Kentucky USDA Mortgage Benefits for First Time Buyers in Kentucky
100% mortgage financing at competitive fixed interest rates with USDA home loans Credit score requirements (620 to 640) are less restrictive than most conventional home loan programs.
Kentucky USDA loans also offer a single upfront mortgage insurance premium which may be financed. Currently only 1% of the loan and a monthly mi premium of .35% which is very cheap considering the lower credit score requirements and no money down financing. The mortgage insurance is the same for everyone, does not matter what your credit score is or how much down payment you have.
You can look up individual properties on USDA’s website here for Kentucky eligible areas.
You can also research single family housing income eligibility for Kentucky here.
You may qualify if your Chapter 7 bankruptcy was discharged three years prior.
USDA loans can be used to finance most types of single family properties although some exception may apply. Homes must be used as borrowers’ primary residences and not used as second homes or rental properties.
Farms and commercial properties are not eligible through USDA Rural Housing Development Guaranteed Loans.
In many cases USDA permits sellers to contribute borrowers’ closing costs and can be financed up to the appraised value if home appraises for more.
Mortgage Loan Officer