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Lenders Recommendations by State

You can also see reports lenders results state by state.

Regional Home Loans Trends

Home loans lenders perform differently locally and this have an impact on regional trends for home loans lenders satisfaction. You can learn more from the homeowner’s point of view and from the lenders’ point of view.

Home Loans Lenders: Homeowners Perspective

Northeast

• Credit Unions offer the best overall experience with high application ease, strong support, and the highest recommendation rates (87-90%). If you want a reliable and smooth loan process, they are the top choice.
• Online Lenders vary widely; in some states like Rhode Island, they provide excellent borrower satisfaction (~90% recommendation), but in places like New Hampshire, satisfaction drops to the high 70s. So, check local reviews before choosing an online lender.
• Community Banks deliver moderate service quality but typically score 5-7 points lower than Credit Unions in recommendation rates. They might be suitable if you want a more traditional banking relationship but with slightly less satisfaction.
• Banks have steady but lower borrower satisfaction (~80-85%) and may not be the best if ease and support are your priorities.

Midwest

• Credit Unions stand out with the easiest applications and best support scores (often above 4.4), meaning fewer hassles and better guidance for borrowers. They also have high recommendation rates (~88-92%).
• Community Banks and Banks provide very similar experiences, often close in scores and recommendation rates (~80-88%), so you can consider either but don’t expect significant differences.
• Online Lenders generally have lower loan terms ratings (3.6-3.9) and slightly lower recommendation rates, so if you prioritize loan terms or rate satisfaction, proceed cautiously with online options here.
• Ohio and Indiana borrowers may experience a bit more friction with application ease for Credit Unions and Community Banks (~3.7-4.0), so it’s worth comparing multiple lenders.

South

• Credit Unions again provide the highest recommendation rates (~85-90%) and consistently lead in ease and support, making them the preferred choice for borrowers wanting good service.
• Community Banks have mixed results: some states like Maryland and South Carolina rate them well (~85% recommendation), while others like Kentucky and Tennessee see lower satisfaction (below 75%). If you’re in these lower-scoring states, investigate lenders carefully.
• Online Lenders are very inconsistent, with recommendation rates ranging from mid-70s to low 90s depending on the state. This inconsistency means borrower experience can be hit-or-miss, so local lender reputation is crucial.
• Banks are consistently behind Credit Unions in recommendation and support, though in some states (Louisiana, Texas), they narrow the gap and can be competitive options.

West

• Credit Unions continue to lead with strong application ease (above 4.3) and recommendation rates (86-90%), making them a solid, reliable choice for borrowers.
• Community Banks shine in Colorado and Nevada, often outperforming Banks and Online Lenders in loan terms and support (above 4.5), which can translate to better loan deals and help for borrowers in those states.
• Online Lenders score lower on loan terms (3.3-3.7) in many western states, pulling down their recommendation rates (around 83-87%). Borrowers should carefully weigh their options if prioritizing loan terms and rates.
• Banks are fairly consistent across western states but generally don’t match Credit Unions or strong Community Banks in borrower satisfaction.

Homeowners Summary

• For a smooth loan experience with high support and likelihood of recommendation, Credit Unions are the safest and most consistent choice nationwide.
• Community Banks and Banks can be solid options but generally have lower recommendation rates and more variability by region.
• Online Lenders offer convenience but are the most unpredictable, with large swings in satisfaction depending on the state and region.
• Borrowers in the South and parts of the Midwest should especially do local research before choosing Community Banks or Online Lenders due to higher variability in borrower satisfaction.
• Checking state-specific lender reviews or recommendation rates provide some good feedback, especially for Online Lenders with uneven reputations.

Home Loans: Lenders’ Regional Perspective

Northeast 

• Credit Unions dominate borrower satisfaction and recommendation rates, giving them a strong competitive advantage. They should continue investing in easy application processes and personalized support to maintain leadership.
• Online Lenders have mixed reputations—strong in Rhode Island but weaker in New Hampshire—highlighting the need to improve consistency and customer experience regionally to grow market share.
• Community Banks lag behind Credit Unions in recommendation rates, indicating opportunities to improve borrower support and streamline applications to close the gap.
• Traditional Banks show stable but lower scores, suggesting a need for innovation in digital tools and competitive loan terms to attract more borrowers.
• Online Lenders could capitalize on regional weaknesses by targeting states with lower satisfaction in traditional lenders and improving loan terms and support.

