Kentucky USDA Rural Housing Home Loans

Kentucky USDA Rural Housing Home Loans

Kentucky USDA Loans

What are USDA Home Loans?
USDA stands for United States Department of Agriculture. A USDA Mortgage provides a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely the best home loan option if you want to purchase a home with no down payment. If you’re unsure about your credit rating, or have concerns about a down payment when you’re doing a home loan comparison, USDA Rural Mortgage Loans can give you piece of mind with zero-down, super low closing costs and no monthly mortgage insurance.

What Types of Loans does USDA offer in Kentucky?
Currently, there are two kinds of USDA Home Loans available in Kentucky for single family households:

USDA Guaranteed Rural Housing Loans
USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loan in Kentucky and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.

USDA Direct Rural Housing Loans
USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I am eligible for a USDA Loan in Kentucky?
To be eligible for A USDA Rural Loan in Kentucky, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval through most lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

What is the maximum amount that I can borrow?
The maximum amount for an USDA home loan is determined by:

Maximum Loan Amount: The is no set maximum loan amount allowed for USDA Rural Home Loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).

How much money will I need for the down payment and closing costs?
USDA Rural Development Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed for USDA Rural Loan Mortgages?
While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

Additional lender offers.

Kentucky USDA Loan Adjusted Maximum Income Limits by County
Updated 05/01/2009
County Name
1-4 Person Households
(Guaranteed Loans)
5-8 Person Households
(Guaranteed Loans)
NON-METRO
ADAIR
$73,600
$97,150
NON-METRO
ALLEN
$73,600
$97,150
FRANKFORT, KY (MICRO)
ANDERSON
$73,600
$97,150
PADUCAH, KY-IL (MICRO)
BALLARD
$73,600
$97,150
GLASGOW, KY (MICRO)
BARREN
$73,600
$97,150
MOUNT STERLING, KY (MICRO)
BATH
$73,600
$97,150
MIDDLESBOROUGH, KY (MICRO)
BELL
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
BOONE
$73,600
$97,150
LEXINGTON-FAYETTE, KY (MSA)
BOURBON
$73,600
$97,150
HUNTINGTON-ASHLAND, WV-KY-OH (MSA)
BOYD
$73,600
$97,150
DANVILLE, KY (MICRO)
BOYLE
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
BRACKEN
$73,600
$97,150
NON-METRO
BREATHITT
$73,600
$97,150
NON-METRO
BRECKINRIDGE
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
BULLITT
$73,600
$97,150
NON-METRO
BUTLER
$73,600
$97,150
NON-METRO
CALDWELL
$73,600
$97,150
MURRAY, KY (MICRO)
CALLOWAY
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
CAMPBELL
$73,600
$97,150
NON-METRO
CARLISLE
$73,600
$97,150
NON-METRO
CARROLL
$73,600
$97,150
NON-METRO
CARTER
$73,600
$97,150
NON-METRO
CASEY
$73,600
$97,150
CLARKSVILLE, TN-KY (MSA)
CHRISTIAN
$73,600
$97,150
LEXINGTON-FAYETTE, KY (MSA)
CLARK
$73,600
$97,150
NON-METRO
CLAY
$73,600
$97,150
NON-METRO
CLINTON
$73,600
$97,150
NON-METRO
CRITTENDEN
$73,600
$97,150
NON-METRO
CUMBERLAND
$73,600
$97,150
OWENSBORO, KY (MSA)
DAVIESS
$73,600
$97,150
BOWLING GREEN, KY (MSA)
EDMONSON
$73,600
$97,150
NON-METRO
ELLIOTT
$73,600
$97,150
NON-METRO
ESTILL
$73,600
$97,150
LEXINGTON-FAYETTE, KY (MSA)
FAYETTE
$73,600
$97,150
NON-METRO
FLEMING
$73,600
$97,150
NON-METRO
FLOYD
$73,600
$97,150
FRANKFORT, KY (MICRO)
FRANKLIN
$73,600
$97,150
UNION CITY, TN-KY (MICRO)
FULTON
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
GALLATIN
$73,600
$97,150
NON-METRO
GARRARD
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
GRANT
$73,600
$97,150
MAYFIELD, KY (MICRO)
GRAVES
$73,600
$97,150
NON-METRO
GRAYSON
$73,600
$97,150
NON-METRO
GREEN
$73,600
$97,150
HUNTINGTON-ASHLAND, WV-KY-OH (MSA)
GREENUP
$73,600
$97,150
OWENSBORO, KY (MSA)
HANCOCK
$73,600
$97,150
ELIZABETHTOWN, KY (MSA)
HARDIN
$73,600
$97,150
NON-METRO
HARLAN
$73,600
