Best mortgage lenders for first-time homebuyers in June 2026

Buying a home for the first time is a daunting endeavor, especially with the high costs of real estate.

Many would-be shoppers are waiting on the sidelines for longer as a result. The average first-time buyer (FTHB) was 40 years old in 2025, an all-time high age, according to the National Association of Realtors. And the share of first-time homebuyers on the market has decreased to a record low of 21%. Now, more than ever, first-time buyers need flexible down payment options, generous grants and excellent customer service.

CNBC Select chose the best mortgage lenders for first-time homebuyers across various categories, including for military families, borrowers with poor credit and buyers looking to close quickly. See our methodology for information on how we made our selections.

For more information on how we made our selections, see our methodology.

Who's this for? If you're looking for a low-down payment, start by researching Rocket Mortgage. You can put 1% down with the ONE+ loan and you won't have to pay for private mortgage insurance with this product, making it an excellent option for qualifying first-time homebuyers who haven't saved up much for a down payment. Rocket also offers FHA loans, which require just 3.5% dow.

Standout benefits: If you purchase your house through the Rocket Homes network, you may be eligible for a 1.25% rebate on closing costs, up to $10,000.

Who's this for? If you're a military family buying your first home, consider Veterans United. The largest issuer of VA loans in the U.S., it specializes in lending to active-duty service members, veterans, eligible reservists and surviving spouses.

Standout benefits: The Veterans United customer service team is available 24/7, making it easier for troops stationed overseas to access. Free credit counseling is also available to help you get approved for the best rate.

Who's this for? If solid customer service is your priority, consider Bank of America. J.D. Power ranks it highly for both mortgage origination and servicing and it received an A+ from the Better Business Bureau.

Standout benefits: BoA's Down Payment Grant provides up to 3% of a home's purchase price in select markets, while America's Home Grant offers up to $7,500 toward closing costs.

Who's this for? If you have bad credit or a thin credit history, you can still get a mortgage — you just have to find the right lender. Consider Guild Mortgage, which has more flexible credit requirements than many competitors, especially for FHA loans and other government-backed mortgages. It also considers non-traditional credit sources, like on-time rent and utility payments.

Standout benefits: Guild's Payment Advantage mortgage pays 1% of your interest rate for the first year. If rates go down, you may be eligible to refinance with no lender fees. Guild also offers a 17-day closing guarantee, with qualified buyers receiving a $500 closing-cost credit if they fail to close on time.

Who's this for? If you want to save on your purchase, consider Better Mortgage, which offers a discount of up to $2,000 on closing costs for those who use Better Real Estate to buy their home.

Standout benefits: With Better's HOPE Grant, homebuyers who meet income requirements can receive 2% of their home's value, up to $5,000, toward their down payment.

Who's this for? If you're worried about closing on your first home in a timely manner, consider the banking giant Chase. It guarantees eligible mortgages will close on time, or borrowers will receive a $5,000 cash payment.

Standout benefits: Chase's Standard Agency mortgage allows first-time buyers to put down as little as 3%. Current Chase customers may qualify for a discount on their mortgage rate.

Who's this for? If you think you'll need down payment or closing cost assistance in order to become a homebuyer, look into Flagstar Bank mortgages. It has a gift program that enables first-time homebuyers in certain Community Reinvestment Act (CRA) Assessment areas to receive grants and gifts covering up to 3% of their purchase price, with a maximum value of $10,000.

Standout benefits: Through the Flagstar Power-Up program, first-time buyers in select low-to-moderate income census tracts can receive up to $8,000.

Who's this for? If you're looking for a unique loan term or a large jumbo loan, consider PNC Bank. It offers conventional fixed-rate mortgages that have terms ranging from 10 to 30 years. There's no minimum loan amount and PNC approves jumbo mortgages for up to $5 million, higher than many competitors.

Standout benefits: PNC Bank offers a closing cost grant of up to $7,500 to qualifying first-time homebuyers. Eligible borrowers can qualify for a PNC Community Loan with a 3% down payment and no private mortgage insurance.

The U.S. Department of Housing and Urban Development (HUD) considers you a first-time homebuyer if you meet any of these criteria:

• You've never owned a house.
• You haven't owned a principal residence within three years of the closing date on a new home.
• You have only owned a home jointly with a spouse from whom you're now divorced, or a widow, and no longer own the property.
• You only owned a house that was not permanently affixed to a foundation, such as a mobile home.
• You've only owned a home that did not meet building codes and could not be brought up to code for less than the cost of constructing a new home.

