Check out Rocket Mortgage® as the best mortgage lender for first time homebuyers in MA. Credit scores, APRs and FHA loans — oh my! Being a first-time home buyer can be overwhelming, confusing and incredibly stressful. Are you getting ready to buy your first home in Maryland? Before you start comparing properties and shopping for lenders, make sure you check out our comprehensive guide for first-time buyers in the Bay State.Quick Look: Best MA Lenders for First-Time Home Buyers Best Overall in MA: Rocket Mortgage® Best for Low Credit Score: Keller Home Loans Best for VA Loans: Veterans United Best for Self-Employed: CrossCountry Mortgage Best for Custom Mortgage Solutions: FlagstarBest for Credit Monitoring: loanDepotLet’s take a look at some of the best mortgage companies offering loans in Massachusetts.
1. Best Overall: Rocket Mortgage®
Good Fit For:Online MortgagesVIEW PROS & CONS:securely through Rocket Mortgage (formerly Quicken Loans)'s websiteRocket Mortgage® understands that buying a home for the first time is confusing — so they’ve taken tons of steps to simplify the preapproval process. A product of Quicken Loans®, Rocket Mortgage® allows most users to get preapproved for their loan online in as little as 30 minutes. To get started with Rocket Mortgage®, all you need to do is enter your name, email address and a little income information online.You’ll then have access to current interest rates, more information on loan types and direction to the next steps in the approval process. Rocket Mortgage® offers a comprehensive set of loans, and you can get an FHA loan with a credit score as low as 500 points if you have a 10% down payment. With plenty of loan products, a simple step-by-step approval process and tons of information for first time buyers, Rocket Mortgage® is our top choice for mortgage lenders. Loan types offered: Conventional, FHA, USDA and VACredit score requirement: 620Average days to close a loan: 30-45 daysProsApply online through their websiteFaster loan processing timesVariety of mortgage optionsConsLack of personal interactionInability to negotiate terms2. Best for Low Credit Score: Keller Home LoansGood Fit For:Mortgage InformationVIEW PROS & CONS:If you have a lower credit score, the types of loans you may qualify for can be limited. In our review, Keller Home Loans (formerly known as Keller Mortgage) offered some of the lowest credit qualification standards in the state. You can secure a conventional loan with a score as low as 600 points, which is 20 points lower than most other lenders.Keller Mortgage also offers FHA loans, which have looser credit requirements than conventional mortgages. You can get an FHA loan with as little as 3.5%, and you may even qualify for closing cost assistance through Keller Mortgage’s ZeroPlus Program. Loan types offered: Conventional, FHA, USDA, VA and JumboCredit score requirement: 620Average days to close a loan: 30-45 daysProsNo lender fees or origination costsCompetitive interest ratesFast and streamlined application processConsLimited availability in certain statesLimited loan options3. Best for VA Loans: Veterans UnitedGood Fit For:Current Service MembersVIEW PROS & CONS:If you’re a member of the armed forces or a veteran, you can typically save money when you buy a home with a VA loan. Veterans United is an online VA lender focusing on making the VA loan application process simple and streamlined. Their team offers VA loans, conventional loans, USDA loans and FHA loans. If you aren’t sure if a VA loan is right for you or if you qualify, Veterans United’s team of retired military personnel-turned-loan officers can help you decide. They also offer assistance in getting all the paperwork you need to secure a VA loan, and they even offer credit counseling services. If you think a VA loan might be right for you, be sure to consider Veterans United. Loan types offered: VA, USDA, FHA and JumboMinimum credit score: 620Average days to close a loan: 30ProsStreamlined loan application processCompetitive interest rates and loan termsExcellent customer serviceConsFunding feesLimited physical locations4. Best for Self-Employed: CrossCountry MortgageGood Fit For:Self-employed BorrowersVIEW PROS & CONS:securely through CrossCountry Mortgage's websiteQualifying for a mortgage loan as a business owner, freelancer or other types of self-employed individual can be tough. Most mortgage lenders want to see that you have consistent, documented income before they’ll issue you a loan. If you’re self-employed, your income likely varies wildly by year, season or even month. CrossCountry Mortgage’s Asset Qualifier home loan program makes it easier for self-employed men and women to get a loan. With an Asset Qualifier loan, you can use the sum of your assets in order to qualify for your loan instead of only your annual net income. This can be hugely beneficial for business owners who have invested a large amount of money into their assets but whose income fluctuates frequently. You can get a loan for up to $6 million with an Asset Qualifier loan, and you can even qualify with a score as low as 580. Loan types offered: Conventional, FHA, USDA and VACredit