2025 Kentucky USDA Loan Income Limits by County

Kentucky USDA loan income limits vary depending on location and household size, with specific base income thresholds for most counties. Below is an updated guide for the 2025 USDA income limits in Kentucky:

2024 USDA Income Limits for Most Kentucky Counties

General Income Limits for Most Counties (*)

  • Household Size 1-4: Up to $112,450
  • Household Size 5+: Up to $148,450

Jefferson County Louisville Metro Area () and Surrounding Counties**

The Jefferson County Metro Area, which includes Oldham, Bullitt, and Spencer counties, follows higher income limits:

  • Household Size 1-4: $112,450
  • Household Size 5+: $148,450

2025 Preview: Updated USDA Income Limits

For 2025, the USDA loan income limits will remain consistent:

  • General Counties: $112,450 (Household Size 1-4) | $148,450 (Household Size 5+)
  • Jefferson Metro Counties: Same limits apply as 2024.

Counties Ineligible or Partially Eligible for USDA Loans

While USDA loans provide 100% financing for many rural and suburban areas, certain counties or regions in Kentucky are ineligible due to population density or other factors:

Fully Ineligible Counties:

  • Jefferson County (Louisville Metro)
  • Fayette County (Lexington)

Partially Ineligible Areas:

Some cities or parts of counties are excluded:

  • Daviess County (Owensboro city limits)
  • McCracken County (Paducah city limits)
  • Warren County (Bowling Green city limits)
  • Hardin County (Fort Knox, Radcliff)
  • Christian County (Hopkinsville, Fort Campbell)
  • Boyd County (Ashland city limits)
  • Bullitt County (Hillview, Zoneton, Brooks)
  • Franklin County (Frankfort)
  • Henderson County (Henderson city limits)
  • Northern Kentucky (urban areas of Boone, Kenton, Campbell counties including Covington, Florence, and Hebron).

Northern Kentucky USDA Loan Income Limits (Higher Limits) (*):**

For Northern Kentucky counties, the USDA income limits are slightly higher:

Boone, Kenton, Campbell Counties

  • Household Size 1-4: $120,300
  • Household Size 5+: $159,150

Grant, Owen, Pendleton Counties

  • Household Size 1-4: $112,450
  • Household Size 5+: $148,450

USDA-Eligible Areas in Northern Kentucky

Eligible cities and areas in Northern Kentucky include:

  • Burlington
  • Hebron
  • Independence
  • Walton
  • Alexandria
  • Highland Heights
  • Cold Springs
  • Grant County
  • Owen County
  • Pendleton County

Why Choose a USDA Loan?

The USDA Rural Housing Loan Program is a no-money-down mortgage option designed to make homeownership more accessible. It’s not just for first-time buyers and offers many advantages:

  • No Down Payment Required
  • Competitive Interest Rates
  • Flexible Credit Guidelines

Apply for a USDA Home Loan in Kentucky

If you’re considering a USDA loan in Kentucky, I’m here to help! With over 20 years of experience, I specialize in guiding homebuyers through the USDA loan process.

Contact Information

Joel Lobb
Senior Loan Officer (NMLS# 57916)

Disclaimer: All loans are subject to credit approval, verification, and collateral evaluation. This information is intended for educational purposes only and does not guarantee loan approval. USDA loans are available only for eligible properties in Kentucky.

How to Qualify for a Kentucky USDA Loan in 2025


USDA loan in Kentucky in 2025

If you’re looking to buy a home in Kentucky, consider a USDA loan. It may be the perfect mortgage program if you want to live in a rural area. The USDA Rural Development Loan offers 100% financing with no down payment, making it an excellent option for low-to-moderate-income homebuyers. Here’s everything you need to know to qualify for a USDA loan in Kentucky in 2025.

Key Features of a Kentucky USDA Loan


Upfront Guarantee Fee:

A 1% upfront guarantee fee can be financed into the loan.
Annual fee: 0.35% of the average scheduled unpaid principal balance, paid monthly for the life of the loan.


