Better Mortgage Review 2024

With low rates, no lender fees and a rate match guarantee, Better is a great option for saving money. Plus, Better loan officers don’t operate on commission, so you won’t face high-pressure tactics.

We like Better’s nationwide availability and its speedy approval process and closing timeline can get you into your new home faster.

While Better doesn’t have a lot of special loans aimed at lower-income buyers, the HOPE Grant can help eligible borrowers with up to $5,000 toward a down payment or closing costs.

Better offers conventional, jumbo, FHA, VA and Fannie Mae and Freddie Mac mortgages in all 50 states and Washington, D.C. It does not issue USDA loans.

• Fixed-rate: With a fixed-rate mortgage, borrowers have the same rate for the duration of the loan term. Better offers fixed-rate terms of 10-, 20- and 30-years.
• Adjustable-rate: Adjustable-rate mortgages (ARMs) start with a fixed interest rate for a set period and then adjust at regular intervals. Better offers adjustable rate terms of 5/6, 7/6 and 10/6.
• FHA:  Backed by the Federal Housing Administration (FHA), these loans only require a 3.5% down payment for borrowers with a 580 FICO score or 10% for borrowers with a 500 credit score.
• VA: Veterans and service members can apply for this lower-rate mortgage without a down payment or private mortgage insurance.
• Jumbo loan: A jumbo loan exceeds the conforming limits set by the Federal Housing Finance Agency. Better issues jumbo loans for up to $3 million.
• HomeReady: Backed by Fannie Mae, this mortgage requires just 3% down and has lower financing and PMI costs. You should earn 80% of the area median income, have a credit score of 620 and a debt-to-income ratio of 50%.
• HomeOne: Backed by Freddie Mac, this fixed-rate mortgage for first-time homebuyers requires only 3% down and has no income or geographic requirements.

Better has a variety of unique features that benefit homebuyers.

HOPE Grant

Homebuyers who meet income requirements can qualify for a credit of 2% off the purchase price (up to $5,000) to put toward closing costs or a down payment. Applicants should have a 620 credit score and put at least 3% down. First-time buyers will need to take homeownership education courses.

One Day Mortgage™ 

Borrowers who lock in their rate can get a commitment letter from Better within 24 hours. Other lenders can take up to two weeks to give final approval.

Better Real Estate discount

You can save up to $2,000 on closing costs by using a real estate agent referred by Better Real Estate. (Not available in all states.)

Rate match guarantee

If you get a better offer from a competitor, Better will match its rate or give you a $100 credit.

Better offers cash-out and rate-and-term refinancing in all 50 states and Washington, D.C. It offers home equity lines of credit (HELOC) in all states except Texas but does not provide home equity loans.

• Credit score: 620
• Debt-to-income ratio (DTI): Better prefers a DTI ratio of no more than 50%. 
• Home equity: You should have at least 3% home equity to get approved for refinancing.
• Home appraisal: A complete appraisal is not required for most refinance loans or HELOCs.

Better scored below average in JD Power’s 2023 Mortgage Origination Satisfaction Survey, which looks at borrowers’ opinions from the application process through closing day. It may transfer ownership of your loan to a third party for servicing and was not included in the JD Power servicer satisfaction survey.

Better received an A from the Better Business Bureau, based on corporate transparency, truthful advertising, response to consumer complaints and other factors.

The customer service line is not available on Sunday and Better does not have an online chat function, which many providers do.

With lower-than-average rates and no lender fees, Better tops Guild Mortgage on price. If you’re looking for a variety of loan options, however, Guild offers USDA loans and physician loans, which Better lacks.

Both have options for first-time homebuyers, but borrowers can be approved for Guild’s Zero Down loan with nothing down, while Better’s lowest-down-payment mortgage requires 3% upfront.

And if time is of the essence, Guild’s Homebuyer Express program guarantees closing in 17 days, compared to an average of 22 days with Better.

Better vs. SoFi

These two online-only lenders both boast below-average rates, but Better doesn’t charge lender fees and has a rate guarantee, putting it ahead of SoFi.

SoFi is a full-service bank, though, so you can enjoy the convenience of having all your financial accounts in one place and may even qualify for a customer discount.

If you work with SoFi’s partner real estate network, you could score a rebate of up to $9,500 after closing — a much bigger perk than the $2,000 credit for using Better Real Estate.

SoFi also has stronger customer service, including an app and more intuitive website, an online chat option and Sunday phone hours.

You can apply for a Better mortgage online or speak with a loan agent at 415-523-8837, weekdays from 8 a.m. to 10 p.m. ET and Saturdays from 11 a.m. to 6 p.m. ET. Once you answer basic questions about your financial history, Better will run a soft credit check and get you a preapproval offer in as little as three minutes.

The One Day Mortgage option can enable you to get verified preapproval within 24 hours, provided you can supply tax returns, pay stubs, bank statements and other financial documents.

Once you find the home you want, you can request a rate quote and begin the closing process. Better says its closing timeline averages just 22 days, nearly half the industry average.

Better is a great choice for affordability: It has some of the lowest rates in the market and borrowers will save even more by not paying lender fees and not being pressured by mortgage officers on commission.

Better is an online-only lender, though, and your mortgage may be transferred to a third party for servicing. If you value the in-person experience and lender continuity, you may want to investigate other options.

CNBC Select reviews mortgage products using a variety of criteria, including the types of loans offered, average rates, terms, availability, fees, down payment options, online options and customer satisfaction. 

In addition, we incorporate findings from independent sources, including lender scores from the J.D. Power U.S. Mortgage Origination Satisfaction Study and ratings from the Better Business Bureau.

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