Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

The process of buying a home is notoriously stressful and can be confusing, especially if you’ve never applied for a mortgage before and don’t know how to navigate the seemingly endless pool of lenders.

One name you may have heard in real estate, however, is Rocket Mortgage. The company is an established name when it comes to looking for a loan and is one of the largest mortgage lenders in the United States. Plus, it’s a great option for homebuyers with lower credit scores. While most mortgage lenders look for a minimum credit score of 620, Rocket Mortgage accepts applicants with a score of 580.

To make your mortgage search easier, Select has taken a closer look at Rocket Mortgage and taken a closer look at some of its home loan options, considering factors like interest rates, minimum down payments, term, and more. benefits in the process. You can read more about our methodology below.

Subscribe to the Select newsletter!

Our top picks delivered to your inbox. Shopping recommendations that help you improve your life, delivered weekly. register here.

Rocket Mortgage Review

Rocket Mortgage

  • Annual Percentage Rate (APR)

    Ask online for personalized rates

  • Types of loans

    Conventional Loans, FHA Loans, VA Loans, and Jumbo Loans

  • Terms

    8 to 29 years old, including 15 years old and 30 years old

  • Credit needed

    Generally requires a 620 credit score, but will consider applicants with a 580 credit score as long as other eligibility criteria are met

  • Minimum deposit

    3.5% if you go ahead with an FHA loan

Advantages

  • Can use the loan to purchase or refinance a single family home, second home or investment property, or condo
  • Can be pre-qualified in minutes
  • Rocket Mortgage app for easy access to your account

The inconvenients

  • Performs a thorough investigation to provide a personalized interest rate, which means your credit score may take a hit
  • Does not offer USDA loans, HELOCs, construction loans, or mobile home mortgages
  • Does not manage accounts for jumbo loans after closing

APR

The best way to determine the annual percentage rate, or APR, you are likely to be proposed by Rocket Mortgage is to be pre-qualified and submit your home loan application.

Although mortgage interest rates can fluctuate quite often, the rate you receive will depend heavily on your location, credit score, and credit history. Check each lender’s website to get a better idea of ​​the types of interest rates they charge, but keep in mind that they vary depending on your location and creditworthiness. In any case, it is important to provide the information necessary to verify your personalized rate.

Loan offers

Minimum deposit

The The lowest down payment you can make with Rocket Mortgage is 0% and is only available to those who are eligible to apply for its VA loan option.

For anyone who doesn’t qualify for Rocket Mortgage’s VA home loan, they can make a down payment as low as 3%, as long as they continue with their 30-year fixed rate or 15-year fixed rate. mortgage options. Note that both of these loans require a credit score of at least 620 to qualify.

If you’re considering going ahead with a jumbo loan (over $647,200), keep in mind that the typical down payment amount for these types of loans from lenders is usually 10%. Rocket Mortgage requires a credit score of at least 680 to be approved for one.

Terms of office

Rocket Mortgage offers flexible loan repayment terms ranging from eight to 29 years, including standard terms of 15 and 30 years. You will also have the choice between fixed rate and adjustable rate mortgage conditions.

Options include a 7/6 Adjustable Rate Mortgage (a seven-year fixed rate period followed by a rate that changes every six months), a 10/6 Adjustable Rate Mortgage (a fixed rate period of 10 years followed by a rate that changes every six months), an FHA adjustable rate mortgage and a VA adjustable rate mortgage.

Customer service

Homebuyers can contact Rocket Mortgage’s home loan experts by calling Monday through Saturday during business hours or by using the live chat feature on its website. Customers can also choose to receive text messages from Rocket Mortgage about how their payments are handled.

Advantages

Rocket Mortgage will provide you with a Pre-Qualified Approval Letter and a Verified Approval Letter, which indicates that Rocket Mortgage has already verified your income, assets and creditworthiness in advance so you can stand out from home sellers – and potentially give you a competitive advantage over other homebuyers. who have been pre-approved for a loan but whose income and assets have not yet been approved.

Rocket Mortgage can also order an appraisal on your behalf, which is necessary to assess the fair market value of the home and any property taxes you would have to pay. The lender even offers a Fresh Start program, which aims to help potential applicants increase their credit score before applying.

At the end of the line

Rocket Mortgage is a long-time industry competitor with solid lending options to meet many financial needs. Its Fresh Start Program and Verified Approval Letter are two outstanding resources offered by this lender, each aimed at helping homebuyers in an ever-competitive housing market.

Those who want a more involved customer service presence throughout the home buying process might look to other lenders, as Rocket Mortgage’s standard chat and phone hours may not be as appealing. A good option is hunting bank, which matches customers with a home loan advisor near them who can meet their needs and simplify the home buying process. Home Loan Advisors are also there to make sure they’ve completed all the necessary paperwork and can even connect buyers with home inspectors, real estate agents and other professionals they’ll need to interact with during the process. process.

Check out Select’s in-depth coverage at personal finance, technology and tools, The well-being and more, and follow us on Facebook, instagram and Twitter to stay up to date.

Our methodology

To determine which mortgage lenders are the best, Select analyzed dozens of US mortgages offered by online and brick-and-mortar banks, including major credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to meet a range of mortgage needs. funding.

When selecting and ranking the best mortgages, we focused on the following characteristics:

  • Fixed APR: Variable rates can go up and down over the life of your loan. With a fixed-rate APR, you’ll lock in one interest rate for the life of the loan, which means your monthly payment won’t vary, making it easier to plan your budget.
  • Types of loans offered: The most common types of mortgages are conventional loans, FHA loans, and VA loans. In addition to these loans, lenders may also offer USDA loans and jumbo loans. Having more options available means the lender is able to meet a wider range of applicant needs. We have also considered loans tailored to the needs of borrowers who plan to buy their second home or rental property.
  • Closing timeline: The lenders on our list are able to offer closing times that range from as little as two weeks after signing the home purchase agreement to up to 45 days after signing the agreement. Specific closing times have been noted for each lender.
  • Costs: Ongoing fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. We evaluate these fees in addition to other features when determining each lender’s overall offer. Although some lenders on this list do not charge these fees, we have noted all instances where a lender charges such fees.
  • Flexible minimum and maximum loan amounts/terms: Each mortgage lender offers a variety of financing options that you can customize to suit your monthly budget and the length of time you need to pay off your loan.
  • No prepayment penalties: The mortgage lenders on our list do not charge borrowers for prepaying their loans.
  • Simplified application process: We looked at whether lenders offered a convenient and fast online application process and/or an in-person procedure at local branches.
  • Customer service: Every mortgage lender on our list offers customer service available by phone, email or secure online messaging. We have also opted for lenders that have a resource center or an online advice center to help you learn about the personal loan process and your finances.
  • Minimum deposit: Although minimum down payment amounts depend on the type of loan requested by the borrower, we have noted lenders who offer additional specialty loans with a lower minimum down payment.

After reviewing the features above, we’ve sorted our recommendations by lowest credit scores, flexible down payment options, no fees, flexible loan options, and to save money. .

Note that advertised rates and fee structures for mortgages are subject to fluctuation in accordance with the Fed rate. However, once you have agreed to your mortgage contract, a fixed rate APR will guarantee a constant interest rate and monthly payment for the life of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment, and loan amount depend on your credit history, creditworthiness, debt-to-equity ratio, and desired loan term. To take out a mortgage, lenders will do a credit check and ask for a full application, which may require proof of income, identity verification, proof of address and more.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.