The best mortgage lenders for first-time home buyers offer low down payments, flexible loan terms without a pile of fees, as well as an intuitive and speedy application process.

Yahoo Finance compiled the data points, dug deep into the loan offerings of leading mortgage lenders and created the ultimate "best of" list — without conflicts of interest or compromise.

Dig deeper: Everything you need to know about first-time home buyer programs

Best lenders for first-time home buyer grants and assistance

Bank of America

Closing costs and down payment assistance are available to eligible home buyers in some states.

Stars: 4.96

Read our full Bank of America mortgage review

Key benefits

• Bank of America offers grants up to $7,500 in closing costs and down payment assistance up to $10,000 for qualified buyers in many, but not all, states.

• Existing customers may qualify for an origination fee or interest rate deduction. You'll likely have to sign up to draft your mortgage payments from an account to qualify.

• A home buyer program for medical professionals allows borrowers to make lower down payments and exclude student loans from debt limits. Residents and fellows can also close on a loan 90 days before starting a new position.

Need to know

• In an unusual Zillow-esque move, Bank of America's Real Estate Center features home listings, including existing and new construction properties — as well as bank-owned houses.

• A robust online experience accounts for a majority of home loan applications.

Loan types offered

Chase

Offers grants, low-down-payment programs, quick-closing guarantees, and closing-cost assistance.

Stars: 4.28

Read our full Chase mortgage review

Key benefits

• Chase Homebuyer Grants allow $2,500, $5,000, or up to $7,500 on low-down-payment loan programs that can be applied to the down payment or fees, with certain restrictions.

• Clearly presents four low-down-payment mortgage options and the general qualifications on its "Finding a home loan starts here" page.

• Offers a $5,000 closing guarantee as quickly as in three weeks, under particular guidelines.

• VA loans may be eligible for a $2,000 credit that can be applied to closing costs.

Need to know

• The conventional loan interest rates on their website are sweetened with 20% to 25% down payments, one discount point and borrowers with "excellent" credit.

• The Chase website features an "educational" construction loan article but notes that it doesn't offer construction loans.

• Average rating for customer satisfaction, according to the latest J.D. Power Mortgage Origination Satisfaction Study.

Loan types offered

Learn more: No more first-time buyer tax credit, but state credits still available

New American Funding

New American Funding has a variety of innovative loan programs, and a "cash buyer" program for competitive housing markets.

Stars: 4.6

Read our full New American Funding mortgage review

Key benefits

• The "Pathway to Homeownership" program targets first-time home buyers who need up to $8,000 in assistance for a down payment or closing costs. Additional requirements apply.

• A "cash buyer" program claims to offer a faster closing and possible savings on a home's sale price. NAF makes a cash purchase of the house and sells it back to the borrower.

• NAF's "I CAN" mortgage offers loan terms from 8 to 30 years, which provides payment flexibility and a path to paying off your mortgage sooner.

Need to know

• Mortgage rates shown on NAF's website seem pleasantly low but are reduced with three discount points and as much as a 40% down payment, which is only revealed when clicking through to advertising disclosures on a separate page.

Loan types offered

Dig deeper: How to buy a house in 2024

PNC

A mortgage lender with a high profile on the East Coast, PNC offers first-time home buyers grants, PMI-free loans, and medical professional loans.

Stars: 4.49

Read our full PNC Bank mortgage review

Key benefits

• A PNC grant of up to $5,000 can be applied to closing costs or a down payment to income-eligible borrowers or those living in a qualified area.

• PNC offers a Community Loan that allows a down payment as low as 3% with no private mortgage insurance.

• A Medical Professional program provides loans up to $1 million with cash gifts allowed to fund a portion of the down payment. Private mortgage insurance is also waived.

Need to know

• PNC falls near the bottom of the satisfaction scale for customer experience, according to the latest J.D. Power Mortgage Origination Satisfaction Study.

• Specialty loan programs such as those noted above are difficult to find on PNC's website and not highlighted on the home loans main page. Here’s where we found them.

Loan types offered

Learn more: What types of mortgage loans are available?

U.S. Bank

Has made a commitment to offer down payment assistance and closing costs credits to advance homeownership for underserved groups.

Stars: 4.43

Read our full U.S. Bank mortgage review

Key benefits

• Has committed $100 million over five years to offer up to $12,500 in down payment assistance and up to an additional $5,000 in a lender fee credit to advance homeownership for underserved families.

• Existing U.S. Bank customers may be eligible for a credit against closing costs up to $1,000.