Debt-to-Income (DTI) Ratio:

Standard ratio: 29/41% without compensating factors.
Ratio waivers may be approved if underwriting identifies strong compensating factors.


Credit Requirements:

Minimum credit score: 620 preferred but No minimum credit score requirement
Non-traditional credit is not eligible.
At least one applicant must have a 12-month credit history. This history should show no bankruptcies, foreclosures, tax liens, judgments, collections, or charge-offs in the last 36 months.


Income Restrictions:

Kentucky USDA Income limits apply based on family size, state, and county. see household income limits here click on link
All adult household income must be included to calculate total household income.


Employment Verification:

Wage Earners: Verbal or written verification of employment (VOE) is required. Pay stubs are needed. Provide 2 years of W-2s. 2 years of IRS tax transcripts are required.
Self-Employed: Verify 2 years of active business. Provide 2 years of personal and business tax returns. Include a year-to-date profit and loss (P&L) statement. Supply 2 years of IRS transcripts.


Eligible vs. Ineligible Properties


Eligible Properties:

Must be located in a designated rural area.
Includes single-family primary residences, modular homes, and detached or attached planned unit developments (PUDs).
Thermal standards must meet or exceed the International Energy Conservation Code (IECC).


Ineligible Properties:

Cooperatives.
Income-producing properties.
Manufactured or mobile homes.
Non-rural designated properties.
Non-owner-occupied homes.


How to Determine Eligibility


You need to confirm if a property is located in a designated rural area. Visit the USDA Property Eligibility Map by clicking this link 👇

Kentucky USDA Rural Housing Map for 2025 for Eligible Property Locations️

To check income limits for your county, use the

➡️ USDA Income Eligibility Tool.


Why Choose a Kentucky USDA Loan?


No Down Payment: 100% financing makes USDA loans affordable for first-time buyers.
Low Monthly Costs: With reduced mortgage insurance premiums and competitive interest rates, USDA loans help keep payments manageable.
Accessible Requirements: Even with moderate credit, you can qualify for a USDA loan if other requirements are met.

For personalized guidance and assistance with USDA loans in Kentucky, contact a mortgage professional today. Start your journey to owning your dream home.

Joel Lobb (NMLS#57916) Senior Loan Officer American Mortgage Solutions, Inc. 10602 Timberwood Circle Suite 3 Louisville, KY 40223 Company ID #1364 | MB73346 Text/call 502-905-3708 kentuckyloan@gmail.com

Joel Lobb (NMLS#57916)
Senior  Loan Officer

Text/call 502-905-3708
kentuckyloan@gmail.com

Call TOLL FREE to speak
with a USDA Loan Specialist
502-905-3708

 Buying Your First House in Kentucky: Loan Programs and Requirements


 A Guide to Buying Your First House in Kentucky: Loan Programs and Requirements

Buying Your First House in Kentucky with the recommend mortgage loan programs below

A Guide to Buying Your First House in Kentucky: Loan Programs and Requirements
Buying your first home in Kentucky is an exciting milestone, but it can also feel overwhelming. Fortunately, there are several loan programs and resources available to make the process smoother. This guide will walk you through the most popular loan programs and their requirements, helping you take confident steps toward homeownership.