Midwest

• Credit Unions hold a strong position with high ease of application and support scores, making them appealing to borrowers and difficult to displace.
• Community Banks and Banks are very close in performance, suggesting that small improvements in customer experience or loan terms could sway borrower preference.
• Online Lenders need to focus on enhancing loan terms and rate satisfaction, as their current lower scores limit recommendation rates.
• Lenders in Ohio and Indiana should prioritize improving application ease to better compete in those markets.

South

• Credit Unions lead borrower satisfaction but face variability in different states, presenting opportunities to consolidate dominance with consistent service quality.
• Community Banks show mixed results; states with lower borrower satisfaction should focus on improving service and support to stay competitive.
• Online Lenders demonstrate high variability, suggesting targeted regional investments and reputation management are crucial for growth.
• Banks have opportunities in states like Louisiana and Texas where they narrow the satisfaction gap, potentially leveraging better loan terms or digital tools.

West

• Credit Unions maintain strong borrower satisfaction and should continue emphasizing application ease and personalized support as key differentiators.
• Community Banks outperform others in Colorado and Nevada, indicating potential to market strong loan terms and support as competitive advantages.
• Online Lenders face challenges with lower loan terms and support scores, highlighting areas for product and service improvement to increase borrower recommendations.
• Banks maintain consistent but moderate performance, suggesting room to innovate and differentiate especially in digital lending experiences.

Home Loans: Lenders Overviews

Credit Unions are the national leaders in borrower satisfaction, holding a competitive moat through easy applications and strong support.

Community Banks and Banks generally compete closely but lag behind Credit Unions, emphasizing the need for service improvements and product differentiation.

Online Lenders have inconsistent reputations and should prioritize improving loan terms, customer support, and regional market strategies.

Lenders should leverage regional strengths and address local weaknesses in borrower satisfaction to capture market share effectively.

Continuous innovation in digital tools, borrower education, and customer experience will be important across all lender types to meet evolving borrower expectations.

Credit Unions Overview

• Consistent Leadership: Credit Unions lead new home loans borrower satisfaction nationwide, with high scores in application ease, support, and recommendation rates (typically 85-92%). This positions them as trusted lenders with strong customer loyalty.
• Regional Strengths: Northeast and Midwest regions show particularly strong recommendation rates (around 87-92%), indicating solid market presence and borrower trust in those areas.
• Opportunity for Growth in the South: While still leading, Credit Union recommendation rates in the South are slightly lower (~85-90%) with more variability, suggesting opportunities to enhance service consistency and borrower education to strengthen foothold.
• Western Region Potential: Credit Unions enjoy strong application ease and recommendation scores in the West (86-90%), but Community Banks in states like Colorado and Nevada challenge them in loan terms and support, signaling competitive pressure.
• Focus on Loan Terms: Although Credit Unions score well, loan terms & rate satisfaction sometimes trail slightly behind Community Banks in select regions, highlighting an area to improve product offerings to remain competitive.
• Customer Experience Advantage: High support & guidance scores demonstrate that personalized service is a key differentiator for Credit Unions, which they should continue to emphasize in marketing and operational strategies.
• Digital & Process Innovation: Maintaining ease of application is important; investments in user-friendly digital platforms will help sustain their lead as borrower expectations evolve.
• Competitive Vigilance: Credit Unions should monitor Online Lenders carefully, especially in regions where online satisfaction spikes, and adapt strategies to retain borrowers seeking digital convenience.

Community Banks Overview

• Moderate Borrower Satisfaction: Community Banks generally score lower than Credit Unions in recommendation rates, typically ranging from 75% to 88%, indicating room for improvement in borrower experience and loyalty.
• Regional Variability: Performance is uneven across regions — stronger in the West and Midwest (often near 85-88%), but weaker in parts of the South and Northeast where recommendation rates can dip below 75%, signaling local market challenges.
• Loan Terms Opportunity: In some Western states like Colorado and Nevada, Community Banks outperform other lender types in loan terms and support, highlighting a competitive advantage they can leverage more broadly.
• Need to Improve Application Ease: Borrowers in states like Ohio and Indiana report lower ease of application scores (~3.7-4.0), suggesting process simplification and digital upgrades are essential to stay competitive.
• Customer Support Gap: Support and guidance scores tend to lag behind Credit Unions, emphasizing the need for Community Banks to invest in personalized service and borrower education.
• Competing Against Digital Disruption: Online Lenders show mixed but improving satisfaction; Community Banks must innovate digitally to retain borrowers attracted to online convenience.
• Local Relationship Strength: Community Banks still benefit from strong local ties; marketing this personalized, community-based advantage can help differentiate them from larger banks and online competitors.
• Focus on Consistency: Reducing variability in borrower satisfaction across states by standardizing quality and streamlining loan processes can enhance their regional competitiveness.

