Top 5 Online Mortgage Lenders for 2023: A Comprehensive Guide to Finding the Best Home Loan

In today's digital age, online mortgage lending has become a popular and convenient option for homebuyers. With the help of technology and a strong online presence, several lenders have emerged as leaders in the industry. Yahoo Finance has conducted a comprehensive review of over 40 nationally recognized mortgage lenders and has narrowed down the best online lenders to a select few.

Guaranteed Rate (Rate)

• Yahoo Finance View: In 2015, Rate (previously known as Guaranteed Rate) claimed to offer the "world's first digital mortgage." Today, it provides expanded loan eligibility with non-qualified mortgages, allowing borrowers to use alternative credit data in their application.
• Key Benefits: Offers non-qualified mortgages, PowerBid Approval for quick preapproval, and high Affordability rating.
• Need to Know: Sample mortgage rates come with strict credit stipulations, and in 2024, Rate offered higher-than-average interest rates and loan costs.

Best Online Lender for Quick Closings

Better Mortgage

• Yahoo Finance View: Better Mortgage is a "100% online" lender and the "first AI-powered mortgage." It stands out for its quick loan closings, with a "One Day mortgage" that allows borrowers to receive a loan commitment within 24 hours.
• Key Benefits: One Day mortgage, conventional and government loans, and access to home equity lines of credit and cash-out refinancing.
• Need to Know: In a Yahoo Finance analysis of 2024 HMDA data, Better offered near-median interest rates and loan costs. Some inquiries may be handled by Betsy, an AI voice-based assistant.

Best Online Lender for Low Down Payments

Rocket Mortgage

• Yahoo Finance View: Rocket Mortgage brought online home loan lending to the masses and continues to innovate with offerings such as a very-low-down-payment conventional loan.
• Key Benefits: One+ mortgage program with a grant to reduce down payment to 1%, closing costs assistance for first-time home buyers in 21 U.S. cities.
• Need to Know: J.D. Power customer satisfaction score has fallen in recent years, but Rocket still ranks above average.

Best Online Lender for Online Features

Zillow Home Loans

• Yahoo Finance View: Zillow is known for its home listings platform but is now a growing mortgage provider combining a lender marketplace with its own home loans division.
• Key Benefits: 5-star rating in the Online Resources category, including an affordability tool that updates with changes to credit score and real-time mortgage rates, educational resources, and a down payment assistance program finder.
• Need to Know: Zillow Home Loan interest rates and loan costs were higher than average for mortgages closed in 2024. Does not originate loans in New York.