| Takeaway | Key Details |
|---|---|
| 💻 Lender Type | 100% direct online lender — no physical branches, fully digital mortgage process. |
| ⚙️ Loan Products | Offers conventional, FHA, VA loans, refinancing, and HELOCs. |
| 💰 Fees | No origination, application, or underwriting fees — only third-party closing costs apply. |
| 🤖 Technology | Uses AI-powered tools like Betsy™, Better’s virtual assistant, for faster preapprovals and document help. |
| 📄 Preapproval | Instant preapproval with a soft credit check — no impact on your credit score until complete application. |
| 🏠 Unique Perks | $2,000 closing cost credit when using a Better-referred real estate agent; Better Price Guarantee matches competitor offers. |
| ⚖️ Potential Drawbacks | Entirely online (no in-person support); some users cite communication or documentation delays. |
| ⭐ UCS Rating | 4.8 / 5 — Excellent option for tech-savvy borrowers seeking low fees and transparent rates. |
Online mortgage lenders like Better Mortgage (or simply “Better”) are redefining how individuals and small business owners access home financing. Through streamlined technology and digital innovation, these platforms allow borrowers to complete the entire process—from preapproval to closing—without ever visiting a physical branch. The rise of online lenders has made securing mortgage loans, home equity loans, and refinance mortgages faster and more transparent than ever before.
However, while these services offer convenience and competitive interest rates, borrowers should also be aware of the potential drawbacks, such as limited in-person support and a reliance on digital communication. Evaluating each lender carefully is essential to ensure that the loan terms, fees, and service quality align with your financial goals.
In this review, we’ll explore what you need to know about Better, including available financing options, pros and cons, and the application process, to help you determine if it’s the right fit for your needs. Specifically, we’ll answer these questions and more:
Founded in 2016 and headquartered in New York City, New York, Better Mortgage is an online mortgage lender that uses artificial intelligence to simplify and accelerate the mortgage application process. The company’s mission is to make homeownership more affordable and accessible by eliminating unnecessary fees and human friction points from the traditional mortgage industry.
Better Mortgage operates as a direct online lender without physical branch locations. Instead, all applications, verifications, and closings occur online through the company’s secure digital platform. This model allows Better to offer competitive pricing and a fast online process.
Better Mortgage offers home loans in all 50 states and Washington, D.C., and markets itself as one of the first AI-powered mortgage providers. The company has provided billions of dollars in mortgage financing to date. It continues to expand into new products, such as home equity lines of credit (HELOCs) and insurance services, under its “Better+” umbrella.
Unlike traditional banks or credit unions, Better’s approach relies on digital underwriting, predictive analytics, and automated communication to reduce delays. Its target audience includes tech-savvy borrowers, real estate professionals, and small business owners seeking efficiency and transparency in rates.
Better offers a variety of loan options, including conventional, FHA, and VA loans, as well as refinancing options. Borrowers can choose between fixed-rate and adjustable-rate options, depending on their needs and qualifications.
Better provides an entirely online loan process and does not charge origination fees, a significant distinction from many other lenders.
The company’s loan products include:
Better’s core offering is its conventional home loan, designed for home purchases or refinanced mortgages. Borrowers can select from fixed-rate or adjustable-rate terms, with down payments as low as 3% for qualified applicants. Loan limits typically follow the guidelines of Fannie Mae and Freddie Mac.
The mortgage process is entirely digital—borrowers upload required documents, verify income and assets electronically, and receive a commitment letter upon approval. Better’s AI-driven underwriting provides same-day preapprovals and can close new loans significantly faster than the national average.
Better also offers VA loans for eligible active-duty service members, veterans, and surviving spouses. These loans are backed by the U.S. Department of Veterans Affairs, allowing qualified borrowers to purchase or refinance a home with no down payment and favorable loan terms.
As part of its commitment to serving veterans, Better’s platform simplifies the VA process, helping borrowers gather required documents and understand funding fees. Its VA loans often feature fewer fees and lower interest rates than conventional options.
For homeowners seeking to lower their monthly payment, shorten their term, or tap into home equity, Better provides refinancing options. Borrowers can refinance an existing mortgage into a lower annual percentage rate (APR) or change between fixed and adjustable terms.
Cash-Out Refinancing: Better also offers cash-out refinancing, allowing borrowers to access equity for renovations, debt consolidation, or business expenses. The entire process remains online, and Better’s AI Loan Assistant, Betsy™, helps manage the process by providing documents and timelines.
