Is Your Kentucky Property Eligible for USDA Rural Housing Loans?
A Practical Guide to Checking USDA Property Eligibility in Kentucky
Reading Time: 5 minutes
Click the image above ☝️☝️to open the official USDA Property Eligibility Map in a new tab.
Quick Answer
Not all Kentucky properties qualify for USDA Rural Housing loans. Eligibility is based primarily on property location. Homes located in designated rural areas may qualify, while properties inside many city limits do not. The only way to confirm eligibility is by checking your exact address using the official USDA Property Eligibility Map.
What Is a USDA Rural Housing Loan?
USDA Rural Housing loans are government-backed mortgages designed to promote homeownership in rural communities. In Kentucky, these loans are commonly used by first-time and repeat homebuyers purchasing homes outside major metropolitan areas.
- No down payment required (100% financing)
- Lower monthly mortgage insurance than FHA
- Competitive fixed interest rates
- Flexible credit guidelines compared to conventional loans
- Ability to combine with Kentucky Housing Corporation (KHC) assistance in some cases
While USDA loans offer strong benefits, they are restricted to properties located in USDA-designated eligible areas.
What Makes a Property USDA-Eligible in Kentucky?
The USDA determines property eligibility based on geographic boundaries, not ZIP codes or counties alone. A property may be eligible even if nearby homes are not.
Key Property Requirements
- Located in a USDA-designated rural area
- Single-family residential home
- Modest in size and value
- Safe, sound, and structurally secure
- Primary residence only (no investment properties)
Important: Property eligibility is separate from borrower eligibility. Income limits, credit requirements, and employment history are reviewed later in the loan process.
USDA-Eligible Areas in Kentucky
Kentucky has extensive USDA-eligible territory. Most areas outside the Louisville, Lexington, and Northern Kentucky metro cores qualify. Even counties with large cities often have eligible surrounding rural zones.
Because eligibility is address-specific, county lists are only general references. Always verify your exact property location.
How to Check Your Property’s USDA Eligibility
- Gather the full property address
- Open the official USDA Property Eligibility Map
- Enter or paste the address into the search bar
- Review the map result (Eligible or Ineligible)
- Save the result for your loan discussion
The USDA map uses GPS-level boundary data and is the only authoritative source for eligibility.
What Property Eligibility Does — and Does Not — Mean
Eligibility Means:
- The property may be financed with a USDA loan
- You can proceed with borrower qualification
Eligibility Does NOT Mean:
- Guaranteed loan approval
- Income or credit approval
- Property condition approval
- A commitment to lend
Next Steps After You Confirm Eligibility
- Review borrower income and household size
- Confirm credit and employment history
- Obtain a formal mortgage pre-approval
- Make an offer and begin underwriting
Disclosures & Licensing
Opens the official USDA Rural Housing eligibility map in a new window.
This content is for educational purposes only and does not constitute a loan commitment. All loans are subject to credit approval, underwriting, and program guidelines.
Not affiliated with or endorsed by the U.S. Department of Agriculture. Official eligibility determinations are made by USDA Rural Development.
Joel Lobb, Mortgage Broker
NMLS #57916 | Company NMLS #1738461
Licensed in Kentucky only
Equal Housing Lender
Kentucky USDA Mortgage Lender for Rural Housing Loans 
************IMPORTANT NOTICE************
Due to construction, on Thursday, April 21st and Friday, April 22nd, the State Office will not have phone or internet access. Loans submitted during this time will be assigned to specialists, but State Office staff will not be available by phone or email. All inquiries during this time should be directed to:
John Wells
270-247-9525 X 238
John.Wells@KY.USDA.gov
*********************************************************
*Current Turn Times*
· For GUS Accepts -four business days from the day the loan is assigned.
· For GUS Accept Full Docs, GUS Refers, Manual and Refinances- six business days from the date assigned.
*Turn times also available on Facebook, so like us @ USDA Rural Development – Kentucky*
Please Note:
· If GUS is released on a previously submitted file, once the file is resubmitted, the turn time will reset from the most recent submission date.
