Better Mortgage Review

3.8 _/5

LendEDU Rating

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Mortgage

• Average close time is 32 days
• You can get a commitment letter in just one day
• No prepayment penalties
• Get preapproved in just a few minutes
• Services loans nationwide

• No in-person support
• Restricts certain property types
• Doesn’t advertise all rates and terms online

Repayment terms	30 years fixed
Min. credit score	580
Min. down payment	3.5%

Refinance Loans

Min. credit score	620 for conventional, 700 for jumbo
Maximum debt-to-income ratio	50% for conventional, 43% for jumbo
Property type	Primary residences, second homes, and investment properties

Better Mortgage has funded over $100 billion in home loans (yes, with a B!) since its inception in 2015. The company specializes in fast closings through an online application process that often doesn’t require a phone call. 

It offers several mortgage types: conventional, jumbo, FHA, VA, fixed- and adjustable-rate, and cash-out refinances. However, it doesn’t offer in-person support, and we found a significant amount of information about rates and terms unavailable on its website. Our top-rated mortgage lenders stand out by offering more transparency.

Better mortgages for purchase

Better offers a larger variety of purchase loans than many other mortgage companies. Here’s an overview of what you’ll find.

What types of mortgages does Better offer?

Product	Terms	Min. credit score	Min. down payment
Conventional fixed	15, 20, or 30 years	620	5%
Conventional adjustable	5yr/6m, 7yr/6m, or 10yr/6m	620	5%
Jumbo fixed	15, 20, or 30 years	700	10%
Jumbo adjustable	5yr/6m, 7yr/6m, or 10yr/6m	700	10%
FHA	30 years fixed	580	3.5%
VA	15- and 30-year fixed	None	None

Conventional fixed

Conventional fixed-rate mortgages are the most common type of home loan. You can choose from 15-, 20-, or 30-year terms with Better. You’ll have the same monthly payment the entire time. The minimum credit score required is 620; you’ll need at least a 5% down payment.

Conventional adjustable

Better’s conventional adjustable-rate mortgages (ARMs) come in 5/6, 7/6, and 10/6 terms. These loans start with a fixed interest rate for the initial period (five, seven, or 10 years), after which the rate adjusts every six months based on market conditions. Like fixed-rate conventional loans, you need a minimum credit score of 620 and a 5% down payment.

Jumbo

Jumbo loans are for high-value properties that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. For 2024, these limits are $766,550 for a single-family home in most of the U.S. but can be up to $1,149,825 in high-cost-of-living areas.

With Better, you can choose between fixed- and adjustable-rate jumbo loans. These loans typically have stricter requirements, including a higher minimum credit score of 700 and a larger minimum down payment of 10%. 

FHA

Federal Housing Administration (FHA) loans open doors for homebuyers who might struggle with traditional mortgages. They accept credit scores as low as 500 and down payments as low as 3.5%. But the minimum down payment can be as high as 25% if you’re applying with a co-borrower who won’t live in the property with you.

VA

If you’re an active-duty service member, veteran, or the surviving spouse of a veteran, you might qualify for a Veterans Affairs (VA) loan through Better. These loans have no minimum credit score or down payment requirement.

Tip

Better offers a One Day Mortgage program where qualified homebuyers can receive a Commitment Letter in just a day. (This process usually takes weeks.) So if you’re house shopping during a hot market, this rapid turnaround can give you a competitive edge.

How do Better mortgage rates work?

You can get both fixed- and adjustable-rate mortgages through Better. As the name implies, fixed rates stay the same throughout your entire loan term. Adjustable rates start with a fixed period before changing periodically based on market conditions.

You can get preapproved online to see what rates you qualify for without harming your credit score. Available rates for Better’s mortgages can change based on your location in the U.S., so the best way to understand rates that might be available to you is to get a quote, which won’t affect your credit score.

