New York Mortgage Lender

    The Top 5 New York Mortgage Lenders

    With median home prices reaching $313,700, New York has the eighth-highest home prices in the country. The higher median price can be an obstacle to fulfilling your Empire State homeownership dreams. However, a good mortgage lender can help you finance your home at competitive rates, allowing you to save a lot of money.

    Read on to find out the five best mortgage lenders in New York. In addition to our top picks, we also provide our selection criteria!

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    Choosing A New York Mortgage Lender 

    We use these five key criteria in choosing the best New York mortgage lenders.

    Loan Products Offered

    Nowadays, mortgage lenders offer many loan types. Each of these loan products specializes in fulfilling a certain need, so you should choose the loan that can fit your needs.

    To help you understand how each loan type can fulfill your needs, here are the most popular mortgage loan options explained: 

    • Conforming mortgage: Conforming mortgages encompass all loans that are valued under local lending limits. Lending limits in New York range from the national standard of $548,250 to $822,375 in some counties.
    • Jumbo loans: Jumbos allow borrowers to get a high-value home loan that exceeds local lending limits. However, jumbo mortgages tend to have higher rates and monthly mortgage payments to offset their large value.
    • Fixed-rate mortgages: These conventional loans offer interest rates that won’t change for their entire lifetime. This stability makes it popular with new homebuyers. 
    • Adjustable-rate mortgages (ARM): Mortgage rates on ARMs adjust annually according to market conditions. These loans usually feature fixed interest rates for the first three to ten years.
    • Government-backed loans: There are three major government loan providers in the U.S.: the Federal Housing Administration, the Department of Veterans Affairs, and the U.S. Department of Agriculture. Government-sponsored mortgages usually feature lower down payments and affordable rates compared to conventional loans. 
    • Mortgage refinance (refi): Taking a refi means getting a new loan to replace your existing mortgage. Refis are used to save money by securing lower rates or changing loan terms. 
    • Home equity line of credit (HELOC): This loan product gives you a source of funds that uses your home as collateral.

    Affordability 

    Like in other parts of the country, New York mortgage rates can vary based on market fluctuations and other factors – meaning they’re not a good measure of affordability. That’s why we examine these four factors to measure affordability:

    • Minimum credit score: A FICO credit check is usually the primary determinant of your loan qualification. Most lenders require a minimum credit score of 620, but some of them may have reduced requirements to make their offerings more affordable. Several lenders also consider other types of payment history to determine your qualification, like rent payments or phone bills.
    • Minimum down payment: A 20% down payment is the rule of thumb with most financial institutions. However, some loan types allow you to qualify with as little as a 3% down payment but require you to pay private mortgage insurance. 
    • Closing costs: Most lenders require you to pay a closing cost worth 5% of your loan. While this origination fee can be paid at the end of your lending process, some lenders allow you to roll them into your monthly payments instead.
    • Homebuyer assistance programs: Many states, New York included, help their residents become homeowners through various programs. Homebuyer assistance initiatives usually come in the form of closing cost grants or down payment assistance aimed at new and repeat homebuyers. 

    Application Process

    Great New York mortgage lenders make it easy for borrowers to finish their application process. We use three metrics to measure the convenience of a lender’s application process. 

    • Online capabilities: Nowadays, almost all mortgage lenders offer a way to apply for home loans online. This capability is especially important to people who can’t make it to a bank branch.  
    • Online rate transparency: Being able to see rate estimates online makes it easy for you to compare between multiple lenders. Some lenders show rate estimates and other mortgage tools on their website, but others may require you to ask mortgage brokers to get an estimate. 
    • Length of the application process: Generally, your loan process can be finished within weeks. However, if any issues arise your loan may take several months to close. Ask your loan officer about their company’s average closing times so you can better plan out your house hunt.

    Customer Service And Ratings

    Mortgages are major financial decisions, so you want a financial institution with good customer service that's ready to fix any problem you may have. For a better look at the customer service of mortgage lenders, we look to data provided from the Better Business Bureau (BBB) and J.D. Power.

    The BBB rates the trustworthiness of companies with a letter grade ranging from A+ to F. It comes up with these scores based on examinations of how a company handles customer complaints and business transparency, among other factors.

    Meanwhile, J.D. Power scores the customer satisfaction of companies through consumer surveys. It then publishes those results in an annual study, where it also awards the best-performing companies. 

    Access To Lender

    Accessibility to services can make or break a mortgage service provider. If a particular lender can’t originate home purchase loans in your state, then you can’t use its financial services and need to look into other lenders.

