Best USDA Lenders

When shopping for a USDA lender, it can be difficult to find the mortgage lender’s specific information on USDA loans. It is best to call directly or fill out a free online quote to learn if a lender is the right fit for you.

New American Funding is a direct mortgage lender available in all states except Hawaii. Headquartered in California, it has 170 locations across the country and has serviced over 219,000 loans. It offers a wide range of home loans, including government-backed loans like FHA, VA and USDA loans. For conventional and VA loans, it also offers a cash buyer program.

Many lenders want to see USDA applicants have a minimum credit score of 640, but New American Funding will consider buyers with a score of 580 or more. You can get a loan estimate without hurting your credit score, but this automatic quote might not include USDA options. The preapproval and loan application can also be completed online.

Note that there are several eligibility requirements the buyer and the property have to meet for approval. New American Funding helps streamline that process by working with you to identify your eligibility and to answer any questions you may have. Getting approval for a USDA loan can take 30 to 60 days.

USDA loans do not require a down payment or private mortgage insurance (PMI), so you will save money on those. However, there are still fees, many of which need to be paid upfront. These include lender fees and guarantee fees, along with traditional closing costs.

Based in North Carolina, Cardinal Financial is a licensed lender in all 50 states, but it has no in-person locations available. It matches you to a loan originator in your area and offers conventional mortgages, FHA, VA and USDA loans, as well as refinance options.

For USDA loans, Cardinal Financial offers both Guaranteed loans and USDA refinancing. It will consider buyers with a minimum credit score of 580. Loan rates are not published on its site, but rates are locked in between 30 to 90 days, depending on the type of loan.

It uses a custom-built loan origination platform, Octane, to streamline the mortgage process. With Octane, you can see your mortgage documents on demand and get updates when your loan enters the next step. It is available for Cardinal Financial customers through an internet browser, but the mobile app is still in the works.

While Cardinal Financial does not offer a price-match guarantee, it does say that it will try to beat or match any competitor’s rates if you get a lower offer. It also works hard to get loans through underwriting within 24 hours, though it is common to need to submit additional information as a protective financial measurement for both parties.

With over 20 years of experience, AmeriSave has helped over 628,000 borrowers buy a new home or refinance their current home. Based in Georgia, it can help homebuyers in every state except New York. It offers conventional loans, FHA loans, VA loans and USDA loans.

While AmeriSave’s USDA credit score requirement is not as low as New American Funding’s, it is lower than the national average. USDA applicants should have at least a credit score of 600 before applying.

AmeriSave allows you to check if you are eligible for a USDA loan and pre-qualify for a loan online, or you can scan the QR code from the site to initiate a chat with an AmeriSave loan officer. Once you are preapproved for a USDA loan, you can lock in that rate for 90 days, giving you plenty of time to find the right home in an eligible rural area.

AmeriSave works with homebuyers completely online; there are no branches.

A USDA loan is a type of mortgage offered by the U.S. Department of Agriculture (USDA). It provides low-interest home loans to individuals and families who are looking to purchase in an eligible rural area. The most notable benefit of these loans is that they come with no down payment requirement and no PMI, resulting in lower monthly payments compared with other loan types.

There are two types of USDA loans: Guaranteed and Direct. The more common loan is the USDA Guaranteed loan, which is funded through a private lender and available to low- to middle-income buyers. USDA Direct loans are made directly through the federal government and are harder to receive due to the strict eligibility requirements and rules. It is important to be aware that your original USDA lender might sell or transfer your loan to another company at some point, but your loan will still be classified as a USDA loan if this happens.

The first question you should ask any lender is how many USDA loans are processed and in what general areas — since loan specifics, like rates and terms, aren’t going to vary too much between lenders.

“We are all selling in the secondary market. Because of that all of our rates are going to be roughly the same,” said A.W. Pickel III, former CEO of Waterstone Mortgage in Pewaukee, Wisconsin. “Terms will also be the same across lenders, since USDA Guaranteed loans are only available in 15- or 30-year terms, and USDA Direct loan terms are 33 or 38 years.”

Minimum eligibility requirements to qualify for a USDA loan are set by the government, so you won’t see a big difference in minimum credit scores or maximum debt-to-income (DTI) ratios.

USDA Direct Loans and USDA Guaranteed Loans are two special loan programs that are sponsored by the U.S. Department of Agriculture. While both types of loans offer similar benefits, there are some differences.

USDA Direct loans

For a USDA Direct loan, the borrower receives the money directly from the government. This type of loan is available to low-income borrowers who may not qualify for traditional financing or have been unable to secure a loan from other sources. The government requires borrowers to earn at least 50% to 80% of the median income in their area.

Homes secured by USDA Direct loans must not be larger than 2,000 square feet. The property cannot have an in-ground swimming pool and cannot be used for income-generating purposes. The interest rate offered by the government is low, and loan terms can range between 33 and 38 years.

USDA Guaranteed loans

USDA Guaranteed loans are funded by private lenders approved by the government. Borrowers must have low to moderate income. Lenders can approve buyers with incomes up to 115% of the area median. Certain areas of the country have higher income limits. Since these loans are through private lenders, the lender sets its own credit score requirements.

USDA Guaranteed loans have a fixed, low interest rate for a term of 30 years.

USDA home improvement loans

These loans are available to eligible borrowers who need assistance with things like roof repairs, siding replacement or window upgrades. Loans of up to $40,000 and grants of up to $10,000 are available to low-income homeowners who are in USDA-eligible rural areas.

If you meet USDA eligibility requirements, the right lender can help you secure your dream home with all the perks that come with a USDA loan. Remember: Not all lenders offer this type of loan, so it is best to make sure you find a lender that’s experienced in USDA loans.