Better mortgage eligibility

Better originates mortgages in all 50 states and Washington D.C., but you generally must be a U.S. citizen, permanent resident, or have a valid work visa to apply for a loan. Also, the property you’re looking to finance must fall into one of these categories: 

• Single-family homes
• Two- to four-unit properties
• Townhomes
• Condominiums
• Planned unit development (PUD)
• Manufactured homes (excluding investment properties)

You’ll need proof of steady income and employment history when you apply, and your debt-to-income ratio (DTI) should be below 50% for FHA loans. In some cases, Better will accept DTIs as high as 57% for FHA loans. For jumbo loans, your maximum DTI should be 43%. 

How do you repay a mortgage from Better?

You’ll repay your Better mortgage by making regular monthly payments. For many traditional mortgages, you’ll also pay property taxes and home insurance, which may be collected as part of your monthly payment and held in an escrow account.

For example, if you have a $400,000 30-year fixed-rate mortgage at 6.5% interest, your monthly principal and interest payment would be about $2,528. Add estimated property taxes ($400 per month) and insurance ($125 per month); your total monthly payment could be around $3,053. 

Depending on your mortgage, you may pay the full $3,053 to Better, which would then hold the extra $125 and $400 in escrow for when insurance and taxes are due.

How to apply for a mortgage with Better

You can apply for a Better mortgage online; the average closing time is 32 days. These are the general steps: 

1. Get preapproved. Start by filling out Better’s online preapproval form. This takes about three minutes and doesn’t affect your credit score.

2. Shop for a home. Look at listings until you find a property you want to make an offer on. 
3. Complete your application. If your offer is accepted, you can formally apply for a Better mortgage by selecting the mortgage you want and providing more information about your finances and the property you want to purchase. This step takes around an hour.
4. Upload documents. Depending on the loan you’re applying for, you may need to upload tax returns, W-2s or 1099s, bank statements, proof of child support or alimony, and more. 
5. Underwriting and appraisal. Better’s underwriting team will review your application and order a home appraisal and/or inspection. This process can take three to four weeks.
6. Clear to close. Once you meet all underwriting conditions, you’ll receive a “clear to close” notification from Better. You’ll also get a closing disclosure to review. 
7. Closing day. Schedule your closing date and sign the final documents to complete your home purchase.

Better mortgage refinancing

You can refinance your mortgage with Better online. 

How does Better’s refinance loan work?

When you refinance with Better, you’re essentially replacing your current mortgage with a new one. Better Mortgage has two refinancing options:

• Rate-and-term refinance. This allows you to remove PMI or change your interest rate, monthly payment, or loan term.
• Cash-out refinance. Take cash out by refinancing your current loan for a larger amount.

Who is eligible to refinance with Better?

Better’s refinancing eligibility requirements are the same as for new mortgages:

Requirement	Details
Minimum credit score	620 for conventional, 700 for jumbo
Maximum debt-to-income ratio	50% for conventional, 43% for jumbo
Property type	Primary residences, second homes, and investment properties

How to repay a refinanced mortgage with Better 

You will repay your refinanced mortgage the same way you would repay an original mortgage—by making monthly payments. These payments may include property taxes and insurance if they’re escrowed.

How much could you save by refinancing with Better? 

Say you have a $400,000, 30-year fixed-rate mortgage at 8.0% interest. Your current monthly principal and interest payment is about $2,935, and you’re considering refinancing with Better. 

If you refinanced to a new 30-year, fixed-rate mortgage at 6.5% interest, your new monthly payment would be about $2,528. This refinance could save you $400 per month or more than $146,400 over the life of the loan.

These savings don’t account for closing costs, which you can typically roll into your new loan amount or pay upfront. 

