Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
USDA loans are a great option 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.
Best USDA loan lenders
Editors’ Rating
Editors’ Rating
Editors’ Rating
Editors’ Rating
Editors’ Rating
Editors’ Rating
Editors’ Rating
USDA loans require no down payment and often have better interest rates and less stringent credit requirements, too.
A USDA loan is a great option if you earn a low-to-moderate income and want to buy a house in a rural area. Here are our picks for the top USDA mortgage lenders.
Best overall
Fairway Independent Mortgage Corporation USDA Mortgage
Fairway Independent Mortgage Corporation USDA Mortgage
Pros & Cons
Highlights
Additional Reading
The pros of Fairway Independent:
The cons of Fairway Independent:
- Rates aren’t posted online
- Get a USDA mortgage with a credit score as low as 620 if other parts of your financial profile are great; otherwise, you may need a score of 640 or 660
Best for first-time homebuyers
Flagstar Bank USDA Mortgage
Flagstar Bank USDA Mortgage
Pros & Cons
Highlights
Additional Reading
The pros of Flagstar Bank:
- Available in all 50 US states
- Enter personal information to see customized rates online
- A- rating from the BBB
The cons of Flagstar Bank:
- Doesn’t accept alternative forms of credit
Best for a streamline refinance
Pros & Cons
Highlights
Additional Reading
The pros of Freedom Mortgage:
- Available in all 50 US states
- A+ score from the BBB
The cons of Freedom Mortgage:
Best for non-traditional credit
Pros & Cons
Highlights
Additional Reading
The pros of Guild Mortgage:
- Get a USDA mortgage with a credit score as low as 600
- Accepts alternative forms of credit
- Hybrid closing option
- A score from the BBB
The cons of Guild Mortgage:
- Unavailable to residents of New Jersey or New York
Best for low credit scores
Pros & Cons
Highlights
Additional Reading
The pros of Movement Mortgage:
- Available in all 50 states
- Qualify for a USDA mortgage with a credit score as low as 580
- A+ rating from the BBB
The cons of Movement Mortgage:
- No customized mortgage rates shown on the website
- Doesn’t accept alternative forms of credit for USDA loans (but it does for FHA loans)
Best online experience
Pros & Cons
Highlights
Additional Reading
The pros of Truist:
- Accepts alternative forms of credit if you do not have a credit score (you must show a credit score if you have one, though)
- A+ rating from the BBB
The cons of Truist:
- There are sample interest rates on its website, but you can’t see customized rates online
- Not available to residents of Alaska, Arizona, or Hawaii
Best for a down payment
On CMG Financial – USDA Mortgage’s website
Pros & Cons
Highlights
Additional Reading
The pros of CMG Financial:
- Available in all 50 US states
- Although alternative credit data (such as proof of paying bills on time) cannot fully replace a credit score, it can be shown to prove you are actively improving your finances
- The BBB gives it an A- rating
The cons of CMG Financial:
- No way to see interest rates on its website
- Alternative credit alone cannot help you get a mortgage
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: To get in touch with someone at Caliber Home Loans (either through messaging or on the phone), you have to create an account with the lender first.
- Carrington Mortgage: You’ll need a credit score closer to 700 to get a USDA loan with Carrington.
- PNC Bank: You must have at least 3% down for a USDA loan.
- Veterans United: Veterans United does offer USDA loans, but the lender’s main focus and strength is VA loans.
Methodology: How we chose the best USDA lenders for 2023
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.
Are these lenders trustworthy?
To compare each USDA lender’s trustworthiness, we’ve examined grades from the Better Business Bureau.
The BBB grades businesses based on responses to customer complaints, transparency about business practices, and honesty in advertising. Here are the scores for our top picks:
All the lenders on our list have an A- or higher from the BBB.
Guild Mortgage has an A because the BBB is acknowledging a public controversy between the mortgage lender and the government. The BBB says CMG Financial has an A- rating because it hasn’t resolved 102 customer complaints.
A couple of these lenders do have recent public controversies.
