I am a Kentucky based USDA Mortgage Lender that has originated over 300 KY Rural Housing Mortgage Loans in Kentucky
Author: Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans
Kentucky USDA Loans | Rural Housing Loans Kentucky.
via Kentucky USDA Loans | Rural Housing Loans Kentucky.
Buy a Home with No Down-Payment or Refinance Your Mortgage to 100% Just a few years ago, most mortgage companies offered no money down home loans, but today only there are only a handful of experienced lenders offering the USDA and VA home loans. Don’t miss out on affordable mortgage rates for no equity mortgages. Now is the time to discuss no money down home buying or no equity refinancing while rates are low and the programs still exist.
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Joel Lobb
Mortgage Broker – FHA, VA, USDA, KHC, Fannie Mae
EVO Mortgage • Helping Kentucky Homebuyers Since 2001
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 Call/Text: 502-905-3708 Email: kentuckyloan@gmail.com Website: www.mylouisvillekentuckymortgage.com  Address: 911 Barret Ave, Louisville, KY 40204NMLS #57916 | Company NMLS #1738461 |
| Free Info & Homebuyer Advice → |
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Kentucky Mortgage Loan Expert
FHA | VA | USDA | KHC Down Payment Assistance | Fannie Mae
Equal Housing Lender. This is not a commitment to lend. All loans are subject to credit approval and program requirements.
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If you have a credit score below 640 you will probably get referred for a manual underwrite which means the income and credit requirements are much tougher for scores below 640. We can do scores down to 620 but usually it is best to try and raise your score to 640 so we can get an automated approval thru GUS.
If GUS returns an refer/eligible, then we can consider doing a manul underwrite on your loan approval. This usually entails a verifiable rent history over the last 12 months with no lates, and the debt to income ratios are usually tied to the industry old standard of 29% and 41% respectively.
If GUS returns an ineligible status, then your loan is automatically denied and there is no chance of getting approved when this result shows.
Collections:
If you have any delinquent back taxes, student loans they would need to be paid or brought current so you don’t have any liens to the government.
Delinquent Government Debt (back taxes, student loans
Medical bills are usually okay if they are not showing as a garnishment against you or on the title search.
Large unpaid utility bills, credit card charge offs, and car repos will usually have to be paid before closing. You will have to show you have funds to pay these off before closing.
Foreclosure:
You have to be 3 years removed from a foreclosure to qualify for a Kentucky RHS loan.
Bankruptcy:
By Joel Lobb, Kentucky Mortgage Loan Officer | NMLS ID: 5791
Dreaming of homeownership in Kentucky but think a past bankruptcy or foreclosure has you permanently sidelined? Think again! USDA Rural Housing loans offer a powerful pathway to homeownership, even after financial setbacks. I have over 20 years of experience in helping Kentucky families achieve their homeownership dreams. I’ve guided hundreds of clients through this exact situation.
In this comprehensive guide, you’ll discover how to qualify for a USDA loan after bankruptcy. You will understand the credit requirements and navigate income limits. You’ll also find your perfect Kentucky home in an eligible rural area.
USDA Rural Housing loans aren’t just for farmers! These government-backed mortgages are designed to promote homeownership in rural America. Under USDA guidelines, 97% of Kentucky qualifies as “rural”.
✅ Zero Down Payment Required – 100% financing available ✅ No Monthly PMI – Unlike FHA loans ✅ Lower Interest Rates – Competitive rates backed by the federal government ✅ Flexible Credit Requirements – Options for borrowers rebuilding credit ✅ Forgiving After Financial Hardship – Shorter waiting periods than conventional loans ✅ Kentucky-Wide Availability – Most areas outside Louisville and Lexington qualify
Important Update: New affordability rules take effect November 4, 2025. It is crucial to apply sooner rather than later. Doing so will maximize your buying power.
One of the most common questions I hear is: “Can I still get a USDA loan after bankruptcy?” The answer is YES – but timing matters.
Standard Waiting Period: 3 years from discharge date
Reduced Waiting Period: 2 years with extenuating circumstances
What counts as “extenuating circumstances”?
Important Note: The waiting period begins from the discharge date, not the filing date. Make sure you have your bankruptcy discharge paperwork ready.
