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Hal Bundrick, CFP® · Senior Writer Updated Mon, December 1, 2025 at 7:00 PM GMT+8 Mortgages insured by the U.S. Department of Agriculture, also known as USDA loans, cater to prospective homeowners looking for a small-town lifestyle. It is the only government-backed loan that seeks to develop safe rural communities for families of modest means. Here are our top picks for USDA lenders in December 2025.
The best USDA mortgage lenders: December 2025
Best USDA lender for low interest rates: Pennymac
Why Pennymac mortgages stand out: Pennymac is the largest U.S. lender of USDA loans and has a record of offering lower interest rates.
Pennymac USDA loan details
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Availability: All 50 states and Washington, D.C.
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Minimum credit score: 580 for USDA purchase loans, 620 for USDA manufactured home loans, and 640 for USDA refinances.
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Minimum down payment: 0%
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Debt-to-income ratio: 36%. (Note: Median DTI ratios are lender-submitted to Home Mortgage Disclosure Act surveys. Pennymac did not report DTI, so we used the requirement published on their website, which assumes a 20% down payment.)
Pros
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According to Yahoo Finance analysis of 2024 HMDA data, Pennymac offered relatively low mortgage rates to USDA borrowers in 2024.
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Mortgage rates are also easy to find and include complete disclosures. You can also drill down with details to get a more accurate rate estimate, including your credit score range, ZIP code, and whether you prefer a lower monthly payment or a smaller amount down.
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Detailed mortgage rate estimates are available without requiring a mortgage rep contact.
Cons
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Lower rates were offset by much higher-than-median loan costs in 2024.
Up Next
Best lender for USDA refinancing: CMG Financial
Why CMG Financial mortgages stand out: CMG Financial’s downloadable mortgage refinance guide provides a step-by-step guide to the process, with clickable links to popular loan programs, including USDA loans.
CMG Financial USDA loan details
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Availability: All 50 states and Washington, D.C.
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Minimum credit score: 620
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Minimum down payment: 0%
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Median debt-to-income ratio: 36%
Pros
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A refinance calculator lets you compare the monthly payment of your current loan to a new one.
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CMG has mastered the art of simplifying the loan process. Click on "USDA," and you'll get instant info on loan eligibility, credit score requirements, and all the details on how to qualify and apply for a USDA loan.
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The HomeFundIt program is a tool that works through your social network, allowing family and friends to contribute to your down payment savings as a gift.
Cons
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CMG doesn't offer sample mortgage rates or even an interest rate estimate tool. You have to apply — with a hard credit pull — to get an idea of your rate.
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The lender ranks below average in customer satisfaction, according to the 2025 J.D. Power U.S. Mortgage Origination Satisfaction Study.
Best USDA lender for borrowers with low credit scores: Cardinal Financial
Why Cardinal Financial stands out: Cardinal Financial earns a spot on our best USDA lenders list because it accepts lower credit scores for USDA loan applicants than most lenders.
Cardinal Financial USDA loan details
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Availability: 50 states and Washington, D.C.
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Minimum credit score: 580
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Minimum down payment: 0%
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Median debt-to-income ratio: 36%
Pros
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Cardinal Financial may accept a credit score as low as 580 on a USDA loan.
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Cardinal is one lender that is happy to highlight USDA loans. A slick video details the benefits of these loans — and might actually fuel your fire to move out of the city.
Cons
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Sample interest rates are not available on Cardinal's website. You'll need to speak to a loan originator.
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Cardinal Financial offered below-median interest rates and well-above-median loan costs to borrowers in 2024.
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According to J.D. Power, the lender ranks below average for customer satisfaction.
How to qualify for a mortgage without a credit score.
Best USDA lender for underserved communities: CrossCountry Mortgage
Why Cross Country Mortgage stands out: CrossCountry Mortgage has committed to better meeting the needs of underserved communities by expanding its tools and capabilities.
CrossCountry USDA loan details
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Availability: All 50 states, Washington, D.C., and Puerto Rico.
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Minimum credit score: 640
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Minimum down payment: 0%
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Median debt-to-income ratio: 36%
Pros
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CrossCountry has prioritized meeting the needs of diverse communities by taking steps like rolling out Spanish mortgage applications and a language toggle on its website.
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The CCM Community Promise program offers a forgivable grant of up to $6,000 to apply to your down payment for first-time home buyers in qualifying areas. A half dozen other assistance programs are also available.
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Offers a rich array of educational resources to guide USDA first-time home buyers through the loan process.
Cons
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Doesn't publish sample mortgage rates on its website.
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Ranks below average in customer satisfaction, according to J.D. Power.
Best full-service bank for USDA loans: U.S. Bank
Why U.S. Bank mortgages stand out: When it comes to full-service national banks, U.S. Bank is the largest USDA lender by volume. Having a banking relationship with your home loan lender may allow you to tap into other services and discounts in the future.
U.S. Bank USDA loan details
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Availability: All 50 states and Washington, D.C.
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Minimum credit score: 640
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Minimum down payment: 0%
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Median debt-to-income ratio: 30%
Pros
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As a full-service national bank, you can begin a financial relationship with a USDA mortgage loan and tap other U.S. Bank services as your needs grow.
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U.S. Bank has pledged to offer $100 million over five years in down payment assistance and lender fee credits to underserved families.
