12 Best USDA Mortgage Lenders of May 2025
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If you’re buying 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 borrowers buying properties in eligible areas who meet certain income requirements.
In addition to having no down payment requirements, USDA loans also typically have lower interest rates than conventional loans — making them an attractive option, particularly for first-time homebuyers.
Read on to see our list of the top mortgage lenders that offer USDA loans.
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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.
12 Best USDA Mortgage Lenders of May 2025
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
620 | 0% | |||
 New American Funding: NMLS#6606 Top 3 most visited 🏆 Learn more at New American Funding | 640 | 0% | Top 3 most visited 🏆 Learn more at New American Funding | |
620 | 0% | Learn more at Veterans United | ||
 PNC Bank: NMLS#446303 Compare More Lenders on NerdWallet | 640 | 0% | Compare More Lenders on NerdWallet | |
 Flagstar: NMLS#417490 Compare More Lenders on NerdWallet | 580 | 0% | Compare More Lenders on NerdWallet |
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
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Last updated on January 17, 2025
Frequently asked questions
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.
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.
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.
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.
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 40 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 4.5 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 2023 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best USDA Mortgage Lenders of May 2025
- Rate: Best for first-time home buyers
- New American Funding: Best for low-credit borrowers
- Veterans United: Best for military borrowers
- PNC Bank: Best for first-time home buyers
- Flagstar: Best for customer experience
- Network Capital: Best for low-credit borrowers
- Alliant: Best for rate shopping
- Andrews Federal Credit Union: Best for rate shopping
- First Federal Bank: Best for first-time home buyers
- Northpointe: Best for customer experience
- Pennymac: Best for low-credit borrowers
- U.S. Bank: Best for customer experience
