Facebook ads for mortgage can generate leads at $5–$20 each. They can also generate a pile of fake phone numbers and people who "don't remember filling anything out." The difference isn't the platform — it's how you set up the campaign and what happens after the lead comes in.
Facebook vs Google: Different Intent, Different Strategy
On Google, people are searching for a mortgage. On Facebook, they're scrolling through photos of their cousin's vacation. You're interrupting, not answering a question. That means your creative, targeting, and follow-up all need to be different.
Facebook leads are cheaper but colder. They require more nurturing, faster follow-up, and a system that qualifies them before you spend time on a phone call. Accept this reality upfront and you'll be fine.
The Special Category Problem
Mortgage ads on Facebook fall under the Special Ad Category for Housing. This limits your targeting — no age, gender, zip code, or detailed demographic targeting. You can't target by income, credit score, or life events like you used to.
What you can do:
- Location targeting — By city or radius (minimum 15-mile radius)
- Interest targeting — Real estate, home improvement, first-time homebuyer content
- Lookalike audiences — Upload your past client list and let Facebook find similar people (Special Ad Audiences)
- Retargeting — Show ads to people who visited your website or engaged with your content
The Lookalike Advantage
Upload your closed client list (even 100 contacts works) to create a Special Ad Audience. Facebook will find people who match the profile of your actual borrowers. This consistently outperforms interest-based targeting for mortgage.
Ad Formats That Work
Lead Form Ads (Meta Lead Ads)
Lead form ads keep the user on Facebook — they tap, a form pre-fills with their info, they submit. Friction is minimal, which is why cost per lead is low. The tradeoff: lead quality is lower because it's too easy. Add qualifying questions to your form (purchase timeline, home price range, current homeowner yes/no) to filter out tire-kickers.
Conversion Ads to a Landing Page
These cost more per lead but produce higher quality. The person has to click, load your landing page, read your offer, and fill out a form. Every step filters out unqualified people. If your budget allows, test both formats and compare cost per qualified lead — not just cost per lead.
Ad Creative Templates
After testing hundreds of mortgage ad variations across different markets, here's what consistently performs:
Template 1: The Rate Hook
Image: Simple graphic with a number (today's rate or payment amount)
Headline: "[City] Homebuyers: See Today's Rates"
Body: "Rates are [up/down] this week. Find out what you qualify for in 60 seconds — no credit check, no obligation."
Template 2: The First-Time Buyer
Image: Real photo of a closing day or keys handoff
Headline: "Buying Your First Home in [City]?"
Body: "Most first-time buyers overpay because they don't know about [DPA program / FHA options / local grants]. Get a free homebuyer consultation."
Template 3: The Refinance Trigger
Image: Before/after payment comparison
Headline: "Still Paying [X]% on Your Mortgage?"
Body: "If you bought or refinanced in [year], you might be leaving money on the table. Check your options in 2 minutes."
The best-performing mortgage ads don't look like ads. They look like helpful advice from someone in your community. Ditch the stock photos and corporate speak.
The Follow-Up System (This Is Where You Win or Lose)
Here's the brutal truth about Facebook mortgage leads: if you don't contact them within 5 minutes, your conversion rate drops by 80%. These people were casually scrolling — they'll forget they submitted a form within the hour.
Your follow-up system needs to be automated and aggressive:
- Instant text — "Hi [Name], thanks for requesting rate info! I'm [Your Name], a local lender. Quick question — are you looking to buy or refinance?"
- Immediate call attempt — Within 2 minutes of submission
- If no answer — Automated text + email drip over the next 7 days
- Long-term nurture — Move non-responders into a monthly automated drip campaign
This is where your CRM and pipeline tools earn their keep. Manual follow-up on Facebook leads is a losing battle — there are too many, they're too cold, and the timing window is too narrow.
Real Numbers from the Field
A typical Facebook mortgage campaign: $10/lead, 30% respond to follow-up, 10% of respondents become applications, 50% of applications close. That's roughly 1 closing per 65 leads, or about $650 in ad spend per closed loan. Profitable if your follow-up system is dialed in.
Budget and Scaling
Start with $500–$1,000/month. That gives you 50–100 leads to test your follow-up process. Don't scale until you've proven you can convert at an acceptable rate. The biggest mistake: spending $3,000/month on ads before building the system to handle the leads.
Once your conversion funnel is working, scale gradually. Increase budget 20–30% per week, monitor cost per lead and quality metrics, and keep testing new creative every 2–3 weeks (ad fatigue is real on Facebook).
Compliance Reminders
- Always include your NMLS number in the ad or landing page
- Don't make specific rate promises without proper disclosures
- Equal Housing Opportunity logo/language required
- Your compliance team should review ad copy before launch
- Special Ad Category must be selected — Facebook will shut you down if you don't
Facebook ads aren't magic. They're a lead generation channel that works when paired with fast follow-up, a solid nurture system, and realistic expectations about lead quality. Get those pieces right and Facebook becomes one of the most cost-effective acquisition channels available.