10 Best Lenders for FHA Loans of 2023


Buying a home can be a daunting task. However, there are programs in place for first-time homebuyers to make it a little easier.

One of the ways you can get a mortgage, even if you don’t have a big down payment or a perfect credit score, is the Federal Housing Administration (FHA) loan program.

Best FHA Lenders and Online Marketplaces

Here are some of the best FHA loan lenders, as well as marketplaces where you can easily compare your options.


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You can live in any state and get access to an FHA mortgage through loanDepot.

This company is known for the fact that loan officers don’t get any sort of incentive to encourage you to take one action over another. This can provide you with peace of mind, knowing that the information you get will be best suited for your needs.

When you use loanDepot, though, you need to watch out for origination fees. You might have to pay between 1% and 5% of the home’s purchase price. Carefully consider terms from other lenders before moving forward.

Read our full review of loanDepot


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One of the first places to look for an FHA mortgage is LendingTree, an online marketplace.

Rather than directly offering FHA mortgages to borrowers, LendingTree provides a platform where you can submit your information once, and then have various lenders compete for your business by offering you quotes.

When you fill out the form, make sure you indicate that you’re looking for an FHA loan. When you do that, you can get as many as five loan offers minutes after submitting your loan application.

With the information you get from LendingTree, you can have a pretty good idea of what you qualify for and what you can expect.

Read our full review of LendingTree

Quicken Loans

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Over the years, Quicken Loans has become one of the most trusted lenders in the business.

In addition to offering conventional loans, you can also get an FHA loan through Quicken Loans. In fact, Quicken is the largest FHA lender in the country.

They state that you’ll need a credit score of at least 580, a debt-to-income ratio (DTI) of no more than 50%, and a steady employment history.

Quicken Loans has a completely online application process and uses technology to verify employment and income for the majority of applicants.

Even if you don’t end up with an FHA loan, Quicken Loans is very flexible and can help you find a loan that fits your needs.

New American Funding

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Access to FHA loans is a hallmark of New American Funding, which offers several programs. With this company, you can even explore the possibility of an FHA renovation loan.

In addition to offering access to numerous programs, they also use manual underwriting, meaning that alternative credit data can be relied on. This can be useful if you have a lower credit score.

While you still have to meet FHA requirements, other underwriting requirements might be a little more flexible.

Read our full review of New American Funding

Flagstar Bank

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In addition to allowing applicants to provide nontraditional trade lines for underwriting consideration, Flagstar Bank is also known for offering loan packages meant for professionals.

In many cases, there are specific needs associated with being a CPA, architect, doctor, or lawyer. This is a bank that offers professional loan packages that can meet those needs.

Flagstar’s flexibility can be a great asset. However, it’s also important to note that you might end up with a steep origination fee. Weigh that against the benefits and compare your Flagstar quote with other options.

Read our full review of Flagstar Bank


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The mortgage arm of Citibank allows you access to the resources of one of the most recognized nationwide banks.

Not only can you access FHA loans through CitiMortgage, but you can also take advantage of other programs, particularly those that benefit military families.

However, you can’t complete the mortgage application online. It might not be a bad idea to get a few online FHA loan quotes and bring them with you when you meet with a CitiMortgage loan officer.

Read our full review of CitiMortgage

U.S. Bank

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Another high-profile national bank, U.S. Bank offers several mortgage products. In addition to getting started online, you can also call a number and speak with a mortgage specialist — including someone near you.

U.S. Bank does not publish a public minimum credit score for FHA loans.

U.S. Bank prides itself on the ability to offer personal service so you can apply for your loan using what’s most comfortable for you.

Read our full review of U.S. Bank

Carrington Mortgage Services

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It can be very difficult for borrowers with poor credit to take out a conventional mortgage. If your credit score is low due to financial mistakes in your past, then Carrington Mortgage Services may be a suitable option for you.

This mortgage lender is willing to lend to borrowers with credit scores as low as 500, which makes it a viable option for anyone who is struggling to rebuild their credit.

You will end up paying more money in interest, so if you have good credit, you may be able to find better mortgage rates elsewhere.

