Best USDA Loan Lenders of August 2024

• The Best USDA Loan Lenders
• Best Overall
• Best for First-Time Homebuyers
• Best for Low or No Credit
• Best for USDA Expertise
• Best for a Down Payment
• Understanding USDA Loans
• What to Look for in a Lender
• Where to Find the Best Lenders
• FAQs
• Why You Should Trust Us

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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 with conventional loans.

The Best USDA Loan Lenders

• Fairway Independent Mortgage USDA Mortgage: Best overall
• Flagstar Bank USDA Mortgage: Best for first-time homebuyers
• Guild USDA Mortgage: Best for low or no credit
• Movement USDA Mortgage: Best for USDA expertise
• CMG Financial: Best for a down payment

To find the best USDA loan lenders, Business Insider looked for mortgage lenders that offer affordable features on their loans, such as flexible credit guidelines or the ability to apply with non-traditional credit (like rent payment history).

Compare the Top USDA Loan Lenders

These are the best USDA loan lenders of 2024 according to Business Insider editors.

Best USDA Lender Overall: Fairway Independent Mortgage Corporation

620

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Offers USDA mortgages in all 50 US states
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Accepts alternative credit data
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Easy-to-navigate website
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Option to close on your mortgage digitally instead of in person

• con icon Two crossed lines that form an 'X'. Doesn't show mortgage rates online
• con icon Two crossed lines that form an 'X'. You may need a credit score as high as 640 or 660 if other parts of your financial profile aren't strong

• Offers mortgages in all 50 US states and Washington, DC
• Branches in every US state except Alaska and West Virginia
• Apply with alternative credit data (such as proof that you pay bills on time) if you have a poor or no credit score

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 was 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. Plus, in J.D. Power's 2023 Mortgage Origination Satisfaction Study, Fairway Independent earned the No. 1 spot, making it a good choice if customer service is important to you.

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.

Fairway Independent Mortgage Corporation Review

Best USDA Lender for First-Time Homebuyers: Flagstar Bank

620

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. USDA mortgages are available in all 50 US states
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. See personalized mortgage rates online

• con icon Two crossed lines that form an 'X'. Doesn't accept alternative credit data

• Offers USDA mortgages in all 50 US states and Washington, DC
• Doesn't accept alternative forms of credit, such as utility bills, instead of a credit score — Flagstar will complete a hard credit pull

Flagstar Bank ranks very high in customer satisfaction and has an easy application process, making it a particularly good lender for first-time homebuyers getting a USDA loan.

What to look out for: Flagstar Bank has a good rate tool that lets you see personalized mortgage rates, but it doesn't include USDA loan rates.

Flagstar Bank Mortgage Review

Best USDA Lender for Low or No Credit: Guild Mortgage

600

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Minimum 600 credit score for USDA mortgages
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Accepts alternative credit data
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Hybrid closing option

• con icon Two crossed lines that form an 'X'. Unavailable to residents of New Jersey or New York

• Offers mortgages in every US state except New York and New Jersey
• Branches in 32 US states
• Show alternative credit data, such as utility bills, to help your application if you have a poor credit score

Guild Mortgage is an affordable option, especially for borrowers who have a low credit score or 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 540, 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. It also ranked below average in J.D. Power's 2023 satisfaction study.

Guild Mortgage Review

Best Lender for USDA Expertise: Movement Mortgage

580

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Offers USDA mortgages in all 50 states
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Minimum 580 credit score for a USDA mortgage

• con icon Two crossed lines that form an 'X'. No personalized mortgage rates shown on the website
• con icon Two crossed lines that form an 'X'. Doesn't accept alternative credit data for USDA mortgages

• Offers mortgage rates in all 50 US states and Washington, DC
• You can apply with alternative credit data for an FHA mortgage, but not a USDA mortgage

Movement Mortgage is another 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. Plus, it ranked high for customer satisfaction in 2023, according to J.D. Power.

What to look out for: Movement doesn't show any rates online, making it difficult to gauge what you might pay with this lender. 

