Top 5 Mortgage Lenders in October 2025 for First-Time Home Buyers
Jennifer Kloss
Published Oct 28, 2025
Here are five top lenders for first-time home buyers, along with what makes each one stand out:
1. Rocket Mortgage
What makes it special:
Rocket Mortgage helps renters become homeowners by offering grants and programs that can lower your initial costs. For example, renters may be able to use part of what they’ve paid in rent toward the costs of buying a home.
- Offers conventional, FHA, and VA loans
- Minimum down payments as low as 1% for some loans
- Minimum credit score needed is usually 620
- Provides programs that can help with closing costs and down payments
2. Bank of America
What makes it special:
Bank of America offers grants that can help with your down payment and closing costs, making it easier to afford your first home.
- Offers conventional, FHA, and VA loans
- Provides up to $7,500 for closing costs and up to $10,000 for down payments for qualified buyers
- No published minimum credit score requirement
- Special programs available for medical professionals
3. Pennymac
What makes it special:
Pennymac is a top lender for government-backed FHA loans, which are popular with first-time buyers. They offer credits and the opportunity to get cash back when you use their real estate agents.
- Offers conventional, FHA, VA, and USDA loans
- Minimum down payments start at 3% (some programs allow 0% down)
- Minimum credit score for most loans is 620
- First-time buyers can get up to $1,000 credited toward closing costs
4. Veterans United
What makes it special:
If you are a current or former member of the military, Veterans United specializes in VA loans, which often let you buy a home with no down payment.
- Mainly offers VA loans, but also has other options
- No down payment required for VA loans
- Minimum credit score is 620
- Provides useful resources to help with the home-buying process
5. U.S. Bank
What makes it special:
U.S. Bank has loans that let you buy homes in rural and suburban areas with no down payment, thanks to USDA-backed programs.
- Offers conventional, FHA, VA, and USDA loans
- USDA loans allow for 0% down payments
- Minimum credit score requirement is 640
- Existing customers might get up to $1,000 toward their mortgage
Summary
Many mortgage lenders offer programs and grants to help first-time buyers.
Consider what each lender offers and compare their terms, such as down payment requirements and credit score needs, before making your decision.
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Need help with your down payment? Find resources and assistance here!
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