What are the different types of mortgages?

There are several types of mortgage loans: conventional conforming loans; jumbo loans; FHA, VA and USDA loans; and fixed- and adjustable-rate mortgages. Conventional loans, offered by private financial institutions, are ideal for borrowers with strong credit scores. Jumbo loans are for higher-priced homes that exceed Federal Housing Finance Agency borrowing limits. FHA, VA and USDA loans are either government-guaranteed or government-insured and designed for borrowers with lower credit scores and low or no down payment, military members (VA loans) or those buying in a rural area (USDA loans). Fixed-rate mortgages have the same interest rate for the life of the loan, while the rate on an adjustable-rate mortgage (ARM) can fluctuate.

How do you get a mortgage?

Before applying for a mortgage, it’s important to bolster your credit score and savings and have a clear understanding of how much you can afford and what type of loan would best fit your needs. In addition, gather documentation about your finances so you’re prepared to complete a mortgage application when the time comes. Once you’ve taken these initial steps, begin comparing mortgage lenders based on factors such as annual percentage rate (APR), fees and your overall experience. It’s best to get rate quotes from at least three different lenders. When you know which lender you want to work with, get preapproved so you can start house-hunting with financing in hand.

How much money do you need for a down payment?

The minimum down payment requirement varies based on loan type. If you qualify, you can obtain a 3 percent-down conventional loan, a 3.5 percent-down FHA loan or a no-down payment VA or USDA loan. If you want to avoid paying mortgage insurance, however, you’ll need to make a down payment of 20 percent.

Best mortgage lenders of February 2025

Written by

Andrew Dehan,

Edited by

Alice Holbrook,

Reviewed by

John Stearns,

Expert verified

Published on February 01, 2025 | 2 min read

Bankrate is always editorially independent. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . Our is to ensure everything we publish is objective, accurate and trustworthy.

Worawee Meepian/Getty Images; Illustration by Bankrate

You have many choices when shopping for a mortgage, from big banks to online lenders to local credit unions and more. We’ve researched and ranked the top lenders in terms of availability, affordability and borrower experience to help you choose. Here are our picks for best mortgage lenders in February 2025.

Learn more: How we rate mortgage lenders

Best mortgage lenders

Lender	Bankrate Score	Credit requirements	Down payment minimum
Chase	4.9	620 for conventional loans, 680 for jumbo loans, 640 for FHA loans and VA loans	3% for conventional loans, 3.5% for FHA loans, none for VA loans
Veterans United Home Loans	4.9	620 for conventional loans and VA loans	3% for conventional loans, 3.5% for FHA loans, none for VA loans or USDA loans
Bank of America	4.8	620 for conventional loans	3% for conventional loans, 3.5% for FHA loans, none for VA loans
Navy Federal Credit Union	4.8	Undisclosed	3% for conventional loans, none for VA loans
PenFed Credit Union	4.8	650 for conventional loans, 700 for jumbo loans, 620 for FHA loans	3% for conventional loans, 3.5% for FHA loans, none for VA loans
PNC Bank	4.8	620 for conventional loans, jumbo loans and FHA loans, 640 for USDA loans	3% for conventional loans, 3.5% for FHA loans, none for VA loans or USDA loans
U.S. Bank	4.8	620 for conventional loans, 740 for jumbo loans, 640 for FHA loans	3% for conventional loans, 3.5% for FHA loans, none for VA loans
Wells Fargo	4.8	620 for conventional loans	3% for conventional loans, 3.5% for FHA loans, none for VA loans or USDA loans

Chase

4.9

Learn more in our Bankrate review

- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA
- Credit requirements: 620 for conventional loans, 680 for jumbo loans, 640 for FHA loans and VA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans
- Where to find: Branch locations and online
Pros

Available to borrowers in all states, with 4,700 branch locations

Existing Chase customers might receive rate discount

$5,000 closing guarantee
Cons

Bank might not be a fit for borrowers with unique credit or financial circumstances

Branches not located in all states
Chase scores high marks across the board thanks to its competitive rates and widespread availability. Though the bank doesn’t have branches in every state, it does work with qualified mortgage borrowers across the U.S.

Veterans United Home Loans

4.9

Learn more in our Bankrate review

- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA, USDA
- Credit requirements: 620 for conventional loans and VA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans or USDA loans
- Where to find: Branch locations and online
Pros

Specializes in VA loans

24/7 customer service over the phone
Cons

No HELOCs or home equity loans

Limited number of branches
Veterans United Home Loans receives top ratings for its VA loan rates, reputation and information-packed website, which answers virtually any question you might have about VA loans. The lender also offers other types of mortgages, and its customer support team is available 24/7.

Bank of America

4.8

Learn more in our Bankrate review

- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA
- Credit requirements: 620 for conventional loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans
- Where to find: Branch locations and online
Pros

Offers grant programs to help low- and moderate-income buyers

Displays rates online

Awards discounts for Preferred Rewards customers
Cons

Has limited transparency around borrower requirements

Does not offer USDA loans
Bank of America scores highly due to its competitive mortgage rates, extensive availability, ease of customer service and overall positive reputation.

Navy Federal Credit Union

4.8

Learn more in our Bankrate review

- Availability: All. U.S. states
- Loans offered: Conventional, jumbo, VA
- Credit requirements: Undisclosed
- Down payment minimum: 3% for conventional loans, none for VA loans
- Where to find: Branch locations and online
Pros

Allows up to two rate relocks

Provides rate-match guarantee or pays $1,000
Cons

Membership required

No FHA or USDA loans
Navy Federal Credit Union receives high scores due to its attractive rates, low fees, global presence and outstanding reputation working with servicemembers and their families.

PenFed Credit Union

4.8

Learn more in our Bankrate review

- Availability: All. U.S. states
- Loans offered: Conventional, jumbo, FHA, VA
- Credit requirements: 650 for conventional loans, 700 for jumbo loans, 620 for FHA loans
- Down payment minimum: 3% conventional loans, 3.5% for FHA loans, none for VA loans or USDA loans
- Where to find: Branch locations and online
Pros

Competitive rates

Convenience of managing banking and mortgage with one provider
Cons

No ability to customize rates online

Higher minimum credit score requirements

No USDA loans
PenFed Credit Union scores highly thanks to a transparent fee structure, competitive mortgage rates and nationwide availability.

PNC Bank

4.8

Learn more in our Bankrate review

- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA, USDA
- Credit requirements: 620 for conventional loans, jumbo loans and FHA loans, 640 for USDA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans or USDA loans
- Where to find: Branch locations and online
Pros

Online and in-person options to apply

Application can be tracked online

Wide availability with many loan options
Cons

Higher credit minimum on FHA loans

Limited mobile app functionality

Below-average J.D. Power rating for mortgage servicing
PNC Bank receives top scores due to a nationwide presence, online rate quote tools, many loan options and ease of contact.

U.S. Bank

4.8

Learn more in our Bankrate review

- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA
- Credit requirements: 620 for conventional loans, 740 for jumbo loans, 640 for FHA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans
- Where to find: Branch locations and online
Pros

Provides lender credit worth up to $1,000 for qualifying banking customers

Displays rates online

Offers new construction loans
Cons

Tougher borrower requirements for FHA loans (640 credit score in most cases)

No USDA loans
U.S. Bank scores high for affordability due to offering many types of homebuying assistance and discounts for banking customers. Like other big banks, it’s also available to borrowers nationwide. It also received an above-average customer satisfaction rating from J.D. Power.