Movement Mortgage Review

Best USDA Lender for a Down Payment: CMG Financial

620

3%

Conforming, jumbo, FHA, VA, USDA, renovation, HELOC, reverse mortgages, offset mortgage, All In One Loan™

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Unique mortgage offerings
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Up to $6,000 in down payment assistance for eligible borrowers
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High customer satisfaction ratings

• con icon Two crossed lines that form an 'X'. Average rates are slightly high
• con icon Two crossed lines that form an 'X'. Doesn’t display current rates online

• Offers home loans in all 50 US states and Washington, DC
• Minimum credit score and down payment displayed are for conforming mortgages
• Has branches in every state except Alaska, Kansas, Kentucky, North Dakota, and West Virginia

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.

CMG Financial Mortgage Review

Understanding USDA Loans

Government-Backed

USDA loans are a type of government-backed mortgage. They're guaranteed by the U.S. Department of Agriculture, meaning that they're originated by private lenders that the USDA will compensate if a borrower defaults on their loan.

This makes these mortgages less risky for lenders, allowing them to offer lower mortgage rates. The two other main types of government-backed mortgages are FHA loans and VA loans.

Zero Down Payment

These loans offer up to 100% financing, which means you won't need to make a down payment to get a USDA loan. However, you will need to bring some of your own cash to the table since you'll still have to pay closing costs.

Income and Location Restrictions

You may qualify for a USDA loan if you're in a rural or suburban area that is a USDA-designated "rural area." The USDA has a tool you can use to see if an address is in an eligible area.

Additionally, 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.

Lender Requirements

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 allow borrowers with scores as low as 580 to get a USDA loan, while other lenders require scores in the mid-to-high 600s. 

What to Look for in a USDA Lender

USDA Expertise

USDA loans are the least-utilized of the three main types of government-backed mortgages, and not every lender offers them. To have a smooth experience, you'll want to work with a lender and loan officer who has a lot of experience doing these types of loans. 

According to the USDA, most of the lenders included on our list were top originators of USDA loans in 2023, including Fairway Independent, Movement Mortgage, and Guild.

Competitive Rates and Fees

Apply for a mortgage with at least two or three different USDA lenders to compare rates and fees so you can see which one can offer you the best overall deal.

Customer Service

Working with a lender that ranks high in customer satisfaction can help you have a smoother mortgage experience, which is especially important if you're buying rather than refinancing. When you're purchasing a home, you're on a deadline, so working with a lender that offers great customer service is vital.

Where to Find the Best USDA Lenders

Find the best fit for you by exploring multiple types of mortgage lenders. You can find a list of lenders in your state that offer these loans on the USDA's website.

Local Lenders

Local lenders can be beneficial because they're familiar with your area and local real estate market. They also often can provide more personalized support compared with lenders that lend to a large number of borrowers around the country.

Nationwide Lenders

Large lenders and banks can offer beneficial features you might not get with a small lender, like a convenient online process or robust digital tools to manage your application. 

Mortgage Brokers

Mortgage brokers work with many different lenders to help you compare multiple loan options at one time. This can be more convenient and help you save money.

Best USDA Loan Lenders FAQs

We think Fairway Independent is one of the best lenders for USDA loans, but the right lender for you depends on your individual needs and financial circumstances, so be sure to shop around and compare multiple lenders.

The FICO score you'll need for a USDA loan varies. Many USDA loan lenders require FICO scores of at least 640. Some may allow lower scores while others could require even higher scores.

The exact income limit for a USDA loan varies by county. In general, USDA loans are for people with low-to-moderate income levels.

You may find it easier to get approved for an FHA loan if you have poor credit or a high debt-to-income ratio. But if you're struggling to come up with a down payment, you may find a USDA loan easier to get.

No, not every mortgage lender offers USDA loans.

Rates fluctuate daily and vary by lender. If you're interested in a particular lender, get preapproved or talk to a loan officer to see how its rates are currently trending.

To qualify for a USDA loan, you'll need to be in an eligible rural or suburban area and meet USDA income limits. 

Why You Should Trust Us: Experts' Advice on Choosing the Best USDA Loan Lenders

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 Business 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, Business 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, Business 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 2023 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 »

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