100% Financing in Kentucky for Home Loans

Did You know you can go 100% LTV with a 620 Score?
(in qualified areas in Kentucky )



USDA is a manually underwritten product that has to be delivered to the Local USDA branch to give the final UW approval and the Guarantee Commitment.


Ensure property eligiblty: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11

Borrowers household must meet income requirement *: http://www.rurdev.usda.gov/HSF-Guar_Income_Limits.html

*All household income, must be used to determine if they qualify for RD. (even if they are not on the loan)



Score –  Middle FICO 620

Tradelines– 3 tradelines with 12 months reporting (2 if we have 12 months rent checks also)    VOR or Rent free letter on every file

Employment – 2 years of employment in same field (recent college graduate – transcripts w/ employment within the field studied)

Funding Fee – 3.5% (see worksheet to determine loan amount)

Loan Amount – 103.5% can be calculated using appraised value if higher.  Allowing all fees to be rolled into the loan amount. 

DTI – Standard USDA DTI’s are 29/41%

Debt ratio waiver to 50% with compensating factors. **

The USDA has a max payment shock of 100%.  

Seller paid closing cost up to 6%

** Compensating factors would include reserves, down payment, 5 years on job, 24 months rent checks pd on time



BK’s- discharged 3 years (ch 7 or 13)            

Foreclosures 5 years

Collections- UW judgment, $1500 or less in medical can be left open, all others paid



Titles to be held in a Trust 

Non- Occupying Co-borrower


Escrow Holdbacks for repairs

3 thoughts on “100% Financing in Kentucky for Home Loans

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