Should I Get a Mortgage from a Bank or a Non-Bank Lender?
Updated 24 days ago (March 6, 2026)
If you were searching for a home loan in 2007, most of the mortgage lenders you find would be traditional banks. Today, non-bank lenders whose only products are mortgage loans and who do not offer banking services account for nearly half of all mortgages in the United States.
Traditional banks remain an important and safe option for borrowers, and on some occasions, are more suitable and flexible. For borrowers who have low credit scores or intend to purchase a house that needs significant repair work, a non-bank lender may be a better option. On the other hand, borrowers need to be wary of the higher interest rates and fees charged by non-bank lenders. You should consider your needs and financial capacity to repay a loan when choosing between a bank or non-bank lender.
Financial Disclaimer: Tellus provides this content for informational purposes only. This is not financial advice. Financial returns and mortgage terms vary based on individual circumstances and market conditions. Consult a qualified financial advisor before making financial or borrowing decisions.