13 Best USDA Mortgage Lenders of 2022
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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If you’re planning to buy a home in a rural area or even a suburb, a USDA loan may be an option for you. 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 decide which is the right lender for you.
If you’re planning to buy a home in a rural area or even a suburb, a USDA loan may be an option for you. 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 decide which is the right lender for you.
Best USDA Mortgage Lenders
Lender | NerdWallet Rating | Min. credit score | Min. down payment | Learn More |
---|---|---|---|---|
![]() Watermark Home Loans: NMLS#1838 Learn more at Watermark Home Loans | Best for borrowers with weaker credit | N/A | N/A | Learn more at Watermark Home Loans |
![]() Guaranteed Rate: NMLS#2611 Learn more at Guaranteed Rate | Best for digital convenience | 620 | 3% | Learn more at Guaranteed Rate |
![]() BNC National Bank: NMLS#418467 Learn more at BNC National Bank | Best for digital convenience | 640 | 3% | Learn more at BNC National Bank |
![]() Pennymac: NMLS#35953 Learn more at Pennymac | Best for rate transparency | 620 | N/A | Learn more at Pennymac |
![]() Network Capital: NMLS#11712 Learn more at Network Capital | Best for mortgage rates | 640 | 3% | Learn more at Network Capital |
![]() Chase: NMLS#399798 Learn more at Chase | Best for mortgage assistance programs | N/A | N/A | Learn more at Chase |
Northpointe: NMLS#447490 Learn more at Northpointe | Best for first-time home buyers | 620 | 3% | Learn more at Northpointe |
![]() Flagstar: NMLS#417490 | Best for first-time home buyers | 660 | 3% | Read review |
![]() Carrington: NMLS#2600 | Best for borrowers with weaker credit | 550 | 3% | Read review |
![]() Wells Fargo: NMLS#399801 | Best for traditional lending experience | 620 | 3% | Read review |
![]() PNC: NMLS#446303 | Best for traditional lending experience | 640 | 3% | Read review |
![]() Wintrust Mortgage: NMLS#449042 | Best for digital convenience | N/A | 3% | Read review |
![]() Truist: NMLS#399803 | Best for traditional lending experience | N/A | N/A | Read review |

at Watermark Home Loans
Watermark Home Loans: NMLS#1838

Min. credit score
N/AMin. down payment
N/Aat Watermark Home Loans

at Guaranteed Rate
Guaranteed Rate: NMLS#2611

Min. credit score
620Min. down payment
3%at Guaranteed Rate

at BNC National Bank
BNC National Bank: NMLS#418467

Min. credit score
640Min. down payment
3%at BNC National Bank

at Pennymac
Pennymac: NMLS#35953

Min. credit score
620Min. down payment
N/Aat Pennymac

at Network Capital
Network Capital: NMLS#11712

Min. credit score
640Min. down payment
3%at Network Capital
at Northpointe
Northpointe: NMLS#447490
Min. credit score
620Min. down payment
3%at Northpointe
Flagstar: NMLS#417490

Min. credit score
660Min. down payment
3%Carrington: NMLS#2600

Min. credit score
550Min. down payment
3%Wells Fargo: NMLS#399801

Min. credit score
620Min. down payment
3%Wintrust Mortgage: NMLS#449042

Min. credit score
N/AMin. down payment
3%Truist: NMLS#399803

Min. credit score
N/AMin. down payment
N/AWhat'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 insured 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, you can also find a list of all approved lenders organized by state 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 unable to qualify for a USDA guaranteed loan and whose income is below 80% of the median household income in their area.
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
There are several qualifications both you and the property you're hoping to buy will need to meet in order to be eligible for a USDA guaranteed home loan.
USDA mortgages are meant for lower-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. The USDA lets you look up whether your income qualifies on its website.
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 April 4, 2022
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 nearly 60 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (lenders had to have 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 interviews. We also utilized 2020 HMDA data for origination volume, origination fee, rate spread and share-of-product data.
To recap our selections...
NerdWallet's Best USDA Mortgage Lenders of 2022
- Watermark Home Loans: Best for borrowers with weaker credit
- Guaranteed Rate: Best for digital convenience
- BNC National Bank: Best for digital convenience
- Pennymac: Best for rate transparency
- Network Capital: Best for mortgage rates
- Chase: Best for mortgage assistance programs
- Northpointe: Best for first-time home buyers
- Flagstar: Best for first-time home buyers
- Carrington: Best for borrowers with weaker credit
- Wells Fargo: Best for traditional lending experience
- PNC: Best for traditional lending experience
- Wintrust Mortgage: Best for digital convenience
- Truist: Best for traditional lending experience
Frequently asked questions
Not all lenders offer USDA financing. The USDA maintains a list of approved lenders for USDA loans, 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 be sure you're getting the best USDA loan rate.
To qualify for a USDA-guaranteed loan, the property you want to buy 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 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, you'll have to reach out to a USDA-approved lender. You'll need to provide information about your income, assets and debts. You must be a U.S. citizen or permanent resident to be eligible for a USDA loan, so you may need to provide proof of that status as well.