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If you live in an eligible area and are interested in a USDA loan, we'll help you choose an approved lender for USDA financing.
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Last updated on March 28, 2024
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✅ Fact checked and reviewed
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If you’re planning to buy a home in a rural area or even a suburb, a USDA loan may be an option. The U.S. Department of Agriculture offers these zero-down-payment loans to home buyers who qualify. The property must be in an eligible area of the country, and borrowers must meet certain income requirements.
The USDA issues some loans itself and guarantees USDA loans offered through approved lenders, such as those listed below. NerdWallet has reviewed some of the best USDA mortgage lenders to help you shop.
» MORE: How to get the best mortgage rate
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NerdWallet's mortgage content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in home lending. Their work has appeared in The Associated Press, USA Today, The Washington Post, MarketWatch, Newsweek and many other national, regional and local publications. They have been cited in publications including The Wall Street Journal, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.
Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
NerdWallet's mortgage content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in home lending. Their work has appeared in The Associated Press, USA Today, The Washington Post, MarketWatch, Newsweek and many other national, regional and local publications. They have been cited in publications including The Wall Street Journal, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.
Best USDA Mortgage Lenders
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
Guaranteed Rate: NMLS#2611 Top 3 most visited 🏆Learn moreat Guaranteed Rate at Guaranteed Rate | 5.0 /5 Home loans overall Best for first-time home buyers | 620 | 0% | Top 3 most visited 🏆Learn moreat Guaranteed Rate at Guaranteed Rate |
New American Funding: NMLS#6606 Top 3 most visited 🏆Learn moreat New American Funding at New American Funding | 4.0 /5 Home loans overall Best for customer satisfaction | 640 | 0% | Top 3 most visited 🏆Learn moreat New American Funding at New American Funding |
Veterans United: NMLS#1907 Learn moreat Veterans United at Veterans United | 4.0 /5 Home loans overall Best for veterans | 620 | 0% | Learn moreat Veterans United at Veterans United |
PNC: NMLS#446303 LEARN MORE on NerdWallet | 5.0 /5 Home loans overall Best for first-time home buyers | 640 | 0% | LEARN MORE on NerdWallet |
Flagstar: NMLS#417490 LEARN MORE on NerdWallet | 5.0 /5 Home loans overall Best for mortgage lending overall | 580 | 0% | LEARN MORE on NerdWallet |
at Guaranteed Rate
Guaranteed Rate: NMLS#2611
5.0
Home loans overall
NerdWallet rating
Min. credit score
620
Min. down payment
0%
Why We Like It
Good for: borrowers seeking a solid variety of loan types and a robust online experience.
Pros
- Displays detailed sample rates for many of its loan products.
- Offers a generous selection of loans.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
Cons
- Origination fees are higher than average, according to the latest federal data.
Read Full Review
Learn moreat New American Funding
at New American Funding
New American Funding: NMLS#6606
4.0
Home loans overall
NerdWallet rating
Min. credit score
640
National / regional
National
Why We Like ItGood for: First-time home buyers and other borrowers looking for a broad array of loan choices.
Pros
- Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
Cons
- Mortgage origination fees tend to be on the high end, according to the latest federal data.
Read Full Review
Learn moreat Veterans United
at Veterans United
Veterans United: NMLS#1907
4.0
Home loans overall
NerdWallet rating
Min. credit score
620
Min. down payment
0%
Why We Like ItGood for: Veterans, active-duty service members and reservists who prize customer service that is tailored to military borrowers.
Pros
- Offers 24/7 customer service over the phone.
- Offers a free credit counseling service.
- Has a highly rated mobile app.
Cons
- Parent company’s mortgage rates are on the higher side, according to the latest federal data.
Read Full Review
LEARN MORE
on NerdWallet
PNC: NMLS#446303
5.0
Home loans overall
NerdWallet rating
Min. credit score
640
Min. down payment
0%
Why We Like ItGood for: borrowers with low-to-moderate incomes or limited down payments.
Pros
- Easy to get online custom mortgage rate quotes.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Mortgage rates are lower than the industry average, according to the latest federal data.
Cons
- In-person service is not available in every state.
Read Full Review
LEARN MORE
on NerdWallet
Flagstar: NMLS#417490
5.0
Home loans overall
NerdWallet rating
Min. credit score
580
Min. down payment
0%
Why We Like ItGood for: borrowers who want a wide range of mortgage choices and the ability to see customized rates online.
Pros
- Offers a wide range of loan types and products.
- Interest rates are on the low side relative to other lenders, according to the latest federal data.
- Offers customized online rate quotes with monthly payment estimates.
Cons
- Origination fees are on the high side compared with other lenders, according to the latest federal data.
Read Full Review
LEARN MORE
on NerdWallet
Truist: NMLS#399803
4.5
Home loans overall
NerdWallet rating
Min. credit score
620
Min. down payment
0%
Why We Like ItGood for: first-time home buyers and low-income buyers interested in low-down-payment mortgage options.
Pros
- Offers a suite of online mortgage application tools and loan tracking.
- Mortgage rates are lower than industry average, according to the latest federal data.
- Sample rates are available on the website.
Cons
- Customized rates aren't available online without starting an application.
- For borrowers who prefer to apply in person, branches are limited mostly to the South and East.
Read Full Review
LEARN MORE
on NerdWallet
Wintrust Mortgage: NMLS#449042
4.0
Home loans overall
NerdWallet rating
Min. credit score
N/A
Min. down payment
0%
Why We Like ItGood for: Buyers wanting to compare a variety of loan options from a lender with deep experience in government-backed mortgages.
