7
Best USDA Loan Lenders Of 2026
Current Mortgage Rates
Featured Placement
$0 down, No PMI, Competitive Rates, Easier to Qualify
Veterans United Home Loans
Preapproval time:
2 to 3 days
Mortgage rates:
Competitive with the national average
Days to close:
35-day average
2 to 3 days
Competitive with the national average
35-day average
Compare the Best USDA Loan Lenders
Best USDA Lenders: A Closer Look
Flagstar Bank
Best for Customer Support
Flagstar Bank
Min. credit score
580
Mortgage rates
Lower than the national average
Days to close
35-day average
580
Lower than the national average
35-day average
We picked Flagstar Bank Mortgage because of its flexible customer support options. Customer service hours—including for email, phone and online chat—are Monday through Friday, 7:30 a.m. to 9 p.m. ET and Saturday 8:30 a.m. to 6 p.m ET. Plus, you can apply online or visit branch locations in Indiana, Michigan, Ohio and Wisconsin.
- Both online and branch locations (in a few states) available
- Convenient customer service hours
- Alternative data, such as utility and rent payments, are considered
- Low minimum credit score mortgages offered
- Branch locations aren’t available in every state
How to apply
Flagstar Bank offers several ways for customers to get a mortgage. They can apply online or visit a lender in person. They can also visit a branch location in Indiana, Michigan, Ohio and Wisconsin. Customer support hours, including for email, phone and online chat, are Monday through Friday, 7:30 a.m. to 9 p.m. ET and Saturday 8:30 a.m. to 6 p.m ET. Preapproval takes less than three days.
Speed
Flagstar’s average closing time is 35 days, which is shorter than the industry average. In some cases, closing can occur in as few as 11 days.
Eligibility
- Minimum credit score of 620
- Minimum down payment of 0% for VA and USDA loans, 3% for conventional loans and 3.5% for FHA loans
- Alternative credit data, such as rent, cell phone and utility payments, is accepted
Loan types
Flagstar Bank offers conventional and jumbo mortgages in fixed- and adjustable-rate structures, plus FHA, VA and USDA loans. It also offers construction and renovation loans as well as specialty loans, which include loans for multiple properties and loans in high-cost areas. Home equity loans are available in limited areas. You can enter your ZIP code on the Flagstar website to find out if you qualify for a home equity loan.
| Loan Type | Yes | No |
|---|---|---|
|
Conventional
|
✓
| |
|
FHA
|
✓
| |
|
VA
|
✓
| |
|
USDA
|
✓
| |
|
Jumbo
|
✓
| |
|
ARM
|
✓
| |
|
Home equity loan
|
Limited
| |
|
Specialty
|
✓- Multiple Property Loans, High-Balance Loans and Jumbo Adjustable Rate
|
Best National Bank USDA Lender: Flagstar Bank
Flagstar Bank is one of the nation’s largest mortgage loan originators and mortgage servicers. While branch locations can only be found in 29 states, USDA loans are available to borrowers online nationwide.
Available in All 50 States
Online application process available; in-person branches also are available at 87 retail locations in 29 states.
How To Apply
Flagstar Bank offers several ways for customers to get a mortgage. They can apply online or visit a lender in person.
Customer support hours, including for email, phone and online chat, are Monday–Friday, 7:30 a.m. to 8 p.m. ET and Saturday 7:30 a.m. to 4 p.m ET.
Speed
Preapproval time is less than three days, while its average closing time is 35 days, which is shorter than the industry average. In some cases, closing can occur in as few as 11 days.
Credit Requirements
Flagstar Bank has mortgage products with minimum credit score requirements of 680, however it doesn’t specify a minimum credit score for its USDA loans.
The lender considers alternative credit data, such as rent and utility payments, when reviewing mortgage applications.
PNC
Best for Fast Online Loan Preapproval
PNC
Min. credit score
620
Mortgage rates
Lower than the national average
Days to close
45-day average
620
Lower than the national average
45-day average
We picked PNC Bank Mortgage for its fully digital preapproval application, where borrowers can receive approval in a matter of minutes. Once you apply for a mortgage, you can follow the workflow online, upload supporting documents and even invite real estate agents into the process to monitor the final approval progress.
- Low minimum credit score requirements
- Fast preapproval time
- Online and in-person service available
- Several discount programs available
- Ample digital support for existing customers
- Does not offer renovation loans
How to apply
Borrowers can apply online or in person at a bank location in the following states and Washington D.C.: Alabama, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin.
