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Best FHA Lenders: Get Help Buying Your First Home

Homeownership is a major life milestone—one that can help you build wealth, start a family, and put down roots. But if you want to buy a home, chances are good you’ll need a mortgage. And qualifying for a mortgage isn’t always easy.

Most lenders require a minimum credit score of 620 and a down payment of 10% to 20% of the home purchase price. People buying their first home can’t always meet these requirements. The good news is, FHA loans exist to help.

FHA loans are insured by the Federal Housing Administration, which partners with private mortgage lenders to offer relaxed eligibility requirements. Not all FHA-approved lenders are the same, though, so it’s important to compare multiple FHA lenders to find the right loan for you.

We analyzed the best FHA lenders on the market to help you get started. Here are our top picks.

On this page:

LendEDU’s 6 Best FHA Lenders

These six FHA mortgage lenders scored the highest, according to our in-house ranking algorithm.

  1. Better
  2. Rocket Mortgage
  3. New American Funding
  4. Wells Fargo
  5. Chase
  6. loanDepot

1) Better

Simple, Online Mortgage

  • No extra fees or commission, ever
  • Instant loan estimates
  • Experience you can trust – Over $3 billion in total funded loans

Better is a direct lender focused on changing the way that Americans obtain mortgage loans. You can obtain a loan estimate through Better in seconds. The website is available 24/7, and a simple online portal lets you see exactly where you are in the mortgage application process at all times.

Here’s what you need to know about obtaining an FHA loan from Better:


  • LendEDU Rating: 5/5
  • BBB Rating: A+

Lender Info:

  • States available: 36
  • Loan terms: 15, 30
  • Min. down payment: 3.5%

Full Review: Better Mortgage Review

2) Rocket Mortgage

A simpler way to buy a home or refinance.

  • Apply Online – Streamlined application available 24 hours a day, 7 days a week
  • Use RateShield Approval and lock in your rate for up to 90 days
  • Home Loan Experts available seven days a week to answer your questions

Rocket Mortgage is operated by Quicken Loans, and its goal is to help consumers find mortgages that are right for them. You can apply online by syncing your bank with your Rocket Mortgage account, which streamlines the application process.

You’ll see custom loan options, get a timely decision on your application, and can manage your mortgage all from a convenient online portal.

Here’s what you need to know about obtaining an FHA loan from Rocket Mortgage:


  • LendEDU Rating: 4.92/5
  • BBB Rating: A+

Lender Info:

  • States available: 50
  • Loan terms: Not disclosed
  • Min. down payment: 3.5%
  • Max debt-to-income ratio: 43%

3) New American Funding

Your Mortgage, Your Terms.

  • Get pre-approved in as little as 48 hours
  • Complete the entire application process online
  • Choose from a wide variety of mortgage options

New American Funding describes itself as a “family-owned business,” with the mission of helping home buyers find mortgages at competitive interest rates. It’s a tech-driven company that is a direct lender, seller, and loan servicer.

It also provides financial education to home buyers to help them make the right choices when it comes to selecting a loan.

Here’s what you need to know about obtaining an FHA loan from New American:


  • LendEDU Rating: 4.60/5
  • BBB Rating: A+

Lender Info:

  • States available: 48
  • Loan terms: 15, 30
  • Min. down payment: 96.5%
  • Min. credit score: 43%

4) Wells Fargo

Where are you in your home buying journey?

  • Get a home with as low as 3% down
  • Easily track your application online with yourLoanTrackerSM
  • Guidance and ongoing support as you purchase and grow into your new home

Wells Fargo is one of America’s largest and oldest banks, dating back to 1852. It offers home equity products, personal loans, consumer banking services, and some investment banking services.

It is also one of the largest retail mortgage lenders in the country, with some estimates indicating it originates as many as one in four home loans nationwide.

Here’s what you need to know about obtaining an FHA loan from Wells Fargo:


  • LendEDU Rating: 4.34/5
  • BBB Rating: F

Lender Info:

  • States available: 50
  • Loan terms: Not disclosed
  • Min. down payment: 3.5%
  • Max debt-to-income ratio: Not disclosed

5) Chase

Take advantage of today’s mortgage rates

  • Competitive mortgage and refinance rates to get you from open to closing
  • Prequalify for a fixed-rate or adjustable-rate mortgage loan
  • Get prequalified online, over the phone, or in-person

Chase is also one of the largest banks and loan providers in America. In fact, Chase indicates that it serves close to half of all U.S. households in at least some aspect of their money management.