$97,150
NON-METRO
HARRISON
$73,600
$97,150
NON-METRO
HART
$73,600
$97,150
EVANSVILLE, IN-KY (MSA)
HENDERSON
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
HENRY
$73,600
$97,150
NON-METRO
HICKMAN
$73,600
$97,150
MADISONVILLE, KY (MICRO)
HOPKINS
$73,600
$97,150
NON-METRO
JACKSON
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
JEFFERSON
$73,600
$97,150
LEXINGTON-FAYETTE, KY (MSA)
JESSAMINE
$73,600
$97,150
NON-METRO
JOHNSON
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
KENTON
$73,600
$97,150
NON-METRO
KNOTT
$73,600
$97,150
NON-METRO
KNOX
$73,600
$97,150
ELIZABETHTOWN, KY (MSA)
LARUE
$73,600
$97,150
LONDON, KY (MICRO)
LAUREL
$73,600
$97,150
NON-METRO
LAWRENCE
$73,600
$97,150
NON-METRO
LEE
$73,600
$97,150
NON-METRO
LESLIE
$73,600
$97,150
NON-METRO
LETCHER
$73,600
$97,150
MAYSVILLE, KY (MICRO)
LEWIS
$73,600
$97,150
DANVILLE, KY (MICRO)
LINCOLN
$73,600
$97,150
PADUCAH, KY-IL (MICRO)
LIVINGSTON
$73,600
$97,150
NON-METRO
LOGAN
$73,600
$97,150
NON-METRO
LYON
$73,600
$97,150
RICHMOND-BEREA, KY (MICRO)
MADISON
$73,600
$97,150
NON-METRO
MAGOFFIN
$73,600
$97,150
NON-METRO
MARION
$73,600
$97,150
NON-METRO
MARSHALL
$73,600
$97,150
NON-METRO
MARTIN
$73,600
$97,150
MAYSVILLE, KY (MICRO)
MASON
$73,600
$97,150
PADUCAH, KY-IL (MICRO)
MCCRACKEN
$73,600
$97,150
NON-METRO
MCCREARY
$73,600
$97,150
OWENSBORO, KY (MSA)
MCLEAN
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
MEADE
$73,600
$97,150
MOUNT STERLING, KY (MICRO)
MENIFEE
$73,600
$97,150
NON-METRO
MERCER
$73,600
$97,150
GLASGOW, KY (MICRO)
METCALFE
$73,600
$97,150
NON-METRO
MONROE
$73,600
$97,150
MOUNT STERLING, KY (MICRO)
MONTGOMERY
$73,600
$97,150
NON-METRO
MORGAN
$73,600
$97,150
CENTRAL CITY, KY (MICRO)
MUHLENBERG
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
NELSON
$73,600
$97,150
NON-METRO
NICHOLAS
$73,600
$97,150
NON-METRO
OHIO
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
OLDHAM
$73,600
$97,150
NON-METRO
OWEN
$73,600
$97,150
NON-METRO
OWSLEY
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
PENDLETON
$73,600
$97,150
NON-METRO
PERRY
$73,600
$97,150
NON-METRO
PIKE
$73,600
$97,150
NON-METRO
POWELL
$73,600
$97,150
SOMERSET, KY (MICRO)
PULASKI
$73,600
$97,150
NON-METRO
ROBERTSON
$73,600
$97,150
RICHMOND-BEREA, KY (MICRO)
ROCKCASTLE
$73,600
$97,150
NON-METRO
ROWAN
$73,600
$97,150
NON-METRO
RUSSELL
$73,600
$97,150
LEXINGTON-FAYETTE, KY (MSA)
SCOTT
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
SHELBY
$73,600
$97,150
NON-METRO
SIMPSON
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
SPENCER
$73,600
$97,150
CAMPBELLSVILLE, KY (MICRO)
TAYLOR
$73,600
$97,150
NON-METRO
TODD
$73,600
$97,150
CLARKSVILLE, TN-KY (MSA)
TRIGG
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
TRIMBLE
$73,600
$97,150
NON-METRO
UNION
$73,600
$97,150
BOWLING GREEN, KY (MSA)
WARREN
$73,600
$97,150
NON-METRO
WASHINGTON
$73,600
$97,150
NON-METRO
WAYNE
$73,600
$97,150
EVANSVILLE, IN-KY (MSA)
WEBSTER
$73,600
$97,150
CORBIN, KY (MICRO)
WHITLEY
$73,600
$97,150
NON-METRO
WOLFE
$73,600
$97,150
LEXINGTON-FAYETTE, KY (MSA)
WOODFORD
$73,600
$97,150

USDA Loan information for Kentucky’s top cities:

Louisville Kentucky USDA Loans Lexington Kentucky USDA Loans Fayette Kentucky USDA Loans
Owensboro Kentucky USDA Loans Bowling Green Kentucky USDA Loans Florence Kentucky USDA Loans
Paduca Kentucky USDA Loans Richmond Kentucky USDA Loans Elizabethtown Kentucky USDA Loans

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• Credit Scores and the Kentucky USDA Rural Development Loan Program (kentuckyfirsttimehomebuyer.com)
• Louisville Kentucky mortgage rates 08/01/2011 (louisvillekymortgage.net)
• Kentucky USDA Rural Development Mortgage Loan (kentuckyusdaloan.wordpress.com)
• Current Louisville Kentucky today’s mortgage rates 07/31/2011 (kentuckyfirsttimehomebuyer.com)
• Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: KENTUCKY USDA RURAL DEVELOPMENT LOANS ZERO DOWN (louisvillekentuckymortgagerates.com)
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