A USDA loan is a super affordable option for homebuyers in eligible rural and suburban areas. To find the best USDA loan lenders of 2025, Business Insider reviewed dozens of mortgage lenders, looking for ones that rank high in customer satisfaction, trustworthiness, and affordability.
The best USDA lenders also offer affordable features on their loans, such as flexible credit guidelines or the ability to apply with non-traditional credit (like rent payment history).
These are the best USDA mortgage lenders according to Business Insider editors.
The Best USDA Loan Lenders
- Fairway Independent Mortgage Corporation: Best overall
- Flagstar Mortgage: Best for first-time homebuyers
- Guild Mortgage: Best for low or no credit
- Movement Mortgage: Best for customer service
Today's Rates
Best USDA Lender Overall
620
Pros
Cons
- 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
One of the largest USDA loan lenders in the U.S.
Fairway Independent Mortgage Corporation was the third-largest originator of USDA loans in 2024, according to the USDA.
USDA loans aren't as popular as some other loan types, so not every lender has a lot of experience with them. Working with a lender that understands their intricacies can help ensure you have a smooth process.
Convenient online process
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
620
Pros
Cons
- 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
High customer satisfaction ratings
In online reviews, customers rate Flagstar very highly. On its Zillow lender profile, it has a 4.97 out of 5-star rating, based on over 3,000 customer reviews. If this is your first time buying a home, you'll want to work with a lender that has helpful loan officers and strong communication.
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.
Best USDA Lender for Low or No Credit
600
Pros
Cons
- 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
Get a USDA loan with a 540 credit score, or non-traditional credit
Guild Mortgage is an affordable option, especially for borrowers who have a low credit score or no credit score. This lender's minimum credit score for USDA loans is 540, which is lower than many other lenders.
If you have no score, you can use non-traditional credit, such as rent or utility payment history, to qualify.
Top USDA loan lender
Guild is the largest originator of USDA loans in the country, according to the USDA, so it has plenty of experience with these loans.
What to look out for: Guild doesn't display any rates online. It also ranked below average in J.D. Power's 2024 satisfaction study.
Best Lender for Customer Service
580
Pros
Cons
- 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
Stands out in customer satisfaction
Movement Mortgage ranks very high in customer satisfaction, earning the No. 2 spot in J.D. Power's 2024 origination satisfaction study and a 4.98 out of 5-star rating on its Zillow profile, based on over 18,000 customer reviews.
Allows credit scores down to 580
Movement is another good option for borrowers with low credit scores, since you can qualify with a score as low as 580.
What to look out for: Movement doesn't show any rates online, making it difficult to gauge what you might pay with this lender.
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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 2024, 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
Who is the best lender for a USDA loan?
We think Fairway Independent is one of the best USDA lenders, but the right lender for you depends on your individual needs and financial circumstances, so be sure to shop around and compare multiple lenders.
What is the income limit for a USDA loan?
The exact income limit for a USDA loan varies by county. In general, USDA loans are for people with low-to-moderate income levels.
Are USDA loans hard to qualify for?
Credit-wise, it can be harder to get approved for a USDA loan compared to other government-backed mortgages, since many lenders require scores of at least 640.
Can any bank do a USDA loan?
Not every bank offers USDA loans, so you'll need to ask any lender you're considering whether they originate these mortgages.
Are there any downsides to a USDA loan?
Some of the main downsides of USDA loans are that they're only available in certain areas and you'll need to pay an upfront and annual guarantee fee to get one.
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 may have more lenient credit score requirements than conventional mortgages, but this isn't always the case. 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 2024 Mortgage Origination Satisfaction Study, we looked at its ranking. We also read online customer reviews to get a sense of what borrowers like and dislike about each lender.
- Ethics. All of our top picks received an A+ from the Better Business Bureau, which measures companies' trustworthiness.