Customer support by phone is available Monday through Thursday from 8 a.m. to 9 p.m. ET, Friday from 8 a.m. to 5 p.m. ET and Saturday from 9 a.m. to 2 p.m. ET. Preapproval can take as little as 30 minutes or up to one day.
Speed
The average closing time is 45 days, which is about the industry average. In some cases, the closing can be as short as 30 days.
Eligibility
- Minimum credit score of 620; 700 for jumbo borrowers
- Minimum down payment of 0% for VA loans, 3% for conventional loans and 3.5% for FHA loans (PNC doesn’t publish its down payment requirements for other loan types)
Loan types
PNC Bank offers a wide selection of home loans, including conventional, FHA, VA, USDA and jumbo loans, home equity loans and specialty loans for medical professionals.
| Loan Type | Yes | No |
|---|---|---|
|
Conventional
|
✓
| |
|
FHA
|
✓
| |
|
VA
|
✓
| |
|
USDA
|
✓
| |
|
Jumbo
|
✓
| |
|
ARM
|
✓
| |
|
Home equity loan
|
✓
| |
|
Specialty
|
✓ - Community (No PMI) Loan, Medical Professional Loan
|
Best for Fast Online Loan Preapproval: PNC
PNC Bank is one of the largest financial services institutions in the U.S. with approximately 2,300 branches across the country.
Available in All 50 States
PNC is available online in all 50 states, but it also has branches for borrowers more comfortable with a brick-and-mortar experience in the following states: Alabama, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin.
How To Apply
Borrowers can apply online or in person at a bank location. Customer support by phone is available Monday through Thursday from 8 a.m. to 9 p.m. ET, Friday from 8 a.m. to 5 p.m. ET and Saturday from 9 a.m. to 2 p.m. ET.
Speed
Preapproval takes between 20 to 30 minutes. The average closing time is 45 days, which is about the industry average. In some cases, closing can be as short as 30 days.
Credit Requirements
Borrowers must have a minimum credit score of 620, but aim for a score of at least 640 if you’re seeking a USDA loan.
Guild Mortgage
Best for Borrowers With Low Credit Scores
Guild Mortgage
Min. credit score
540
Mortgage rates
N/A
Days to close
17-day closing guarantee to qualified borrowers
540
N/A
17-day closing guarantee to qualified borrowers
We picked Guild Mortgage because it’s a great option for USDA borrowers with lower credit scores. It requires a minimum credit score of 540 for USDA loans—about 80 points less than what the average USDA mortgage lender requires.
- Minimum credit score of 540 for a USDA loan
- You can apply online or at brick-and-mortar locations (available in 45 states)
- E-closing capabilities available
- Guild Mortgage does not disclose current mortgage rates on its websites
- Not licensed in the state of New York
How to apply
Guild Mortgage offers both branch locations and online access to borrowers who want to apply for a USDA loan. Its paperless application process allows borrowers to send paperwork electronically as well as apply and keep track of the application process online.
Phone support is limited to weekdays from 6:00 a.m. to 5:00 p.m. PT; the lender is closed on weekends.
Speed
USDA loan preapproval times may vary compared to Guild Mortgage’s other offerings. However, you can expect a turnaround in less than a week.
Eligibility
- Minimum credit score of 540 for FHA, USDA and VA loans; 620 for conventional loans; and 680 for jumbo loans
- Minimum down payment of 0% for VA and USDA loans, 3% for conventional loans, 3.5% for FHA loans and 10% for jumbo loans
Loan types
Guild Mortgage’s product line includes fixed and adjustable-rate conventional mortgages, jumbo mortgages and government-backed loans such as FHA, USDA and VA loans. It also offers FHA renovation loans, new construction loans and home equity options.
| Loan Type | Yes | No |
|---|---|---|
|
Conventional
|
✓
| |
|
FHA
|
✓
| |
|
VA
|
✓
| |
|
USDA
|
✓
| |
|
Jumbo
|
✓
| |
|
ARM
|
✓
| |
|
Home equity loan
|
✓
| |
|
Specialty
|
✓- StrongStart Program; MH Advantage Program
|
Best for Borrowers with Low Credit Scores: Guild Mortgage
Guild Mortgage is a nationally recognized independent mortgage lender that offers USDA loans with “better-than-average” interest rates and a low credit score requirement.
Available in Most States
Guild Mortgage has over 200 branch locations in 43 states.
How To Apply
Guild Mortgage offers both branch locations and online access to borrowers who want to apply for a mortgage. Their paperless application process allows borrowers to send paperwork electronically as well as apply and keep track of the application process online.
