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10 Best USDA Mortgage Lenders in 2019

NerdWalletAugust 6, 2019

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

If you live in an eligible area and are interested in a USDA loan, we'll help you choose among some of the best USDA-approved lenders. Check out our list.

Summary of Best USDA Mortgage Lenders in 2019

LenderBest For

Minimum Credit Score

Minimum Down PaymentLearn More
New American Funding

New American Funding

at New American

borrowers with weaker credit

620

3%

at New American

Vylla

Vylla

borrowers with weaker credit

620

3%

Read review
Quicken Loans

Quicken Loans

at Quicken Loans

online experience

620

3%

at Quicken Loans

Costco

Costco

online experience

N/A

3%

Read review
Guaranteed Rate

Guaranteed Rate

USDA loans overall

620

3%

Read review
SunTrust

SunTrust

USDA loans overall

620

3%

Read review
Fairway

Fairway

customer service

N/A

3%

Read review
Alterra

Alterra

customer service

620

3%

Read review
Wells Fargo

Wells Fargo

traditional lending experience

620

3%

Read review
PNC

PNC

traditional lending experience

620

3%

Read review
LenderBest For

Minimum Credit Score

Minimum Down PaymentLearn More
New American Funding

New American Funding

at New American

borrowers with weaker credit

620

3%

at New American

Vylla

Vylla

borrowers with weaker credit

620

3%

Read review
Quicken Loans

Quicken Loans

at Quicken Loans

online experience

620

3%

at Quicken Loans

Costco

Costco

online experience

N/A

3%

Read review
Guaranteed Rate

Guaranteed Rate

USDA loans overall

620

3%

Read review
SunTrust

SunTrust

USDA loans overall

620

3%

Read review
Fairway

Fairway

customer service

N/A

3%

Read review
Alterra

Alterra

customer service

620

3%

Read review
Wells Fargo

Wells Fargo

traditional lending experience

620

3%

Read review
PNC

PNC

traditional lending experience

620

3%

Read review
Logo

at New American

New American Funding: NMLS#6606

Logo
Min. Credit Score 
620 

Min. Down Payment 
3% 

at New American


Why we like it

Ideal for borrowers who need to be evaluated on the basis of nontraditional credit. New American Funding offers FHA and VA loans, works with down payment assistance programs, and helps borrowers whose credit histories don't fit the mold of traditional banking.

Pros

  • Uses manual underwriting to evaluate creditworthiness.

  • Offers full online mortgage application, rate quotes, document upload and loan tracking.

  • Home equity lending sets it apart from most non-bank lenders.

Cons

  • Services not available in all 50 states.

Read Full Review

Vylla: NMLS#2600

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Min. Credit Score 
620 

Min. Down Payment 
3% 


Why we like it

Ideal for first-time home buyers or credit-challenged borrowers who may have trouble qualifying for a mortgage.

Pros

  • Low minimum credit score.

  • Online application, loan tracking and document upload.

  • Free rate locks.

Cons

  • No online preapproval.

  • No presence in Massachusetts or North Dakota.

Read Full Review
Logo

at Quicken Loans

Quicken Loans: NMLS#3030

Logo
Min. Credit Score 
620 

Min. Down Payment 
3% 

at Quicken Loans


Why we like it

Ideal choice for convenience and quick-response customer service. Quicken Loans provides just about all the services your neighborhood lender does — with online convenience.

Pros

  • Quicken Loans couples a fully online application with available mortgage advisors for those who want a human touch.

  • Instantly verifies employment and income for more than 60% of working Americans.

  • Offers custom fixed-rate loan terms that are between eight and 30 years.

  • Provides FHA-backed loans, USDA loans as well as products offered by Freddie Mac and Fannie Mae that require down payments as low as 3%.

Cons

  • Doesn't offer home equity loans or HELOCs.

  • If you’re a “look me in the eye” type of customer, you’re out of luck.

  • Doesn’t consider alternative credit data. It just looks at credit scores and debt-to-income ratios, the way most mortgage lenders always have.

Read Full Review

Costco: NMLS#N/A (not a lender)

Logo
National / Regional 
National 

Min. Down Payment 
3% 


Why we like it

Ideal for borrowers, particularly members, who want to compare loan options and mortgage rates from several lenders through an online marketplace.

Pros

  • Caps lenders fees to $350 for Executive Costco members and $650 for Gold Star Costco members.

  • Lets you compare products and rates from several lenders.

  • Has a mobile-enhanced website and automated mortgage-application process.

Cons

  • Loan fee discounts available only to Costco members.