• A mortgage prequalification process is free, "takes five minutes," and does not impact your credit.

Need to know

• A loan application can be made in a loan officer's office, by phone or online.

• U.S. Bank's mortgage rates, as published on its website, look appealing. However, the conventional loan rates shown require a down payment of 25% and a FICO score of 740 or better. That's well above the national average credit score of 714.

Loan types offered

Dig Deeper: What credit score do you need to buy a house?

Truist

Offers down payment assistance and lender credits, among other first-timer advantages, to eligible borrowers but has only an average score for customer satisfaction.

Stars: 4.4

Read our full Truist mortgage review

Key benefits

• A Community Homeownership Incentive Program offers low or no down payments, lender credits, and no mortgage insurance to eligible borrowers in qualifying areas.

• Medical professionals may qualify for lower down payments, waived mortgage insurance, and the exclusion of student loans from debt-to-income ratio requirements.

Need to know

• Published mortgage rates default to one discount point to show a more favorable interest rate but can be adjusted to zero points.

• Scores near the average for customer satisfaction, according to the latest J.D. Power Mortgage Origination Satisfaction Study.

Loan types offered

Learn more: Everything you need to know about first-time home buyer programs

Best mortgage lender for existing customers

Wells Fargo

Wells Fargo primarily caters to existing customers and underserved communities with grants, lower rates, and closing cost credits.

Stars: 4.12

Read our full Wells Fargo mortgage review

Key benefits

• Existing Wells Fargo customers may qualify for lower interest rates on jumbo purchase or refinance loans.

• Homebuyer Access grant offers $10,000 in down payment assistance to borrowers with qualifying income who live in an eligible location.

• A $5,000 credit toward closing costs is available to borrowers within income limits in certain areas.

Need to know

• Published interest rates include 0.875 in discount points, a 25% down payment, and a credit score of 740.

• Wells Fargo has had several regulatory actions in recent years and has below-average satisfaction ratings, according to the latest J.D. Power Mortgage Origination Satisfaction Study.

Loan types offered

Learn more: First-time home buyer grants in Florida

Best lenders for first-time home buyers looking for 1% down payments

Rocket Mortgage

An OG in the online mortgage industry, Rocket Mortgage is known for its digital application and loan process — and a 1% down payment option.

Stars: 4.79

Read our full Rocket Mortgage review

Key benefits

• Offers a 1% down mortgage called One+ that provides a grant of 2% of the home's purchase price towards the down payment, up to $2,000. Income limits apply.

• Provides up to a $7,500 grant toward the down payment and closing costs for eligible first-time home buyers in 21 U.S. metro areas.

• Home buyers who purchase a home through its partner company Rocket Homes can earn a closing costs credit of 1.25%, up to $10,000, on a loan financed by Rocket Mortgage.

Need to know

• Incentive programs such as the One+ mortgage will likely increase your interest rate.

• Rocket Mortgage ranks third in customer satisfaction, according to the latest J.D. Power Mortgage Origination Satisfaction Study.

Loan types offered

Read more: First-time home buyer grants in Texas

Guild Mortgage

An extensive assortment of loan options, including a 1% down mortgage, loans with non-traditional credit and more. However, Guild Mortgage falls short in customer satisfaction.

Stars: 3.88

Read our full Guild Mortgage review

Key benefits

• A 1% down payment program lowers the bar on homeownership — and includes 2% down payment assistance and a 1% buydown of your rate for a year. Subject to income limits.

• A Payment Protection Program allows a refinance with no lender fees if interest rates move lower before the end of 2025.

• Income-qualified first time home buyers get a $2,000 gift card to Home Depot and $500 to $1,500 to apply to closing costs with a 3% down mortgage.

• The BuyNow Advantage gives home buyers the advantage of making an all-cash offer in competitive real estate markets.

• Borrowers without a traditional credit score can qualify with alternative credit such as rent history, utilities and car insurance payment history and bank statement analysis.

Need to know

• Guild ranks near the bottom of customer satisfaction, according to the latest J.D. Power Mortgage Origination Satisfaction Study.

• We couldn't find any sample mortgage rates on their website.

Loan types offered

Best lender for military-connected home buyers

Veterans United

Veterans United super-serves borrowers with a military connection — particularly those overseas with its 24/7 customer service.

Stars: 4.74

Read our full Veterans United review

Key benefits

• 24/7 customer service that reflects the international nature of military service.

• Ample educational resources, including a home-buying book and web course, on a clean, easy-to-navigate website.

