loan options in minutes, and you can track everything from rate lock to closing right from your phone.

Why it works well for first-time buyers:

Industry-leading mobile app
24/7 loan dashboard access
1% down program available
Real-time notifications and updates

SoFi Mortgage

Best for: First-time buyers with student loans or non-traditional income

SoFi is ideal if you’ve got a substantial income but maybe a few financial quirks, like student loan debt or a freelance gig. Their digital mortgage platform is sleek, simple, and quick, and they’re one of the few lenders that look beyond traditional credit metrics.

Why SoFi deserves a spot on your list:

Great for tech-savvy millennials
No application or origination fees
Quick digital application and approval process
Offers rate discounts for existing SoFi members

Ally Home

Best for: Transparent pricing + simple digital platform

Ally is another fully online lender offering competitive rates, zero hidden fees, and a guided digital experience. They don’t currently offer FHA or VA loans, but for conventional loan seekers with decent credit, they’re one of the smoothest digital paths to homeownership.

Why Ally makes sense for digital-first buyers:

No lender fees
Real-time rate updates
Friendly live-chat support
Digital pre-approvals in minutes

Quick Comparison Table: Fast Digital Lenders

Lender	Lender Fees	Pre-Approval Speed	Best Feature
Better Mortgage	$0	Minutes	No fees + full transparency
Rocket Mortgage	Varies	Minutes	Top-rated mobile app
SoFi	$0	Fast (1–2 days)	Great for non-traditional income
Ally Home	$0	Same day	Clean interface, simple process

Are Digital Mortgage Lenders Right for You?

Not sure if going fully online is the right move? Ask yourself the following questions:

Do I want to avoid in-person meetings and paper forms?
Am I comfortable uploading documents securely online?
Do I want faster approvals and easier rate shopping?

If you said “yes” to any of the above, these mortgage lenders for first-time homebuyers could save you serious time and possibly money too.

Best Mortgage Lenders for Personalized Service (Local & Regional Options)

Not everyone wants to click a few buttons and buy a house online. And honestly? That’s totally okay.

If you’re the kind of buyer who wants to sit down, ask questions face-to-face, or just talk to someone who knows your local market, personalized mortgage lending might be a better fit for you.

READ THIS... Step-by-Step: How to Do Mortgage Loan Rate Comparison as a First-Time Homebuyer

There are some great local and regional mortgage lenders for first-time homebuyers who still pick up the phone, meet you in person, and guide you every step of the way.

Let’s walk through the best of them.

Navy Federal Credit Union

Best for: Military families seeking personal, member-first service

If you’re a current or former member of the military (or part of an eligible family), Navy Federal is one of the most respected credit unions around. Their customer service is top-notch, and they’re known for walking first-time buyers through the process with care.

Why they’re great for personalized support:

Dedicated loan officers who guide you from start to finish
In-branch or phone-based support
0% down payment options with no PMI
Offers educational tools tailored to military buyers

Fairway Independent Mortgage Corporation

Best for: Local expertise + face-to-face service

Fairway has a network of branches and loan officers across the country, many of whom live and work in the communities they serve. That local knowledge matters, especially when it comes to understanding home values, market conditions, and even local DPA programs.

Why first-time buyers appreciate Fairway:

Local loan officers who know your market
Accessible by phone, email, or in person
Offers FHA, VA, USDA, and conventional loans
Quick response times and high satisfaction ratings

Truist Bank (formerly SunTrust & BB&T)

Best for: Southern & East Coast buyers wanting a hybrid approach

Truist is one of the largest regional banks in the U.S., with strong roots in the Southeast. They offer a mix of online tools and in-person support, which is excellent if you want digital convenience but still appreciate human interaction.

What makes Truist stand out:

Local branches and regional expertise
First-time buyer programs with reduced down payments
Pre-purchase counseling and mortgage workshops
Flexible loan options with a community-driven focus

PenFed Credit Union

Best for: First-time buyers who want credit union service with competitive rates

PenFed offers a unique combination of low rates, robust online tools, and human customer service that is akin to conversing with a friend rather than a machine. You don’t need military ties to join, and they offer first-time buyer education and low down payment loans.

Why PenFed is a strong choice for personal service:

Live support from real loan experts
Easy pre-qualification process
Works with FHA and VA loans
Great for borrowers with average credit

Your Local Credit Union or Community Bank

Best for: Hyper-local help + flexible lending

Don’t overlook your hometown credit union or small regional bank. These institutions often offer unique benefits like:

In-house underwriting (faster decisions)
Manual review of credit (good if you’re self-employed)
Deep knowledge of your city or town
Custom lending options for local housing markets

Ask your real estate agent or search your local area for lenders who specialise in helping first-time homebuyers in your ZIP code.

📊 Comparison Table: Personalized-Service Mortgage Lenders

Lender	Support Style	Notable Feature	Best For
Navy Federal	Member-first	0% down + no PMI	Military families
Fairway Independent	Local loan officers	Community knowledge	Buyers who want face-to-face help
Truist Bank	Hybrid	Regional programs + branch network	East/Southeast U.S. buyers
PenFed Credit Union	Live experts	Credit union service + competitive rates	Budget-conscious first-time buyers
Local Credit Union/Bank	Custom in-person	Manual review + local market insight	Self-employed or unique situations

Conclusion:

Finding the right mortgage can feel overwhelming, especially if this is your first time buying a home. But here’s the truth: you don’t have to figure it all out alone. With the right lender by your side, the process gets a whole lot easier (and a lot less stressful).

We’ve walked you through the best mortgage lenders for first-time homebuyers in 2025, whether you’re looking for low down payments, fast approvals, local support, or down payment assistance programs. Each lender brings unique qualities to the table, and now you understand how to align their strengths with your own needs and goals.

Footnotes & Sources

Mortgage Rates & Lending Trends

Freddie Mac – Primary Mortgage Market Survey (PMMS)
Weekly average U.S. mortgage rates and historical trends.
🔗 https://www.freddiemac.com/pmms
Mortgage Bankers Association (MBA) – Research & Forecasts
Data on mortgage originations, lender volume, and interest rate activity.
🔗 https://www.mba.org/news-research-and-resources/research-and-economics

Down Payment Assistance & First-Time Buyer Programs

Down Payment Resource (DPR)
Nationwide database of state and local assistance programs.
🔗 https://downpaymentresource.com
U.S. Department of Housing and Urban Development (HUD) – Buying a Home
Government-backed first-time homebuyer programs and FHA loan info.
🔗 https://www.hud.gov/buying
National Council of State Housing Agencies (NCSHA)
List of state housing finance agencies offering buyer support.
🔗 https://www.ncsha.org/housing-help/

Credit Scores & Borrower Profiles

FICO – U.S. Credit Score Trends
Updated stats and educational content on credit score benchmarks.
🔗 https://www.fico.com/blogs
Consumer Financial Protection Bureau (CFPB) – Owning a Home Tools
Government loan comparison tools and consumer protection guidance.
🔗 https://www.consumerfinance.gov/owning-a-home/

🧠 Homebuyer Behavior & Lender Reviews

National Association of Realtors (NAR) – Profile of Home Buyers and Sellers
Annual data on how first-time homebuyers choose lenders and finance homes.
🔗 https://www.nar.realtor/research-and-statistics
Better Business Bureau (BBB)
Consumer reviews and trust scores for mortgage lenders.
🔗 https://www.bbb.org

Trustpilot & NerdWallet – Lender Ratings and Comparisons
Helpful for readers checking real-life experiences and star ratings.
🔗 https://www.nerdwallet.com/best/mortgages
🔗 https://www.trustpilot.com