score requirement: 580Average days to close a loan: 21ProsLong-term loan programsLow minimum credit scoreNo minimum DTIConsRelatively high minimum credit scoreNo HELOCsNo other home equity loan options5. Best for Custom Mortgage Solutions: FlagstarGood Fit For:Specialized Loan ProductsVIEW PROS & CONS:securely through Flagstar Mortgage's websiteIf you’re a professional just beginning your career, your income and debt right now might not be in line with your future earning potential. For example, if you’ve just graduated from law school, you might have a large amount of debt that’s preventing you from buying a home — even if your income is now much higher than in previous years.Flagstar is a unique mortgage lender offering professional ARM loans specifically for those who have just graduated from a professional league of study. These loans begin with low-interest rates as you begin your career and gradually adjust to market rates as you become more experienced and begin to earn more money. You can quickly apply for pre-approval or get a refinance quote online, and many professionals qualify for loans with low or no down payment. This flexible mortgage can be a great option if you’re a young professional just getting started in your career.Loan types offered: Conventional, FHA, USDA and VACredit score requirement: 620Average days to close a loan: 30ProsA broad range of loans are availableYou can obtain loans for construction or renovationBrick-and-mortar locations are availableQuality information on the websiteConsApplications may take some time to complete6. Best for Credit Monitoring: loanDepotGood Fit For:Comparing LendersVIEW PROS & CONS:loanDepot is a non-bank lender that gives you convenience and efficiency online with the option to visit one or over 200 branches across the country. loanDepot offers fixed-rate and adjustable-rate conventional mortgages. You could also secure jumbo, FHA or VA loans, although conventional loans made up most of LoanDepot’s mortgage originations last year. LoanDepot also offers 10-, 15-, 20- and 30-year mortgage terms. In addition to mortgages and home refinancing, LoanDepot offers free credit score monitoring to help you prepare to apply for a mortgage. You'll need at least 5% downpayment. Loan types offered: Conventional, FHA, VA, and JumboCredit score requirement: 620 (depends on the lender)Average days to close a loan: 30 days (depends on the lender)ProsChoose shorter repayment terms $1,000 Close-on-Time GuaranteePossible home security, moving and smart home product discounts Use its online loan calculator to compare monthly payments and lifetime interest before deciding on a mortgage lenderConsNo mortgage rates listed onlineNo USDA loansThe Housing Market in MA: An OverviewUnderstanding your local housing market can help you set a budget for your house hunt and understand what type of competition you’ll face. Let’s take a look at the Massachusetts housing market at a glance. Total households: 2,740,995Median list price: $586,2043 most expensive cities in Massachusetts to buy a house: Nantucket: $2,579,539Chilmark: $2,352,891Aquinnah: $2,137,6573 Most affordable cities in Massachusetts to buy a house:Chicopee: $285,000Springfield: $290,000Worcester: $405,000Preparing for a MortgageA mortgage loan is a loan that you use to buy a property. You can get a mortgage from a bank, a credit union or an online lending service. Here are the basic steps you’ll follow when you get ready to take on a mortgage loan.Decide Which Type of Loan You WantAs a first-time buyer, you can take advantage of a few different types of government-backed mortgage loans. These loans can help you buy a home with more debt, a lower income or a lower credit score. You can also use a conventional mortgage loan to buy your first home. We’ll go over the different types of mortgages in a later section.Make Sure You Qualify for a MortgageEach mortgage lender has credit and income-to-debt standards you must meet to qualify for a loan. If you want a government-backed loan, you may need to meet additional requirements. Research lenders in your area and make sure you qualify for the type of loan that you need.Gather Your Financial PaperworkYour lender will want to see proof of your income, assets, debt and credit when you apply for a mortgage. The specific documents you’ll need will depend on your lender’s process. Most of the time, you’ll need your last 2 W-2s, your last 2 bank statements and your most recent tax return. You might need to provide more documentation if you’re self-employed.Apply for preapprovalOnce you have all your paperwork together, apply for a mortgage pre-approval. A pre-approval is a letter from a lender that tells you how much money you can use to take out a home loan. Getting preapproved before you shop lets you set a realistic budget and tells sellers that you’re serious about buying a home.Lenders only want to loan out money if they know you’ll be able to pay it back. Every lender has its own standards for lending. For example, lenders can set their own minimum credit score required to get a loan. Let’s take a look at a few Massachusetts lenders’ minimum credit requirements.
