Best mortgage lenders with no origination fee in 2024
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When shopping around for a mortgage, you’ll find that many mortgage lenders charge an origination fee, which is the cost to cover processing and underwriting the loan. You’ll also find that some lenders don’t have this fee at all, or can discount or waive it for certain customers. Here is Bankrate’s guide to the best mortgage lenders with no origination fee in 2024.
Best mortgage lenders with no origination fee
Lender | Credit requirements | Down payment minimum | Bankrate Score |
---|---|---|---|
First Mortgage Direct | 620 for conventional loans, 580 for FHA and VA loans | 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans | 4.8 |
PenFed Credit Union | 650 for conventional loans, 700 for jumbo loans, 620 for FHA loans | 3% for conventional loans, 3.5% for FHA loans, none for VA loans | 4.7 |
Better | 620 for conventional loans, 580 for FHA loans | 3% for conventional loans, 3.5% for FHA loans, none for VA loans | 4.6 |
Alliant Credit Union | Undisclosed | 5% for conventional loans | 4.5 |
LowRates.com | 620 for conventional loans, 700 for jumbo loans, 580 for FHA loans, 500 for VA loans | 3.5% for FHA loans, none for VA and USDA loans | 3.7 |
Allied Mortgage Group | 620 for conventional loans, 700 for jumbo loans, 580 for FHA, VA and USDA loans | 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans | 3.5 |
Ally Bank | 620 for conventional loans, 700 for jumbo loans | 3% for conventional loans, 10.01% for jumbo loans | 3.5 |
Guild Mortgage | 620 for conventional loans, 680 for jumbo loans, 540 for FHA, VA and USDA loans | 3% for conventional loans, 3.5% for FHA loans, none for VA loans | 3.5 |
Homefinity | 620 for conventional loans, 600+ for FHA and VA loans | 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans | 3.5 |
First Mortgage Direct
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- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA, USDA
- Credit requirements: 620 for conventional loans, 580 for FHA loans and VA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans
- Where to find: Online
PenFed Credit Union
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- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA
- Credit requirements: 650 for conventional loans, 700 for jumbo loans, 620 for FHA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans
- Where to find: Branch locations and online
Better
-
- Availability: All U.S. states
- Loans offered: Conventional, FHA, VA
- Credit requirements: 620 for conventional loans, 580 for FHA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans
- Where to find: Online
Alliant Credit Union
-
- Availability: All U.S. states except Hawaii, Maryland and New York
- Loans offered: Conventional, jumbo
- Credit requirements: Undisclosed
- Down payment minimum: 5% for conventional loans
- Where to find: Online
LowRates.com
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- Availability: All U.S. states except Georgia and Massachusetts
- Loans offered: Conventional, jumbo, FHA, VA, USDA
- Credit requirements: 620 for conventional loans, 700 for jumbo loans, 580 for FHA loans, 500 for VA loans
- Down payment minimum: 3.5% for FHA loans, none for VA and USDA loans
- Where to find: Online
Allied Mortgage Group
-
- Availability: 34 states and Washington, D.C.
- Loans offered: Conventional, FHA, VA, USDA
- Credit requirements: 620 for conventional loans, 700 for jumbo loans, 580 for FHA, VA and USDA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans
- Where to find: Branch locations and online
Ally Bank
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- Availability: All U.S. states
- Loans offered: Conventional, jumbo
- Credit requirements: 620 for conventional loans, 700 for jumbo loans
- Down payment minimum: 3% for conventional loans, 10.01% for jumbo loans
- Where to find: Online
Guild Mortgage
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- Availability: All U.S. states except New York
- Loans offered: Conventional, jumbo, FHA, VA USDA
- Credit requirements: 620 for conventional loans, 680 for jumbo loans, 540 for FHA, VA and USDA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans
- Where to find: Branch locations and online
Homefinity
-
- Availability: All U.S. states except Nevada and New York
- Loans offered: Conventional, jumbo, FHA, VA, USDA
- Credit requirements: 620 for conventional loans, 600+ for FHA and VA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans
- Where to find: Online
How to choose the best mortgage lender with no origination fee
While the best mortgage lender ultimately depends on individual circumstances and what feels “right” to you, it’s helpful to narrow down your options. Here are some tips:
- Set your priorities. Do you want to talk to a loan officer in person? Do you need a faster closing? Want to apply for and track your mortgage status through an app? Consider these and other questions as you come up with your short list of lenders.
- Get prequalified or preapproved. If you haven’t determined a homebuying budget, get prequalified for a mortgage first. This can help you understand how much a lender might allow you to borrow based on some preliminary financial information. If you’re ready to shop for homes, skip the prequalification and ask for a preapproval, which involves a credit check.
- Understand rate-lock fees. While the lender might not charge an origination fee, you might still need to pay to lock your interest rate as you look for homes. Clarify this cost, including any rate-lock extension fees, with each lender you’re considering.