What are the property requirements for a USDA Rural Housing Loan in Kentucky?






* The property must be a single family unit or an approved condominium unit.

* Homes must be located in designated rural areas. In Kentucky the following communities are ineligible: Jefferson County Kentucky, Fayette County KY, parts of Bullitt County, all though Shepherdsville and Mount Washington are okay for USDA Loans. Richmond KY, Paducah, KY, Hopkinsville, KY, and Bowling Green, Ky. Parts of Boone, Kenton and Campbell have eligible areas, please check website map below for more details

Rural Area Definition for USDA Housing Programs

The Agricultural Act of 2014 (Farm Bill) makes areas with population up to 35,000 and rural in character eligible for USDA Rural Housing Programs, with certain provisions. Changes to the eligible areas map based on the Farm Bill will be released on May 6, 2014, on the USDA Income and Property Eligibility Site. Select “Single Family Housing” under the Property Eligibility menu.

Stakeholders are advised that additional changes to eligible rural areas for USDA Rural Housing Programs as outlined in H.R.933, Consolidated and Further Continuing Appropriations Act of 2013 and the 2010 Census will take effect on October 1, 2014, barring further Congressional action. A preview of the “Future Eligible Areas” will be available on the USDA Income and Property Eligibility Site later this summer.


* Camps, existing mobile homes, and multifamily dwellings cannot be financed.

* Income-producing property cannot be financed.

* Homes may be new construction – stick built, modular or manufactured housing are all acceptable.


* Standard appraisal documents are acceptable.

* The dwelling must be determined to be decent, safe, and sanitary. This can be verified by a home inspection report or

HUD Appraiser Certifies that Property meets HUD Minimum Requirements.

* Private water supplies must be tested for potability.

Location: Kentucky has 120 counties, and USDA is not allowed in the following KY Counties: Jefferson, Fayette (whole county)  and parts of  McCracken, Boone, Kenton, Campbell, Bullitt, Daviess, Warren, Franklin and Christian counties. The best thing to do on the location is tell me an address and I can look it up for you.

I have a website that is really good for USDA loans, located at http://kentuckyruralhousingusdaloan.blogspot.com/p/usda-rural-housing-loan-program.html  that may assist and educate you about the program.
 In order to get you pre-approved, I will need the following items from you. This is a free process and I will give you a copy of your credit report for free. 
 Loan Checklist
The following is a list of documents that may be required to process your  mortgage loan:
  • One full month’s worth of pay stubs
  • Last 2 years W-2′s
  •  Last 2 years tax returns 
  • Last two months bank statements for all accounts
I don’t need originals, copies are fine. You can fax, email, or drop off at my office below . 
Let me know your questions. 
Thanks and look forward to helping you
Joel Lobb
Senior  Loan Officer
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 phone: (502) 905-3708
 Fax:     (502) 327-9119
 Company ID #1364 | MB73346

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