Top USDA mortgage lenders for August 2024

USDA loans are a great option for first-time homebuyers in rural or suburban areas as they are guaranteed by the U.S. Department of Agriculture and don't require a down payment or private mortgage insurance. Additionally, interest rates on USDA loans are usually lower than conventional loans, and lenders are typically more flexible with credit score requirements.

We evaluated various lenders offering USDA mortgages and ranked them based on their rates, customer service, and other factors. (See our methodology for details.)

Best mortgage lenders for USDA loans

Best for bad credit or no credit: Guild Mortgage

Guild Mortgage has lower credit score requirements than most USDA loan providers, accepting applicants with scores as low as 540. Additionally, it considers non-traditional credit sources, such as on-time rent or utility payments.

Guild provides online closing paperwork for borrowers, allowing them to complete most of the process digitally.

Best for first-time homebuyers: Flagstar Bank

First-time homeowners in designated census tracts can receive up to $8,000 in grants and gift funds with Flagstar's Power-Up program.

Flagstar provides the Destination Home Mortgage, a zero-down loan without PMI, in addition to USDA loans. The MyLoan portal simplifies mortgage management online.

Best for in-person experience: PNC Bank

If you want to speak with a loan officer in person, PNC Bank is a suitable choice as it has over 2,000 branches in 28 states.

PNC's Community Loan offers a 3% down payment and no private mortgage insurance, while the PNC Grant provides up to $7,000 to borrowers purchasing a home in a low- or moderate-income census tract.

Best for borrowers in the Sun Belt: Movement Mortgage

In South Carolina, Movement Mortgage is one of the top USDA loan providers, along with Alabama, Florida, and North Carolina, and is ranked sixth in the country.

The Movement Comunidad initiative aims to increase homeownership in the Latino community by utilizing bilingual agents and online applications in both English and Spanish, with an average close timeline of just 24 days, significantly shorter than the industry average.

Best for borrowers in the Midwest: Flat Branch Home Loans

In Kansas, Illinois, Oklahoma, and Missouri, Flat Branch is the largest lender of USDA loans, and its loan officers are knowledgeable about state-specific programs that assist USDA loan recipients with closing costs and other expenses.

Borrowers who meet income requirements can receive up to $4,000 in financial assistance through the Flex Funds program, which can be used towards closing costs or a down payment.

Best for a speedy closing: PrimeLending

For whom is this? PrimeLending guarantees a 21-day closing for many borrowers and received a 2023 MortgageCX award for their quick closing timeframe.

AdvantEDGE program by PrimeLending offers quick approval within 24 hours and a $250 lender credit to borrowers.

Guild Mortgage

Guild Mortgage, a San Diego-based lender founded in TK, has over 200 locations across 32 states and was rated No. 4 on JD Power's Mortgage Servicer Customer Satisfaction Survey in 2024. It is licensed in every state except New York.

Credit score for USDA loans: 540

There are several types of mortgages available, including conventional, USDA, VA, FHA, refinance, home equity loan, home equity line of credit, jumbo, and reverse mortgage.

Flagstar

Flagstar, founded in 1987 as First Security Savings Bank, is one of the 10 largest mortgage companies in the country and was once a large bank before its acquisition by New York Community Bank in 2022. With 390 locations across 10 states, Flagstar serves 1.4 million home loans. The Better Business Bureau gave Flagstar an A- rating, while J.D. Power gave it a below-average score for mortgage servicing.

Credit score for USDA loans: Not disclosed

There are several types of mortgages available, including conventional, USDA, VA, FHA, refinance, home equity loan, home equity line of credit, and jumbo.

PNC Bank

PNC Bank, founded in 1845 in Pittsburgh, is now a nationwide lender and the ninth-largest mortgage originator in the U.S. by volume, with over 2,300 branches in 28 states. Despite receiving an A+ rating from the Better Business Bureau, PNC ranks poorly on J.D. Power's customer satisfaction surveys.

Credit score for USDA loans: Not disclosed.

Mortgage options: conventional, USDA, VA, FHA, jumbo, refinancing.

Movement Mortgage

Movement Mortgage is highly regarded for its exceptional customer service, receiving high marks on JD Power's Mortgage Origination Satisfaction Survey and an A+ rating from the Better Business Bureau. Since its inception in 2008, the company has expanded to offer loans in all 50 states and operates over 775 branches across the nation.

