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USDA loans are great options for borrowers who don't have the money for a down payment.
These mortgages are backed by the United States Department of Agriculture. They're available to low-to-moderate income borrowers who live in eligible rural and suburban areas. You can use the USDA's property search tool to see if a home you're looking at is in an eligible area.
USDA loans require no down payment and often have better interest rates compared to conventional loans.
The Best USDA Loan Lenders
Fairway Independent Mortgage USDA Mortgage - Product Name Only : Best overallFlagstar Bank USDA Mortgage - Product Name Only : Best for first-time homebuyersFreedom USDA Mortgage - Product Name Only : Best for a streamline refinanceGuild USDA Mortgage - Product Name Only : Best for non-traditional creditMovement USDA Mortgage - Product Name Only : Best for low credit scoresTruist USDA Mortgage - Product Name Only : Best online experienceCMG Financial - Product Name Only : Best for a down payment
Keep reading for the details on the best mortgage lenders that offer USDA loans.
Compare the Best USDA Loan Lenders
Best USDA Loan Lenders Frequently Asked Questions
What is a USDA loan?
A USDA loan is a mortgage backed by the United States Department of Agriculture. It's for borrowers with low-to-moderate income levels who buy homes in rural or suburban areas. With a USDA loan, you can buy a home with no down payment.
What is the best USDA lender?
Your exact match for a USDA lender will partly rely on your credit score. For example, if your credit score is under 620, you'll want to go with Freedom Mortgage, Guild Mortgage, or Movement Mortgage.
What is the minimum income for a USDA loan?
USDA loans are for people with low-to-moderate income levels, but your exact income limit depends on your state and county. See the USDA's guide to income limits by county.
Are there any downsides to a USDA loan?
A USDA loan is often worth it for people who qualify. USDA loans charge lower interest rates than conforming mortgages, and you don't need a down payment. But you may find them harder to qualify for than an FHA loan, since they often have higher credit score requirements.
USDA Loan Lender Reviews
Best USDA Lender Overall
Fairway Independent Mortgage Corporation
Fairway Independent Mortgage Corporation is a great option for borrowers who want a convenient experience from a lender that ranks high in customer satisfaction. It's also one of the top originators of USDA loans in 2023, according to the USDA.
Fairway Independent has an easy-to-navigate website and a hybrid closing option, making it an extremely convenient USDA lender to work with.
What to look out for: You may need a score of 640 or 660 to qualify for a USDA loan with this lender, but it depends on your overall financial profile.
Best USDA Lender for First-Time Homebuyers
Flagstar Bank
Flagstar Bank is a particularly good lender for first-time homebuyers, thanks to its easy process and strong customer service, which includes live online chat to easily get your questions answered.
What to look out for: Flagstar Bank has a good rate tool that lets you see personalized rates, but it doesn't include USDA loan rates.
Best USDA Lender for a Streamline Refinance
Freedom Mortgage
Freedom Mortgage is a good option if you're looking to streamline refinance an existing USDA loan, since you can typically close in less than 30 days.
What to look out for: Freedom Mortgage ranked low in J.D. Power's 2022 Mortgage Origination Satisfaction Survey, which measures customer satisfaction.
Best USDA Lender for Non-Traditional Credit
Guild Mortgage
Guild Mortgage is an affordable option, especially for borrowers who have no credit score. If you have no score, you can use non-traditional credit, such as rent or utility payment history, to qualify. Guild is the second largest originator of USDA loans in the country, according to the USDA.
This lender's minimum credit score for USDA loans is 600, which is lower than many other lenders. Guild also offers a hybrid closing option, enabling borrowers to sign some of their paperwork ahead of time and have a quick closing appointment.
What to look out for: Guild doesn't display any rates online.
Best USDA Lender for Low Credit Scores
Movement Mortgage
Movement Mortgage is an especially good option for borrowers with low credit scores, since you can qualify with a score as low as 580 with this lender. It's also currently the top originator of USDA loans in the country, according to the USDA.
What to look out for: Movement doesn't show any rates online, making it difficult to gauge what you might pay with this lender.
Best USDA Lender for a Good Online Experience
Truist
Truist offers a robust and convenient tech-forward experience, which includes a simple online application and an easy-to-use mobile app. Additionally, if you don't have a credit score, you can apply using non-traditional credit with this lender.
What to look out for: Truist doesn't let you explore customized rates online. It's also not available in Alaska, Arizona, or Hawaii.
Best USDA Lender for a Down Payment
CMG Financial
CMG Financial is a solid USDA lender, and has a unique tool if you're planning to make a down payment (even though you aren't required to). CMG's HomeFundIt platform makes it easy to crowdsource your down payment, connecting directly to your social media accounts to let you share your campaign.
What to look out for: CMG Financial doesn't display any interest rates online.
How to Choose a USDA Lender
As you search for USDA loan lenders, it's a good idea to familiarize yourself with each lender's individual credit requirements, since they can differ quite a bit. Some lenders will allow borrowers with scores as low as 580 to get a USDA loan, while other lenders require scores in the mid-to-high 600s.
Once you've found a few lenders you think you'll be able to qualify with, apply for preapproval with at least two or three of them. Getting preapproval with multiple lenders enables you to compare rates and fees between lenders, so you can see which one can offer you the best overall deal.
