Borrowers without savings — or who wish to keep their savings — can qualify. Closing costs may also be financed if the appraised value exceeds the purchase price.

USDA has the lowest upfront and monthly mortgage insurance of any 100% loan program — keeping your monthly payment as low as possible on a 30-year fixed rate.

No minimum credit score is set by USDA, though lenders typically require 620–640. Borrowers with a 640+ score enjoy streamlined processing with no credit explanation letters needed.

Income limits are based on 115% of the U.S. median. Deductions apply for dependents, child-care expenses, and elderly households — making it easier for Kentucky families to qualify.

Any qualified buyer may use a USDA loan — not only first-time homebuyers. Sellers are also permitted to pay the buyer’s closing costs, further reducing out-of-pocket expenses.

Eligible areas include open country and towns with a population of 10,000 or less. Many Kentucky communities outside major metros qualify — check eligibility at the USDA website.