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.
Why USDA Loans Are Perfect for Kentucky Homebuyers {#why-usda-loans}
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”.
Key Benefits for Kentucky Residents:
✅ 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.
Chapter 7 Bankruptcy Requirements
Standard Waiting Period: 3 years from discharge date
Reduced Waiting Period: 2 years with extenuating circumstances
What counts as “extenuating circumstances”?
Job loss beyond your control
Serious illness or medical emergency
Death of a primary wage earner
Divorce resulting in loss of household income
Military deployment affecting finances
Important Note: The waiting period begins from the discharge date, not the filing date. Make sure you have your bankruptcy discharge paperwork ready.
Chapter 13 Bankruptcy Requirements
Waiting Period: 12 months of consistent, on-time, court-approved payments
Key Requirements:
Must have court trustee’s written approval to incur new debt
All 12 months of payments must be verified and on-time
Must demonstrate improved financial management
Cannot have any late payments during the 12-month period
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.
Foreclosure Requirements
USDA Waiting Period After Foreclosure: 3 years from completion date
Can Be Reduced to 2 Years If:
The foreclosure resulted from documented extenuating circumstances
You’ve re-established good credit since the foreclosure
You can demonstrate the circumstances that caused the foreclosure are unlikely to recur
Short Sales and Deed-in-Lieu
Waiting Period: Generally 3 years, similar to foreclosure
Exception: May be reduced with extenuating circumstances and strong compensating factors
Credit Score Essentials
Minimum Credit Score: 620 (For Most Lenders)
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.
What If Your Score Is Below 620?
Don’t give up! You may still qualify through manual underwriting if you can demonstrate:
Strong Compensating Factors:
12+ months of on-time rent payments (documented)
Stable employment history (2+ years same employer)
Low debt-to-income ratio (under 29% PITI)
Cash reserves (3-6 months of housing payments)
Previous successful homeownership
Significant down payment (even though USDA allows 0% down)
Rebuilding Your Credit for USDA Approval
After Bankruptcy or Foreclosure, Focus On:
Payment History (35% of score)
Pay ALL bills on time for at least 12 months
Set up automatic payments to avoid missed due dates
Even small bills matter (utilities, phone, etc.)
Credit Utilization (30% of score)
Keep credit card balances below 30% of limits
Pay down existing debt aggressively
Don’t close old accounts (hurts credit age)
New Credit (15% of score)
Consider a secured credit card to rebuild
Become an authorized user on someone’s card
Avoid multiple credit applications
Credit Mix (10% of score)
Maintain different types of credit (installment + revolving)
Car loans, credit cards, and personal loans help
Timeline for Credit Recovery:
6 months: Begin seeing improvement with on-time payments
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.
Contact Joel Lobb – Kentucky Mortgage Loan Officer
Ready to explore your USDA loan options after bankruptcy or foreclosure?
Big News for Kentucky Mobile Home Buyers: USDA Loan Changes Coming in
Are you looking for affordable home financing options for manufactured or mobile homes in Kentucky? Big news is here! Starting March 4, 2025, the USDA will officially offer 100% financing for manufactured homes. This exciting change will make homeownership more accessible and affordable for families in Kentucky.
You can now take advantage of FHA loans with Kentucky Housing Corporation’s down payment assistance. This assistance is available on used mobile homes or new mobile homes. This assistance offers a path to 100% financing. This option is ideal for those purchasing manufactured homes in urban and rural areas alike
What Does This Mean for Kentucky Homebuyers?
For years, many buyers in Kentucky seeking affordable housing options, like mobile homes, faced limited financing choices. With the USDA’s policy changes, more Kentucky homebuyers will qualify for 100% financing on manufactured homes. This program is transformative. It is especially beneficial for those in rural areas. Many are looking to take advantage of USDA’s Rural Housing Loan Program.
Benefits of the USDA Manufactured Home Loan Program
100% Financing – No money down is required, making it perfect for buyers with limited savings.
Affordable Terms – Competitive interest rates make monthly payments manageable.
Rural Housing Opportunities – Ideal for Kentucky homebuyers in small towns and rural areas.
