USDA loans are guaranteed by the U.S. Department of Agriculture, so they don’t require a down payment or private mortgage insurance. That makes them a great option for first-time homebuyers looking in rural or suburban areas.

Interest rates on USDA loans are also usually lower than for conventional loans, and lenders are typically more flexible with credit score requirements.

CNBC Select reviewed lenders offering USDA mortgages and selected the top ones based on rates, customer service and more. (See our methodology below.)

Who’s this for? Guild Mortgage accepts applicants with credit scores as low as 540, compared to 580 for most USDA loan providers. It will also consider non-traditional credit sources, like on-time rent or utility payments. 

Standout benefits: Guild offers hybrid e-closings, so borrowers can finish most closing paperwork online.

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Who’s this for? Flagstar‘s Gift Program can give first-time homeowners a rebate of up to 3% of their total home price. With the Flagstar Power-Up program, first-timers in designated census tracts can receive up to $8,000 in grants and gift funds.

Standout benefits: In addition to USDA loans, Flagstar offers the Destination Home Mortgage, another zero-down loan with no private mortgage insurance (PMI). The MyLoan portal lets borrowers easily manage their mortgages online.

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Who’s this for? PNC Bank has over 2,000 branches in 28 states, making it a good option if you want to talk with a loan officer face-to-face.

Standout benefits: The PNC Grant provides up to $7,000 to borrowers who buy a home in a low- or moderate-income census tract. PNC’s Community Loan only requires 3% down and no PMI.

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Who’s this for? Based in Indian Land, South Carolina, Movement Mortgage is among the top USDA loan providers in the state — as well as in Alabama, Florida and North Carolina — and is ranked sixth nationwide.

Standout benefits: Movement’s average close timeline is 24 days, nearly half the industry average. The Movement Comunidad initiative aims to increase homeownership in the Latino community with bilingual agents and online applications in both English and Spanish.

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Who’s this for? Flat Branch is the largest lender of USDA loans in Kansas, Illinois, Oklahoma and Missouri, and loan officers are well-versed in state-specific programs that help USDA loan recipients with closing costs and other fees.

Standout benefits: The Flex Funds program provides up to $4,000 toward closing costs or a down payment for borrowers who meet income requirements.

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Who’s this for? PrimeLending promises a 21-day closing for many borrowers, backed by a $5,000 guarantee. It received a 2023 MortgageCX award for closing timeframe.

Standout benefits: PrimeLending’s AdvantEDGE program allows borrowers to get approved within 24 hours and receive a $250 lender credit.

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

Credit score for USDA loans: 540

Types of mortgages: Conventional, USDA, VA, FHA, refinance, home equity loan, home equity line of credit, jumbo, reverse mortgage

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Servicing 1.4 million home loans, Flagstar is among the 10 largest mortgage companies in the country — and was one of the largest banks before its acquisition by New York Community Bank in 2022. Founded in 1987 as First Security Savings Bank, it currently has 390 locations across 10 states.

Flagstar received an A- from the Better Business Bureau and was given a below-average score for mortgage servicing by J.D. Power.

Credit score for USDA loans: Not disclosed

Types of mortgages: Conventional, USDA, VA, FHA, refinance, home equity loan, home equity line of credit, jumbo

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PNC Bank‘s origins date back to 1845 Pittsburgh. Today, this nationwide lender is the ninth-largest mortgage originator in the U.S., by volume and has more than 2,300 branches in 28 states.

PNC received an A+ rating from the Better Business Bureau but ranks poorly on J.D. Power’s customer satisfaction surveys.

Credit score for USDA loans: Not disclosed.

Types of mortgages: Conventional, USDA, VA, FHA, jumbo, refinancing

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Movement Mortgage earns praise for its customer service, including an above-average score on JD Power’s Mortgage Origination Satisfaction Survey and an A+ from the Better Business Bureau. Founded in 2008, it provides loans in all 50 states and has more than 775 branches nationwide.

Credit score for USDA loans: Not disclosed

Types of mortgages: Conventional, jumbo, VA, FHA, condo, HomeReady, renovation, refinance, reverse

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Based in Columbia, Missouri, employee-owned Flat Branch has offices in 12 states and is licensed in 38. Its website includes 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

Types of mortgages: Conventional, USDA, FHA, VA, HomeReady, Home Possible, refinance

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A subsidiary of PlainsCapital Bank, Dallas-based PrimeLending was started in 1986 and is licensed to offer loans in 24 states. It was ranked above average for mortgage origination and received an A+ from the Better Business Bureau.

Credit score for USDA loans: Not disclosed

Types of mortgages: Conventional, USDA, VA, FHA, jumbo, refinancing, HELOC

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A USDA loan is a mortgage backed by the U.S. Department of Agriculture. As a result, USDA loans don’t require a down payment and have lower rates than conventional loans and more flexible credit requirements.

Instead of mortgage insurance, borrowers pay a 1% upfront guarantee fee and an annual fee equal to 0.35% of the loan amount.

There are two kinds 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.

USDA loans are intended to help lower- and middle-income Americans afford homes in rural areas, so applicants must meet income and geographical requirements.

• Borrower income: You should make no more than 115% of the area median income (AMI) where you are buying for a USDA guaranteed loan from a private lender. For a USDA direct loan, borrowers should make no more than 80% of the AMI.
• Property location: The loan must be for a primary residence in a USDA-approved rural area. You can check a location using the USDA eligibility map.  
• Credit score: There is no set credit score requirement for USDA loans but, typically, lenders want to see a credit score of at least 640. Some lenders, like Guild Mortgage, will consider alternative forms of credit.
• Debt-to-income ratio: Your monthly housing costs shouldn’t exceed 34% of your gross monthly income and your overall debt-to-income ratio shouldn’t exceed 41%.

You’ll also be subject to a USDA-specific appraisal and be ready to move into the home within 60 days of closing.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage lender review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best small down payment mortgages.

To determine which USDA mortgage lenders are the best, CNBC Select analyzed dozens of U.S. mortgage providers, including online lenders and brick-and-mortar banks and credit unions. 

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

• USDA lending history: Not every mortgage lender provides USDA loans. We considered each lender’s USDA loan volume over recent years based on the Department’s rankings by volume nationally and within rural states.
• Closing timeline: The lenders on our list offer closing timelines that vary from as promptly as two weeks after the home purchase agreement has been signed to as many as 45 days after the agreement has been signed. Specific closing timelines have been noted for each lender.
• Flexible minimum and maximum loan amounts/terms: Each mortgage lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
• Streamlined application process: We considered whether lenders offered a convenient, fast online application process and/or an in-person procedure at local branches. 
• Customer support: Every mortgage lender on our list provides customer service via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.

After reviewing the above features, we sorted our recommendations by best for bad or no credit, for first-time homebuyers, for in-person experience, for borrowers in the Sun Belt, for borrowers in the Midwest and for a speedy closing.

Rates and fee structures advertised for mortgages fluctuate in accordance with the Federal Reserve rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee your interest rate and monthly payment will remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.

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