Banks’ Overview

• Steady but Lower Satisfaction: Banks generally show consistent but moderate borrower satisfaction with recommendation rates mostly between 77% and 85%, trailing behind Credit Unions and Community Banks.
• Opportunity to Improve Loan Terms: Loan terms & rate satisfaction often hover around 4.0 to 4.3 but lag slightly behind Community Banks in key regions, indicating room to offer more competitive rates and flexible terms.
• Application Ease and Support Need Enhancement: Application ease and support scores are typically in the low to mid 4.0 range, signaling a need to streamline processes and improve borrower guidance to enhance overall experience.
• Regional Performance Variability: States like Louisiana and Texas show relatively stronger performance, suggesting targeted improvements and marketing could help banks gain ground in these areas.
• Digital Transformation is Crucial: To compete with Credit Unions and Online Lenders, banks must invest in more user-friendly digital lending platforms and personalized customer service tools.
• Brand Trust vs. Experience Gap: While banks benefit from brand recognition, borrower feedback indicates that trust alone isn’t enough—delivering superior service and terms is essential to increase loyalty.
• Competitive Pressure from Online Lenders: Online lenders’ convenience and improving ratings pose a growing threat, pushing banks to accelerate innovation in loan offerings and customer engagement.
• Leverage Scale with Personalization: Banks can differentiate by combining their broad resources with localized, personalized borrower support to close the satisfaction gap.

Online Lenders Overview

• Inconsistent Borrower Satisfaction: Online Lenders show wide variability in recommendation rates, ranging roughly from mid-70s to low 90s across states, indicating uneven borrower experiences and reputations.
• Loan Terms & Rate Challenges: Loan terms satisfaction scores tend to be lower (often between 3.3 and 4.1), suggesting Online Lenders need to improve competitiveness on pricing and loan conditions to attract more borrowers.
• Application Ease is a Strength: Generally, Online Lenders score well on application ease, reflecting the convenience and speed of digital platforms, which remains their key competitive advantage.
• Support & Guidance Requires Attention: Support scores fluctuate significantly, with some states showing solid performance while others fall below 4.0, indicating opportunities to enhance customer service and borrower assistance.
• Regional Variability: States like Rhode Island and South Carolina show high recommendation rates (~90%), whereas states like New Hampshire and some Southern states have lower satisfaction, suggesting the need for tailored regional strategies.
• Growth Potential: Online Lenders can capitalize on convenience and speed, but must address inconsistencies in loan terms and customer support to build trust and long-term borrower loyalty.
• Competitive Pressure: Increasing borrower expectations for both digital ease and personalized service mean Online Lenders must invest in technology and human support to maintain and grow market share.
• Market Differentiation: To stand out, Online Lenders should focus on improving transparency, flexible loan terms, and robust customer education alongside their streamlined digital processes.

Home Loan Lenders Data Summary by State

The table below look at States’ averages by Type of home loans lenders.

Most Recommended Type of Home Loan Lenders

The table below looks at the most recommended home loans lender Type in each State by looking at the most popular lender in the main metro’s area and cities.

Winning Home Loans Lenders

Credit Unions dominate in many states

Credit Unions are the most frequent top lender type in 27 of the 50 states. They lead in the West (e.g., Oregon, Washington, Utah), the Northeast (e.g., New York, Rhode Island), and Midwest states like Michigan and Wisconsin.

This suggests a strong cooperative banking culture and favorable consumer perceptions. Credit Unions likely benefit from trust, member relationships, and locally focused service.

Banks lead in industrial and populous states

Banks are the top type in 18 states, especially across the Midwest and East Coast (e.g., Indiana, Connecticut, West Virginia). They also dominate in states with large metro areas or strong traditional finance sectors.

This reflects the scale, availability, and brand presence of major institutions. Consumers here may prioritize infrastructure and reliability over personalized service.

Community Banks are hyperlocal champions

Community Banks lead in 10 states, especially in rural or less densely populated areas like Montana, Nebraska, Maine, and Alabama. They appear where face-to-face relationships and local reinvestment matter most.

These states likely value personal banking, local ownership, and relationship-driven service.

Regional patterns are clear

• West & Northwest: Heavy Credit Union presence.
• South & Midwest: More diverse: Community Banks and large Banks compete.
• Northeast: Surprisingly Credit Union dominant despite presence of big-name banks.
• Alaska vs Hawaii: Alaska favors Credit Unions; Hawaii strongly prefers Banks.