Other USDA Loan Lenders We Considered
USDA loans aren't as common as FHA or VA loans, and not as many lenders offer them. There are a few lenders that we considered but didn't make the cut for our list of best USDA loan lenders:
- Caliber Home Loans: Caliber earned an average ranking in J.D. Power's 2022 satisfaction study.
Carrington Mortgage Services : You'll need a credit score closer to 700 to get a USDA loan with Carrington.PNC Bank Mortgage : You must have at least 3% down for a USDA loan from this lender.Veterans United Mortgage : Veterans United does offer USDA loans, but the lender's main focus and strength is VA loans.
Who Qualifies for a USDA Loan?
A lender looks at two factors to determine whether you qualify for a USDA loan: your property and your financial profile.
Property eligibility
You may qualify for a USDA loan if you're buying a home in a rural or suburban area that is a USDA-designated "rural area."
If you already know the address of the home you want to buy, enter the information into the USDA Property Eligibility Site. You'll need to select which type of USDA loan you're interested in, so you'll choose "Single Family Housing Guaranteed" if you want a guaranteed USDA loan.
Borrower eligibility
Here's what you need to qualify for a USDA loan:
- You must be a US citizen or permanent resident.
- Your household should be at a low-to-moderate income level. The maximum income requirement depends on where you live, and you can see your county's income limit here.
- You'll need to provide proof of stable income for at least the last two years.
- Many lenders require a good credit history, although some of the companies on our list accept lower credit scores and alternative forms of credit, such as proof of paying rent on time.
- Your monthly mortgage payments should not exceed 29% of your monthly income. This number includes your loan principal, interest, insurance, taxes, and homeowner's association dues.
- Other debt payments should come to 41% or less of your monthly income. However, you could qualify with a higher debt-to-income ratio if your credit score is very good or excellent.
There is no maximum borrowing limit. A lender will approve you to borrow a certain amount based on your financial profile.
Why You Should Trust Us: Experts' Advice on Choosing the Best USDA Loan Lenders
Insider
We consulted mortgage and financial experts to inform these picks and provide their insights about mortgage lenders.
- Anthony Park, author of "How to Buy Your Perfect First Home"
- Lauryn Williams, certified financial planner, founder of Worth Winning Financial Planning
- Julie Aragon, mortgage broker, founder of Aragon Lending Team
- Molly Grace, mortgage reporter at Personal Finance Insider
Here's what they had to say about USDA mortgages. (Some text may be lightly edited for clarity.)
How can someone decide between a conventional mortgage vs. a government-backed mortgage, like a USDA loan?
Molly Grace, Personal Finance Insider
"USDA loans tend to be less popular than other government-backed loan options, but they're a really affordable pick if you meet the requirements. If you have a lower income and live in an eligible area (which, unless you live in a bigger city, you likely do), a USDA loan can be a good choice."
What factors should someone take into consideration when choosing a mortgage lender?
Anthony Park, author:
"The canned answer is to just go with the lowest rate. However, you also want to take into account who's going to serve your loan best. Are repayments going to be easy for you? Who is most likely to be able to help you if you need to take out a HELOC or refinance later, versus somebody who's more of a one-off type?
"They may have the lowest rates to get you involved, but they might have very, very little hand holding after the fact. I wouldn't recommend paying an exorbitant amount more for potential services in the future, but just don't always necessarily go with the rock-bottom lowest rate. There's sometimes a cost with that."
Molly Grace, Personal Finance Insider:
"Remember that you're not just choosing a mortgage lender — you're also building a homebuying team. To snag the home you want in this competitive market, you need a lender that can move quickly and has good communication with you and your real estate agent.
When I was looking for a house, I was able to text my loan officer (whom my real estate agent recommended) and get quick replies when I had questions or needed an updated preapproval letter for an offer. As you compare lenders, pay attention to how responsive they are, and ask your agent if they have any experience with the lenders you're considering."
How can someone know whether they're financially ready to buy a home?
Lauryn Williams, CFP:
"You should have funds left over after everything is said and done as it pertains to purchasing the home. So if you don't have an emergency fund plus a down payment, you're probably not ready to purchase a home. Another thing I think about is credit card debt. While you can be approved for a mortgage with credit card debt and student loans and very little cash on hand, you put yourself in a very risky situation."
Julie Aragon, Aragon Lending Team:
"You should have enough money for a down payment and closing costs. You don't have to have any reserves — you can have no money in the bank. But that doesn't mean you should have no money left over after your down payment and closing costs. I like to say it'd be good to have three to six months of expenses saved after down payment and closing costs. That might be a good sign that you're ready."
Methodology: How Did We Choose the Best USDA Loan Lenders?
To choose the top USDA loan lenders, we looked at three main factors:
- Affordability/credit score. USDA loans are known for being an affordable option, with no down payment for qualifying borrowers. They also usually have more lenient credit score requirements than conventional mortgages. We chose lenders that accept low credit scores or are flexible about credit scores if other parts of your financial profile are strong. Some of the companies on our list also accept alternative forms of credit in place of a credit score.
- Customer satisfaction. If the lender appeared in the J.D. Power 2022 Mortgage Origination Satisfaction Study, we looked at its ranking. If it wasn't in the survey, we read online customer reviews.
- Ethics. Almost all of our top picks received an A or A+ from the Better Business Bureau, which measures companies' trustworthiness.
See our full methodology for evaluating mortgage lenders »