Neighbors Bank Mortgage Review 2025: USDA Loan Specialist With Strong Customer Ratings

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Our take: Neighbors Bank is a smaller, online-first lender that’s carved out a niche with USDA loans, and it’s great at them. If you’re buying in a rural or suburban area, or you’re a first-time buyer who wants a little extra hand-holding, this lender is worth a serious look.
Overall, Neighbors is a solid choice for USDA borrowers, but you should still compare it to the best mortgage lenders.

Mortgages

• Strong USDA loan expertise
• High customer satisfaction ratings
• Easy online application process

• Rates not published online
• Higher credit score requirements for some loan types

Rates (APR)	Not published online
Loan amounts	Based on loan type and program limits
Repayment terms	15 – 30 years (depending on loan type)
Min. down payment	0% (USDA, VA), 3.5% (FHA), 3% (Conventional)
Customer ratings*	4.7/5 Trustpilot, A+ BBB rating

Neighbors Bank isn’t your typical nationwide lender. Headquartered in rural Missouri, it’s an online-first bank that specializes in helping people buy homes with government-backed loans like USDA, FHA, and VA mortgages.

If you’ve been wondering whether Neighbors Bank is legit, or the right lender for your situation, this Neighbors Bank mortgage review covers everything you need to know.

Table of Contents

1. Neighbors Bank company profile
2. Loan types
   1. FHA
   2. Conventional
   3. USDA
   4. VA
3. Customer reviews
4. Pros and cons
5. Neighbors Bank alternatives
   1. vs. SoFi
   2. vs. Rocket Mortgage
   3. vs. Quicken Loans

Neighbors Bank company profile

Neighbors Bank has been around since 1945 and is an Equal Housing Lender and FDIC member (NMLS #491986). The bank was founded in Clarence, Missouri, but it’s now headquartered in Columbia, Missouri.

Unlike big lenders with hundreds of branches, Neighbors Bank operates primarily online, so you won’t find a branch on every corner. Instead, the bank leans into a digital-first model, pairing online tools with real loan officers to guide borrowers through the process.

What really sets Neighbors Bank apart is its focus on USDA loans. It consistently ranks among the top lenders for this program (so it’s a go-to choice for rural buyers who qualify). Beyond USDA, the bank also offers FHA, VA, and conventional mortgages, so there are options whether you’re a first-time buyer or a seasoned homeowner.

Loan types offered by Neighbors Bank

Neighbors Bank keeps it simple by focusing on four main types of mortgages: USDA, FHA, VA, and conventional loans. Here’s how they stack up.

FHA loan

FHA loans are made for first-time buyers and those with higher debt-to-income ratios. Neighbors Bank requires at least a 620 score and a 3.5% minimum down payment.

For reference, many other FHA lenders will accept credit scores as low as 580. If your credit score is too low, though, Neighbors Bank has a free credit counseling program to help. Neighbors Bank also has jumbo FHA loans.

Fixed rates (APR)	Fixed rates available
Loan amounts	Up to FHA county limits
Max. DTI ratio	43%
Min. down payment	3.5%
Min. credit score	Typically 620

Conventional mortgage loan

Neighbors Bank has a few conventional mortgage options for borrowers with strong credit and savings. These programs include:

• Regular conventional loans for typical homebuyers
• Jumbo loans for financed amounts of more than $806,500
• HomeReady and Home Possible loans for those with lower incomes
• HomeOne loans for first-time homebuyers

For many Neighbors Bank conventional mortgages, you’ll need at least 3% down, though putting at least 20% down helps you avoid private mortgage insurance (PMI).

Rates	Not disclosed; fixed and variable rates available
Loan amounts	Up to conforming loan limits ($806,500 in 2025, higher in some areas)
Repayment terms	10 – 30 years
Min. down payment	3% for most programs
Credit score	Typically 640 for regular conventional (620 for other programs)

USDA loan

If you’re in the market for a USDA loan, Neighbors Bank might need to be your first stop. (The bank is a Top 3 USDA Lender.) Its USDA loans are designed for buyers in rural or suburban areas. They come with standout perks like no down payment and generally lower rates than conventional mortgages.

