Best Mortgage Lenders for First-Time Home Buyers in 2022

For first-time home buyers, finding the right mortgage can be a big challenge. You want to work with a lender that can give you the best rate, the right term and the lowest closing costs, as quickly and efficiently as possible.

Citibank

Good for: existing Citibank customers, as well as borrowers eligible for the low-down-payment HomeRun mortgage.

Cons

1. Requires help from a loan officer to complete an online mortgage application.
2. Customized mortgage rates not available without making contact.

BB&T (Truist)

Good for: borrowers in the Southeast who want the option of face-to-face service. BB&T is now part of Truist Financial Corp., which offers a full menu of home loans.

Pros

1. Offers a variety of home loans, including construction-to-permanent loans, physicians loans and jumbo loans.
2. Has a robust online mortgage application.

Cons

1. Branches limited to mostly the Southeast region.
2. Custom rates are only available if you speak with a representative.

PenFed

PenFed Credit Union has a digital mortgage application and offers a wide selection of mortgages, including low-down-payment home loans. But it doesn’t offer FHA mortgages.

Pros

1. Offers a broad selection of home loan products, including low-down-payment options for first-time home buyers and home buyers of limited means.
2. Offers a lender credit, based on loan amount, for purchase mortgages.
3. Mortgage rates and fees are low compared to other lenders, according to the latest data.

Cons

1. Lender credit isn’t available for refinance mortgages.
2. Doesn’t offer FHA or home improvement loans.

Flagstar

Good for: borrowers who want a wide range of choices — not only among mortgage products, but also in the channel they prefer, whether a branch, online or on the phone.

Pros

1. Offers a wide range of loan types and products, including FHA, VA and USDA.

2. Has a full suite of online conveniences.
3. Offers customized online rate quotes with monthly payment estimates, including mortgage insurance, when applicable.

Cons

1. Home equity lending is geographically limited.

Bank of America

Good for: first-time home buyers looking for low-down-payment options and existing customers who may get a discount on fees.

Pros

1. Offers down payment and closing cost assistance programs.
2. May give existing customers a discount on mortgage lender origination fees.
3. Offers home equity line of credit, or HELOC.

Cons

1. Doesn’t offer renovation loans that roll costs into a mortgage.

The Top 10 Mortgage Lenders of 2022