Best mortgage lenders with no origination fees

Getting a mortgage involves a lot of upfront money — and not just your down payment. It's common for lenders to charge an application fee, an underwriting fee and an origination fee, which are typically bundled together as lender fees.

The origination fee covers the cost of processing your mortgage application. It can sometimes be a flat rate, but more commonly, it's a percentage of your total loan — typically between 0.5% and 1%.

A $200,000 mortgage, for example, could have an origination fee of between $1,000 and $2,000.

To help save you money, CNBC Select is calling out lenders that don't charge an origination fee.

Who's this for? Ally Bank is a good option if you want to minimize your upfront costs — it doesn't charge an origination fee, application fee, processing fee or underwriting fee. (You may still have to pay appraisal and recording fees, as well as for title search and insurance.)

Standout benefits: With a HomeReady mortgage, Ally borrowers who meet income and credit requirements can put down as little as 3%.

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Who's this for? Navy Federal Credit Union is great for current or retired service members and their families. The 1.00% origination fee can be waived if you opt for a 0.25% rate increase instead.

Standout benefits: TheMilitary Choice mortgage is similar to a VA loan — with no down payment or private mortgage insurance — but sellers can contribute up to 6% of the home's value toward closing costs. Navy Federal will match a competitor's rate or give you $1,000 after you close with them.

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Who's this for? Community Bank could be the right choice if you don't want to pay all the upfront mortgage costs right away: It's no-closing-cost mortgage rolls the lender fees into your mortgage balance, so you can pay them off over time.

Standout benefits: Community Bank offers both home equity loans and home equity lines of credit, in addition to rate-and-term and cash-out refinancing.

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Online lender Ally known for its speedy preapproval process, shorter closing times and lack of lender fees. It doesn't offer government-backed USDA, FHA or VA mortgages.

Mortgage types: Conventional, jumbo, HomeReady and HomeOne, refinancing

Minimum down payment: 3% for conventional loans, 10.01% for jumbo loans

Terms: 15 to 30 years

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The largest credit union in the U.S., Navy Federal Credit Union is open to active duty service members, veterans, Reservists, Department of Defense employees and extended family members. Borrowers can apply with non-traditional credit sources, like on-time rent and utility payments.

Mortgage types: Conventional, jumbo, VA, Military Choice, Homebuyers Choice, refinancing

Minimum down payment: 3% for a conventional loan; 0% for a VA, Military Choice or Homebuyers Choice loan

Terms: 10 to 30 years

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Established in 1866, Community Bank has more than 250 branches, primarily in the Northeast. In addition to traditional mortgages, it approves loans for condominiums, mobile homes, land and investment properties and issues both auto and homeowners insurance.

Mortgage type: Conventional, VA, USDA, construction loan, HomeReady, refinancing, HELOC

Minimum down payment: 3% for conventional loans

Terms: Contact lender for term details

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Here are some of the most common types of mortgages you can apply for.

Conventional mortgage

The most common type of home loan, a conventional mortgage is offered by a private lender, such as a bank or credit union. Conventional loans typically require a down payment between 5% and 20%.

FHA loan

An FHA loan is still issued by a private lender but it's backed by the Federal Housing Administration. It usually requires a smaller down payment, typically 3.5% with a credit score of 580 or 10% with a score of 500.

VA loan

A VA loan is guaranteed by the U.S. Department of Veterans Affairs. It may be issued by a partner bank or credit union or by the VA directly. These loans usually don't require a down payment but you must be an active service member, a veteran or a surviving spouse to be approved.

USDA loan

A USDA loan is backed by the U.S. Department of Agriculture and doesn't require a down payment or mortgage insurance. Applicants must meet income requirements, however, and the funds must be used to buy a home in a qualifying rural or suburban area.

Jumbo loan

A jumbo loan exceeds the limits on mortgages backed by Fannie Mae or Freddie Mac. The conforming loan limit in 2024 is $766,550 in most parts of the U.S., although some high-price areas have limits up to $1,149,825.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert tors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best mortgage lenders with no origination fees.

CNBC Select analyzed dozens of U.S. mortgage lenders to see which waived origination fees. When ranking the best, we focused on affordability availability, customer satisfaction and whether fees were clearly delineated.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Rates and fee structures cited for mortgages fluctuate in accordance with the Fed rate and company policy.

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