Photo Courtesy of jack_the_sparow/ShutterstockWhen buying your first home, these lenders have some of the best options available.When buying your first home, you consider where you want to live, the home type you prefer and how many bedrooms the house must have. Equally important is securing financing, as you may not have a substantial amount of cash available for a down payment. Benzinga has combed through dozens of options to identify the best mortgage lenders for first-time homebuyers. These lenders offer several features that make them excellent choices for first-time homebuyers, including lenient credit and low down payment requirements. Consider these options to make your dream home a reality.Quick Winners ListBest for Fast Closing: CrossCountry MortgageBest for Variety of Options: New American FundingBest for FHA Loans: Rocket Mortgage (formerly Quicken Loans)Best for Credit Monitoring: loanDepotBest for Borrowers with No Credit Score: Angel Oak Mortgage SolutionsBest for Quick Application: RateBest for Fast Closing: CrossCountry MortgageGood Fit For:Self-employed BorrowersVIEW PROS & CONS:securely through CrossCountry Mortgage's websiteProsClose in as little as 10 daysLicensed in all 50 states, D.C. and Puerto Rico120 mortgage purchase, refinance and home equity solutionsCan work with credit scores as low as 500Doesn’t require tax returnsConsDoesn’t post rates onlineUnderwriting process may take longerCrossCountry Mortgage is a Cleveland-based lender that offers mortgages nationwide. With CrossCountry, you can choose from conventional, jumbo, non-QM and government-backed FHA, VA or USDA loans. It offers pre-approval to gauge your approval odds, but FHA and VA loans may allow credit scores as low as 500.CrossCountry offers a FastTrack Credit Approval program that can help close in as few as 10 days after signing a purchase agreement. The lender also offers resources for first-time homebuyers on its website, including a comprehensive guide and various informative articles.Minimum credit score: 500Minimum down payment: As little as 1% for first-time homebuyersLoan types offered: Conventional, FHA, VA, USDA and jumbo loansStates served: All 50 states, D.C. and Puerto RicoBest for Variety of Options: New American FundingGood Fit For:A Variety of OptionsVIEW PROS & CONS:securely through New American Funding Purchase's websiteProsMany loan types and programs availableCompetitive interest ratesOffers new loan origination and refinancingOffers down payment assistanceLoans can cover closing costsConsLimited in-person locationsOrigination fees can be highNew American Funding offers a variety of loan products including government-backed mortgages, ITIN loans and construction loans. Some loan types it offers are conventional fixed and adjustable-rate mortgages and home equity, reverse and jumbo loans. It regularly publishes rates on its website for several popular loan programs, giving you an idea of what to expect.New American Funding accepts credit scores as low as 500. You can also choose from flexible mortgage options, selecting terms ranging from eight to 30 years. The lender also offers down payment assistance programs, which provide up to $6,000 toward purchasing a home. It can also help you make an all-cash offer, making it easier to close on a home.Minimum credit score: 500Minimum down payment: 0%Loan types offered: Conventional, FHA, VA, USDA, jumbo, I CAN and other loan optionsStates served: All 50 states plus D.C. and Puerto RicoBest for FHA Loans: Rocket Mortgage (formerly Quicken Loans)Good Fit For:Online MortgagesVIEW PROS & CONS:securely through Rocket Mortgage (formerly Quicken Loans)'s websiteProsLargest FHA lender in the countryRate reduction programs may lower your rateClosing credit of up to $10,000Put as little as 1% downConsRates may not be the lowest availableNo in-person locationsLimited options for borrowers without traditional credit profilesRocket Mortgage (formerly known as Quicken Loans) is the largest FHA lender in the country, helping first-time homebuyers with limited funds secure a mortgage. You can use the website or the app to apply for a mortgage and manage your loan application. Rocket Mortgage utilizes a streamlined loan application process, allowing you to track all your progress in one convenient location.With Rocket Mortgage, you can apply for conventional, refinance, jumbo, fixed, adjustable, FHA, VA and home equity loans. Its Rate Drop Advantage program lets you refinance starting four months after your closing and up to 18 months afterward, waiving certain closing costs. Additionally, Rocket Mortgage offers the convenience of working with loan officers over the phone, allowing for remote interactions if you prefer this approach.Minimum credit score: 580Minimum down payment: 1% with ONE+ programLoan types offered: Conventional, FHA, VA and jumbo loansStates served: All 50 states and D.C.Best for Credit Monitoring: loanDepotGood Fit For:Comparing LendersVIEW PROS & CONS:ProsOffers free credit monitoringApply quicklyEntirely online applicationDirect lender“No steering” policyConsRates not posted onlineNot all partners can give you the best ratesNo USDA loansloanDepot is a non-bank lender that offers convenience and efficiency online with the option to visit a branch in person. loanDepot offers fixed-rate and adjustable-rate conventional mortgages. When applying for a mortgage with loanDepot, you can choose from jumbo, FHA or VA loans. LoanDepot also offers 10-, 15-, 20- and 30-year mortgage terms.Because your credit score is crucial when purchasing and refinancing a home, loanDepot offers a free credit monitoring service called SavvyMoney. You need a credit score of at least 620 to apply for a mortgage with loanDepot, so you can also use the service to determine when you qualify. According to loanDepot, its status as a direct lender allows it to close 50% faster than the industry average.Minimum credit score: 620Minimum down payment: 0% (VA); 3.5% (FHA)Loan types offered: Conventional, FHA, VA and jumbo loansStates served: All 50 statesBest for Borrowers with No Credit Score: Angel Oak Mortgage SolutionsGood Fit For:Flexible Mortgage OptionsVIEW PROS & CONS:securely through Angel Oak Mortgage Solutions's websiteProsOffers various non-QM loan optionsDedicated loan officers availableVerify your income with bank statementsLoans available to foreign nationals and ITIN holdersConsLoans not available in all statesHigher interest rates than conventional loansRequires higher credit score than government-backed optionsAngel Oak Mortgage Solutions offers non-QM loan options for borrowers who do not have a traditional credit