Kentucky USDA Rural Development Guaranteed Section 502 Loans

Kentucky Rural Development Guaranteed Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Guaranteed Section 502 Loans Kentucky

Eligibility: Applicants for Kentucky loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here.   Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.  In addition, applicants must have reasonable credit histories.
Approved lenders under the Single Family Housing
Guaranteed Loan program include:

Terms: Loans are for 30 years.  The promissory note interest rate is set by the lender.
There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.

Standards: Under the Section 502 program, housing must be modest in size, design, and cost.   Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards.  Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan.

Approval:Rural Development officials have the authority to approve most Section 502 loan guarantee requests.

Guaranteed Section 502 Loans Kentucky

Basic Instruction: 7 CFR Part 1980.

We are not affiliated with, nor a part of USDA or any other Government Agency.

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7 thoughts on “Kentucky USDA Rural Development Guaranteed Section 502 Loans

  1. Great information, First of all many thanks to the author who wrote this article. It is incomprehensible to me now, but in general, the usefulness and significance is overwhelming. Thanks again and good luck!

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