Top mortgage lenders in the best cities for first-time homebuyers

If you're planning to buy your first home in 2026, you may want to check out some medium-sized metros east of the Rocky Mountains, where affordability is king and economies are growing.

That's where Realtor.com identified the 10 best cities for first-time homebuyers to purchase this year. These locations offer affordable home prices relative to income, robust amenities like quality shopping and daycare along with a large percentage of young residents ages 25 to 34, according to Realtor.com — all things that first-time homebuyers may have on their wish list.

Most of these places — such as Rochester, New York; Pittsburgh, Pennsylvania and St. Louis Park, Minnesota — are located along the Rust Belt and known for their snowy, cold winters and idyllic summers. Other places on this list — like Little Rock, Arkansas — are southern capital cities and cultural centers.

Most buyers in all these cities finance their home purchases with some type of mortgage, according to Realtor.com data. And many first-time homebuyers have unique needs when choosing a lender, including down payment assistance, exceptional customer service, and a robust loan selection. On top of that, regional lenders offer unique expertise in local markets and customer values. For example, Huntington Bank will pair you with a local expert to find the best product for you — including local down payment assistance and other financial resources.

Below, CNBC Select compiled our picks for the best mortgage lenders for first-time homebuyers looking to move to the cities on this list (or similar areas), based on the needs of this specific cohort.

Best for low down payment mortgage: Rocket Mortgage

Why we think it’s best for a low-down-payment mortgage: Rocket Mortgage is one of the largest lenders of Federal Housing Administration (FHA) loans — government-backed mortgages that require a minimum down payment of 3.5%, much lower than most conventional mortgages, which typically require 5%.

On top of that, Rocket also offers a proprietary low-down payment loan for first-time homebuyers called ONE+ by Rocket Mortgage. With this loan, qualifying first-time homebuyers (borrowers who meet credit and employment requirements and make less than 80% of the area median income) can put down as little as 1%. Rocket will provide these borrowers with an additional 2% up to $7,500.

Other pros for Rocket Mortgage: Excellent customer service rankings from J.D. Power and Better Business Bureau; shares rate and term details on website for easy borrower evaluation; expansive customer service options, including extensive phone line hours and a chat feature; great loan variety.

Some downsides to consider: Rocket does not have branches, so if you’re keen on doing your banking in person, Rocket may not be for you.

Best mortgage for first-time buyers in the Rust Belt: Huntington Bank

Why we think it’s best for Rust Belt Buyers: Huntington Bank, a Columbus, Ohio-based bank has a well-known presence and reputation in the Rust Belt. Each prospective homebuyer will be paired with a local expert who knows the ins-and-outs of the regional housing and mortgage landscape, according to Huntington’s website.

It also says these experts will determine whether the borrower qualifies for local first-time homebuyer programs, such as the State Bond Down Payment Assistance program. Huntington offers mortgages that require a minimum down payment of 3%. Additionally, in 2021, it began a five-year commitment to providing $24 billion in affordable mortgages for underserved communities.

On top of that, it's the official partner bank of some Rust Belt institutions, including the Indiana Colts, the Cleveland Browns and various prominent universities across the Midwest.

Other pros for Huntington Bank: It has 1,000 branches in 14 states, including Ohio, Illinois, Pennsylvania and Minnesota — a relatively large physical footprint, so you can walk in and talk to a loan expert. It is also rated well by J.D. Power and the Better Business Bureau for customer satisfaction.

Some downsides to consider: Huntington doesn’t post its rates and terms on its website, so it may be hard to compare them during your preliminary search. It also doesn’t have branches in upstate New York, which is often considered part of the Rust Belt. But don’t worry, New Yorkers, we have you covered below.

Best for first-time buyers in New York State: Homestead Funding Corporation

Why we think it’s best for buyers in New York State: Based in Albany, New York, Homestead is known for its strong customer service reviews and local expertise. It offers several programs geared toward first-time homebuyers, including HomeReach, which provides down payment assistance for borrowers taking out an FHA loan, allowing them to put 0% down.

Other pros for Homestead Funding Corp: Homestead offers a $5,000 on-time closing guarantee if it doesn’t close your loan by the contracted date. It also has a wide variety of primary mortgage, renovation and reverse mortgage products. Plus, it has an excellent customer service record, including an average of 4.98 out of 5.0 stars across over 4,300 reviews on Zillow. It also has an A+ rating from the BBB.

Some downsides to consider: Homestead exclusively works in the mortgage space, so you’ll have to do your other banking separately.

Best for first-time buyers in the South: Hope Credit Union

Why we think it’s best for buyers in the South: Jackson, Mississippi-based Hope Credit Union is a financial institution in the heart of the South.

It offers several products for low- and moderate-income homebuyers. For example, a special down payment assistance loan allows homebuyers to purchase with 0% down up to $350,000 and 3% down up to $425,000. Hope Credit was founded to serve the underserved, and so its products reflect that mission, according to its website.

Other pros to consider: Unlike many credit unions, it’s pretty easy to join. People can sign up for a membership fee of $10.

Some downsides to consider: Membership is restricted to those in Mississippi, South Carolina, Georgia, Alabama, Arkansas and Louisiana.

Here is a more in-depth breakdown of the top markets, according to data provided by Realtor.com.

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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 review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.

CNBC Select reviews mortgage products using a variety of criteria, including average rates, terms, availability, fees, types of loans offered, online experience and customer satisfaction.

Additionally, we incorporate findings from independent sources, including lender scores from the J.D. Power mortgage origination and servicing surveys and ratings from the Better Business Bureau.

For home equity loans, we review rates, repayment terms, the amount of equity required and the minimum and maximum loan amounts available.

We also consider requirements for credit scores, debt-to-income ratios and combined loan-to-value ratios.

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