Income limits for all Kentucky Rural Housing USDA Rural Development Loans and their Counties have increased.
After a four year pilot that was tested in 16 States, USDA published a final rule making changes to allow for a two-tier income structure. Rather than buyer(s) meeting the income limit based on household members, income limits are divided into 2 groups: 1-4 and 5+ household members. Each Kentucky county has an income limit for families with 4 or fewer people, and each has a limit for households with 5 or more people.
Reminder on how to exceed Kentucky USDA Income Limits using the following exceptions:
• $480 for each child under 18
• Documented child care expense
• Full-time college students 18 or older
• Disability expense incurred
• Medical expense for elderly or disabled
The Guaranteed Underwriting System (GUS) and the Income Eligibility calculator on USDA Eligibility website have been updated to use the new income limits for every Kentucky County this is eligible for USDA loans in Kentucky
If you are looking to buy a home in Northern Kentucky, to either own a home on acreage in the country with 100% financing on your home loan with zero down, then you need to look at the Kentucky USDA Rural Housing Loan Program.
How Does the USDA Home Loan Work in Northern Kentucky?
Here are some of the Key Financial Elements of the USDA Home Loan in Northern Kentucky:
- Low to Middle-Income Households are generally eligible – If the Household Income is too high, you may be ineligible.
- 30 Year Fixed Term Loans at Today’s Low Interest Rates compared to FHA, USDA and other government mortgage loans
- Qualifying rations are 29% for Housing and 41% for total debt. or possibly higher with a credit score over 640.
- Rural Development Loan Guarantee Fee applies, currently 1% USDA funding fee and .35% monthly mi premium
- Zero Cash required for the Down Payment. If access to 20% down payment, then you cannot use this program.
- Flexible Credit Guidelines, where non-traditional histories may be accepted. USDA will do a no score loan, but it is very difficult to qualify for so your best bet is to get your credit scores to 620 to 640 range and go from there. You will need two trade lines on the credit report for last 12 months, so no limited credit history is allowed on this program.
- Eligible properties include: Existing Homes, New Construction, New Manufactured Homes, Modular Homes, and eligible Condos!—No used mobile homes.
- Eligible Repairs may be included in the loan as well! If home appraises for more than sales price, sometimes you can finance these repairs into the loan.
- They’re are two income tests. Compliance income and repayment income. See pic below for answers about Northern Kentucky Counties with max income limits for household
- Home must be in an eligible area. See map below of Northern Kentucky Eligibility for USDA Rural Housing Loans
What are the income limits for a Rural Housing Loan in Northern Kentucky?
Households with 1-4 members have different limits as households with 5-8. Similarly, applicants living in high-cost counties will have a higher income limit than those living in counties with a more average cost of living.
| Northern Kentucky Counties Boone, Kenton, Campbell, Bracken and Pendleton, Gallatin *** |
Cincinnati (OH, KY, IN FMR) | Household income of 4 or less:
***$99,250
|
Household income of 5 or more:
***$130,000
|
| All Other Areas | $90,300 | $119,200 |
Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364
click here for directions to our office
Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com