Waiting Period: 12 months of consistent, on-time, court-approved payments
Key Requirements:
Pro Tip: Start preparing your USDA loan application around month 10 of your Chapter 13 payments so you’re ready to move forward immediately after meeting the 12-month requirement.
USDA Waiting Period After Foreclosure: 3 years from completion date
Can Be Reduced to 2 Years If:
Waiting Period: Generally 3 years, similar to foreclosure
Exception: May be reduced with extenuating circumstances and strong compensating factors
While the USDA doesn’t set an official minimum credit score, most Kentucky lenders require a FICO score of at least 620 to qualify for automated underwriting approval.
Don’t give up! You may still qualify through manual underwriting if you can demonstrate:
Strong Compensating Factors:
After Bankruptcy or Foreclosure, Focus On:
Timeline for Credit Recovery:
This article provides general information about USDA Rural Housing loans in Kentucky. Individual circumstances vary, and this should not be considered legal or financial advice. USDA guidelines are subject to change, and all information is current as of October 2025.
This website and its content are not endorsed by the USDA, FHA, VA, or any government agency. It is an independent platform created to educate and assist Kentucky homebuyers.
Bankruptcy and foreclosure situations require individual assessment. Always consult with a qualified mortgage professional and, if needed, legal counsel for guidance specific to your situation.
Ready to explore your USDA loan options after bankruptcy or foreclosure?
📧 Email: kentuckyloan@gmail.com 📞 Call/Text: 502-905-3708
Licensed Kentucky Mortgage Professional
Visit: www.nmlsconsumeraccess.org
Kentucky USDA Loan Guide
USDA appraisals follow FHA minimum property standards to confirm value and ensure the home is safe, sound, and move-in ready.
The USDA appraisal is completed by an FHA-approved appraiser and must follow FHA property requirements. The report typically includes language substantially similar to:
“The subject meets minimum standards as set under guidelines established by the U.S. Department of Housing and Urban Development and indicated in Handbook 4000.1.”
Bottom line: USDA is designed for homes in move-in condition, not fixer-uppers.
A limited repair escrow option may be available through select USDA lenders. If you think repairs may be required, tell me before you write the offer so we can align the lender strategy up front and avoid avoidable delays.
An FHA/USDA appraisal is not a full home inspection. Buyers should still obtain an independent home inspection to evaluate overall condition, components, and long-term maintenance risks.
As with all loan programs, the USDA Loan requires that an independent appraiser inspect the subject property in order to determine the property value. Specific to a USDA Loan, the appraisal report will be conducted by an FHA approved appraiser. The appraisal report must include verbiage or similar verbiage:
“The subject meets minimum standards as set under guidelines established by the U.S. Department of Housing and Urban Development and indicated in Handbooks 4000.1”
No different from a FHA or VA appraisal inspection, the appraiser is required to document all property deficiencies that preclude the appraiser from signing off on their report. A property deficiency is any defect to the house that the appraiser deems necessary to have repaired to ensure compliance to the loan program guidelines. Typical examples of property deficiencies include:
If a property has deficiencies, the appraiser will determine the value of the property, but state that their report is subject to the property defects listed being corrected. After the property defects are repaired, the appraiser will re-inspect the property, and signoff if the required repairs have been completed.
Bottom line, the USDA Loan program is designed to finance homes that are in move-in condition, not fixer-uppers. However, on a subsequent email I will review an option to establish a repair escrow account to address certain property deficiencies. The repair escrow account is only available through one of my many USDA lenders, so it is imperative to inform me when making an offer a house if this option will be required.
Kentucky USDA appraisals can take home buyers by surprise. That’s why we’ve put together some good-to-know info about the process. Feel free to use this to help educate your clients.
The property must pass an FHA appraisal, so USDA and FHA have the same appraisal requirements, which determines the current market value and makes sure the house meets certain safety standards. Here is a list of items an FHA appraiser may look for:
General Health and Safety
Exterior
Every Room
Kitchen
Bathrooms
Crawl space or basement
Heating and Plumbing
These are some common items an FHA appraiser looks for, but other issues that might make a house unsafe could keep it from passing. An FHA appraisal is not the same as an independent home inspection. It’s still a good idea to get a separate home inspection to make sure you’re making a wise investment!
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Kentucky USDA Mortgage Lender for Rural Housing Loans 