Rates	Typically lower than conventional mortgage rates
Loan limits	None
Min. credit score	Usually 620
Min. down payment	None required
Income limits	Up to 115% of area median income
Property requirements	Must be in a USDA-eligible area, primary residence only

VA loan

Neighbors Bank VA loans are available to qualified service members, veterans, and eligible spouses. These loans have no down payment and no private mortgage insurance (PMI), plus competitive rates.

Rates	Fixed or variable; typically lower than average
Loan amounts	Up to $484,350 (higher in high-cost counties)
Repayment terms	15 or 30 years
Min. down payment	None required
Credit score	Typically 620+
Fees	One-time VA funding fee (may be financed)

Is Neighbors Bank legit? Customer reviews and ratings

Neighbors Bank is a licensed lender (NMLS ID #491986) and an FDIC member, so there’s no question it’s a legitimate mortgage company. The more important question is what it’s like to work with.

Source	Rating	Number of reviews
Trustpilot	4.8/5	423
Better Business Bureau (BBB)	4.2/5	15
Google	4.7/5	623

Many borrowers said the homebuying process felt approachable and less stressful than they expected. Loan officers often get credit for being patient, answering questions quickly, and guiding people step by step.

The Better Business Bureau gives Neighbors Bank an A+ rating, and it’s BBB-accredited.

Of course, it’s not all perfect. A few reviewers mention hiccups in communication, which can feel stressful when you’re trying to close on a home.

Here’s the bottom line:

• What it does well: Great hand-holding for first-time buyers, responsive loan officers, and a user-friendly digital process.

• Where to be cautious: Rates aren’t listed upfront, and the experience can vary depending on your loan officer.

Neighbors Bank pros and cons

Pros

• Consistently ranks as a top 3 USDA lender

• Excellent customer reviews

• VA and first-time buyer friendly

Cons

• Rates and fees aren’t published online

• Service quality can depend on your assigned loan officer

• Some credit score requirements are stricter than with other lenders

How Neighbors Bank compares to other mortgage lenders

Neighbors stands out for its USDA loans. If that’s what you’re after, it’s hard to beat. By contrast, some top mortgage lenders like Rocket Mortgage or Quicken Loans tend to put more emphasis on conventional or jumbo mortgages, and online players like SoFi often market to borrowers with strong credit who want a fast, no-frills process.

Here’s a quick side-by-side:

Neighbors Bank vs. SoFi

SoFi is best known for a sleek, digital mortgage experience that appeals to borrowers with strong credit and straightforward financials. It offers a close-on-time guarantee, jumbo loan options, and integration with other SoFi products like banking and investing.

• Choose Neighbors Bank if you’re buying in a USDA-eligible area or want more guidance through the process.
• Choose SoFi if you’re a tech-savvy borrower who values speed and has excellent credit.

Neighbors Bank vs. Rocket Mortgage

Rocket Mortgage is a major online lender with a wide range of loan products, including conventional, FHA, VA, jumbo, and refinance options. It’s known for its customizable terms, user-friendly app, and fast approvals.

Neighbors Bank, while smaller, specializes in USDA loans and provides more personalized support. You won’t find dozens of custom loan programs, but you will find dedicated loan officers who walk you through every step.

• Choose Neighbors Bank if you’re focused on USDA, FHA, or VA loans and want responsive, personal service.
• Choose Rocket Mortgage for a broader menu of options and a self-guided digital experience.

Neighbors Bank vs. Quicken Loans

Quicken Loans (also part of Rocket Companies) stands out for its flexible loan terms and deep experience in mortgage lending. It offers custom amortization schedules and a variety of loan types, including jumbo and refinance options.

While Quicken is ideal for experienced homeowners or those with complex needs, Neighbors Bank is great for USDA and first-time buyers, especially those who benefit from one-on-one guidance and a less intimidating process.

• Choose Quicken Loans if you need flexible loan structuring or access to more complex mortgage options.
• Choose Neighbors Bank if you’re a first-time or rural homebuyer who wants step-by-step help.

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