Expanded Eligibility – These changes will allow more manufactured homes to qualify, opening up affordable housing options.
How to Qualify for a USDA Loan for Mobile Homes in Kentucky
To take advantage of this incredible opportunity, you’ll need to meet a few requirements:
Credit Score: Typically, a score of 581 or higher is needed.
With rising home prices, these changes make it easier for families in Kentucky to purchase affordable housing. Manufactured homes are an excellent option for those seeking modern, energy-efficient, and affordable living solutions. This program ensures that homeownership is possible for more families across Kentucky, particularly in rural communities.
Get Pre-Approved for Your USDA Mobile Home Loan in Kentucky
Don’t wait until March 2025! Start planning now to take advantage of these USDA loan changes. Are you considering purchasing a mobile home in Kentucky? I can help you secure the best financing option for your needs.
I specialize in USDA and rural housing loans for mobile and manufactured homes across Kentucky. I have decades of experience and local expertise. I’m here to guide you through the process. I will help you achieve your dream of owning a home with no money down.
2026 Guide to USDA Rural Housing Loans for Manufactured Homes in Kentucky: No-Money-Down Options, Even with Bad Credit
100% financing available for qualified Kentucky borrower
Table of Contents
Understanding USDA Mobile Home Loans in Kentucky
2026 Game-Changing Updates
Kentucky USDA Rural Housing Loan Requirements
Bad Credit Mobile Home Loans in Kentucky
No Money Down Mobile Home Financing Options
Kentucky Counties Eligible for USDA Mobile Home Loans
Foundation and Installation Requirements
How to Apply for USDA Mobile Home Loans in Kentucky
Alternative Financing Options
Frequently Asked Questions
Understanding USDA Mobile Home Loans in Kentucky
The United States Department of Agriculture (USDA) Rural Development program has been quietly revolutionizing homeownership opportunities across Kentucky for decades. Many potential homebuyers don’t realize this. The USDA’s Single Family Housing Guaranteed Loan Program (SFHGLP) extends far beyond traditional stick-built homes. It also includes manufactured and mobile homes. This opens doors for thousands of Kentucky families who previously thought homeownership was out of reach.
Kentucky, with its vast rural landscapes and small-town communities, is well-suited to USDA rural housing programs. Conventional mortgages often demand large down payments and excellent credit. USDA loans, however, are designed for low- to moderate-income families in rural areas. They are an excellent option for mobile home buyers across the Commonwealth.
What Makes USDA Mobile Home Loans Different
•100% Financing: No money down is required, making it perfect for buyers with limited savings
•Affordable Terms: Competitive interest rates make monthly payments manageable
•Rural Housing Opportunities: Ideal for Kentucky homebuyers in small towns and rural areas
•Flexible Credit Requirements: Holistic approach to creditworthiness evaluation
On March 4, 2025, the USDA officially expanded its Single Family Housing Guaranteed Loan Program. This expansion provides 100% financing for manufactured homes. Industry experts are calling this change the most significant development in rural housing finance in decades.
Key Program Changes
Expanded Eligibility
Manufactured homes now receive the same favorable treatment as traditional homes
Age Restrictions Relaxed
Existing manufactured homes up to 20 years old can now qualify
Streamlined Process
Processing times reduced by 30-40% with new guidelines
Better Credit Pathways
Clearer guidelines for borrowers with credit challenges
Kentucky USDA Rural Housing Loan Requirements
Borrower Requirements
✓Income cannot exceed 115% of area median income
✓Must occupy home as primary residence
✓U.S. citizen, non-citizen national, or qualified alien
✓Credit score typically 580+ (manual underwriting available)
Property Requirements
✓Built to HUD Code standards (post-1976)
✓Permanent foundation required
✓Minimum 12 feet wide, 400 sq ft living space
✓Located in USDA-eligible rural area
Bad Credit Mobile Home Loans in Kentucky
One of the most significant advantages of USDA mobile home loans is their accessibility to borrowers with less-than-perfect credit. Unlike conventional mortgages, which often have rigid credit score requirements, USDA loans offer flexibility. This flexibility recognizes the unique challenges faced by rural borrowers.
