Better Mortgage operates nationwide and offers conventional (both fixed- and adjustable-rate), FHA, and jumbo loans. The lender operates fully online and offers assistance throughout the application process. Applicants can get pre-approved easily, in most instances within 24 hours. Better Mortgage’s eligibility requirements are pretty standard for the loan types it offers, and it provides certain benefits for first-time homebuyers as well.

Pros Explained

• No lender fees: Better Mortgage doesn’t charge any commissions or origination fees.
• Streamlined pre-approval process: Borrowers can get a pre-approval letter as soon as 24 hours after submitting their application. 
• Ability to see customized rates easily: Interested borrowers don’t need to submit their personal details before looking at the rates and terms they may qualify for. 

Cons Explained

• No offline options available: Better Mortgage isn’t a good fit for those who prefer to apply at an in-person branch.
• Limited loan types available: Better only offers conventional, jumbo, and FHA loans; VA, USDA, HELOC, and home equity loans aren’t available, among other types. 
• Limited appraisal guarantee: The promise that the loan won’t change if the appraisal comes in lower than expected is only available to those who work with Better real estate agents.

Types of Mortgage Loans Offered by Better Mortgage

Better Mortgage offers the following types of loans:

• Conventional loan: Conventional mortgages have a minimum credit score requirement of 620 and a maximum debt-to-income ratio of 50%. There are no lender fees; borrowers will need to contact Better Mortgage to determine a minimum down payment amount. 
• Jumbo loan: This type of mortgage exceeds the limits set by the Federal Housing Finance Agency (FHFA)—$647,200 for most of the country. Borrowers can begin the application process or contact Better to learn more about its jumbo loan requirements. 
• FHA loan: Applicants must pay a down payment of at least 3.5% if their credit scores are above 580, or at least 10% for scores of 500 579. Debt-to-income ratios can be as high as 43%. You can check the requirements set by the (HUD) for more details as well.

Better Mortgage Features and Benefits

Better Mortgage’s service includes the following features and benefits:

• First-time home buyer programs: Applicants can qualify for programs such as Home Possible loans, which are backed by Freddie Mac—qualification requirements include an income equal to or less than 80% of your area median income (AMI), completing a qualifying homeownership class, and occupying the home as your primary residence.
• Discount points: Points are an upfront amount you pay to lower your mortgage rate. In most cases, a point costs 1% of your loan amount and can lower the rate by a fraction of a percent. 
• Appraisal guarantee: If an appraisal comes in lower than the purchase price, many lenders may not approve the loan, or the loan terms will change. However, those who work with a Better Mortgage real estate agent won’t have their loan details changed even if the appraisal comes in lower. 

How to Apply for a Better Mortgage Loan

Follow these steps to apply for a mortgage loan with Better Mortgage:

1. Select the “Get started” button on the lender’s website.
2. Fill in details such as the locations where you want to purchase a home, and select whether you want to get pre-approved, find a real estate agent, or submit an application.
3. During the pre-qualification stage, you’ll be able to see the mortgage rates and terms you qualify for. Within 24 hours after submitting the required information, you should receive a pre-approval letter.
4. You can also submit a full loan application during the above step by providing the required documentation during the underwriting process. You’ll need proof of income, bank statements, and tax returns, among other documents. 
5. Look over Better Mortgage’s closing documents and complete any other requirements before closing on your home loan. 

Customer Service

Customers can contact Better Mortgage by the following methods: 

• Phone: (415) 523-8837
• Email: hello@better.com

You can contact your loan officer if you have any questions about your loan application. 

Customer Satisfaction

In Investopedia’s customer satisfaction survey, Better Mortgage received a 6.15 out of 10, the third highest in our rankings. 

The lender has received around 168 Consumer Financial Protection complaints in 2021—mostly around loan closing and applying for a new loan.

Account Management

Better Mortgage has a secure online portal where applicants can track their loan process, see status updates, and upload required documentation. After closing, borrowers will be notified on how to make their first loan payment. You can manage your loan account online through the same portal, and you can use that to contact customer service if you have any questions.

Alternative Choices

The only way to find the right loan is to shop around with multiple lenders. Consider the following lenders along with Better Mortgage. 

	Better Mortgage	Wells Fargo	Rocket Mortgage
Minimum Credit Score	620 (conventional)	620 (conventional)	620 (conventional)
Maximum DTI	50% (conventional)	Varies	50% (conventional)
First-Time Homebuyer Programs	Yes	Yes	Yes
Rates	Not disclosed	Varies	30-year fixed: starting at 7.375% APR 15-year fixed: starting at 5.932% APR
Fees	None	Varies	Not disclosed
Types of Loans	Conventional, FHA, Jumbo	Conventional, VA, USDA, FHA, Jumbo, interest-only	Conventional, VA, Jumbo
Average Time to Closing	32 days	60 days	30-45 days
Availability	Nationwide	Nationwide	Nationwide

Compare lenders based on criteria like the following: 

• APR: The APR (annual percentage rate) of a mortgage includes interest and fees. It's a more accurate comparison when looking at the cost of loans between lenders. 
• Down payment requirements: Down payment requirements will affect how much you need to pay upfront for a mortgage; check this factor to help determine whether an offer is affordable for you. 
• Discounts: Points help to lower your interest rate, and lenders usually charge 1% of your loan amount for each point you purchase. 
• Loan terms: Some lenders offer more than the usual 15- and 30-year terms to help borrowers afford monthly payments.
• Penalties: Most lenders don’t charge prepayment penalties, but it’s worth making sure your lender of choice doesn’t, either.

How We Review Mortgage Lenders

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of mortgage lenders. We rated 45 mortgage lenders and collected nearly 1,500 data points, including information about the following:

• Quality of service (customer experience, online applications, benefits/grants, etc.)
• Operational features (state licensing coverage, number of loan officers, etc.)
• Loan types offered (fixed-rate, FHA, USDA, etc.)
• Accessibility (days to closing, minimum debt-to-income ratio, etc.)

We also conducted a survey of 1,195 mortgage borrowers to learn about the most important features from a customer perspective and how satisfied customers are with various lenders. Mortgage lenders were rated objectively in the categories above to help readers make informed decisions about home loans.

Read more in our full mortgage lender review methodology.