Interested FHA borrowers can speak with a Carrington loan officer to get started. The loan officer can walk you through the FHA loan application process and make sure you have everything you need to qualify for an FHA loan.

Read our full review of Carrington Mortgage Services


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PennyMac is based in California and does have some brick-and-mortar locations, but the company is known for its superior online services. The company is considered one of the top five lenders in the U.S.

PennyMac offers various loan options, including FHA loans. You’ll get started by applying online, and then a loan officer will contact you over the phone.

Borrowers need to have a minimum credit score of 580 to qualify, so it’s a suitable option for anyone with less-than-ideal credit.

Read our full review of PennyMac


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If you live in a state serviced by Reali, you could close on your FHA loan in as little as 13 days. That’s much faster than many mortgage closing timeframes.

This online lender can provide you with a quote that you can then compare to what you’re getting from other FHA lenders.

One of the selling points to Reali is the fact that you can upload your documentation online and avoid a bunch of unnecessary paperwork.

Reali makes the process smooth and simple. They also don’t charge origination fees.

However, access is limited to the following states:

  • Arizona
  • California
  • Colorado
  • Florida
  • Georgia
  • Illinois
  • Michigan
  • Oregon
  • Pennsylvania
  • Texas
  • Virginia
  • Washington

For residents of these states, though, access to Reali’s opportunities can mean another FHA loan possibility. Additionally, Reali is expanding, so you might have access soon.

Read our full review of Reali

How do FHA loans work?

Understanding FHA loans can help you buy a home that you can afford. Here’s what you need to know about getting an FHA loan and the best FHA lenders.

FHA loans are backed and guaranteed by the federal government. The government doesn’t actually make the loans, though. Instead, FHA loans are actually originated by individual FHA loan lenders who are approved by the government. The Federal Housing Administration backs the loans so lenders feel more comfortable with borrowers that might seem to present something of a higher risk.

Down Payment Requirements

With an FHA loan, you can put down as little as 3.5% for a down payment if you have a minimum credit score of 580. Additionally, there are FHA loans available for those with even lower credit scores, as long as they put down 10% of the purchase price.

You apply for an FHA loan much as you would in any other mortgage loan. The FHA lender will still review your credit history, income information, and other factors. Ultimately, this determines whether you’re approved, how much you can borrow, and your interest rate. You’ll have to pay for private mortgage insurance during your FHA loan, though, so be aware of that added cost.

Before you choose a mortgage lender, though, it’s important to compare your options. Just as you can with any other loan quote, you can shop around and compare offers from different FHA mortgage lenders. Start by looking at the best lenders for FHA home loans. That way you have a better chance of receiving terms that work best for you.

How to Find the Best FHA Lender

To find the best FHA-approved lender, you will want to compare quotes from multiple lenders. Once you have at least three or four FHA loan quotes, it’s time to compare them. You want to make sure you’re comparing apples to apples, though. Some of the items that you need to watch for in a loan offer include:

  • Loan origination fees
  • Interest rate (including whether it’s fixed or adjustable)
  • FHA mortgage insurance
  • Required down payment
  • Length of loan term
  • Closing costs
  • Estimates for property tax and home insurance

Make sure the terms are roughly the same so you can make a good comparison. You might also want to see if your potential lenders are willing to run different scenarios if you’re willing to pay points.

Run the Numbers

You might need to run a few numbers on your own to determine which trade-offs are worth it. For example, one FHA mortgage lender might have no origination fees but charge a higher interest rate.

If interest rates are low enough, you might be better off working with an FHA mortgage lender that charges an origination fee.

Carefully consider these items, and look at the total cost of the loan. In the end, you want a loan that is likely to cost you the least amount of money, while still allowing you to afford your monthly payments.

Miranda Marquit
Meet the author

Miranda has been covering personal finance topics for more than 10 years as a freelance writer and journalist. She has contributed to Forbes, NPR, MarketWatch, Yahoo! Finance, U.S. News and World Report, and many other media outlets. Miranda has an M.A. in Journalism and is currently working on an MBA. She lives in Idaho with her son, where she enjoys reading, travel, and the outdoors.