Credit Score Guidelines
640+ Credit Score Streamlined Processing
580 and above Credit Score Manual Underwriting
Note: USDA takes a holistic approach to credit evaluation, considering factors beyond just credit scores.
Often Asked Questions
What credit score do I need for a USDA mobile home loan in Kentucky?
While USDA doesn’t set a minimum credit score, most lenders prefer scores of 580 or higher. Borrowers with lower scores may still qualify through manual underwriting, and the program takes a holistic approach to credit evaluation.
Can I buy a used mobile home with a USDA loan?
Yes, existing manufactured homes can qualify if they’re less than 20 years old. They must meet HUD standards. The homes should be properly installed on permanent foundations. Additionally, they need to meet all other USDA requirements.
Do I need to own the land to get a USDA loan for a mobile home?
USDA loans can finance both the manufactured home and land together. They can also finance just the home if you already own suitable land. However, the home must be permanently installed and classified as real property.
What areas of Kentucky are eligible for USDA loans?
Approximately 97% of Kentucky qualifies as rural for USDA purposes. Most areas outside of Louisville, Lexington, and a few other metropolitan centers are eligible. Use the USDA’s online eligibility tool to check specific addresses.
This comprehensive guide provides general information about USDA mobile home loans in Kentucky. It should not be considered as financial or legal advice. Potential borrowers should consult with qualified lenders, real estate professionals, and legal advisors for guidance specific to their situations.
Contact a Kentucky Mobile Home Loan Expert
For personalized guidance on Kentucky USDA mobile home loans, contact a local mortgage specialist. They can help with options for borrowers with bad credit and no down payment. The specialist will understand the unique requirements of manufactured home financing.
Disclaimer: This website is not endorsed by the FHA, VA, USDA, or any government agency. It is an independent platform created to educate and assist Kentucky homebuyers with expert advice and accessible tools.
Can I buy land and a mobile home together with a USDA loan?
USDA loans can finance both the manufactured home and the land in a single transaction. This is possible if both meet USDA eligibility requirements. The combined purchase must not exceed USDA loan limits for your area.
What if my credit score is below 580?
While challenging, approvals are possible with strong compensating factors such as stable employment, low debt-to-income ratios, and cash reserves. Working with an experienced USDA lender who understands manual underwriting is essential. Honestly, best to get score to 620 or 640 range for better changes of loan approval. USDA does not have minimum credit score requirements.
How long does the USDA loan process take?
Typical processing time is 45-60 days from application to closing. Processing is taking longer due to USDA cutbacks. This delay can vary based on property complexity. It also depends on documentation completeness and current USDA processing volumes.
Can I use gift funds for closing costs?
Yes, gift funds from family members are allowed for closing costs and prepaid items. Proper gift documentation and seasoning requirements must be met.
What happens if the home doesn’t appraise for the purchase price?
If the appraisal comes in low, you have several options. You can negotiate with the seller to reduce the price. Another option is to pay the difference in cash. Alternatively, you can cancel the contract if you have an appraisal contingency.
Are there income limits for USDA mobile home loans?
Yes, household income cannot exceed 115% of the Area Median Income for your county. These limits are updated annually and vary significantly across Kentucky.
Can I refinance my existing mobile home with a USDA loan?
USDA offers refinancing options for existing USDA loans, but cannot refinance non-USDA loans. However, if your current mobile home meets USDA requirements, you might qualify for a new purchase loan.
What areas of Kentucky qualify for USDA loans?
Most of Kentucky qualifies as rural under USDA guidelines. Use the USDA eligibility map to verify specific addresses, as eligibility can vary even within the same county.
Ready to explore USDA mobile home loan options in Kentucky? Don’t wait, as these programs have annual funding limits. Working with an experienced local lender who understands manufactured home financing is crucial for success.
