Better Mortgage is an online mortgage lender, offering conventional loans, FHA loans, and home equity lines of credit (HELOCs). The lender originated nearly 45,000 loans in 2022 alone.
Better is known for its technology-driven approach to mortgages, one that offers nearly instant approvals, an easy online process, and fast closings. The company also helps pair consumers with real estate agents, insurance services, attorneys, and other providers needed throughout the homebuying process.
Are you considering using Better Mortgage for a home purchase or loan refinance? Here’s what to know about the company and what it has to offer.
Better Mortgage types and terms
Conventional loans: Better Mortgages offers conventional loans in both fixed- and adjustable-rate options. These require at least 3% down, and available terms include 15 years, 20 years, and 30 years.
Jumbo loans: For higher-priced home purchases, Better offers jumbo loans. These have limits of up to $3 million.
FHA loans: FHA loans — loans backed by the Federal Housing Administration — are another option at Better Mortgage. These loans require a 3.5% down payment and allow for lower credit scores than other loan programs (down to 580).
HELOCs: If you own a home and have built up enough equity, you can open one of Better Mortgage’s home equity lines of credit. These work like a credit card, letting you turn your home equity into cash to use how you’d like.
Cash-out refinancing: You can also do a cash-out refinance with Better. With these loans, you take out a new loan larger than your current one, pay off the old balance, and get the difference back in cash. You can use those funds however you’d like.
Better Mortgage does not offer Veterans Affairs (VA) loans, which are for military and veteran buyers, or US Department of Agriculture (USDA) mortgages. These are for use on homes in more rural and suburban parts of the country with no down payment.
Better Mortgage rates
The company’s lowest advertised rates are currently on 30-year fixed-rate FHA loans, while its highest are on 15-year fixed-rate loans. Keep in mind that your specific interest rate will depend on your credit score, your loan amount, the type of loan you’re using, and your loan term.
It’s important to note that Better also offers a rate match program — called the Better Price Guarantee. If you get a lower rate quote from another lender, Better will match that offer. If they can’t, you’ll get $100.
Better Mortgage requirements
The exact requirements for Better Mortgage’s loans depend on the type of mortgage loan you choose. Its conventional loans require at least a 620 credit score, while its jumbo loans need a 700. On Better’s FHA loans, you’ll need at least a 580 credit score and a 3.5% down payment.
Pros and cons of Better Mortgage
Better Mortgage’s big advantage is its fast processing times. The lender even offers a one-day mortgage that lets you apply, lock your rate, and receive a loan commitment letter all within 24 hours.
Closings are also 17 days faster than the industry average, and the company has strong ratings from past customers on Trustpilot. There’s also the company’s rate-matching policy to consider. This ensures you’ll always get the lowest rate — or get $100 in the bank if not.
The downside comes down to Better’s limited loan options. The lender offers no VA loans and no USDA loans, both of which require zero down payment.
Another drawback: Better also has only a B rating with the Better Business Bureau. This indicates it could be better at responding to customer complaints.
You can apply for a Better loan all online. Just answer a few questions, and you’ll get access to a personalized dashboard where you can customize your rate and loan term, and see loan offers based on your specific needs and budget. You can also use the dashboard to upload documents, track your application, and communicate with your loan officer.
Who is Better Mortgage right for?
Better Mortgage could be a smart move if you’re looking for a conventional or FHA mortgage and want low rates and an easy online process. It also may be a good move if you’re looking for a quick approval and closing process.
On the other hand, Better isn’t the right fit if you need a VA or USDA loan, as the lender does not offer these options. If you want in-person help with your loan, you should also look elsewhere, as Better has no physical locations and operates online only.
Compare several lenders
Better Mortgage might be the best lender for your purchase or refinance, but compare a few other lenders and banks first to be sure. Look at loan offerings, rates, fees, customer ratings, and more, and ask about qualifying requirements, too, as these can vary from one lender to the next.
All in all, Freddie Mac recommends getting at least four loan quotes when taking out a mortgage. This can save you up to $1,200 annually in interest.
Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.
This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at firstname.lastname@example.org.