Eligible Properties for KY USDA Rural Development loans

Eligible Properties for KY USDA Rural Development loans\

Unless otherwise specifically restricted or not permitted by the applicable loan parameters, the following property types are acceptable Guidelines:

 1 Unit Properties, attached & detached (1)
 Condominiums – Eligible - FHA/VA approved only- Document approval in the loan file.
 PUDs – to FHA guidelines
 1 Unit Properties, attached & detached (1)
 Condominiums – Eligible - FHA/VA approved only- Document approval in the loan file.
 PUDs – to FHA

Ineligible Properties for KY USDA Rural Development Loans

 Auction – Properties purchased at Auction.
 2-4 Unit Properties
 Commercial operations
 Condotels
 Condex (converted to 2 units zoned as condo w/o HOA)
 Cooperative Projects
 Geodesic Domes
 Earth Homes
 Houseboats
 Income producing properties of any kind
 Mobile (Manufactured) Homes, single- or double-wide
 Model Home Leaseback properties
 Modular Homes (See Notes for exceptions)
 Multi-dwelling or Multi-Unit condominiums
 Non-Warrantable Condos
 Non-conforming zoning projects
 Own-your-Own", Timeshare/segmented ownership
 Leasehold Estate Properties
 Properties currently listed for sale or listed for sale within
the past 6-months
 Projects with pending litigation
 Properties with deed restrictions that limit transferability of
title, or contain a "first right of refusal" provision
 Properties located outside the United States or District of
 Properties that can be legally subdivided, regardless of
site or site value restrictions
 Unimproved (Raw) Land
 Working farms, ranches or orchards
 Properties located on Indian Reservations
Properties with an in-ground swimming pool (2)
 Properties with assignments of purchase (assigning the
purchase contract to another party)
 Properties specifically prohibited by current USDA/FHA

(2) In-ground swimming pools are subject to a waiver from the USDA State Director of each individual state. The appraiser must provide a value for the pool and the appraised value of the property must be adjusted by the value of the pool. Subject to the approval of the waiver from USDA.

 Properties are eligible only in strict accordance with current USDA/FHA guidelines.-

 Condos and PUDs must be served by a Homeowner’s Association (HOA). See Government Product Suite for insurance requirements for Condos and Attached PUD.

 Access this site for FHA-approved Condos, https://entp.hud.gov/idapp/html/condlook.cfm

  will accept modular homes that are built like traditional “stick built homes” and are in full compliance with HUD Handbooks 4150.2 and 4905.1.

 Outbuildings are subject to review by USDA; subject to 1980.311 (a) (4)


USDA Property Eligibility Text Description County List for Kentucky

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Select your county from the list below (Non-hyperlinked counties are all eligible).

  34.Fayette (county is completely ineligible)
  56.Jefferson (county is completely ineligible)