For personalized guidance on Kentucky USDA mobile home loans:
The USDA’s Single Family Housing Guaranteed Loan Program Technical Handbook (HB-1-3555) is a comprehensive resource. It details the guidelines and procedures for USDA home loans. Each chapter addresses specific aspects of the loan process:
What Is the Minimum Credit Score Needed to Buy a House and Get a Kentucky Mortgage Loan?
Buying a home is an exciting milestone, but your credit score plays a crucial role in determining your eligibility for a mortgage in Kentucky. Whether you’re a first-time homebuyer or looking to move into a new property, understanding the minimum credit score requirements for different loan types can help you prepare for homeownership.
In this guide, we’ll break down the minimum credit scores needed for various mortgage loans in Kentucky, explain how credit scores impact mortgage interest rates, and share tips to improve your credit score for better loan options.
Minimum Credit Score Requirements for Kentucky Mortgage Loans
Different loan programs have varying credit score requirements, depending on whether they are government-backed or conventional loans. Below is a breakdown of the minimum scores needed for each type of mortgage loan in Kentucky.
1. FHA Loans – Low Credit Score Option
Minimum Score: 500-579 (Requires 10% down payment)
Minimum Score: 580+ (Requires 3.5% down payment)
Best for: First-time homebuyers with lower credit scores
FHA loans are backed by the Federal Housing Administration (FHA), making them easier to qualify for with lower credit scores and small down payments. However, a higher score (580+) allows for a lower down payment.
2. VA Loans – Best for Veterans and Military Members
No official minimum credit score
Most lenders prefer 580-620
0% down payment available for qualified borrowers
Best for: Veterans, active military, and eligible surviving spouses
VA loans are backed by the Department of Veterans Affairs (VA) and offer no down payment and no private mortgage insurance (PMI), making them an excellent option for eligible service members.
3. USDA Loans – Ideal for Rural Homebuyers
Minimum Score: 640+ (for automatic approval)–No official minimum score
Some lenders accept lower scores with manual underwriting
0% down payment required
Best for: Low-to-moderate-income homebuyers in eligible rural areas
USDA loans are designed to help buyers in rural and suburban areas by offering 100% financing with low mortgage insurance costs.
4. Conventional Loans – Best for Good Credit Borrowers
Minimum Score: 620+
Higher scores (740+) qualify for better interest rates
Down payment: 3%-5% or more
Best for: Buyers with stable income and strong credit history
Conventional loans, backed by Fannie Mae and Freddie Mac, have stricter credit score requirements than government-backed loans. However, borrowers with higher credit scores (680+) get better interest rates and lower private mortgage insurance (PMI) costs.
Best for: First-time homebuyers needing financial assistance
KHC provides state-level mortgage programs to help first-time homebuyers afford a home with lower down payments and closing cost assistance.
6. Non-QM Loans – Alternative Loan Options
Minimum Score: 500-620 (Varies by lender and loan type)
Includes Bank Statement Loans, DSCR Loans, and Asset-Based Loans
Best for: Self-employed borrowers, real estate investors, and those with unique income sources
Non-QM (Non-Qualified Mortgage) loans don’t follow traditional lending guidelines, making them a great option for borrowers who don’t qualify for conventional or government-backed loans due to income documentation challenges.
How Credit Scores Affect Your Mortgage Interest Rate
Your credit score doesn’t just determine your eligibility for a mortgage—it also influences the interest rate you’ll receive.
Here’s how credit scores impact mortgage rates:
Credit Score
Typical Interest Rate (Example)
760-850
Best rate (lowest cost)
700-759
Good rate
640-699
Higher rate
620-639
Even higher rate
Below 620
Limited options, highest rates
Why Does This Matter?
A higher credit score can save you thousands of dollars over the life of your loan. Even a small increase in your score can help you qualify for better loan terms and lower monthly payments.
