Kentucky Rural Housing USDA loan program

What are the eligibility requirements for a Kentucky USDA loan?

Kentucky Rural Housing USDA loan program

The Kentucky Rural Housing USDA loan program has certain eligibility requirements .

Must be located in a eligible USDA Rural Housing Area.

The home would be your primary residence, not a rental property

Household income limits effective July 13, 2026 are $122,800 for a household of 1 to 4 people and $162,100 for a household of 5 to 8 people in most Kentucky counties. In Boone, Bracken, Campbell, Gallatin, Kenton and Pendleton counties the limits are $128,600 and $169,800. The cap counts every adult living in the home, not just the borrowers.

Clear CAIVRS Numbers.

No minimum credit score requirement. USDA does not publish one. A 640 middle score typically earns a GUS “Accept”; below 640 the file is manually underwritten. Most lenders apply their own 640 floor as an overlay.

What are USDA loan fees in Kentucky?

There are two fees on a USDA loan. An upfront fee, called the Guarantee fee and the monthly annual fee.

The upfront guarantee fee is 1.00 percent of the loan amount and can be financed into the mortgage instead of paid out of pocket. The annual fee is 0.35 percent, divided into 12 monthly payments and calculated on the average scheduled unpaid balance, so it shrinks every year.

It’s important to check the maximum income limits for your family size and where you live to get the most accurate data.

Advantages of USDA Loans

Zero Down Payment

No published minimum credit score

Can finance closing costs up to appraised value

Streamline refinance an existing USDA with less documentation

No max loan amount

Disadvantages of USDA Loans

only eligible in rural areas

Generally 36 months removed from a Chapter 7 bankruptcy discharge, foreclosure, deed-in-lieu or short sale. A Chapter 13 only needs 12 months of on-time plan payments with trustee permission, and a GUS Accept does not require a credit exception even inside those windows.

Limited to Income Requirements

Debt to income ratios tighter qualifying guidelines than FHA, Fannie Mae