Credit score for USDA loans: Not disclosed

There are various types of mortgages available, including conventional, jumbo, VA, FHA, condo, HomeReady, renovation, refinance, and reverse.

Flat Branch Home Loans

Flat Branch, an employee-owned company based in Columbia, Missouri, has offices in 12 states and is licensed in 38. Its website features a mortgage calculator that estimates the monthly cost for a USDA loan, including the guarantee fee, taxes, and insurance.

Credit score for USDA loans: Not disclosed

Mortgage options: conventional, USDA, FHA, VA, HomeReady, Home Possible, refinance.

PrimeLending

PrimeLending, a Dallas-based subsidiary of PlainsCapital Bank, was founded in 1986 and is licensed to provide loans in 24 states. The company has been ranked above average for mortgage origination and has received an A+ rating from the Better Business Bureau.

Credit score for USDA loans: Not disclosed

Mortgage options: conventional, USDA, VA, FHA, jumbo, refinancing, HELOC.

What is a USDA loan?

A mortgage backed by the U.S. Department of Agriculture, USDA loans offer lower rates, more flexible credit requirements, and do not require a down payment.

Instead of paying for mortgage insurance, borrowers pay a 1% upfront guarantee fee and an annual fee of 0.35% of the loan amount. There are two types of USDA loans: USDA guaranteed loans, which are funded by approved private lenders and guaranteed by the Department of Agriculture, and USDA direct loans, which are funded by the department directly.

To qualify for USDA loans, applicants must meet income and geographical requirements, which are designed to assist lower- and middle-income Americans in purchasing homes in rural areas.

How to qualify for a USDA loan

There are several requirements to be eligible for a USDA loan.

The maximum income for a USDA guaranteed loan from a private lender is 115% of the area median income (AMI), while for a USDA direct loan, borrowers should not exceed 80% of the AMI.
A loan for a primary residence in a USDA-approved rural area is required. You can verify eligibility by checking the USDA eligibility map.
A credit score of at least 640 is typically required for USDA loans, but some lenders, such as Guild Mortgage, may consider alternative forms of credit.
Your monthly housing costs should not exceed 34% of your gross monthly income, and your overall debt-to-income ratio should not exceed 41%.

You will undergo a USDA-specific appraisal and be prepared to relocate into the property within 60 days of the closing date.

Pros and cons of USDA loans

Different types of government-backed mortgages

Government-backed mortgages, such as USDA loans, assist millions of Americans in attaining homeownership with low or no down payment options, but have varying eligibility criteria.

Why trust CNBC Select?

Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each mortgage lender review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of home loan products. At CNBC Select, we take pride in our journalistic standards and ethics, and we earn a commission from affiliate partners on many offers and links. However, our content is created independently by our team, without any input from our commercial team or external third parties. To learn more about our methodology for selecting the best small down payment mortgages, please refer to our website.

Our methodology

Analyzing numerous USDA mortgage lenders, including online lenders and brick-and-mortar banks and credit unions, CNBC Select determined the top USDA mortgage providers.

When ranking the best USDA loans, we focused on the following features:

We evaluated each lender's USDA loan volume over recent years based on the Department's rankings by volume nationally and within rural states.
Each lender on our list has a unique closing timeline, ranging from two weeks to 45 days after the home purchase agreement is signed.
Each mortgage lender offers a range of financing options that you can tailor to your monthly budget and repayment term preferences.
We evaluated whether lenders provided a user-friendly online application process or local branch options for a hassle-free application.
Our list of mortgage lenders offers customer support through phone, email, or secure online messaging. Additionally, we have selected lenders with an online resource hub or advice center to assist you in understanding the personal loan process and managing your finances.

We ranked our recommendations for the best options for individuals with poor credit, first-time homebuyers, those seeking an in-person experience, borrowers residing in the Sun Belt or Midwest, and for a quick closing process.

Fixed-rate APRs and consistent monthly payments are guaranteed once a mortgage agreement is accepted, unless the borrower chooses to refinance at a later date. The APR, monthly payment, and loan amount are determined by the borrower's credit history, creditworthiness, debt-to-income ratio, and desired loan term. To obtain a mortgage, lenders will conduct a hard credit inquiry and request a full application, which may require proof of income, identity verification, proof of address, and more.

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