10 Biggest Direct-To-Consumer Lenders for Homebuyers

As a first-time buyer, you might prefer a company that handles your loan from application to funding.

Many homebuyers are surprised that this isn’t how every company operates.

Mortgage brokers take your application then match you with a company they think is best for your situation. This works out well for most buyers. Still, some buyers prefer to know which company they are sending their business to.

Companies that offer direct-to-consumer loans are called “retail” lenders. They often have branches in your town or operate out of a central location. Either way, they handle your loan start to finish.

This could yield benefits, as a direct lender may have more power to close the loan faster, overturn a denial, or rush a last-minute request.

If you’re the type of homebuyer who prefers the direct model, you might want to know more the top 10 U.S. “retail” lenders for primary residence homebuyers based on 2023 data. This might reveal that:

• They are focused on home purchases, not investor loans or homeowner refinances

• They value a direct approach to lending

While 2023 was not kind to mortgage lenders, it revealed which lenders were at the top of their game as far as helping buyers directly.

Top 10 Retail Owner-Occupied Home Purchase Lenders

In 2023, nearly 2,800 lenders closed 2.37 million owner-occupied home purchase loans. The top 10 lenders closed 23% of that volume.

Polygon Research, Top 20 Lenders, retrieved from HMDAVision, April 30, 2024

1. CrossCountry Mortgage

This 21-year-old company has become the top U.S. lender for owner-occupied home purchases as of 2023, despite it being younger than many of its competitors. The lender is focused on retail (direct) business, with 600 branches nationwide, according to its website.

2. Fairway Independent Mortgage Corporation

Fairway is another company focused on local branches and helping homebuyers directly. Of its approximately 86,000 total loans completed in 2023, about 68,000 were direct-to-consumer homebuyer loans, or 79%. The company operates 700 branches nationwide according to Investopedia.

3. Rocket Mortgage

While Rocket appears in many lists as the top U.S. mortgage lender, it’s #3 for retail home purchase loans. While some other companies focus on a physical presence in your hometown, Rocket takes a different approach. It primarily leverages technology to help homebuyers in any location from its HQ in Detroit.

4. DHI Mortgage

DHI Mortgage took advantage of negative market conditions: low home inventory and high mortgage rates. The affiliated lender for D.R. Horton, America’s biggest home builder, gained market share in 2023 by being able to offer mortgage rate buydowns on newly built homes. More on this trend below.

5. Mortgage Research Center

It’s not a household name, but current and former military servicepersons have probably heard of its subsidiary: Veterans United Home Loans. The #1 lender for VA home loans, 55,000 of its roughly 60,000 purchase loans were loans of this type, putting it at number five for purchase loans overall. (Disclaimer: Mortgage Research Center owns this site.)

6. Movement Mortgage

Movement Mortgage originated over 51,000 homebuyer loans in 2023 through its retail channel. Founded in 2008, it now has 775 locations nationwide and lends in 50 states. According to its website, it has donated $377 million to the foundation it started to impact local communities. This is no doubt a selling point for homebuyers who want to feel good about the business they work with.

7. Guaranteed Rate

Guaranteed Rate blends the local approach with technological advantages. It has over 500 physical locations while offering a “fast, digital application process” with available “at-home closings” according to a Credit Karma review.

8. Lennar Mortgage

The affiliated lender for the country’s #2 home builder, Lennar Mortgage is having its day in the sun, increasing its business by 27% in 2023 versus 2022. Like DHI, it’s cruising with the winds that are currently pushing against most lenders, as discussed below.

9. Guild Mortgage

Guild’s purchase mortgage count declined just 5% in 2023 versus 2022, where many companies experienced declines of 20% or more. Their secret? Acquire other companies. In 2023, they acquired Academy Mortgage, First Centennial, Cherry Creek Mortgage, and Legacy Mortgage, according to National Mortgage Professional. Chances are that there’s a Guild branch in your neighborhood after this series of acquisitions.

10. JPMorgan Chase

You might be surprised that you don’t see more large banks on the list of top home purchase lenders. Independent non-bank lenders have grown over the years while many big banks have reduced their mortgage operations, either intentionally or because of market forces. Chase is the only traditional bank in the top 10.

Builder Lenders Gain Market Share

As mentioned, two builder-affiliated lenders made the top 10: DHI Mortgage, which is D.R. Horton’s lender, and Lennar Mortgage, affiliated with Lennar Homes, the #2 U.S. home builder.

While most lenders posted double-digit loan volume declines compared to 2022, Lennar clocked a 27% increase from the year before. Without that bump, Lennar would not have made the top 10.

Builder’s lenders are taking advantage of low home inventory and high rates.

They can create their own inventory instead of waiting for applicants to find a home on the resale market, a massive challenge for most lenders.

Plus, they can use $30,000 or more of the home sale profit to buy down the buyer’s interest rate. This can permanently lower the rate by 2% or more.

Builders gained market share not only with low rates, but helping homebuyers qualify when they could not at higher rates.

Find Your Lender

Some homebuyers prefer a small company while other like the idea of a large, national lender completing their loan. Luckily, today’s mortgage market offers plenty of both.

Do your own research to find your style of lender: large, small, retail, or broker. There are plenty of quality lenders out there.

Get help finding the best lender for your situation.