Student Loans and their Impact in the Total Debt Ratio
Recent updates to the 3555 Handbook intended to simplify guidance for the delivery of the guaranteed loan program have caused some misperception in regards to total debt ratio calculations, specifically in the subject of student loans. The Agency is working on revisions to Chapter 11: Ratio Analysis; however, we want to further clarify the subject at this time.
Total debt includes monthly housing expenses plus any other credit obligations incurred by the applicant. Student loan payments must be included in the calculation of the total debt-to-income ratio and captured under liabilities on the application. Student loan payments should be treated as described below:
Fixed payment loans: A fixed payment may be used in the debt ratio when the lender retains documentation to verify the payment is fixed, the interest rate is fixed, and the repayment term is fixed. There must be no future adjustments to the terms of the student loan payments.
Non-Fixed payment loans: Payments for deferred loans, Income Based Repayment (IBR), Graduated, Adjustable, and other types of repayment agreements which are not fixed cannot be used in the total debt ratio calculation. One percent of the loan balance reflected on the credit report must be used as the monthly payment. No additional documentation is required.
This clarification is effective immediately. Questions regarding this announcement may be directed to the National Office Division at (202) 720-1452.
SERVICING TRAINING OPPORTUNITY:
7 CFR Part 3555 Final Rule & HB-1-3555 Revisions
On March 9, 2016 the final rule for 7 CFR Part 3555 and the revised technical handbook, HB-1-3555, went into effect for all conditional commitments issued by USDA. The USDA has prepared a presentation that will review the revisions to the 7 CFR Part 3555 final rule and HB-1-3555 with a focus on loan servicing. New changes will be listed followed by scenario based questions.
TRAINING INFORMATION:
The training presentation is on-demand and available 24 hours a day for your convenience!
Link to Adobe Connect Training: https://usdard.adobeconnect.com/p7eyvffb70k/?OWASP_CSRFTOKEN=264176ace9cfa2e31569f48d1c223e1a531bf19aa355ee132a812e8099d2119e
Training materials: Servicing Training Handout
The new HB-1-3555 (Appendix 1 is 7 CFR Part 3555) is published online at: http://www.rd.usda.gov/publications/regulations-guidelines/handbooks#hb13555.
The 7 CFR Part 3555 final rule is available online at: https://www.gpo.gov/fdsys/pkg/FR-2016-02-08/pdf/2016-01872.pdf.
Questions regarding this announcement may be directed to the National Office Division at (202) 720-1452.
Time Saving Tips for Uploading Documents in GUS
Use the Origination Stacking Order Checklist to determine what documents are required based on the GUS underwriting recommendation
Upload ONLY required documents
Upload only 3 attachments:
1. Upload all 7 pages of the executed 3555-21 with the ‘Request RHS Guarantee’ label
2. Upload the appraisal with the ‘Appraisal’ label
3. Upload all other documents as one attachment, in the order listed on the Stacking Order Checklist, with the ‘Underwriting’ label
Thank you for your support of the Single Family Housing Guaranteed Loan Program!
Kentucky Contacts
Turn Time Loan Status Line: 859-224-7320
Program Questions, Underwriting Questions, New Lender Setup and Training:
Darren.Foster@ky.usda.gov
John.Wells@ky.usda.gov
Questions on New Submissions and Loan Note Guarantee Requests:
Michele.Baldwin@ky.usda.gov
Elizabeth.Yancey@ky.udsa.gov
SFHGuaranteed@ky.usda.gov
Help Resources
USDA ITS Service Desk Support Center
For e-Authentication assistance
Email: eAuthHelpDesk@ftc.usda.gov
Phone: 800-457-3642, option 1 (USDA e-Authentication Issues)
Rural Development Help Desk
For GUS system, outage or functionality assistance
Email: RD.HD@STL.USDA.GOV
Phone: 800-457-3642, option 2 (USDA Applications); then option 2 (Rural Development)
http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
USDA Kentucky Property Eligibility
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