How to Improve Your Credit Score Before Buying a Home
If your credit score isn’t where you want it to be, here are some steps to improve it before applying for a mortgage:
Dispute any errors that could be lowering your score
2. Pay Bills on Time
Payment history makes up 35% of your FICO score
Set up auto-pay to avoid late payments
3. Reduce Your Debt-to-Income Ratio (DTI)
Pay down credit card balances
Keep credit utilization below 30% of your limit
4. Avoid New Credit Inquiries Before Buying a Home
Don’t open new credit cards or loans before applying for a mortgage
Too many hard inquiries can lower your score
5. Increase Your Credit Mix
Having a mix of credit cards, installment loans, and other accounts helps boost your score
6. Work with a Mortgage Expert
A Kentucky mortgage broker can help you find the best loan options for your credit situation
Final Thoughts: What Credit Score Do You Need to Buy a Home in Kentucky?
500-579: Possible with FHA (10% down) or Non-QM loans
580+: More options, FHA (3.5% down), VA, and USDA loans
620+: Opens doors to Conventional, KHC, and better loan terms
640+: USDA automatic approval and better mortgage rates
700+: Access to the best interest rates and lowest fees
Your credit score is one of the most important factors in determining what type of mortgage you can qualify for and how much you’ll pay over time.
If you’re unsure about your options, working with a Kentucky mortgage expert can help you navigate the home-buying process and find the best loan for your financial situation.
Thinking About Buying a Home in Kentucky? 🏡 Here’s the Credit Score You Need!
Your credit score plays a BIG role in getting approved for a mortgage loan in Kentucky. Check out the minimum credit scores needed for different loan types:
✅ FHA Loan: 500+ (10% down) or 580+ (3.5% down) ✅ VA Loan: 580-620+ (No down payment for eligible veterans) ✅ USDA Loan: 640+ (0% down for rural homebuyers) ✅ Conventional Loan: 620+ (Lower rates with 740+) ✅ KHC First-Time Buyer: 620+ (Down payment assistance available!) ✅ Non-QM Loans: 500-620 (Alternative options for self-employed & investors)
📉 Higher scores = Lower mortgage rates! Want to boost your score? 👉 Check your credit report 👉 Pay bills on time 👉 Lower credit card balances
Unlock Your Kentucky Dream Home: The Real Minimum Credit Score You Need
So, you’re ready to trade those rolling hills for a set of house keys in Kentucky? That’s fantastic! But before you start packing, let’s tackle a crucial question: “What credit score do I really need to get a mortgage in Kentucky?”
While there’s no single, simple answer, this guide will break down the minimum credit score requirements for various Kentucky mortgage options, empowering you to understand where you stand and how to achieve your homeownership goals. We’ll cut through the confusion and give you the straight facts!
Why Your Credit Score Matters: More Than Just a Number
Think of your credit score as your financial reputation. Lenders use it to assess the risk of lending you money. A higher score signals lower risk, translating to better interest rates, more favorable loan terms, and potentially lower down payment requirements.
Here’s the credit score impact on interest rates and your wallet (in general terms):
760-850: The Gold Standard! Expect the lowest interest rates and the most attractive loan options.
700-759: Excellent! You’ll still qualify for very competitive rates and favorable terms.
640-699: Good. You’ll likely be approved, but interest rates will be slightly higher.
620-639: Acceptable. This range is often the minimum for conventional loans, but be prepared for less favorable rates.
As the guide shows, aiming for a 740+ score can lead to significant savings over the life of your loan!
Let’s explore the minimum credit score requirements for different Kentucky mortgage types:
1. FHA Loans: Your Flexible First Step
Score 500-579: Requires a 10% Down Payment. Limited lender options.
Score 580+: Requires a 3.5% Down Payment. More lenders available.
FHA loans, backed by the government, offer flexibility, especially for borrowers with lower credit scores. They’re a popular option for first-time homebuyers in Kentucky.
Why FHA? Government backing reduces the risk for lenders, allowing them to offer mortgages to borrowers who might not qualify for conventional loans.
2. VA & USDA Loans: Serving Those Who Served & Rural Kentucky
VA Loan: 580-620+ (While there’s no official minimum, most lenders require this range). May allow zero down payment!
USDA Loan: 640+ (Required for Automated Underwriting). Lower scores may need manual approval.
VA loans are a powerful benefit for veterans, active-duty military, and eligible surviving spouses. USDA loans are designed to promote homeownership in rural areas.
