Rural Housing Requirements For USDA Loans In Kentucky

Kentucky Rural  Housing Loans

 

Kentucky USDA loans are mortgages made by lenders and guaranteed by the U.S. Department of Agriculture. They are available to moderate- and low-income borrowers to build, rehabilitate, improve or relocate a primary residence in eligible rural and suburban areas. The income limit is 115 percent of the median income in your area. You can check the income limits for your area here.

 

It can be closed with zero down. USDA loans do have a monthly insurance requirement, but the upfront fee is significantly lower than on the VA loan and the mortgage premiums are lower than on the FHA loan.

The problem is that the number of buyers who qualify for a USDA loan is much smaller. Unlike on other loans where more income is better, a USDA loan has strict income maximums.

Fees for Kentucky USDA Loans

USDA loan borrowers pay an upfront fee of 1 percent of the loan amount, and this fee can be added to the loan balance. Borrowers also pay a mortgage insurance premium of 0.35 percent of the loan balance per year in 12 equal installments. This fee is based on the current balance and added to the monthly payment.

 

Down Payment Requirements for Kentucky USDA Loans

 

USDA loans are available with up to 100 percent financing (zero down).

 

Credit Score Required for Kentucky Rural Housing Loans

 

There is no minimum credit score for a USDA loan, but you are automatically ineligible if you are presently delinquent on a nontax federal debt.

Automated approval is available if you have two tradelines reported on your credit history and acredit score of 640 or higher.

If you do not have sufficient credit data, the underwriter can assess your creditworthiness other ways, such as by examining your history with rent payments. Applicants with a credit score lower than 640 will undergo additional underwriting steps.

Loan Limits for Kentucky USDA Loans

 

They are no loan limits for Kentucky USDA loans backed-up the guarantee loan program. The Direct USDA loan program does have loan limits.

 

 

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
 
American Mortgage Solutions, Inc.
 

Text/call:      502-905-3708

fax:            502-327-9119
email:
          kentuckyloan@gmail.com

Kentucky Direct Single Family Housing Program

Loan Limit Change – Effective January 31, 2020

Homes financed under the program are generally 2,000 square feet or less.
Area Loan Limits
Single Family Housing Direct

The Direct Home Loan Program assists low- and very-low- income applicants obtain decent, safe, and sanitary housing in eligible rural areas.  Funds can be used to purchase, build, repair, or renovate a home.  Applicants must meet income eligibility for a direct loan.  Please select South Dakota from the map that displays.

Generally, rural areas with a population less than 35,000 are eligible.  Visit the USDA Income and Property Eligibility website for complete details.

Remember, Direct USDA Loan Limits aren’t effective for the USDA Rural Development Single Family Guartneed Program, whereas that program has no Loan Limits, just income limits on the household income.

 

County or Equivalent Limit Effective 01-31-2020 for the Direct USDA Loan Program

Adair $265,400
Allen $265,400
Anderson $265,400
Ballard $265,400
Barren $265,400
Bath $265,400
Bell $265,400
Boone $265,400
Bourbon $265,400
Boyd $265,400
Boyle $265,400
Bracken $265,400
Breathitt $265,400
Breckinridge $265,400
Bullitt $266,800
Butler $265,400
Caldwell $265,400
Calloway $265,400
Campbell $265,400
Carlisle $265,400
Carroll $265,400
Carter $265,400
Casey $265,400
Christian $265,400
Clark $265,400
Clay $265,400
Clinton $265,400
Crittenden $265,400
Cumberland $265,400
Daviess $265,400
Edmonson $265,400
Elliott $265,400
Estill $265,400
Fleming $265,400
Floyd $265,400
Franklin $265,400
Fulton $265,400
Gallatin $265,400
Garrard $265,400
Grant $265,400
Graves $265,400
Grayson $265,400
Green $265,400
Greenup $265,400

Hancock $265,40
County or Equivalent Limit Effective 01-31-2020
Hardin $265,400
Harlan $265,400
Harrison $265,400
Hart $265,400
Henderson $265,400
Henry $266,800
Hickman $265,400
Hopkins $265,400
Jackson $265,400
Jessamine $265,400
Johnson $265,400
Kenton $265,400
Knott $265,400
Knox $265,400
Larue $265,400
Laurel $265,400
Lawrence $265,400
Lee $265,400
Leslie $265,400
Letcher $265,400
Lewis $265,400
Lincoln $265,400
Livingston $265,400
Logan $265,400
Lyon $265,400
McCracken $265,400
McCreary $265,400
McLean $265,400
Madison $265,400
Magoffin $265,400
Marion $265,400
Marshall $265,400
Martin $265,400
Mason $265,400
Meade $265,400
Menifee $265,400
Mercer $265,400
Metcalfe $265,400
Monroe $265,400
Montgomery $265,400
Morgan $265,400
Muhlenberg $265,400
Nelson $265,400
Nicholas $265,400
Ohio $265,400
Oldham $266,800
Owen $265,400
County or Equivalent Limit Effective 01-31-2020
Owsley $265,400
Pendleton $265,400
Perry $265,400
Pike $265,400
Powell $265,400
Pulaski $265,400
Robertson $265,400
Rockcastle $265,400
Rowan $265,400
Russell $265,400
Scott $265,400
Shelby $266,800
Simpson $265,400
Spencer $266,800
Taylor $265,400
Todd $265,400
Trigg $265,400
Trimble $265,400
Union $265,400
Warren $265,400
Washington $265,400
Wayne $265,400
Webster $265,400
Whitley $265,400
Wolfe $265,400
Woodford $265,400