The Consumer Financial Protection Bureau fined Freedom Mortgage $1.75 million in 2020, claiming that loan officers purposely entered incorrect sex, race, and ethnicity information on borrowers’ home loan applications. The order states that from 2014 to 2017, if a borrower didn’t fill in the race/ethnicity section of an application, officers marked it as non-Hispanic white.
In 2020, Guild Mortgage paid the United States $24.9 million when it was accused of approving FHA mortgages for people who didn’t qualify, resulting in loan defaults.
Frequently asked questions
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.
There are two main types of USDA home loans:
- Guaranteed: This type is backed by the USDA, and you apply through a participating lender.
- Direct: The USDA actually issues the loan, so you apply directly with the USDA.
When people refer to a USDA loan, most are referring to a guaranteed loan, aka the USDA Rural Development Guaranteed Housing Loan Program — and that’s the type of USDA loan you can get with the lenders on our list.
With a USDA loan, you can buy a home with no down payment. You must get a fixed-rate mortgage; adjustable rates aren’t an option.
If you’re interested in a USDA direct loan, you’ll need to go to the USDA’s site. These mortgages are only available to low- and very-low-income individuals who don’t currently have “decent, safe, and sanitary housing” and are unable to get a loan through other means.
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. The population restrictions are 20,000 for some counties and 35,000 for others.
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.
All of the lenders on this list are strong USDA loan lenders. Your exact match 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.
Look for other factors that are important to you in a lender. For instance, to close on your USDA loan digitally instead of in person, you’ll like Fairway Independent Mortgage Co. or Guild Mortgage.
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.
A USDA loan is often worth it for people who qualify. USDA loans charge lower interest rates than conforming mortgages, and they have more lax credit score and down payment requirements. This means it’s both easier and more affordable to choose a USDA loan.
These loans are limited to homes in rural areas, though. You may not feel it’s worth it to live in a small town just to get a USDA loan. You might prefer an FHA loan, which is also for people with low credit scores but more widely available.
Mortgage rates by state
Check the latest rates in your state at the links below.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming
Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
USDA loans are a great option 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.
Best USDA loan lenders
Editors’ Rating
Editors’ Rating
Editors’ Rating
Editors’ Rating
Editors’ Rating
Editors’ Rating
Editors’ Rating
USDA loans require no down payment and often have better interest rates and less stringent credit requirements, too.
A USDA loan is a great option if you earn a low-to-moderate income and want to buy a house in a rural area. Here are our picks for the top USDA mortgage lenders.
Best overall
Fairway Independent Mortgage Corporation USDA Mortgage
Fairway Independent Mortgage Corporation USDA Mortgage
Pros & Cons
Highlights
Additional Reading
The pros of Fairway Independent:
The cons of Fairway Independent:
- Rates aren’t posted online
- Get a USDA mortgage with a credit score as low as 620 if other parts of your financial profile are great; otherwise, you may need a score of 640 or 660
Best for first-time homebuyers
Flagstar Bank USDA Mortgage
Flagstar Bank USDA Mortgage
Pros & Cons
Highlights
Additional Reading
The pros of Flagstar Bank:
- Available in all 50 US states
- Enter personal information to see customized rates online
- A- rating from the BBB
The cons of Flagstar Bank:
- Doesn’t accept alternative forms of credit
Best for a streamline refinance
Pros & Cons
Highlights
Additional Reading
The pros of Freedom Mortgage:
- Available in all 50 US states
- A+ score from the BBB
The cons of Freedom Mortgage:
Best for non-traditional credit
Pros & Cons
Highlights
Additional Reading
The pros of Guild Mortgage:
- Get a USDA mortgage with a credit score as low as 600
- Accepts alternative forms of credit
- Hybrid closing option
- A score from the BBB
The cons of Guild Mortgage:
- Unavailable to residents of New Jersey or New York
Best for low credit scores
Pros & Cons
Highlights
Additional Reading
The pros of Movement Mortgage:
- Available in all 50 states
- Qualify for a USDA mortgage with a credit score as low as 580
- A+ rating from the BBB
The cons of Movement Mortgage:
- No customized mortgage rates shown on the website
- Doesn’t accept alternative forms of credit for USDA loans (but it does for FHA loans)
Best online experience
Pros & Cons
Highlights
Additional Reading
The pros of Truist:
- Accepts alternative forms of credit if you do not have a credit score (you must show a credit score if you have one, though)
- A+ rating from the BBB
The cons of Truist:
- There are sample interest rates on its website, but you can’t see customized rates online
- Not available to residents of Alaska, Arizona, or Hawaii
Best for a down payment
On CMG Financial – USDA Mortgage’s website
Pros & Cons
Highlights
Additional Reading
The pros of CMG Financial:
- Available in all 50 US states
- Although alternative credit data (such as proof of paying bills on time) cannot fully replace a credit score, it can be shown to prove you are actively improving your finances
- The BBB gives it an A- rating
The cons of CMG Financial:
- No way to see interest rates on its website
- Alternative credit alone cannot help you get a mortgage
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: To get in touch with someone at Caliber Home Loans (either through messaging or on the phone), you have to create an account with the lender first.