Chase offers personal banking services, mortgages, car loans, credit cards, investments and a wide array of other financial products.

Here’s what you need to know about obtaining an FHA loan from Chase:


  • LendEDU Rating: 4.33/5
  • BBB Rating: F

Lender Info:

  • States available: 50
  • Loan terms: 15, 20, 30
  • Min. down payment: 96.5%
  • Max debt-to-income ratio: Not disclosed

6) loanDepot

Home Mortgage, Refinance, and Home Equity Loans

  • Fixed terms
  • Affordable monthly payments
  • Cash out up to 90% loan-to-value

LoanDepot launched in 2010 and has become the fifth-largest mortgage originator in the United States. It works with more than 2,000 licensed loan officers across the country to use technology to match borrowers to loans that are right for them.

It is considered a nonbank consumer lender and it has funded more than $165 billion in home loans, personal loans, and home equity loans.

Here’s what you need to know about obtaining an FHA loan from loanDepot:


  • LendEDU Rating: 4.21/5
  • BBB Rating: A-

Lender Info:

  • States available: 50
  • Loan terms: Not disclosed
  • Min. down payment: 96.5%
  • Max debt-to-income ratio: 43%

Full Review: loanDepot Mortgage Review

How We Chose the Best FHA Loans

To determine which FHA-approved lenders were best, we ranked mortgage providers based on the weighted average of 10 data points. These included:

  • The Better Business Bureau (BBB) rating, which was worth 5% of the lender’s score.
  • The TrustPilot rating, which was also worth 5%.
  • The states available, which was also worth 5%.
  • The fees charged by the lender, which was worth 12.5%.
  • Whether the lender offered an online application, which accounted for 5% of the lender’s score.
  • The fixed terms provided by the lender, which was worth 20% of the score.
  • The 30-year APR, which was worth 5%.
  • Customer support, which accounted for 20% of the score.
  • The lender’s Zillow rating, which was worth 10%.

Frequently Asked Questions about FHA Approved Lenders

What’s the minimum credit score?

The minimum credit score is either 500 or 580 for an FHA loan, depending on your down payment and lender.

Can I qualify for an FHA mortgage?

FHA mortgages are specifically designed to help people purchase a primary residence. These loans cater to lower-income or middle-income buyers who may not have large upfront down payments on hand, or who may not have great credit.

You can get an FHA loan with a credit score as low as 500, although this would require a larger down payment. If you have a score of at least 580, you can get an FHA loan with as little as a 3.5% down, which is well below what many lenders require for a conventional loan.

Additionally, these loans will come with lower mortgage rates than non-FHA loans would provide to a person in the same financial situation.

You can also qualify for an FHA loan with housing costs equal to up to 31% of your monthly income and with a debt-to-income ratio of up to 43%. Your debt-to-income ratio takes all monthly payments into account, including mortgages, car loans, credit card debt, and other bills.

What’s the minimum down payment

The minimum down payment required to buy a home with an FHA loan depends on your credit. As mentioned above, if your score is 580 or higher, you need just a 3.5% down payment. If your score is between 500 and 580, you will need a 10% down payment.

Be aware that although FHA loan requirements are low, they’re not necessarily ideal. 

You will also have to pay a private mortgage insurance premium on an FHA loan due to the low down payment requirements. This is in addition to the FHA mortgage insurance required on FHA loans.

Low down payments mean you’ll have to pay more in interest for your mortgage loan, and they put you at risk of ending up owing more than your home is worth if property values decline.

You can see how different down payment amounts will affect your total costs using our mortgage calculator.

Are there alternatives to FHA Loans?

While FHA mortgages are popular, this is not the only government-backed loan program that is easy to qualify for. There are other first-time home buyer programs, including:

  • USDA Loans: These can be an ideal choice if you’re looking to buy a home in a qualifying rural area
  • VA Loans: These are the ideal choice for qualifying veterans and military members looking to buy a home with lower credit and no down payment. You can review our list of the best VA lenders here.
  • State and local programs: Availability of programs varies depending on where you live, but many states offer assistance to low-income or first-time home buyers.