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You can make an application online, by phone, or with a loan officer at a branch location.
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U.S. Bank’s median debt-to-income ratio for USDA loans is lower than what our other top picks accept.
Cons
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Advertised mortgage rates have stiff down payment and above-average FICO score requirements.
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Branch offices are listed in 41 states. If you live in Alabama, Alaska, Hawaii, Louisiana, Mississippi, New Hampshire, New Mexico, Oklahoma, or Vermont, you'll need to apply by phone or online.
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The lender ranks below average in customer satisfaction, according to J.D. Power.
USDA guaranteed loan vs. USDA direct loan
Single Family Housing Guaranteed loans
These are no-money-down USDA loans issued by private lenders to moderate-income borrowers. Underwriters at approved USDA mortgage providers structure the loan terms to the agency's standards for houses in eligible areas.
Single Family Housing Direct loans
You apply for a Direct loan at a USDA Rural Development office in your state. It's a no-down-payment mortgage designed to assist the most financially vulnerable households in achieving home ownership in rural areas. These loans come with below-market mortgage rates.
How to qualify for a USDA loan
Choosing a mortgage lender that meets your needs is a matter of shopping around. You want lenders to compete for your business so that you can compare loan fees and interest rates side by side.
First, use a mortgage calculator to run some numbers on possible monthly payments. Make sure you're comfortable with the results.
Check your free credit history for any errors that need to be cleared up. Then, pull your own credit score. You will need at least a 580 FICO score to qualify for a USDA loan, though some lenders may look for a higher score. That's another good reason to shop multiple mortgage providers.
Remember to compare the annual percentage rate (APR) each lender offers. That's your interest rate, including all fees. You will receive a three-page Loan Estimate from each lender. Have a loan officer explain the first one to you, then compare the others you receive from competitors.
USDA loan pros and cons
Pros
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The biggest benefit of USDA loans is not having to come up with a down payment.
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You may also qualify for a USDA loan with the program's relaxed credit standards.
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USDA loans often have competitive mortgage rates.
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You could also be eligible for down payment assistance.
Cons
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Properties must be located in USDA-specified areas.
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USDA loans are meant to help financially vulnerable households, so there are income limits.
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There are up-front and annual USDA guarantee fees.
The best USDA loan lenders FAQs
Is it better to use a mortgage lender or a bank for a USDA loan?
It's best to keep an open mind when shopping for a USDA mortgage lender, because each type of lender has its own strengths. Banks often want to broaden their relationship with customers by offering a discount or fee concession on a mortgage. Credit unions have the same incentive to cater to existing members. And mortgage companies have the expertise to compete on interest rates and closing costs. By shopping with different types of lenders, you get the advantage of having them compete to win your business.
Who is the number one USDA mortgage lender in America?
According to 2024 Home Mortgage Disclosure Act data, Pennymac is the No. 1 USDA-approved lender by loan volume. Yahoo Finance also considers it one of the best USDA lenders.
What is the meaning of a USDA loan?
USDA loans are backed by the U.S. Department of Agriculture, hence USDA. You don't have to be a farmer, rancher, or in any type of agricultural business to get a USDA loan. But you do need to buy, build, or renovate a property in an eligible rural area.
Is a USDA loan the same as an FHA loan?
No. While both programs target borrowers of modest means, there are several differences between the two. You often do not need a down payment for a USDA mortgage; FHA loans require at least 3.5% down. USDA loans have income limitations; FHA mortgages have property value parameters. USDA loans are available in specific rural or suburban areas; FHA loans have no location restriction. It's best to consider all loan options and choose the one best for your circumstances.
What is the most you can borrow with a USDA loan?
The USDA Single Family Housing Direct loan borrowing limit depends on where you live, but in many counties, the limit is $419,300 in 2025. Find the limit for your county on the USDA Area Loan Limits page. The Single Family Housing Guaranteed loan program, which is administered by USDA-approved lenders, has no loan limit.
What is a good credit score for a USDA loan?
The U.S. Department of Agriculture doesn't set a minimum credit score for USDA loans — credit requirements vary by mortgage lender. Many lenders want to see a minimum score of 620.
Our methodology: How we chose the best USDA loan lenders
Yahoo Finance reviews mortgage lenders based on five primary considerations: 1) Interest rates. Using 2024 Home Mortgage Disclosure Act data from almost 5,000 mortgage companies, we analyze mortgage lenders based on issued mortgage rates below or above the annual median of reporting lenders. 2) Affordability. A measure of loan product availability and the willingness of a lender to offer government-backed loans, low down payments, down payment assistance, and consideration of nontraditional credit. 3) Loan costs. HMDA data is again analyzed, and total loan costs are compared to the annual median. 4) Rate transparency. The ability of a website user to obtain a mortgage interest rate estimate. We also consider whether rates are enhanced with discount points or high credit score requirements, disclaimers revealing rate assumptions, sample advertised rates, and whether adjustable or no discount point rate estimates are available. 5) Online features. An analysis of the educational material, calculators, and additional resources available to users.
Advertisers or sponsorships do not influence ratings.
Editorial disclosure for mortgages:
The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender's website for the most current information. This site doesn't include all currently available offers.
Laura Grace Tarpley edited this article.
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