Best of

10 Best USDA Mortgage Lenders of December 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.

By
Barbara Marquand
Dec 1, 2023

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.

Best USDA Mortgage Lenders

Have you or your spouse served in the military?

We’ve got more home loan options for you. Show me

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

Guaranteed Rate: NMLS#2611

Top 3 most visited 🏆
Learn moreat Guaranteed Rate
at Guaranteed Rate
Home loans overall
Best for first-time home buyers

620

0%

Pennymac

Pennymac: NMLS#35953

4.5
/5
Home loans overall
Best for rate transparency

640

0%

Veterans United

Veterans United: NMLS#1907

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

620

0%

PNC

PNC: NMLS#446303

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

640

0%

New American Funding

New American Funding: NMLS#6606

4.0
/5
Home loans overall
Best for customer satisfaction

640

0%

Guaranteed Rate
Learn moreat Guaranteed Rate
at Guaranteed Rate
Guaranteed Rate

Guaranteed 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.
Read Full Review
Pennymac

Pennymac: NMLS#35953

4.5
Home loans overall
NerdWallet rating
Min. credit score

640

Min. down payment

0%

Why We Like ItGood for: borrowers seeking a government-backed mortgage and the ability to rate-shop online.
Pros
  • Rates are on the low side, according to the latest federal data.
  • Displays custom rate quotes based on home value, down payment, ZIP code and credit score range.
  • Lock & Shop” lets you secure a rate for up to 90 days, even if you don’t have a purchase contract yet.
Cons
  • Origination fees are on the higher end, according to the latest federal data
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

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.
New American Funding
Learn moreat 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.
Northpointe

Northpointe: NMLS#447490

4.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

0%

Why We Like ItGood for: those seeking an abundance of loan offerings, including programs for borrowers with credit challenges.
Pros
  • Offers a full slate of loan offerings.
  • Digital conveniences include a mobile app.
Cons
  • 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.
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

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

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

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.

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

More from NerdWallet

Last updated on December 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 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 2023

  • Guaranteed Rate: Best for first-time home buyers
  • Pennymac: Best for rate transparency
  • Veterans United: Best for veterans
  • PNC: Best for first-time home buyers
  • New American Funding: Best for customer satisfaction
  • Northpointe: Best for borrowers with credit challenges
  • 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

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.

NerdWallet Pixel