profile. Bank statement loans are available for up to $4 million with a minimum loan amount of $150,000. Angel Oak is licensed in 45 states and offers competitive mortgage rates and quick closing times. The lender is not currently licensed to operate in New York.Angel Oak has options for primary residences, second homes and investment properties. It accommodates various property types including single-family homes, townhomes and condominiums. Borrowers with 1099 income and those with sufficient assets may qualify. It also offers HELOCs and P&L loans as well as government programs such as FHA, USDA and VA.Minimum credit score: 640Minimum down payment: 5%Loan types offered: Various non-QM loan programsStates served: All states except Alaska, New York, Vermont, Massachusetts and ConnecticutBest for Quick Application: RateGood Fit For:Fast PayoutsVIEW PROS & CONS:securely through Rate's websiteProsApproval in as little as 24 hoursApply onlineAvailable in all 50 states and D.C.Hundreds of branches nationwidePosts rates onlineConsMost loans require a 620 credit scoreSome higher fees than other lendersNo USDA loansRate is a major mortgage lender based in Chicago, Illinois. It offers various home loans including conventional fixed-rate and adjustable-rate mortgages (ARMs), jumbo loans, interest-only loans, HELOCs, home renovation loans and government-backed FHA and VA loans. With Rate, you may qualify with a down payment as little as 3%.Rate offers flexible mortgage application options and accepts non-traditional credit. For instance, you may provide your rent or utility payment history to qualify for a conventional or government-backed loan. It offers various down payment assistance programs, educational resources, mortgage calculators and personalized guidance from dedicated loan officers.Minimum credit score: 620Minimum down payment: 3%Loan types offered: Conventional, FHA, VA and jumbo loansStates served: All 50 statesHow Do I Choose a Lender as a First-Time Home Buyer?To choose a mortgage lender as a first-time homebuyer, you must know what to look for. Generally, you must weigh the type of lender, interest rates and available mortgage products. First, consider the lender type. You can choose from online lenders, physical bank locations, credit unions and other mortgage lenders. Credit unions sometimes offer lower rates to members, but you must compare rates from multiple lenders to find the best options.Lindsey Harn, a top real estate agent at Christie’s International Real Estate, recommends always shopping local. “Depending on your market, a local lender can make or break getting your offer accepted, Harn says. “A reputable, well respected lender can make a huge difference when it comes to getting your offer accepted.” Harn recommends asking friends and family for referrals, then checking with local banks and credit unions.Additionally, consider the various types of loans. While many borrowers choose conventional loans, there are also government-backed options such as FHA, VA and USDA loans. These loans often have lower down payments and more flexible credit score requirements.Rates and TermsInterest rates and fees are also crucial because they can add up to thousands of dollars over the lifetime of your mortgage. Compare at least three lenders online to find the best available options, taking into account their interest rates and fees. Consider the total required closing costs and other expenses to ensure you have enough for the down payment, plus closing costs, to help ensure you can save more.While rates are important, they aren’t the only thing that matters, says Ryan Leahy, CEO at MORE Direct Seller Financing. “You want to find the best financing solution and option that works for your real life, through the entire process,” Leahy says. “For first time buyers, look for lenders or seller-financing partners that provide transparency, flexibility, honesty and effort in regards to the terms that reflect your current financial situation.”Leahy adds, “Make sure to compare offers and understand all the terms, not just the monthly payment.”Loan terms are also crucial. Consider interest rates, fees and early repayment penalties. Remember that a longer term typically means paying more interest overall even if the monthly payment is lower. Having a real estate attorney review the mortgage contract and explain unfamiliar terms may be worthwhile. These tips can help you as a first-time homebuyer.Why You Should Trust UsAs someone who purchased their first home in 2024, I know all too well what it’s like to be a first-time homebuyer. It can be overwhelming and at times, you might feel lost. My experience with buying my first home has given me the insights necessary to choose the best lenders for first-time homebuyers. Additionally, I interviewed industry experts who shared their valuable insights.Lindsey Harn, whom I interviewed for this piece, is a top real estate agent in San Luis Obispo County, California. Harn has closed over 1,200 real estate transactions since 2019. Ryan Leahy, whom I also interviewed, is the founder and CEO of MORE Direct Seller Financing. Leahy has 22 years of experience in the mortgage industry, having closed over 4,000 transactions.Benzinga was founded in 2010 and is trusted by over 25 million readers. It regularly publishes authoritative, research-backed content on investing, insurance, mortgages and other related subjects.Methodology Using Benzinga’s multi-point evaluation criteria, I analyzed mortgage products from 23 lenders to determine which ones are best suited to first-time homebuyers. Some of the key criteria I considered are interest rates, fees, loan variety and overall customer experience. I looked for lenders who allow lower down payments and have more flexible credit score requirements, which is often helpful for first-time homebuyers.I also factored in ratings and reviews from independent sources such as TrustPilot, the Better Business Bureau (BBB) and Zillow. Those that ranked highest consistently received strong feedback on one or more of these platforms. Weighing these factors allowed me to identify those with the best overall customer service.Applying for a mortgage can be challenging and first-time homebuyers may feel more comfortable applying online or through a mobile app. Lenders allowing borrowers to apply online without inundating them with too many questions received high marks. Those that don’t require an in-person visit also fared the best.See Benzinga's full methodology for a complete overview of how we determine the best mortgage lenders.FAQQHow much money should I put down on a house as a first-time buyer?