• Counseling for potential borrowers who are looking to improve their creditworthiness.

• Veterans United Realty offers a rebate to home buyers that use their services, which can be applied to closing costs.

Need to know

• Veterans United is the highest-volume VA lender in the nation, issuing nearly twice the number of loans as its nearest competitor.

• Veterans United received the highest score among all lenders considered according to the latest J.D. Power Mortgage Origination Satisfaction Study.

• Does not offer adjustable-rate mortgages.

Loan types offered

Navy Federal Credit Union

Offers several distinctive benefits, including interest rate protection on VA-backed mortgages for active and former military members.

Stars: 4.82

Read our full Navy Federal mortgage review

Key benefits

• The No-Refi Rate Drop offer allows you to tap a lower interest rate six months or later after closing — for a $250 fee but without additional closing costs or changing your loan terms.

• A rate guarantee states that Navy Federal will match a better mortgage rate offered by a competing lender or pay you $1,000.

• The Special Freedom Lock allows an interest rate reduction of up to 0.50% if rates move lower before your loan closing.

• Military Choice loans allow benefits similar to VA mortgages to current and former service members without further entitlements.

• Buy your home through a Navy Federal real estate agent partner and receive $400 or more cash back.

Need to know

• Navy Federal Credit Union home loans are available to members only. Eligibility includes active duty or former members of the armed forces, Department of Defense or National Guard and family or household members.

• Ranks near the top of all the lenders considered in the latest J.D. Power Mortgage Origination Satisfaction Study.

Loan types offered

Best lenders for first time home buyers looking for quick loan approval

Guaranteed Rate

An early-mover in digital mortgages, Guaranteed Rate promises a quick loan approval, but is rated well below J.D. Power’s average in customer satisfaction.

Stars: 4.31

Read our full Guaranteed Rate mortgage review

Key benefits

• A "Same Day Mortgage" promises loan approval — but not loan funding — within 24 hours of locking an interest rate and submitting financial documents.

• For a personal service option, Guaranteed Rate has hundreds of branch locations across the nation.

• Offers non-qualified mortgages for self-employed borrowers or those who want to qualify using alternative credit standards.

Need to know

• Advertised rates factor in more than one discount point, are based on a 20% down payment, and a FICO score well above the national average.

• Guaranteed Rate scores well below average in customer satisfaction, according to the latest J.D. Power Mortgage Origination Satisfaction Study.

Loan types offered

Better

Better offers a number of home buying services, including rapid loan approval, insurance, real estate, settlement services and more into a consolidated digital experience.

Stars: 4.27

Read our full Better Mortgage review

Key benefits

• A "One Day Mortgage" offer promises a loan commitment within 24 hours of submitting paperwork and a rate lock.

• Claims to close loans "17 days faster than the industry average."

• Offers loans, insurance, real estate, settlement services, and more into a consolidated digital experience.

Need to know

• Published interest rates are shown for borrowers with a 20% down payment, who pay closing costs with cash, have a DTI below 35%, and a credit score of 760 or higher.

• A below-average rating for customer satisfaction, according to the latest J.D. Power Mortgage Origination Satisfaction Study.

Loan types offered

First-time home buyer mortgage lenders: FAQs

What type of loan is best for first-time buyers?

An FHA loan is often best for first-time home buyers because you only need a 580 credit score and a 3.5% down payment. It also allows borrowers with more debt to buy a home than other types of home loans. However, a conventional loan could be good if you're a first-time buyer with a strong credit score and lower debt levels, because many lenders only require 3% down.

What is the best option for first-time home buyers?

First-time home buyers should look into three main mortgage options: FHA, VA, and USDA loans. FHA loans are geared toward people with higher debt levels and lower credit scores. VA loans are for military-affiliated buyers who don't have any money for a down payment. USDA loans are for lower-income people buying in rural areas and also don't have any money for a down payment.

How much do most first-time home buyers put down?

You can put down as little as 0% as a first-time buyer getting a VA loan or USDA loan. You can also put down 3.5% for an FHA loan. Depending on the lender and how strong your finances are, you may be able to put down as little as 3% with a conventional loan.

Yahoo Finance identified the best mortgage lenders for first-time home buyers by grading leading national lenders on a five-star scale from scores compiled from and averaged from public reviews. Criteria included interest rate, fees and loan costs, ease of application, rate transparency, loan product availability and options, customer experience, minimum down payment, minimum FICO scores, online features, time to approval, trustworthiness.