Most mortgage lenders and government agencies adhere to this broad definition. Some FTHB grant programs may impose additional restrictions on income and location.

Selecting the right financing is important for any buyer, but first-timers are putting a lot of trust in their lender. Here are some factors to consider if you're shopping for a mortgage lender for the first time.

Check your credit. Your credit score will tell you what loans and rates you qualify for. While a 620 is the typical threshold for a conventional mortgage, a 740 or higher unlocks the best rates. If you don't have great credit, you may want to look at lenders that offer FHA loans, which only require a 500.

Compare multiple lenders. Get quotes from at least three to five lenders, including banks, credit unions, and online lenders. Compare the APRs, terms, closing costs, discounts and other features of their offers, and ask about down payment assistance and other homebuying programs.

Try to get preapproval, so you have a solid idea of your borrowing limit.

Evaluate other services and features. Taking out a mortgage is the beginning of a long relationship. Make sure you'll get the level of service you need. Are there agents available 24 hours a day? Do they sell their loans to third-party servicers? Has there been a high number of complaints, lawsuits or judgments? Ask for referrals, read reviews and check the Consumer Financial Protection Bureau website for enforcement actions.

State and federal government agencies, private lenders and non-profits all sponsor programs that help first-time buyers and others achieve homeownership.

Many are grants that can be used toward closing costs or a down payment and come with income or location requirements.

• Bank of America's Down Payment Grant provides 3% of a house's purchase price, up to $10,000, in select markets.

• Chase Bank's Homebuyer Grant provides eligible borrowers with up to $7,500 to lower their interest rates, put toward closing costs or bolster their down payment.

• PNC Bank has a $5,000 grant for low-income borrowers that can be put toward closing costs, a down payment or other prepaid costs.

• Wells Fargo's Homebuyer Access grant provides up to $10,000 toward a down payment for buyers who make no more than 120% of the median income.

In 2025, the median down payment for first-time homebuyers was 10% — the highest median since 1989, according to the National Association of Realtors.

Here's the minimum down payment lenders typically require for common mortgage types.

• Conventional mortgages: This is the most common type of mortgage and lenders usually require a minimum of 5% down. You'll have to pay private mortgage insurance until you reach 20% equity.
• Department of Veterans Affairs loans and U.S. Department of Agriculture loans: No down payment is required because the financing is backed by the federal government.
• Federal Housing Administration loans: You must put at least 3.5% down.
• Community lending mortgages: Most private lenders offer community lending mortgages designed for low- and middle-income buyers, which typically have flexible down payment requirements.
• Proprietary first-time homebuyer mortgages: Chase's DreaMaker loan requires just 3% down, while Rocket Mortgage's RocketONE+ loan accepts as little as 1%.

At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every mortgage article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.

To determine which mortgage lenders are the best for first-time homebuyers, CNBC Select analyzed dozens of U.S. mortgage lenders. We focused on the following features:

Loan types: We weighed lenders more heavily if they offered government-backed FHA, VA and USDA loans, jumbo mortgages and specialty loans aimed at low-income borrowers

Minimum down payment: We noted which lenders offered loans with lower minimum down payment requirements or down payment assistance. 

Credit scores: We gave lenders more weight if they offered loan options to borrowers with lower credit scores or no credit history.

Fees: The mortgage process includes origination, application and underwriting fees, as well as charges for appraisals, title insurance, attorneys and other closing costs. We noted if a lender had lower fees, discounts or waived certain fees.

Application process: We evaluated whether lenders offered an online preapproval and application process, as well as whether they had physical branches for an in-person experience. 

Customer service: Lenders ranked highly on J.D. Power's mortgage origination and servicing surveys were given greater weight. We noted whether a lender had robust customer service phone hours and a website with an online chat feature and educational resources.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Based on those criteria, our selections for the best mortgage lenders for first-time homebuyers are:   

• Best for low down payments: Rocket Mortgage
• Best for military and veterans: Veterans United
• Best for customer service: Bank of America
• Best for bad credit: Guild Mortgage
• Best for discounts: Better Mortgage
• Best for on-time closing: Chase Bank
• Best for homebuyer assistance: Flagstar Bank
• Best for flexible loan terms: PNC Bank

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