New Income limits for most counties (*) in Kentucky are $90,300 for a household family of four and household families of five or more can make up to $119,200.
Boone, Kenton & Campbell Counties (N. KY)
$99,250 (family size 1-4)
$131,000 (family size 5 or more)
$90,300 (family size 1-4)
$119,250 (family size 5 or more)
Most are familiar with USDA Rural Housing Loan Program being a great no money down program available and it is not just for Kentucky first time buyers.
What is KY USDA Rural Development Guarantee in Kentucky?
- 100% financing on purchases and 100% Zero Money Down
- Low 30 year fixed rates on all loans. They don’t offer any other terms or offer cash-out refinancing.
- A small Rural Housing monthly guarantee fee or sometimes called annual fee of .35% of the loan amount divide by 12 months to get total monthly mi payment.
- Upfront Rural Housing funding fee of 1% of the loan amount and is financed into new loan
- Minimum credit scores of 581, but helpful to have 640 and get an automated underwriting approval thru Rural Housing’s underwriting engine – GUS–GUS stands for the Guaranteed Underwriting System to pre-approval all Kentucky USDA loans.
- No rental verification needed with GUS approval if Approved Eligible Findings.
- Flexible trade line requirements with GUS approval with only 1 trade line needed on credit for 12 months
- No foreclosures in the last 36 months, but need explanation if < 36 months
- Bankruptcy discharged at least 36 months
Issues to avoid or be aware of with Rural Housing property search:
- Avoid homes in flood zones – RD is very restrictive for homes in flood zones
- Avoid homes with cisterns – they are extremely difficult to get financed
- Be aware that homes with wells and septic systems needed extra tests for contamination
- Avoid homes with any income producing activities such as working farms, detached buildings with offices or car lifts for auto repairs, or anything else related to income producing activities.