Better’s Home Equity Line of Credit (HELOC) allows homeowners to borrow against the equity in their property, typically up to 90% of the home’s value. Borrowers can use HELOC funds for home improvement, debt consolidation, or business financing.
The product features flexible loan terms, no annual fees, and no prepayment penalties. Better’s HELOC also offers a float down option, which allows borrowers to lock in a lower rate if interest rates drop during the process. Better also offers home equity loans.
Better Mortgage’s expanded suite of financial products under the Better+ brand includes:
Borrowers typically need a minimum credit score of 620 for conventional loans and FHA loans, while VA loans may have more flexible credit requirements. A high credit score is required for the best rates. The ideal borrower should demonstrate steady income, a manageable debt-to-income ratio, and sufficient cash reserves for closing costs.
Eligibility factors vary by product type, but generally depend on:
Better’s automated preapproval tool can instantly evaluate several factors using a soft credit check, allowing borrowers to see their estimated mortgage rate without affecting their credit score.
Better’s mortgage options include conventional, jumbo loans, FHA, VA loans, HELOCs, and cash-out refinancing. The company aims to streamline the mortgage lending process compared to traditional lenders.
The company uses AI technology to streamline underwriting through its AI Loan Assistant, Betsy™, which guides borrowers through tasks, answers questions, and helps track requested documents.
Borrowers can begin the preapproval process using a soft credit check, which does not impact their credit score. Once a borrower proceeds with a complete mortgage application process, a hard credit inquiry is conducted, which can temporarily affect their credit score.
Better is an online-only direct lender backed by partnerships with major financial institutions to support its lending capacity. It does not maintain in-person branches, which helps keep costs low and allows the company to offer some of the lowest rates in the mortgage industry.
Better is known for its Better Price Guarantee, which promises to match competitor loan estimates or credit $100 toward closing costs if it cannot match them. The company’s no-fee model means it does not charge origination fees, application fees, or underwriting fees, though borrowers remain responsible for third-party closing services and taxes.
For borrowers using an agent referred through the platform, Better Mortgage provides a $2,000 closing cost credit if the borrower uses a real estate agent referred by Better. Better also offers investment property loans, FHA and VA loans, and construction mortgages in select markets, though it does not currently provide USDA loans.
Overall, Better has a strong reputation for rate transparency and efficiency. Still, some customers note that the company lacks transparency in communication when timelines are extended or when they proactively request updates. Better Mortgage offers the ‘Better Price Guarantee’ to match competitor loan estimates.
Better offers mortgage and home financing affiliate programs, including loan affiliate options for small business financing. Mortgage brokers, marketing affiliates, ISOs, and business loan brokers can sign on Better’s website.
One of Better Mortgage’s most significant advantages is its fast online process. The entire process can take as little as a few minutes for preapproval, thanks to automated verification tools and AI assistance.
Visit better.com and select “Get Preapproved.” Enter details such as property location, purchase price, and desired loan amount.
Securely connect your payroll and bank accounts for instant verification, eliminating the need to upload required documents manually.
Better’s platform instantly provides an estimated mortgage rate, APR, and monthly payment based on the information you provide. You can compare options side by side before continuing.
Upload pay stubs, tax returns, and property details. The AI Loan Assistant Betsy™ helps identify missing or incomplete documents.
Once underwritten, you’ll receive a commitment letter detailing your loan terms, conditions, and expected closing costs.
Better coordinates closing services through its affiliates, such as Better Title and Better Cover, allowing digital signing and secure fund transfers.
After closing, Better Mortgage loans are serviced through ServBank, its primary servicing partner. Over time, Better may transfer the loan to an investor who handles payment collection and escrow management.
Borrowers can continue to make payments online through ServBank’s portal or the designated servicer. Importantly, the company does not originate loans with prepayment penalties, allowing borrowers flexibility to refinance or pay off the loan early without incurring additional costs.
Better offers fewer fees than many competitors, with no origination fees, application fees, or underwriting charges. It’s Better Price Guarantee ensures highly competitive interest rates.
Borrowers appreciate the fast online process, soft credit check preapprovals, and AI-assisted customer experience. The combination of automation and minimal human friction makes the entire process smoother than with many other lenders.
The company’s transparency in pricing, along with digital closing services and integrated insurance and title options, creates a one-stop mortgage ecosystem. Borrowers can even earn lender credits for using a referred real estate agent.