    The second key metric in this criterion is the number of branch offices a lender has. Having many branch offices across multiple states can help borrowers who prefer in-person service. 

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    The Best Mortgage Lenders In New York

    We recommend these five lenders if you’re looking to buy a home in New York. Each of them has a specific strength, so be sure you choose the lender that can best cater to your needs.

    Here is a quick rundown on our best lenders before we get into each of them in detail. 

    Fairway IndependentRocket Mortgage by Quicken LoansNavy Federal Credit UnionCarrington Mortgage ServicesBank Of America
    Best forVariety of loan optionsOnline convenienceVA lenderLow credit scoresClosing cost discounts
    Loan types
    Conventional mortgage loans
    FHA loans
    VA loans
    USDA loans
    Jumbo loans
    Fixed-rate loans
    Adjustable-rate mortgage
    Mortgage refinance
    Home equity loans
    Other criteria
    Minimum FICO credit scoreFHA640580620500620
    VA640620620500620
    USDA620N/A620550N/A
    Conventional620620620620620
    Minimum down payment3%3%0%3%5%
    BBB rating (A+ to F)A+A+N/AA+860
    JD Power rating (out of 1000)865883867N/AA+

    1. Fairway Independent - Best Home Loan Selection

    The best thing about borrowing from Fairway is its wide variety of loan products. Its suite of government and conventional mortgages is complemented by its offering of home equity and construction loans. 

    However, this mortgage company doesn’t publish rate estimates on its website. If you want to see its sample rates, you need to start an application or speak with a mortgage broker. 

    Lender availability: Fairway Independent is licensed to originate loans nationwide through its online platforms and 700 branches. 

    2. Rocket Mortgage By Quicken Loans - Best Online Lender

    Rocket Mortgage by Quicken Loans prides itself on being a leader in the online mortgage industry. With instructional videos and an easy way to contact mortgage brokers, Rocket promises that its applications can be completed within half an hour. 

    If you’re looking to take care of your entire mortgage process online, Rocket Mortgage by Quicken Loans is a great choice. However, being an exclusively online lender means that Rocket operates no branch offices. If you prefer face-to-face conversations with a mortgage broker, you may need to look for another lender. 

    Lender availability: Rocket Mortgage by Quicken Loans provides loans nationwide through its online service.

    3. Navy Federal Credit Union - Best For VA Loan

    With over eight decades in the business, Navy Federal’s experience in serving the military community is second to none.  

    In addition to its specialty VA loans, this lender offers two other signature loan programs: The HomeBuyers Choice and Military Choice mortgages. Both are zero-down loans that allow you to waive funding fees in exchange for a higher interest rate.  

    Navy Federal also provides its expertise when dealing with the complicated needs of military families. It can help you navigate the loan process while in the middle of relocation as well as help you compile all the documents you need to qualify for a VA loan.

    Lender availability: Navy Federal provides mortgages nationwide and operates 322 branches in 30 states. 

    4. Carrington Mortgage Services - Best For Low Credit Scores

    If you’re looking for a mortgage with low credit scores, Carrington may be the right choice for you. When determining your ability to repay a loan, it also takes nontraditional credit data like your rent payments into account. This way, you can still pass the loan approvals process even if your credit score isn’t that good. 

    However, Carrington doesn’t offer any online loan tracking, which means you need to manually keep in touch with your loan officer. 

    Lender availability: Carrington originates loans nationwide, except for Massachusetts and North Dakota. It also operates six branches in Arizona, California, Connecticut, Florida, Indiana, and Maryland. 

    5. Bank Of America - Best For Closing Cost Discounts

    Bank of America is an excellent choice if you’re looking to save money at closing. Through its Community Homeownership Commitment, you can be eligible for up to $10,000 in down payment assistance and $7,500 in origination fee grants if you buy a home in select areas.

    If you’re already banking with Bank of America, you can qualify for even more benefits. For instance, existing bank customers can qualify for a $600 origination fee discount.

    Lender availability: Bank of America provides mortgages nationwide and operates 4,600 locations across the country.

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    Closing Thoughts 

    Homes in New York aren’t cheap – meaning you need to find the best housing deals to save money. When you do find an affordable home, you also need a good New York lender to take advantage of that deal.

    For more advice on mortgage lending and homeownership in New York, Wesley Mortgage, LLC is here to help! We’re ready to assist you through the mortgage process and help make your dream New York home come true!

    Written By Ed Wallace
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