  • No physical locations for face-to-face service.

Read Full Review

Guaranteed Rate: NMLS#2611

Logo
Min. Credit Score 
620 

Min. Down Payment 
3% 


Why we like it

Ideal for borrowers who are looking to apply for a mortgage and manage the process through online tools, whether buying or refinancing. Guaranteed Rate offers FHA, VA and USDA loans for borrowers who are well-qualified.

Pros

  • Works with most borrowers as long as they have good credit scores and incomes.

  • Provides a user-friendly digital platform that’s thorough in covering all types of borrowing scenarios.

  • Has a 95% customer satisfaction rate, according to company data.

Cons

  • Charges some fees, such as a $1,290 lender fee that includes a $150 application fee.

  • Offers many products, which might confuse or overwhelm borrowers.

  • Several click-throughs required for personalized rates.

Read Full Review

SunTrust: NMLS#2915

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Min. Credit Score 
620 

Min. Down Payment 
3% 


Why we like it

Ideal for first-time home buyers, including those with little money saved for a down payment. SunTrust's online portal offers information and tools in English and in Spanish.

Pros

  • Offers a complete online suite of mortgage application tools and loan tracking.

  • Has plenty of loan options to choose from and competitive interest rates.

  • Provides customer service in its physical locations, online, via chat and by phone.

  • Has a Doctor Loan Program for medical professionals who have high earning potential but little cash for down payments.

Cons

  • Has a limited number of physical branch locations in 11 states and Washington, D.C.

  • Does not consider alternative scoring data, such as rent or utility payments, in standard underwriting.

Read Full Review

Fairway: NMLS#2289

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National / Regional 
National 

Min. Down Payment 
3% 


Why we like it

Ideal for borrowers who want lots of options and a quick turn time. Fairway Independent Mortgage offers a full selection of home loans along with a comprehensive mobile app for a fast and easy application process.

Pros

  • A robust suite of loan products.

  • Licensed in all 50 states.

  • Close in as little as 10 days using the Fairway app.

Cons

  • Limited branch locations.

  • Mortgage rates not posted on website.

Read Full Review

Alterra: NMLS#133739

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Min. Credit Score 
620 

Min. Down Payment 
3% 


Why we like it

Ideal for Latino and other minority borrowers, millennials, foreign nationals, as well as those seeking a full array of purchase and refinance loans, including jumbo mortgages.

Pros

  • Offers an ITIN qualification path for undocumented immigrant borrowers.

  • Has a digital application process.

  • Offers several mortgage options for low- to moderate-income borrowers.

  • Has a full Spanish-language version of its website and bilingual loan officers.

  • Borrowers can qualify with income from self-employment and other nontraditional sources.

Cons

  • No mortgage rates published online.

  • Doesn't lend in all states.

  • No home equity loans or lines of credit.

Read Full Review

Wells Fargo: NMLS#399801

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Min. Credit Score 
620 

Min. Down Payment 
3% 


Why we like it

Ideal for borrowers looking for a national lender with a complete selection of mortgage products for home buyers in all financial stages.

Pros

  • Loan programs to educate and assist first-time home buyers, union members and others.

  • Relocation and employee mortgage programs for many large companies.

  • Accepts down payments as low as 3% on fixed-rate mortgages through its yourFirst Mortgage program.

Cons

  • Government actions and scandals have damaged consumer trust.

Read Full Review

PNC: NMLS#446303

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Min. Credit Score 
620 

Min. Down Payment 
3% 


Why we like it

Ideal for borrowers with low to moderate incomes or limited down payments. PNC offers a low-down-payment loan with no mortgage insurance.

Pros

  • Considers nontraditional credit history like rent payments.

  • Online tools help you estimate mortgage payments and track application progress.

  • Several affordable loan options including FHA, VA, USDA and the PNC Community Loan.

Cons

  • It's not possible to complete the entire mortgage process online.

  • Offers mortgage loans nationwide, but has branches in only about two dozen states.

Read Full Review

Last updated on August 6, 2019

Methodology

NerdWallet's selection of mortgage lenders for inclusion here was made based on our evaluation of the products and services that lenders offer to consumers who are actively shopping for the best mortgage. The six key areas we evaluated include the loan types and loan products offered, online capabilities, online mortgage rate information, customer service and the number of complaints filed with the Consumer Financial Protection Bureau as a percentage of loans issued. We also awarded lenders up to one bonus star for a unique program or borrower focus that set them apart from other lenders. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.

To recap our selections...

NerdWallet's Best USDA Mortgage Lenders in 2019