10 Biggest FHA Lenders for Homebuyers

The FHA loan is one of the most powerful first-time homebuyer tools ever invented.

Qualifying buyers with credit scores down to 580 can receive a 3.5%-down loan, thanks to strong government backing.

It’s no wonder that about 80% of FHA loans go to borrowers buying their first home, according to the Department of Housing and Urban Development (HUD).

As a homebuyer, it might help to know which lenders do the most FHA loans. Out of more than 1,300 lenders, the top 10 originated 33% of FHA purchase loans in 2023. And, 271 lenders issued less than 10 FHA loans all year.

While biggest doesn’t always mean best, the top FHA lenders could be a good place to start your mortgage shopping.

Here are the lenders that did the most FHA purchase loans in the U.S. in 2023 based on Home Mortgage Disclosure Act (HMDA) data from the Consumer Finance Protection Bureau (CFPB) accessed via PolygonResearch.com.

Polygon Research, retrieved from HMDAVision, accessed May 7, 2024

1. United Wholesale Mortgage

Also known as UWM, this lender isn’t a direct-to-consumer company. Rather, it’s a wholesale lender. This means it receives loan applications from mortgage brokers – companies that works directly with the homebuyer, selecting the best lender for their situation. UWM has made inroads in recent years, offering incentives for brokers to use them. With a large broker network, it’s no surprise that UWM had twice the FHA loan count as the next-biggest lender.

2. Rocket Mortgage

Coming in second, Rocket Mortgage originated over 26,000 FHA purchase loans in 2023. This household-name lender seeks to simplify the homebuying process, even leveraging AI to speed up a traditionally slow process.

3. DHI Mortgage

Home builders’ lenders are having their day in the sun. DHI Mortgage, the affiliated lender for D.R. Horton, America’s largest home builder, came in third place for FHA loan origination. While most lenders lost substantial business in 2023, DHI increased its overall volume by 9%. Homebuyers often receive massive interest rate discounts from builders when using affiliated lenders.

4. Fairway Independent Mortgage Corp.

Fairway takes the local approach, operating 700 branches nationwide according to Investopedia. Fairway was ranked #1 in Mortgage Origination Customer Satisfaction by J.D. Power, likely helping it grow its FHA business.

5. CrossCountry Mortgage

Another company that focuses on local branches, CrossCountry was the #1 direct-to-consumer lender for homebuyers by overall loan volume in 2023. So it’s not surprising it ended up in the top five for FHA lending.

6. Lennar Mortgage

Another builder-affiliated lender in the top 10 is Lennar Mortgage, the lender for Lennar Homes, the second-largest home builder in the U.S. Lennar increased its FHA loan business by an eye-popping 97% in 2023 compared to 2022, according to HMDA data. While business fell for most lenders, builder’s lenders were able to offer homes (when resale homes were sparse) and lower rates: they could use home sale profits to buy down rates by as much as 2%.

7. Movement Mortgage

This company with 775 locations was founded only in 2008. It has made significant inroads in the mortgage industry in a short time and is now the seventh-largest FHA lender.

8. LoanDepot

While LoanDepot’s overall lending business fell 58% in 2023 versus 2022, it managed to remain in the top 10 for FHA loan volume. According to its website, the company focuses on a “straightforward mortgage experience” and uses proprietary technology to speed up the process and gather paperwork for you via direct mortgage verification.

9. Guild Mortgage

Guild acquired four mortgage companies in 2023 according to National Mortgage Professional, helping them land in the top 10 for FHA lending. The company focuses on home purchases, making up 93% of the business in the fourth quarter of 2023.

10. Cardinal Financial

While Cardinal Financial was 32nd in overall lending in 2023, it was the 10th largest FHA lender. Its FHA market share speaks to its focus on homebuyers: of its roughly 27,000 loans originated in 2023, about 23,800 were purchase loans – 88%.

The Importance of FHA to Homebuyers

The FHA loan program has turned millions of renters into homeowners when they could not have qualified for other financing.

Conventional loans based on Fannie Mae and Freddie Mac guidelines are great – but work best if you have relatively high income and a 680+ credit score. Conventional loans are risk-based; they can get expensive for lower-credit buyers.

FHA, though, allows first-time and repeat buyers to access credit at more flexible and affordable terms.

And, while FHA loan myths persist, buyers who research the program find that benefits outweigh drawbacks.

If you’re in the market to buy a home, but think you won’t qualify, speak to a reputable FHA lender to see if you can get approved.

Find Your FHA Lender

More than 1,300 lenders issued FHA loans in 2023; chances are, any lender you contact will offer them.

It's a good time to get started with your home purchase.

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