Pros
- Offers a broad variety of government-backed mortgages and other loans.
- Participates in first-time home buyer assistance programs in Illinois and Wisconsin
Cons
- Origination fees are on the high side, according to the latest federal data.
Read Full Review
Learn moreat Network Capital
at Network Capital
Network Capital: NMLS#11712
4.0
Home loans overall
NerdWallet rating
Min. credit score
640
Min. down payment
0%
Why We Like ItGood for: borrowers looking to close quickly and compete with cash offers.
Pros
- Offers a broad selection of loan products.
- Provides “same-as-cash” loan application process designed to help borrowers compete with cash offers.
- Closing is possible in as few as 15 days for some loans, the lender says.
Cons
- Website doesn’t provide customized mortgage rates.
- Origination fees are on the high side, according to the latest federal data.
Read Full Review
LEARN MORE
on NerdWallet
Alliant: NMLS#197185
4.5
Home loans overall
NerdWallet rating
Min. credit score
N/A
Min. down payment
0%
Why We Like ItGood for: eligible borrowers who are open to joining a credit union and want a mortgage from an online lender.
Pros
- Offers an online application process.
- Applicants can get rate offers before committing to joining the credit union.
- Offers customized rate quotes, including a detailed breakdown of estimated closing costs.
Cons
- Joining the credit union adds a step to the application process.
Read Full Review
LEARN MORE
on NerdWallet
Andrews Federal Credit Union: NMLS#410421
5.0
Home loans overall
NerdWallet rating
Min. credit score
N/A
Min. down payment
0%
Why We Like ItGood for: First-time home buyers and military borrowers seeking competitive interest rates.
Pros
- Website makes it easy to compare detailed interest rates and apply for a mortgage online.
- Provides extra support for military borrowers.
- Caters to first-time home buyers with incentives and education.
Cons
- Physical branches in the U.S. are limited to Maryland, New Jersey, Virginia and Washington, D.C.
Read Full Review
What's the difference between a USDA guaranteed loan and a USDA direct loan?
The U.S. Department of Agriculture offers two main types of USDA mortgages — guaranteed loans and direct loans.
USDA guaranteed loans are mortgages that are backed by the USDA, meaning if you were to default on the loan, the agency would repay your lender. This helps lenders make low- or no-down-payment loans to borrowers who may have lower credit scores or limited income.
You'll work with a USDA-approved lender to get a USDA guaranteed loan. In addition to the lenders listed here, a list of all approved lenders organized by state is available on the USDA website.
USDA direct loans come straight from the USDA rather than a mortgage lender. These home loans are for borrowers who are otherwise unable to qualify for home loans and whose household incomes are below the low-income threshold in the areas where they're buying.
To find out if you are eligible for a USDA direct loan, contact your state's USDA Rural Development Office.
Basic requirements for USDA guaranteed loans
Both you and the property you want to buy must meet several qualifications to be eligible for a USDA guaranteed home loan.
USDA mortgages are meant for low- and moderate-income borrowers, so your household income must be below 115% of the area's median household income. The income threshold is adjusted depending on how many people are in your household. Check the USDA's website to see if your income qualifies.
Since the USDA's home loan programs are focused on revitalizing rural America, the property you're buying must be in a designated area. You can use the address lookup tool on the USDA's website to see whether the home you're interested in will qualify.
» MORE: Learn more about USDA loan requirements
More from NerdWallet
USDA loan calculator
Ways to get the best USDA loan rates
Get a mortgage preapproval
Last updated on March 28, 2024
Methodology
The star ratings on this page reflect each lender's overall star ratings. Read more about how we determine those ratings.
The lenders on this page are chosen using this methodology:
NerdWallet reviewed more than 50 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
For inclusion on this roundup, lenders must score a 4 or above according to our overall methodology and offer USDA loans.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and surveys. We also used 2022 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best USDA Mortgage Lenders of April 2024
- Guaranteed Rate: Best for first-time home buyers
- New American Funding: Best for customer satisfaction
- Veterans United: Best for veterans
- PNC: Best for first-time home buyers
- Flagstar: Best for mortgage lending overall
- Truist: Best for low mortgage rates
- Wintrust Mortgage: Best for rate transparency
- Network Capital: Best for variety of loan types
- Alliant: Best for rate transparency
- Andrews Federal Credit Union: Best for first-time home buyers
Frequently asked questions
Can any lender do a USDA loan?
Not all lenders offer USDA financing. The USDA maintains a list of approved lenders, which includes online lenders and banks with branches nationwide, as well as small-town banks and credit unions. Apply for preapproval with more than one lender to get the best USDA loan rate.
Who qualifies for a USDA loan?
To qualify for a USDA-guaranteed loan, the property must be located in an eligible area. USDA loans also have maximum income limits based on where you live and how many people are in your household. If your income is too low for a USDA guaranteed loan, you may be able to qualify for a USDA direct loan.
Is it hard to get a USDA guaranteed loan?
USDA guaranteed loans don’t require a minimum down payment, but other requirements are highly specific. You must be unable to qualify for a conventional loan without private mortgage insurance. Your projected mortgage payment cannot be more than 29% of your gross monthly income. And though the USDA does not have a minimum credit score requirement, lenders may set their own guidelines.
How can I get approved for a USDA loan?
To get approved for a USDA guaranteed loan, reach out to a USDA-approved lender and provide information about your income, assets and debts. Only U.S. citizens or permanent residents are eligible for USDA loans, so you may need to provide proof of that status as well.