Phone support is very limited, operating only Monday–Friday from 6:00 a.m. to 5:00 p.m. PT; the lender is closed on weekends.
Speed
Preapproval times are not as fast as other lenders, with a one- to three-day turnaround on preapproval letters. However, Guild Mortgage offers a 17-day closing guarantee, which can be attractive for borrowers who need to close quickly.
Credit Requirements
Guild Mortgage requires a minimum credit score of 540 for USDA loans—one of the lowest requirements we found among lenders researched.
Truist
Best for East Coast and Southern Borrowers
Truist
Min. credit score
620
Mortgage rates
Lower than the national average
Days to close
27 to 30 days
620
Lower than the national average
27 to 30 days
We picked Truist Mortgage specifically for borrowers on the East Coast and in the southern United States. Most of its branches are located in the eastern and southern portions of the U.S., giving borrowers in those regions the additional benefit of in-person support. However, Truist isn’t limited to those regions; it offers mortgages in 47 states (Alaska, Arizona and Hawaii are excluded) and Washington, D.C.
- Specialty loans are available, such as doctor loans and construction-to-permanent loans
- Applicants can get preapproved in the same day
- More than 2,500 branch locations
- Doesn’t operate in all 50 states
- Doesn’t offer home equity loans
- USDA loans are not available
How to apply
Borrowers can apply online or in person at one of more than 2,500 branch locations. Applicants can get a same-day mortgage preapproval.
Speed
Closing on a mortgage can take up to 30 days.
Eligibility
- Minimum credit score of 620
- Minimum down payment of 0% for VA and USDA loans, 3% for some conventional loans and 3.5% for FHA loans
Loan types
Truist offers fixed and adjustable-rate mortgages, VA loans, FHA loans, conventional and jumbo mortgages as well as doctor loans and construction-to-permanent loans.
| Loan Type | Yes | No |
|---|---|---|
|
Conventional
|
✓
| |
|
FHA
|
✓
| |
|
VA
|
✓
| |
|
USDA
|
✓
| |
|
Jumbo
|
✓
| |
|
ARM
|
✓
| |
|
Home equity loan
|
✓
| |
|
Specialty
|
✓- Doctor loans, construction-to-permanent loans
|
Best for Borrowers in East Coast and Southern States: Truist
Truist offers in-person and online mortgage services, including USDA loans, to some of the fastest-growing markets in the U.S.
Available in 47 States
Truist is available in 47 states plus Washington, D.C.; the exceptions being Alaska, Arizona and Hawaii. In addition, the bank has more than 2,000 branch locations, however most of them are located in the eastern and southern portions of the U.S.
You can find Truist branches in Washington, D.C. and the following 17 states: Alabama, Arkansas, Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi, North Carolina, New Jersey, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and West Virginia.
How To Apply
Borrowers can apply online or in person if branch locations are available. Customer support is available by phone Monday–Friday, 8 a.m. to 8 p.m. ET and Saturday from 8 a.m. to 5 p.m. ET. The bank is closed on Sundays.
Speed
Borrowers can count on getting preapproved within 24 hours.
Credit Requirements
Truist’s minimum credit score requirement for USDA loans is 620.
Tips for Comparing USDA Loans
USDA loans are designed for borrowers who might not qualify for a conventional mortgage but still meet USDA eligibility requirements. These requirements include buying a home in a designated area, meeting income limits and certifying that the home you’re buying will be your primary residence.
Before you begin comparing the best lenders for USDA loans, make sure you meet the requirements.
- To find out if the neighborhood or home you’re interested in is located in a qualifying area for a USDA mortgage, search the USDA eligibility map.
- You’ll also want to make sure your income does not exceed USDA thresholds, which is 115% of the median income in your area. Keep in mind that limits can vary depending on location and cost of living. The full list of income limits by area and family size can be found at the USDA.gov website.
Here are some tips to consider once you’re ready to compare USDA lenders:
- Identify which lenders offer USDA loans. Compile a shortlist of mortgage lenders that you’d like to work with and find out which ones offer USDA loans. The best USDA mortgage lenders often provide lower fees, flexible terms and competitive interest rates.
- Find out what rates each lender offers. Next, find out what interest rates they offer for USDA loans. You may be tempted to go with the one with the lowest rate, but consider the next tip before you do.
- Ask about the lender fees. Some lenders are less expensive than others. You might have to apply for a loan to get a more accurate picture of what interest rate you qualify for and how much the loan will end up costing.