Wells Fargo

4.8

Learn more in our Bankrate review

- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA, USDA
- Credit requirements: 620 for conventional loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans or USDA loans
- Where to find: Branch locations and online
Pros

Displays mortgage rates online

Massive branch network

Will consider non-traditional credit references in application process

Offers low-down payment options to assist lower-income borrowers
Cons

Dialed back its mortgage offerings

No longer offers home equity lines of credit (HELOCs)

Below-average customer satisfaction scores and negative past customer reviews
Wells Fargo receives perfect scores for affordability and availability thanks to its competitive advertised rates, wide offerings of loans and large branch network.

How to compare mortgage lenders

Your first step to finding the best mortgage lender is to comparison shop. Borrowers who do more upfront research tend to save more money than those who go with the first lender they find. It’s best to get quotes from three lenders, at minimum. Because rates fluctuate frequently, it’s also best to get these quotes on the same day.

As you compare loan estimates, look at the APR (annual percentage rate) and interest rate quoted by each lender. Consider what’s important to you as far as experience, too. For some, how fast a lender can turn around a preapproval letter or close a loan is critical. If you have specific needs or financing preferences — for example, you want an FHA loan — you might want to focus on the top mortgage lenders who specialize in those loans.

Once you determine what your needs and preferences are, get started by comparing mortgage rates.

FAQ

There are several types of mortgage loans: conventional conforming loans; jumbo loans; FHA, VA and USDA loans; and fixed- and adjustable-rate mortgages. Conventional loans, offered by private financial institutions, are ideal for borrowers with strong credit scores. Jumbo loans are for higher-priced homes that exceed Federal Housing Finance Agency borrowing limits. FHA, VA and USDA loans are either government-guaranteed or government-insured and designed for borrowers with lower credit scores and low or no down payment, military members (VA loans) or those buying in a rural area (USDA loans). Fixed-rate mortgages have the same interest rate for the life of the loan, while the rate on an adjustable-rate mortgage (ARM) can fluctuate.
Before applying for a mortgage, it’s important to bolster your credit score and savings and have a clear understanding of how much you can afford and what type of loan would best fit your needs. In addition, gather documentation about your finances so you’re prepared to complete a mortgage application when the time comes. Once you’ve taken these initial steps, begin comparing mortgage lenders based on factors such as annual percentage rate (APR), fees and your overall experience. It’s best to get rate quotes from at least three different lenders. When you know which lender you want to work with, get preapproved so you can start house-hunting with financing in hand.
The minimum down payment requirement varies based on loan type. If you qualify, you can obtain a 3 percent-down conventional loan, a 3.5 percent-down FHA loan or a no-down payment VA or USDA loan. If you want to avoid paying mortgage insurance, however, you’ll need to make a down payment of 20 percent.

To determine the best mortgage lenders overall, Bankrate periodically evaluates more than 75 lenders for factors relating to affordability, availability and borrower experience, assigning each a Bankrate Score out of five stars. The best mortgage lenders overall generally have a Bankrate Score of 4.8 stars or higher. Learn more about our methodology.

Written by

Andrew Dehan

Writer, Home lending

Connect with Andrew Dehan on LinkedIn

Up next

Part of Guide to Comparing Mortgage Lenders

Best mortgage lenders

Chase

Lender details

Pros and cons

Pros

Cons

How we scored Chase

Veterans United Home Loans

Lender details

Pros and cons

Pros

Cons

How we scored Veterans United Home Loans

Bank of America

Lender details

Pros and cons

Pros

Cons

How we scored Bank of America

Navy Federal Credit Union

Lender details

Pros and cons

Pros

Cons

How we scored Navy Federal Credit Union

PenFed Credit Union

Lender details

Pros and cons

Pros

Cons

How we scored PenFed Credit Union

PNC Bank

Lender details

Pros and cons

Pros

Cons

How we scored PNC Bank

U.S. Bank

Lender details

Pros and cons

Pros

Cons

How we scored U.S. Bank

Wells Fargo

Lender details

Pros and cons

Pros

Cons

How we scored Wells Fargo

How to compare mortgage lenders

FAQ

What are the different types of mortgages?

How do you get a mortgage?

How much money do you need for a down payment?

Methodology

Up next