12 Best USDA Mortgage Lenders of January 2025
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If you’re buying 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 borrowers buying properties in eligible areas who meet certain income requirements.
In addition to having no down payment requirements, USDA loans also typically have lower interest rates than conventional loans — making them an attractive option, particularly for first-time homebuyers.
Read on to see our list of the top mortgage lenders that offer USDA loans.
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12 Best USDA Mortgage Lenders of January 2025
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
620 | 0% | |||
 New American Funding: NMLS#6606 Top 3 most visited 🏆 Learn more at New American Funding | 640 | 0% | Top 3 most visited 🏆 Learn more at New American Funding | |
620 | 0% | Learn more at Veterans United | ||
 PNC Bank: NMLS#446303 Compare More Lenders on NerdWallet | 640 | 0% | Compare More Lenders on NerdWallet | |
 Flagstar: NMLS#417490 Compare More Lenders on NerdWallet | 580 | 0% | Compare More Lenders on NerdWallet |
- Fully underwritten mortgage approval in as little as one day for qualified borrowers.
- Generous selection of loans, including government-backed, interest-only, jumbo and renovation.
- Advertises a HELOC that can be funded in as few as five business days.
- Origination fees are on the high side, according to the latest federal data.
- HELOC requires immediate, full withdrawal of funds.
New American Funding: NMLS#6606
640
National
- Offers a wide variety of purchase and refinance mortgages, as well as unique buyer assistance programs.
- Its home equity line of credit can be used for a primary residence or second home.
- Average origination fees are on the high side, according to the latest federal data.
- Personalized mortgage rates are not available on the website without providing contact information.
Veterans United: NMLS#1907
620
0%
- 24/7 customer service line supports servicemembers stationed internationally.
- Niche VA products, including refinances, EEMs and VA jumbo loans.
- Maintains a network of real estate agents experienced with VA borrowers.
- No HELOCs or home equity loans.
- No renovation loans.
- No live chat feature on website.
- Low-down-payment loan options include FHA, VA, USDA and PNC Community Loan.
- Jumbo loans available with minimum down payments of 5%.
- Customizable mortgage rates are posted online.
- Average mortgage rates are on the high side, according to the latest federal data.
- In-person service is not available in every state.
- You’ll have to supply personal data or account info to get answers by phone.
- Conventional loan terms extend to 40 years, which is unusually flexible.
- Offers options for high-balance mortgages.
- Offers specialized mortgages for professionals, such as doctors and lawyers, starting their careers.
- Reported average time to close (20-30 days) is faster than industry standard.
- The lender’s mobile app is focused on banking, not mortgages.
- Conventional fixed-rate mortgages require a 5% minimum down payment, higher than some competitors.
Network Capital: NMLS#11712
640
0%
- Reported average time to close is 20 days, far below the industry average.
- Products like non-QM loans and ITIN loans make borrowing more accessible.
- HELOCs offer long draw terms, up to 30 years.
- The lender’s website offers limited loan details.
- HELOCs have a minimum loan amount of $50,000.
- Mortgage borrowers do not need to become members of the credit union until they’ve reached the closing process, so interested home buyers can apply without committing to membership.
- Sample rates are displayed upfront, and it's easy to get detailed, personalized rates without providing any personally identifying information.
- No application fee.
- Customer service can be difficult to access as a non-member and may require sharing personal information.
- Home equity loans are not available.
Andrews Federal Credit Union: NMLS#410421
N/A
0%
- Has a robust and user-friendly tool for customized mortgage rates.
- Easy to qualify for credit union membership.
- Offers HELOCs and home equity loans.
- Physical branches in the U.S. are limited to Maryland, New Jersey, Virginia and Washington, D.C.
- Does not offer less common mortgage types, like renovation or construction home loans.
First Federal Bank: NMLS#408902
640
N/A
- Originated a high volume of government loans, according to the latest federal data.
- Average mortgage rates are on the lower side, according to the latest federal data.
- Offers 15-, 20-, 25-, and 30-year repayment terms, which is unusually flexible.
- No dedicated mobile app for mortgage borrowers.
- Some loans (including home equity products) are geographically limited.
Northpointe: NMLS#447490
620
0%
- Closing may be available within 15 business days.
- Offers loans and programs aimed at making homeownership more accessible.
- Offers mortgages for investment properties, including jumbo loans.
- Average mortgage origination fees are on the high side, according to the latest data.
- Bank’s mobile app isn’t useful for mortgage borrowers.
- Easy to personalize a quote and apply online.
- Can lock in a rate before you’re under contract, earlier than most lenders.
- Perks include a 1% interest rate buydown and “refinance later” cash bonus.
- Origination fees are on the higher end, according to the latest federal data.
- Online chat is available only in the logged-in experience.
- No home equity lines of credit or renovation loans.
- Offers up to $17,500 in down payment and closing cost assistance.
- Wide variety of mortgage types.
- Experienced with construction-to-permanent and renovation loans.
- Assistance programs limited to select cities and states.
- Online rate tool doesn’t customize by credit score.
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
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Last updated on January 17, 2025
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 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 gross 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, 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 40 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 surveys. We also used 2023 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best USDA Mortgage Lenders of January 2025
- Rate: Best for first-time home buyers
- New American Funding: Best for low-credit borrowers
- Veterans United: Best for military borrowers
- PNC Bank: Best for first-time home buyers
- Flagstar: Best for customer experience
- Network Capital: Best for low-credit borrowers
- Alliant: Best for rate shopping
- Andrews Federal Credit Union: Best for rate shopping
- First Federal Bank: Best for first-time home buyers
- Northpointe: Best for customer experience
- Pennymac: Best for low-credit borrowers
- U.S. Bank: Best for customer experience