After you apply for a USDA loan, you’ll receive a loan estimate. By applying with several lenders, you can compare these estimates and even use them to negotiate lower interest rates or certain fees, such as application or underwriting fees. This approach will help you narrow down the best USDA loan providers on your list.
Comparison shopping often leads to lower interest rates, so be sure to collect as much information as you can. You can use a loan estimate from one lender to potentially negotiate a lower rate with another lender. Shopping multiple lenders will improve your chances of scoring the best USDA loan.
Methodology
Forbes Advisor reviewed 12 mortgage lenders that do business both online and in person throughout the United States. The lenders we reviewed represent some of the largest mortgage lenders by volume, which include banks, credit unions and online lenders.
Our scoring methodology included capturing more than 10 data points, which covered interest rates, lender fees, discounts, accessibility and borrower requirements.
The best lenders for USDA borrowers excelled in areas that are historically important for this group including low- to average-credit score requirements, low lender fees and low interest rates.
The following is the weighting assigned to each category:
- Loan costs. 30%
- Speed. 20%
- Credit requirements. 20%
- Loan types offered. 20%
- Access and availability. 10%
Specific characteristics taken into consideration within each category include APR, average interest rate, origination fees, minimum credit score requirements, discounts and customer service availability.
We also offered bonus points up to 5% of the score when a lender considers alternative credit data.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.
What Is a USDA Loan?
USDA loans are mortgages backed by the U.S. Department of Agriculture to encourage homeownership in designated rural areas. Interest rates on these loans tend to be lower than those offered on conventional loans, which helps make them more affordable.
How Does a USDA Loan Work?
A USDA loan allows home buyers with qualifying incomes to buy, build or repair a home in eligible rural areas.
Some of the best USDA loan benefits include:
- No down payment
- Fixed interest rates
- No cash reserves
- Sellers may cover closing costs
- Payment assistance for income-qualified borrowers
USDA loans can make it easier to secure affordable housing, although borrowers pay an upfront guarantee fee of 1% and an annual guarantee of 0.35% for the life of the loan. The lender will collect this expense through the monthly loan payment.
It’s also possible to refinance non-USDA home loans into this program.
How To Apply for a USDA Loan
If you want to apply for a USDA loan, follow these steps:
- Check your credit. The USDA doesn’t have a set minimum credit score requirement. However, many lenders that offer these loans require a score of at least 640—though some accept lower scores than this. Either way, checking your credit beforehand is a good idea to see where you stand. You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureau to potentially boost your credit score.
- Find an eligible home. To get approved for a USDA loan, the home you want to purchase must be located in an eligible rural area. You can visit USDA.gov to research qualifying locations.
- Compare lenders and pick a loan option. Be sure to shop around and compare your options from as many top USDA lenders as possible to find the right loan for your needs. Afterward, choose the lender that works best for you.
- Complete the application. You’ll need to complete a full application and submit required documentation, such as tax returns and bank statements. If further information is requested, provide it to the lender as quickly as possible to avoid delays.
- Close on the loan. If approved, you can expect the closing process to take about 30 to 45 days, though sometimes it can be longer.
USDA home loans typically don’t require a down payment, making them an affordable option for eligible home buyers and households with minimal cash reserves. However, a 1% upfront guarantee fee and an annual 0.35% fee apply.
USDA Eligibility
There are a few basic requirements that you must meet to get approved for a USDA loan.
- Citizenship. You must be a U.S. Citizen, U.S. non-citizen national, or an immigrant designated as a qualified alien.
- Maximum income. USDA loans are meant for low- and middle-income households. To be eligible, your income can’t exceed 115% of the median household income in your area. You can check with your lender or on USDA.gov to see the exact income limits you’ll need to meet.
- Primary household. The home must be the primary residence of the borrower.
- Eligible home location. The home must be in an eligible rural area.
Credit Scores and USDA Loans
The USDA doesn’t set credit score requirements for its home loans. However, USDA-approved mortgage lenders often require a minimum credit score of 640. The USDA also allows lenders to use alternative credit metrics for applicants with a thin credit history.
It’s possible to qualify for USDA home loans with a credit score lower than 640, although the underwriting process is more extensive. For instance, the manual underwriting process may take your existing rent or mortgage payments into consideration. Lenders may also request a letter of explanation regarding derogatory marks on your credit report.
Pros and Cons of USDA Loans
Pros
- Up to 100% financing. Some lenders might still require a down payment, though.