  1. FHA Loan: A Flexible Option for First-Time Buyers
    The Federal Housing Administration (FHA) loan is popular among first-time homebuyers due to its lenient requirements.
    Key Requirements:
    Credit Score: Minimum of 580 with 3.5% down payment. Scores between 500-579 require a 10% down payment.
    Down Payment: 3.5% minimum.
    Mortgage Insurance: Requires both an upfront premium and monthly mortgage insurance.
    Debt-to-Income (DTI) Ratio: Typically up to 43%.
    Benefits:
    Lower credit score requirements.
    Smaller down payment.
    Flexible income guidelines.
  2. VA Loan: No Money Down for Eligible Veterans
    The VA Loan is a fantastic option for Kentucky veterans, active-duty service members, and their spouses. It’s backed by the Department of Veterans Affairs.
    Key Requirements:
    Credit Score: No official minimum, but lenders often look for 580-620.
    Down Payment: $0 (no down payment required).
    Certificate of Eligibility (COE): Required to prove eligibility.
    Mortgage Insurance: None, but a VA funding fee applies.
    Benefits:
    No down payment.
    No private mortgage insurance (PMI).
    Competitive interest rates.
  3. USDA Loan: Ideal for Rural Homebuyers
    The USDA Rural Development Loan is perfect for buyers looking to live in rural or suburban areas in Kentucky.
    Key Requirements:
    Credit Score: Generally 620 or higher.
    Income Limits: Household income must not exceed the area’s median income.
    Location: The property must be in a USDA-eligible rural area.
    Debt-to-Income Ratio: Up to 41%.
    Benefits:
    $0 down payment.
    Affordable mortgage insurance.
    Competitive fixed interest rates.
  4. Kentucky Housing Corporation (KHC) Programs
    The Kentucky Housing Corporation offers down payment assistance and loan options to first-time buyers.
    KHC Loan Options:
    KHC FHA or Conventional Loans: Competitive rates and assistance programs.
    Down Payment Assistance: Up to $10,000 in assistance for qualifying borrowers.
    Key Requirements:
    Credit Score: Minimum 620 for most programs.
    Income Limits: Vary by program and household size.
    Property Type: Must be a primary residence.
  5. Conventional Loan: A Strong Option for Higher Credit Scores
    Conventional loans, offered through private lenders, are great for buyers with stronger credit profiles.
    Key Requirements:
    Credit Score: Minimum 660.
    Down Payment: As low as 3% with first-time buyer programs.
    Mortgage Insurance: Required if down payment is less than 20%.
    Benefits:
    Lower interest rates for strong credit scores.
    Option to cancel PMI once equity reaches 20%.
    Check Your Credit Score: Understand where you stand. If needed, work on improving your score before applying.
    Determine Your Budget: Get pre-approved for a mortgage to understand your price range.
    Explore Loan Options: Compare FHA, VA, USDA, KHC, and Conventional loans.
    Find Down Payment Assistance: Ask about programs like KHC’s assistance or grants.
    Work with a Trusted Mortgage Broker: Consider partnering with someone like Joel Lobb, a Kentucky-based mortgage expert specializing in first-time buyer programs.
    Conclusion
    Buying your first home in Kentucky doesn’t have to be intimidating. With programs like FHA, VA, USDA, and KHC, you can find a loan that fits your financial situation and homeownership goals.
    Take the first step today by getting pre-approved, exploring your options, and partnering with a knowledgeable mortgage expert.
    For more details or assistance, feel free to reach out to a trusted loan officer like Joel Lobb to guide you every step of the way.


1 –  Email – kentuckyloan@gmail.com 2.   Call/Text – 502-905-3708

Joel Lobb
Mortgage Loan Officer – Expert on Kentucky Mortgage Loans


🌐 Website: www.mylouisvillekentuckymortgage.com
🏢 Address: 911 Barret Ave., Louisville, KY 40204

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

Kentucky FHA Loans guide for 2025


FHA Loan Requirements in Kentucky for Credit scores, Down payment, Debt Ratio and work history

What are the Kentucky Credit Score Requirements for a Mortgage Loan Approval?


What are the Kentucky FHA Credit Score Requirements for Mortgage Loan Approvals?


1 –  Email – kentuckyloan@gmail.com 2.   Call/Text – 502-905-3708

Joel Lobb
Mortgage Loan Officer – Expert on Kentucky Mortgage Loans


🌐 Website: www.mylouisvillekentuckymortgage.com
🏢 Address: 911 Barret Ave., Louisville, KY 40204

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.