Kentucky USDA Rural Housing Guaranteed Loan Program
Offers 0% Down for Kentucky Rural Home Buyers
See guidelines below for credit, income, assets, property, eligibility in Kentucky
• Maximum Loan Amount: 100% Appraised Value PLUS Upfront Guarantee Fee (101% financing)
• Loan Fees: 1) Upfront Guarantee Fee = 1.00%, 2) Technology Fee = $25; Annual Fee = 0.35% UPB
• Interest Rate: 30-year fixed rate term negotiated between the applicant and lender. No cap on rate.
• Seller/Interested Party Contributions: Allowable up to 6% of sales price. No limit on gift funds.
• Types: Purchase, Build, Refinance, Streamline Refinance
• Participating Lenders earn Community Reinvestment Act (CRA) credit
Applicant • Occupancy: Must agree to personally occupy home within 60 days of loan closing
• Citizenship: Must be a U.S. citizen, U.S. non-citizen national, or qualified alien
• Assets: Must be unable to obtain conventional financing with no PMI and a 30-year fixed rate term
• Suspension or Debarment: Lender will verify eligibility through the System for Award Management (sam.gov)
• NOT limited to First Time Home Buyers
Income • Annual Income: Income of ALL adult household members must be below the Moderate limit [115% of the county median household income (MHI)].
• Adjusted Annual Income: Eligible deductions—$480 per eligible dependent, $400 elderly household; eligible childcare, elderly medical, and disability expenses
• Repayment Income: Stable and dependable income of the applicants who will sign the note; Co-signers not permitted; Non-taxed repayment income may be grossed-up by 25%
• Repayment Ability (Ratios): 29% PITI and 41% TD (flexible with compensating factors)
◊ GUS “Accept” = no waiver required; GUS “Refer” or “Refer with Caution” = waiver required
Credit • Credit Score: No minimum credit score but lender or investor may require one***most USDA lenders in Kentucky will a 620 to 640 mid score.
• GUS “Accept”: Credit score validation not required; Streamlined documentation submission
• GUS “Refer” or “Refer with Caution”: Credit score validation required (at least 1 applicant must have 2 tradelines with a 12-month history); Full documentation submission
• Non-Traditional Credit: Acceptable for applicants without a usable score; 2 trade references when 1 is a verification of rent or mortgage, 3 trade references if no verification of rent or mortgage
Property • Eligible Area: Must be located within a rural area
• Property Types: Single Family Existing, New Construction, Condos, PUDs, Modular, and some Manufactured
• Site Size: No acreage limit. Site size must be typical for the area and have no land or buildings principally utilized for income producing purposes
• Inspection: Existing homes must meet HUD Handbook 4000.1 requirements; Safe water test required for private wells; Well and/or septic inspection if required by appraiser, inspector, or lender
• Construction-to-Permanent: Short-term construction loan & long-term permanent mortgage in a single close loan. Loan Note Guarantee issued/realtor paid before construction begins.
Area and county loan limits
Minimum property standards
International building code adopted throughout most of the United States
Property rural status and eligibility
Joel Lobb (NMLS#57916)
Senior Loan Officer
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
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