How to apply for a Better mortgage refinance

Applying for refinancing works like this:

1. Start by filling out Better’s preapproval form online. This takes about three minutes and doesn’t affect your credit score.
2. Better will show you available rates and terms based on your information, and you can select the refinance option that best suits you.
3. You can lock in your refinance rate for 30 to 60 days if you want to continue shopping around for refinancing. 
4. Have a home appraisal to determine your home’s current value.
5. Formally apply by uploading financial paperwork, including proof of income, tax returns, pay stubs, and bank statements, to Better’s secure online platform.
6. Wait while Better’s team reviews your application and documents. A conditional approval can take five to seven days. 
7. Wait for Better’s underwriters to finalize your loan refinance and send a clear-to-close notification to you.
8. Schedule your closing and sign the final documents.

Better reviews 

Source	Customer rating	Number of reviews
Trustpilot	4.4/5	1,728
Better Business Bureau	4.29/5	507
Google	4.6/5	3,115

Based on online reviews, customers seem to love Better Mortgage. Many note how quick and easy the online application is and are thrilled with the competitive rates. People also praise Better’s easy-to-use website and attentive customer service. 

While most feedback is positive, a handful of customers mention communication hiccups, particularly as they approach closing.

Pros and cons of Better mortgages

Pros

• Get a commitment letter in one day with One Day Mortgage program

  Better’s One Day Mortgage program can get you a Commitment Letter within 24 hours instead of a few weeks.

• Several types of mortgages available

  Better offers a wide range of mortgage options, including conventional, jumbo, FHA, and VA loans, as well as home equity lines of credit and refinancing.

• Digital forward process speeds things up

  Better Mortgage has daily customer service and online application processes to help you close your mortgage as fast as possible.

• No prepayment penalties

  None of Better Mortgage’s loans have prepayment penalties, so you can refinance or pay off your balance early without additional charges.

• Can get prequalified

  Better’s website allows you to get preapproved for a loan in just a few minutes. You can compare potential rates and terms without damaging your credit.

• Services mortgages nationwide

  Better offers mortgage loans in all 50 states and Washington, D.C., so you may be eligible for a loan anywhere in the U.S.

Cons

• No in-person support

  Better is a fully online mortgage lender, so you’ll need to feel comfortable applying online. However, Better’s customer reviews frequently mention the excellent customer support.

• Doesn’t advertise all rates and terms online

  Better Mortgage doesn’t list all rates and terms online, but you may be able to view these options once you’re preapproved.

• The One Day Mortgage program is for conventional and jumbo loans only

  You can’t use the One Day Mortgage program for FHA or VA loans.

• Some property types aren’t eligible for a mortgage

  Better Mortgage doesn’t finance loans for modular homes, co-ops, mixed-use properties, or multifamily homes with five or more units.

Better alternatives

When exploring alternatives to Better for your mortgage needs, consider loan types, customer service, interest rates, and flexibility in property types. Better.com offers fast approval times but lacks in-person support and has limitations on certain property types and rate transparency.

Our best-rated mortgage lenders may better suit your needs. These companies offer different loan products, terms, and unique features that could provide a better fit depending on your situation.

Better FAQ 

What credit score is needed to buy a house through Better? 

Better requires a minimum credit score of 620 to qualify for a conventional mortgage and 580 to qualify for an FHA mortgage. 

Is Better fast with mortgage approval? 

Yes, Better is known for its quick mortgage approval process. The company leverages technology to expedite the process, often providing preapproval within minutes and closing loans faster than traditional lenders. On average, Better can close a mortgage in as little as 21 days, although this can vary depending on the complexity of the loan and other factors.

Does Better charge PMI? 

Yes, Better charges private mortgage insurance (PMI) if your down payment is less than 20% on a conventional loan. PMI is a requirement from most lenders when the down payment is below 20%, and Better is no exception. However, you can cancel PMI once you reach 20% equity in your home.

How we rated Better 

LendEDU’s editorial rating system is designed to help readers find companies that offer the best mortgages. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms.

Better was compared to several mortgage lenders, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating, recapped below.

Product	Our rating
Better mortgages and refinancing	3.8