✅ How to Qualify for a USDA Mortgage Loan in Kentucky (2025 Guide)
Dreaming of a home in rural Kentucky with no down payment? The USDA Rural Development Loan offers affordable homeownership options. Here's your go-to guide to qualifying for a USDA mortgage in Kentucky.
🎯 What Is a USDA Loan?
- Zero down payment required
- Low monthly mortgage insurance
- Fixed interest rates
🏡 USDA Loan Eligibility in Kentucky
- Property must be in an eligible rural area (USDA Map)
- U.S. citizen or eligible non-citizen
- Must occupy the home within 30 days of closing
- Must meet income guidelines (≤ 115% of Area Median Income)
💳 Credit Score & Income Guidelines
- Minimum credit score: 640+ for GUS approval; below 640 may require manual underwriting
- 12-month clean credit history preferred
- Two-year employment/income history usually required
📊 USDA DTI Ratios & Compensating Factors
- 29% front-end / 41% back-end ratio
- Waivers allowed with strong compensating factors like reserves, low payment shock, or excellent credit
💰 Closing Costs & Fees
- 2% upfront guarantee fee (can be financed)
- 0.35% annual fee paid monthly
- Up to 6% seller-paid closing costs allowed
🏠 Property & Appraisal Rules
- Single-family, modular, manufactured, PUD, and condos may qualify
- Must meet USDA appraisal & structural standards
- Termite and well/septic inspections may be required
🚀 Streamlined USDA Refinance Options
- Must show at least $50/month savings
- No appraisal or credit review required (Streamlined Assist)
- Loan must be current with 12-month clean payment history
📞 Ready to Get Pre-Approved?
Let Joel Lobb, your Kentucky USDA loan expert, guide you through the process. I offer free same-day pre-approvals and personalized guidance from start to finish.
- Call/Text: (502) 905-3708
- Email: kentuckyloan@gmail.com
- Apply Now: www.mylouisvillekentuckymortgage.com
NMLS #57916 | Equal Housing Lender | EVO Mortgage
This site is not affiliated with the USDA or any government agency.