Because Better operates exclusively online, borrowers who prefer in-person communication may find the experience impersonal. Some customers report delays or difficulty obtaining updates unless they proactively request them.
Better also lacks niche products, such as USDA or construction loans, in all states, and the absence of branch offices limits personal service for complex transactions. Finally, while its fees are low, borrowers remain responsible for third-party closing costs and fine print items that may vary.
Pros:
Cons:
Yes. Better Mortgage is a fully licensed and BBB-accredited mortgage lender regulated under federal and state lending laws. Major institutional investors back the company, and it has processed more than a decade of mortgage volume growth since its founding.
Better holds an A rating from the Better Business Bureau and generally positive reviews on trusted platforms.
No, Better does not currently provide a Commercial Equity Line of Credit (CELOC). A CELOC differs from a HELOC in that it uses commercial property as collateral and is tailored for business purposes. Better’s HELOC, by contrast, is secured by residential property and structured for homeowners. A CELOC is a type of commercial real estate loan that provides a revolving line of credit.
Yes. Borrowers may use HELOC funds for business purposes, including inventory, marketing, or working capital. In 2025, Better partnered with Biz2Credit to market HELOC financing to small business owners, expanding access to home equity-based capital solutions. This partnership enables entrepreneurs to leverage their residential equity to support business growth.
Better Mortgage maintains a strong online reputation, earning praise for its speed, pricing, and user-friendly digital experience—reviews on Trustpilot average around 4 out of 5 stars, with thousands of verified customer ratings.
The average borrower experience rating for Better Mortgage is 4.3 out of 5 stars.
Borrowers frequently cite rate transparency, a streamlined loan process, and lower fees compared to competitors. Many mention the process, the smooth and fast closings, and the convenience of digital documentation.
Some negative reviews reported frustrating experiences due to a lack of communication from Better Mortgage. Better Mortgage has received complaints regarding transparency in their processes and handling of documentation. These issues often stem from expectations for real-time human updates in an otherwise automated system.
While Better offers excellent online lending options, it may not be the best fit for borrowers who value hands-on support or those seeking niche loan types, such as rehab loans, construction mortgages, or USDA loans. Applicants may also be denied if they have a low credit score, insufficient income documentation, or high debt ratios.
Alternative mortgage lenders and online options include Figure, Rocket Mortgage, and loan programs from major banks and credit unions. These providers offer comparable digital interfaces, though some charge higher lender fees or origination fees.
| Lender | Loan Types Offered | Origination Fees | Avg. Closing Time | BBB Rating | Notable Feature |
|---|---|---|---|---|---|
| Better | Conventional, FHA, VA, HELOC, Refinance | None | 21–25 Days | A | AI-powered, Price Guarantee |
| Figure | HELOC, Home Equity Loans | Low Fixed Fee | 5 Days | A+ | Fastest HELOC Funding |
| Rocket Mortgage | Conventional, FHA, VA, Jumbo | Varies | 30–45 Days | A+ | 24/7 Customer Support |
| Wells Fargo | Conventional, Jumbo, Refinance | 0.5–1% | 45+ Days | A+ | In-person Branch Network |
| SoFi | Mortgage, Refinance, HELOC | None | 25–30 Days | A | Member Perks Program |
While Better offers loans and mortgage products that could provide funding for a business, it does not offer dedicated small business loans. Fortunately, many lenders specialize in business funding options.
Working with a small business loan marketplace (like UCS) allows you to apply to a network of lenders with a single, streamlined online small business loan application. A dedicated business funding specialist can help you navigate offers to find the best deal available for your needs. The available loan types and funding amounts vary based on minimum credit score requirements and other factors.
You may be interested in one of the following small business loans:
Better Mortgage represents a significant step forward in the evolution of the mortgage industry, offering an efficient, transparent, and largely fee-free experience for qualified borrowers. Its integration of AI tools, competitive rates, and strong customer satisfaction ratings make it a leading choice for homeowners seeking simplicity and savings.
Those who prefer in-person guidance or have complex income situations may find better alignment with traditional mortgage lenders or credit unions. At the same time, tech-savvy borrowers will likely appreciate Better’s digital edge.
Based on the available information, we rate Better 4.8 out of 5. It’s an outstanding online lending option for mortgages, offering HELOC and refinancing options as well.
Disclaimer: The Better Mortgage trademark is owned by Better Mortgage Corporation, and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from Better Mortgage Corporation.
