9 Best USDA Mortgage Lenders of 2023
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.
Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
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.
Best USDA Mortgage Lenders
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
5.0 /5 | 620 | 0% | Learn moreat Pennymac at Pennymac | |
5.0 /5 | 640 | 0% | ||
4.5 /5 | 550 | 0% | ||
4.5 /5 | 660 | 0% | ||
4.5 /5 | 640 | 0% | Learn moreat New American Funding at New American Funding |
- Offers a wide variety of loan products, including government-backed and refinance options.
- Displays custom rate quotes based on home value, down payment or equity, ZIP code and credit score range.
- “Lock & Shop” lets you secure a rate for up to 60 days, even if you don’t have a purchase contract yet.
- Origination fees are on the higher end, according to the latest federal data.
- Doesn't offer home equity lines of credit or renovation loans.
- Posts current mortgage rates on its website.
- Has an online application for mortgage preapproval and a digital tool to track application progress.
- Offers several affordable loan options, including FHA, VA, USDA and the PNC Community Loan.
- Doesn't offer renovation mortgages.
- In-person service is not available in every state.
- Offers multiple low-down-payment loan programs.
- May consider alternative credit data, such as bank statements.
- You can view customized rates for purchasing a home and apply online.
- Doesn't offer home equity lines of credit.
- Lender fees are on the high side, according to the latest federal data.
- Offers a wide range of loan types and products, including FHA, VA and USDA.
- Borrowers can apply and track loan status online.
- Offers customized online rate quotes with monthly payment estimates, including mortgage insurance, when applicable.
- Home equity loans are geographically limited.
- Origination fees are on the high side compared with other lenders, according to the latest federal data.
- Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.
- Its home equity line of credit can be used for an owner-occupied or second home.
- Offers a program to enable buyers to make cash offers.
- Mortgage origination fees tend to be on the high end, according to the latest federal data.
- A full slate of loan offerings.
- Offers a no-down-payment loan with a shorter repayment term that helps accelerate home equity accumulation.
- Digital conveniences include a mobile app.
- You’ll need to provide contact information or speak to a loan officer for customized mortgage rates.
- Origination fees are on the high side, according to the latest data.
- Offers a complete suite of online mortgage application tools and loan tracking.
- Sample rates are easy to find on the website.
- Offers a wide variety of loan options, including construction loans and programs for doctors.
- 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.
- Sample rates clearly posted for various loan products.
- Offers a wide variety of loan types and products.
- Mortgage rates tend to be on the low side compared with other lenders, according to the latest federal data.
- Home loans business is broadly focused on bank customers.
- Doesn’t offer home improvement loans, or home equity loans or lines of credit.
- Scandals and government actions have damaged consumer trust in recent years.
- Offers specialty loans, such as construction and renovation loans and loans for second homes and investment properties.
- Participates in first-time home buyer assistance programs in Illinois, Indiana and Wisconsin.
- Sample rates for some loan products are available only by contacting a loan officer.
- Physical locations aren't available in all states.
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 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. 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 June 1, 2023
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 4.5 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 2021 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best USDA Mortgage Lenders of 2023
- Pennymac: Best for rate transparency
- PNC: Best for traditional lending experience
- Carrington: Best for borrowers with weaker credit
- Flagstar: Best for first-time home buyers
- New American Funding: Best for variety of mortgages
- Northpointe: Best for first-time home buyers
- Truist: Best for traditional lending experience
- Wells Fargo: Best for traditional lending experience
- Wintrust Mortgage: Best for digital convenience
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 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.
- 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 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, you'll have to 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.