Zero Down Payment Potential: Both offer the possibility of zero down payment (for eligible borrowers), making homeownership more accessible.
3. Conventional Loans: The 620+ Benchmark
Minimum Score: 620+ (Needed to qualify for most conventional loans from Fannie Mae and Freddie Mac).
Preferred Score: 740+ Higher scores unlock better interest rates, saving you money over the loan’s lifespan.
Conventional loans aren’t government-backed, so lenders demand higher credit scores to manage their risk.
The Payoff: A credit score of 740+ is your ticket to the best possible interest rates.
Score: 620+ (Required for most Kentucky Housing Corporation programs).
KHC programs are specifically designed to make homeownership a reality for first-time buyers in Kentucky.
Down Payment Assistance: Eligible buyers may receive help with down payment and closing costs. This can be a game-changer!
5. Non-QM Loans: Alternative Financing for Unique Situations
Score Range: 500-620 (Acceptable for certain non-QM – non-qualified mortgage – programs).
Non-QM loans cater to borrowers who don’t fit the traditional mortgage mold.
Examples:
Bank Statement Loans: For self-employed individuals who may lack traditional income documentation.
DSCR Loans: For investors based on the property’s debt service coverage ratio.
Important Note: Non-QM loans often come with higher interest rates to compensate for the increased risk.
Key Takeaways: Improve Your Score & Unlock Your Homeownership Potential!
No matter your current credit score, you can improve it! Here’s your action plan:
Check Your Credit Report: Access a free copy at AnnualCreditReport.com. Ensure accuracy and dispute any errors immediately!
Pay Bills On Time, Every Time: Payment history is the biggest factor impacting your credit score.
Reduce Debt: Lower your credit utilization ratio.
Be Strategic: Avoid opening unnecessary new credit accounts.
The Kentucky Mortgage Credit Score Guide says it all: Improving your credit score is essential for securing the best mortgage rates and terms!
Ready to Take the Next Step?
Understanding the minimum credit score requirements for Kentucky mortgages is the first step towards achieving your homeownership dreams. By taking proactive steps to improve your credit and exploring the various loan options available, you can find the perfect mortgage to fit your needs and budget.
Questions about Kentucky mortgages or your credit score? Ask us in the comments below!
I
What are the best strategies to improve my credit score quickly for a mortgage in Kentucky
The minimum credit score required to buy a house and secure a mortgage loan in Kentucky depends on the type of loan program. Here’s a concise breakdown:
Absolute Minimum Credit Score: 500
FHA Loans or Non-QM Loans allow scores as low as 500, but with specific conditions:
FHA:
500–579: Requires 10% down payment and has limited lender options.
580+: Reduces down payment to 3.5% with broader lender availability.
Non-QM Loans:
500–620 (varies by lender): Options include Bank Statement Loans or DSCR Loans, but often come with higher interest rates.
Minimum Scores for Other Loan Types
VA Loans (Veterans/Military)
580–620+: Most lenders require this range.
0% down payment for eligible borrowers.
USDA Loans (Rural Buyers)
640+: Required for automated approval.
Lower scores may qualify with manual underwriting.
Conventional Loans
620+: Minimum for most loans (Fannie Mae/Freddie Mac).
740+: Unlocks the best interest rates.
KHC Loans (First-Time Buyers)
620+: Required for down payment and closing cost assistance.
Key Notes
Higher Scores = Better Terms: Scores of 700+ qualify for the lowest interest rates, saving thousands over the loan term.
Manual Underwriting: Some loans (e.g., USDA, VA) may accept lower scores with additional scrutiny.
Down Payments: Lower scores often require larger down payments (e.g., 10% for FHA with 500–579).
Bottom Line
While 500 is the lowest possible score for FHA/Non-QM loans, aiming for 620+ expands your options (Conventional, KHC, USDA/VA with better terms). A 740+ score maximizes savings through lower rates.
Website: 
Address: 911 Barret Ave., Louisville, KY 40204
Kentucky USDA Mortgage Lender for Rural Housing Loans 