10 Best USDA Mortgage Lenders of December 2024

Last updated on July 1, 2024
Written by 
Barbara Marquand
Senior Writer
Jeanette Margle
Edited by 
Jeanette Margle
Lead Assigning Editor
Fact Checked
Barbara Marquand
Written by 
Senior Writer
Jeanette Margle
Edited by 
Jeanette Margle
Lead Assigning Editor
Fact Checked

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10 Best USDA Mortgage Lenders of December 2024

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Lender
NerdWallet Rating
Min. credit score
Min. down payment
Learn more
Rate

Rate: NMLS#2611

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on NerdWallet
Home loans overall
Best for first-time home buyers

620

0%

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on NerdWallet
New American Funding

New American Funding: NMLS#6606

Top 3 most visited 🏆
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at New American Funding
at New American Funding
4.0
/5
Home loans overall
Best for customer satisfaction

640

0%

Veterans United

Veterans United: NMLS#1907

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at Veterans United
at Veterans United
4.0
/5
Home loans overall
Best for veterans

620

0%

Learn more
at Veterans United
at Veterans United
PNC

PNC: NMLS#446303

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on NerdWallet
5.0
/5
Home loans overall
Best for first-time home buyers

640

0%

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on NerdWallet
Flagstar

Flagstar: NMLS#417490

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on NerdWallet
5.0
/5
Home loans overall
Best for mortgage lending overall

580

0%

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on NerdWallet
Rate
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on NerdWallet
Rate

Rate: NMLS#2611

5.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

0%

Why We Like ItGood 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.
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New American Funding
Learn more
at New American Funding
at New American Funding
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.
Veterans United
Learn more
at Veterans United
at Veterans United
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.
PNC
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on NerdWallet
PNC

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.
Flagstar
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on NerdWallet
Flagstar

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.
Truist
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Truist

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.
Wintrust Mortgage
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Wintrust Mortgage

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.
Network Capital
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on NerdWallet
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.
Alliant
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Alliant

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.
Andrews Federal Credit Union
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Andrews Federal Credit Union

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.

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.

Video preview image

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

Last updated on July 1, 2024

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 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.

To recap our selections...

NerdWallet's Best USDA Mortgage Lenders of December 2024

  • 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
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