- Carrington Mortgage: You’ll need a credit score closer to 700 to get a USDA loan with Carrington.
- PNC Bank: You must have at least 3% down for a USDA loan.
- Veterans United: Veterans United does offer USDA loans, but the lender’s main focus and strength is VA loans.
Methodology: How we chose the best USDA lenders for 2023
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.
Are these lenders trustworthy?
To compare each USDA lender’s trustworthiness, we’ve examined grades from the Better Business Bureau.
The BBB grades businesses based on responses to customer complaints, transparency about business practices, and honesty in advertising. Here are the scores for our top picks:
All the lenders on our list have an A- or higher from the BBB.
Guild Mortgage has an A because the BBB is acknowledging a public controversy between the mortgage lender and the government. The BBB says CMG Financial has an A- rating because it hasn’t resolved 102 customer complaints.
A couple of these lenders do have recent public controversies.
The Consumer Financial Protection Bureau fined Freedom Mortgage $1.75 million in 2020, claiming that loan officers purposely entered incorrect sex, race, and ethnicity information on borrowers’ home loan applications. The order states that from 2014 to 2017, if a borrower didn’t fill in the race/ethnicity section of an application, officers marked it as non-Hispanic white.
In 2020, Guild Mortgage paid the United States $24.9 million when it was accused of approving FHA mortgages for people who didn’t qualify, resulting in loan defaults.
Frequently asked questions
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.
There are two main types of USDA home loans:
- Guaranteed: This type is backed by the USDA, and you apply through a participating lender.
- Direct: The USDA actually issues the loan, so you apply directly with the USDA.
When people refer to a USDA loan, most are referring to a guaranteed loan, aka the USDA Rural Development Guaranteed Housing Loan Program — and that’s the type of USDA loan you can get with the lenders on our list.
With a USDA loan, you can buy a home with no down payment. You must get a fixed-rate mortgage; adjustable rates aren’t an option.
If you’re interested in a USDA direct loan, you’ll need to go to the USDA’s site. These mortgages are only available to low- and very-low-income individuals who don’t currently have “decent, safe, and sanitary housing” and are unable to get a loan through other means.
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. The population restrictions are 20,000 for some counties and 35,000 for others.
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.
All of the lenders on this list are strong USDA loan lenders. Your exact match 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.
Look for other factors that are important to you in a lender. For instance, to close on your USDA loan digitally instead of in person, you’ll like Fairway Independent Mortgage Co. or Guild Mortgage.
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.
A USDA loan is often worth it for people who qualify. USDA loans charge lower interest rates than conforming mortgages, and they have more lax credit score and down payment requirements. This means it’s both easier and more affordable to choose a USDA loan.
These loans are limited to homes in rural areas, though. You may not feel it’s worth it to live in a small town just to get a USDA loan. You might prefer an FHA loan, which is also for people with low credit scores but more widely available.
Mortgage rates by state
Check the latest rates in your state at the links below.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming
