The Best 30-Year Fixed Rate FHA Purchase Lenders of 2019
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The 30-year fixed rate FHA loan is one of the most popular mortgage programs for first-time homebuyers. The Federal Housing Authority program has some of the most flexible guidelines that help people with lower income and credit scores qualify, and it allows for down payments as low as 3.5%.
LendingTree reviewed data from hundreds of lenders across the nation that offer 30-year fixed rate FHA mortgage loans to come up with the top five best lenders of 2019. Our ratings are based primarily on the interest rate terms offered to purchase borrowers on LendingTree over the last 12 months, and then we took into account the quality of information each lender provides on their websites. You can read up on our full methodology below.
Here are the top five 30-year fixed rate FHA purchase lenders in 2019.
| Royal United Mortgage
Royal United Mortgage, LLC has been in business since 2008 and is headquartered in Indianapolis. The company currently offers mortgages in Indiana, Illinois, Ohio, Texas and South Carolina.
The Royal United Bank offered a median 30-year fixed FHA purchase rate of 4.52% on the LendingTree platform.
The website has loan product information and an assortment of qualification tools on the homepage, along with a blog for more in-depth articles on different homebuying and mortgage financing topics. Educational videos provide additional information about the basics of refinancing and purchasing.
There is a “Tools + More” sidebar in the “Calculators” page that include loan calculators, rates, an FAQ section, a mortgage glossary, videos and useful tips. There is no “Apply Now” button for a complete loan application, although the “Inquire Now” button allows a customer to be contacted by Royal United Mortgage.
| The Federal Savings Bank
The Federal Savings Bank is federally-chartered bank with the ability to provide mortgage financing in all 50 states. In addition to mortgages, the bank offers deposit products including checking, savings, CDs and money market accounts.
The Federal Savings Bank offered a median 30-year fixed FHA purchase rate of 4.78% on the LendingTree platform.
The website provides product information on the homepage, with additional information available by clicking through to each type of loan program offered. Consumers can also find many informational articles under the mortgage section of the website.
There is also a wide array of mortgage calculator options and tips on savings in general. These web features provide additional value to a customer who might be searching for information on how to save for a down payment.
There is no “Apply Now” button on the homepage, although the “Get Started” button takes customers to a page where they can fill out loan application information.
| U.S. Bank
U.S. Bank originally started as First National Bank of Cincinnati in 1863. Besides mortgages, Minnesota-based U.S. Bank offers traditional consumer and business banking products.
U.S. Bank offered a median 30-year FHA purchase rate of 4.93% on the LendingTree platform.
The homepage has two tab links related to mortgages on the homepage, the “Buy a Home” tab and one called “Use your equity.” Basic loan program information is not easy to find because it doesn’t appear unless the “Compare options” button is clicked.
There are also informational articles discussing important details that homebuyers and homeowners can use to learn about purchase and refinance loan options.
There is no “Apply Now” button on the main website landing page, but there is an “Apply for a mortgage” link that can be found after clicking on the “Buy a home” button.
| Third Federal Savings Bankk
Third Federal Savings Bank opened its first location in Cleveland, Ohio, in 1938, where it is currently headquartered. The bank offers mortgages in 25 states plus Washington, D.C.
Third Federal Savings Bank offered a median 30-year fixed FHA purchase rate of 4.82% on the LendingTree platform.
The homepage of the website features purchase and refinance links with basic information about loan programs. The “Resources” tab provides guides about mortgage and homebuying related topics, an assortment of mortgage calculators and an FAQ section with more in-depth explainers on a variety of home financing topics.
There is an “Apply Today” button on the homepage, however you have to click around a drop-down menu to get to the purchase or refinance options, which will then lead you to another page where you can fill out an online application.
| ConsumerDirect Mortgage, A Division of FirstBank
ConsumerDirect Mortgage is a division of FirstBank, opening its doors in 1906 under the name Farmers State Bank in west Tennessee. FirstBank provides a variety of financial services and products while ConsumerDirect Mortgage provides mortgage products and services for its customers.
ConsumerDirect Mortgage, a Division of FirstBank offered a median 30-year FHA fixed purchase rate of 4.87% on the LendingTree platform.
The homepage for ConsumerDirect Mortgage indicates the loan product types offered, but does not provide any detail about the terms of the loans offered. There are no calculators or educational content. The homepage does not feature an “Apply Now” button, although there is a ConsumerDirect Mortgage link that takes the customer to an online loan application portal.
How we chose our best mortgage lenders
A mortgage is likely the largest debt you will take on in your lifetime. That’s why it’s so important to gather as much information as possible.
Our “best” lenders aren’t selected based on rate alone, but also with a unique rating developed by our editorial staff called “Online Information Quality,” or OIQ. We’ve taken extra time to review the information you can access online, including how easy it is to access loan product information, use mortgage tools like mortgage calculators, and fill out a loan application.
To determine the best 30-year FHA fixed rate purchase lenders, we analyzed data from actual loan terms offered to borrowers on LendingTree by lenders. We chose the top five lenders by rate for the last 12 months. Then we narrowed the list to lenders active in at least 25 states. Finally, we gave each lender an OIQ rating based on answers to the following when accessing the lender’s main website. One point was given for each yes answer.
Is there general product information on the website?
If the website features both basic terms of the loan (30 year, 15 year, adjustable rates) and program offerings (FHA, Conventional, FHA, VA), it scores a full point.
Is there general home loan information on the website?
Borrowers can make the most informed decisions if they have additional information regarding mortgages in the form of explanation articles, FAQ section or links to an information blog. Sites that have additional mortgage information score an extra OIQ point.
Is the general home loan information easy to find?
If the information is available with less than two clicks on the homepage, it scores an extra point, since a consumer will be able to get the information easily without having to search extensively through the site.
Are there any education tools (e.g. loan calculators) on the page or at least one click away from the homepage?
Mortgage calculators, home value estimators and other tools help consumers to make educated decisions, so landing pages that feature them score an additional OIQ point.
Is it easy to find the “apply now” button?
Mortgage users in the digital age want an quick online way to apply for a mortgage, so if the “Apply Now” button is easy to find on the homepage, it will be easy for a consumer to apply once they’ve gotten the information they need to proceed to the next step in the mortgage process.
The information in this article is accurate as of the date of publishing.