- No specific minimum credit score. The USDA doesn’t have a fixed credit score requirement, though many lenders require a score of at least 640.
- Cash reserves are not required. Unlike other mortgages, you typically won’t need a set amount of cash reserves to be eligible for a USDA loan.
- Low interest rates. USDA loans often come with lower rates compared to rates on conventional loans.
Cons
- Income limitations. If your income exceeds 115% of the median household income in your area, you won’t be eligible for a USDA loan.
- Geography restrictions. The home you’re interested in must be located in a USDA-eligible rural area. If not, you’ll have to consider other types of loans.
- Mortgage insurance. Because USDA loans require little to no down payment, you might have to pay for mortgage insurance to help offset the lender’s risk. Unlike the private mortgage insurance (PMI) assigned to conventional loans, this insurance is generally charged as an annual guarantee fee. This comes in two parts: a 1% upfront guarantee fee and a yearly fee that equates to 0.35% of your loan balance.
- No duplexes. USDA loans are available only for single-family homes.
How To Choose a USDA Mortgage Lender
Like with any other type of mortgage, it’s important to take the time to find the right lender for you. To do so, compare your options from as many lenders that offer USDA loans as possible, including the top USDA lenders on our list. If you know someone who has worked with a USDA lender, they might be able to provide a recommendation and more in-depth information.
As you shop around, consider interest rates, repayment terms, any fees charged by the lender, and eligibility requirements. This will help you find a good deal as well as identify a lender that suits your needs.
USDA Guaranteed vs. Direct Loans
Two USDA loan programs are available for single-family home buyers and may not require a down payment or cash reserves. Income limits, repayment term, and the institution behind the loan are key differences.
How Do USDA Guaranteed Loans Work?
The USDA Section 502 Guaranteed Loan Program is the most common loan program with higher limits. It’s intended for borrowers with a low or moderate income not exceeding 115% of the area’s median household income.
This loan program only offers a 30-year repayment term and is available from approved USDA lenders.
How Do USDA Direct Loans Work?
The Section 502 Direct Loan program provides subsidized financing to very-low- and low-income households that may not qualify for other home loan programs.
Low-income borrowers are eligible for a payback period of 33 years while very-low-income households are eligible for a 38-year term.
Effective June 1, 2023, the maximum interest rate is 4%, although it can be as low as 1% with payment assistance. Aspiring homeowners must apply directly through USDA Rural Development instead of a private lender.
Is a USDA Loan a Good Idea?
A USDA loan is worth it for home buyers with a limited income and cash reserves since the program doesn’t typically require any down payment. This loan type may also offer lower rates than conventional loans.
The most substantial drawbacks for most borrowers are the upfront and annual guarantee fees. Additionally, borrowers can be subject to narrow income limits to qualify.
Mortgages expert Josh Patoka contributed to this article.
Frequently Asked Questions (FAQs)
What is the required credit score for USDA Loans?
The USDA doesn’t have a specific credit score requirement. However, you’ll typically need a credit score of at least 640 to qualify with most lenders.
Is it hard to get a USDA-guaranteed loan?
Not necessarily. For low-income borrowers who live in rural areas, it might be easier to qualify for a USDA-loan compared to getting a conventional loan. However, there could be difficulty in finding a home in an eligible area.
Why would a USDA loan get denied?
As with any type of loan, there are several reasons why someone could get denied for a USDA mortgage. Some common reasons that applications are rejected include:
- Unverifiable income (or making too much)
- Irregular source of income
- Poor credit
- Too much debt compared to your income
- Issues with the appraisal
What disqualifies a home from getting USDA financing?
To be eligible for USDA financing, a home must adhere to certain requirements. Some of these include:
- Safety and accessibility of the property
- Appraised value matches the sale price
- Property located in a designated rural area
If a home doesn’t meet these eligibility criteria, you won’t be able to get USDA financing for it.
What happens if I get married after taking out a USDA loan?
Newlyweds may consider a USDA streamlined assist refinance loan to add new borrowers that occupy the residence after originating the original loan.
Marriage doesn’t immediately impact the eligibility for an existing loan, as the underwriting only included the annual income for eligible adult occupants at the time of application. However, the applicant must provide the earnings from any domestic partner, significant other or fiance currently living in the household.
Who pays closing costs on a USDA loan?
Buyers are required to pay the USDA loan closing costs, although the seller or an interested party can contribute up to 6% of the sales price.
How long do you have to live in a home with a USDA loan before you can rent it out?
You must move in within 60 days after closing and live in the home for at least 12 months before you can rent it out.