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Better Mortgage has conforming, jumbo, and FHA mortgages.
Better.com; Alyssa Powell/Insider
The bottom line: Better Mortgage is one of our favorite online mortgage lenders. It charges no lender fees and offers an easy online experience. It also lets you easily see personalized rates online, and it has live online chat so you can get your questions answered quickly by a home loan expert. But Better’s mortgage offerings are fairly limited.
Overall lender rating
FeatureInsider rating (out of 5)Loan types3Affordability4Customer satisfaction4.5Trustworthiness4.5Total4
Pros and cons
ProsCons
Can see personalized rates online before applying
Three-minute preapproval application
No application, underwriting, or origination fees
Chat online with a home loan expert
Not able to apply for a mortgage in personDoes not have VA or USDA mortgagesCan’t get a home equity loan, HELOC, reverse mortgage, or construction loanCan’t apply with non-traditional credit (like utility bills) if you have a low or no credit score
Better Mortgage interest rates and fees
On Better Mortgage’s website, click the “Rates” drop-down menu and select purchase or refinance rates. You can enter basic information, including your zip code, credit score range, home value, and down payment, to see a personalized rate.
This probably won’t be exactly the rate you’ll end up paying, but it should give you an idea. And not all online lenders give you ways to see customized rates.
To get a more accurate rate quote, you’ll have to provide some contact information to get a basic preapproval letter. This doesn’t require a hard credit check.
Better doesn’t charge lender fees such as application, underwriting, or origination fees. You will still have to pay third-party fees on services like an appraisal or inspection, though.
Compare to other lenders
Better Mortgage vs. Rocket Mortgage
Better.com
Quicken Loans
Types of mortgages
Conforming, jumbo, FHA
Types of mortgages
Conforming, jumbo, FHA, VA
Accepts non-traditional credit?
No
Accepts non-traditional credit?
No
Better Mortgage
Rocket Mortgage by Quicken Loans
If you need a VA mortgage, you’ll need to go with Rocket Mortgage over Better Mortgage. But for a conforming, jumbo, or FHA mortgage, your decision could come down to a couple of other factors.
Do you want a unique term length? Rocket Mortgage offers terms as short as eight years, while Better Mortgage has more traditional options of 15, 20, and 30 years.
Are you worried about closing costs? Better Mortgage charges fewer fees than Rocket Mortgage — for example, Rocket Mortgage has an origination fee, while Better does not.
Better Mortgage vs. Guild Mortgage
Better.com
Guild Mortgage
Types of mortgages
Conforming, jumbo, FHA
Types of mortgages
Conforming, jumbo, FHA, VA, USDA, renovation, reverse, manufactured home, energy-efficient, doctor mortgage
Accepts non-traditional credit?
No
Accepts non-traditional credit?
Yes
Better Mortgage
Guild Mortgage
Guild Mortgage has more mortgage options than Better Mortgage, so Guild might be a better choice if you want a large number of options to choose from, or if you need a more unique type of mortgage. Guild Mortgage also lets you use non-traditional credit (such as rent or utility payment history) to apply if you’re a first-time homebuyer with no traditional credit score.
Guild Mortgage may charge more fees, though. If you’re looking for a conforming or jumbo mortgage, Better Mortgage might be the more affordable option.
How Better Mortgage works
Better Mortgage is an online mortgage lender that is available in all 50 US states and Washington, DC. You can’t use Better to buy homes in Puerto Rico or anywhere outside of the US.
The company offers conventional mortgages — both conforming and jumbo — and FHA mortgages.
Better doesn’t charge any lender fees, including origination, application, processing, or underwriting fees. This means closing costs will likely be lower with Better than with some competitors. According to its website, most Better customers pay between $1,500 and $3,500 in closing costs.
Better offers two different types of preapproval letters. The first is a basic preapproval letter, which utilizes a soft credit pull and information you provide to determine whether you qualify and how much you can borrow. Its verified preapproval letter, on the other hand, provides more certainty because it requires you to upload documents verifying your financial situation.
If you’re getting ready to start making offers on houses, it’s better to have a verified preapproval in hand, since you want to be certain that you’re likely to be approved for the amount stated in your preapproval letter.
You can call, email, or chat online with customer service Monday through Friday from 9:00 a.m. to 9:00 p.m. ET, or weekends from 10:00 a.m. to 6:00 p.m. ET.
Is Better Mortgage trustworthy?
The Better Business Bureau gives Better Mortgage an B in trustworthiness due to 146 customer complaints against the business. A strong BBB grade indicates a company is honest in its advertising, transparent about business practices, and effective in responding to customer complaints.
Better doesn’t have any public scandals. But its founder and CEO, Vishal Garg, does. He’s been accused of fostering a hostile workplace at Better and of engaging in fraud with some of his previous startups. He also laid off around 900 employees over Zoom in late 2021.
If Garg’s reputation worries you, you may decide to get a mortgage through a different company. But it’s worth noting that Better Mortgage itself has a pretty clean history.
Better Mortgage FAQ
Is Better Mortgage legitimate?
Yes, Better Mortgage is a real mortgage lending company that is accredited by the Better Business Bureau. You’ll see the Equal Housing Lender and Equal Housing Opportunity logos on its website — this means that the US Department of Housing and Urban Development (HUD) holds Better to certain standards regarding discrimination in the lending process.
Is Better Mortgage a good lending company?
Better Mortgage could be a good fit if you prioritize speed, want a company with no lender fees, and are comfortable with a fully-online application process. It isn’t the lender for you if you need a VA mortgage or USDA mortgage, or if you don’t have a credit score.
Is Better Mortgage a good place to refinance?
Better Mortgage may be a good lender for refinancing your mortgage. Just as with its original mortgages, it doesn’t charge application, underwriting, or origination fees when you refinance. It also offers both traditional rate-and-term and cash-out refinancing.
What type of lender is Better Mortgage?
Better Mortgage is a direct lender, meaning you’ll apply through Better and it will be the entity that provides you with your mortgage. This differs from a mortgage broker, who helps connect you with a lender, but doesn’t actually lend the funds themselves.