Kentucky USDA rural housing loans
100% financing USDA home loans in Kentucky (zero down, if eligible)
Check property eligibility and household income limits, then get a fast USDA pre-approval plan. Closing costs and prepaid expenses may still apply.
- 100% financing available (no down payment required)
- Primary residence only (no rentals or vacation homes)
- Eligible rural/suburban areas across Kentucky
Quick eligibility checklist
- Property is USDA-eligible (map verified)
- Household income within USDA limits
- Stable repayment ability and acceptable credit profile
- Owner-occupied primary residence
What is a Kentucky USDA loan?
A Kentucky USDA loan is a government-backed mortgage through the U.S. Department of Agriculture’s Rural Development program. It was created to help low-to-moderate income households purchase a home in eligible rural and suburban areas of Kentucky. For qualified buyers, USDA offers 100% financing (no down payment required).
USDA guaranteed loan
The most common option. You work with a private lender, and USDA provides the guarantee. This is what most Kentucky buyers mean when they search “USDA loan Kentucky.”
USDA direct loan
You work directly with a local USDA office. This option is limited to very low-income households and can take longer.
Do you need a down payment on a Kentucky USDA loan?
No. USDA loans offer 100% financing. You can choose to put money down, but it is not required. Many Kentucky buyers reduce out-of-pocket costs further by negotiating seller-paid closing costs (up to 6% in many cases).
Important
USDA loans are for primary residences only. Investment properties and vacation homes are not eligible.
How to check USDA property eligibility in Kentucky
- Open the official USDA property eligibility map.
- Enter the full address (or browse areas if you haven’t picked a home yet).
- Confirm the result shows the property as eligible.
USDA eligibility in Kentucky: the 3 checks that matter
Use this as your quick filter before you spend time touring homes.
Does a Kentucky USDA loan have mortgage insurance?
USDA does not use traditional mortgage insurance. Instead, it charges a guarantee fee: an upfront fee (commonly rolled into the loan) and an annual fee paid monthly.
Kentucky USDA loan FAQs
Do I have to be a first-time homebuyer to use USDA in Kentucky?
No. First-time buyer status is not required. If you currently own a home, you typically must sell it before or at closing on the new USDA purchase.
Can the seller pay my closing costs on a USDA loan?
Often, yes. Seller concessions can be negotiated (commonly up to 6%), which may cover many closing costs and prepaid items depending on your contract structure and final numbers.
Can I buy a home with a swimming pool using USDA?
Yes, as long as the pool is functional and there are no safety or condition issues that block appraisal/underwriting.
Can USDA be used for investment property or a rental?
No. USDA is for an owner-occupied primary residence only.
Is there a limit on acreage for a USDA loan in Kentucky?
There is no fixed acreage cap. The key is that the home must be the primary value driver, not the land. Large acreage can require additional review.
Can I refinance into a USDA loan if my current loan is not USDA?
No. USDA refinance options generally require your current mortgage to already be a USDA Rural Development loan.
Compare Kentucky loan programs
Use these to route readers into your core program hubs and strengthen topical authority.
Kentucky USDA loans
100% financing, rural/suburban eligibility
USDA eligibility map and income limits
Kentucky FHA loans
3.5% down, flexible credit guidelines
FHA requirements for Louisville and statewide Kentucky
Kentucky VA loans
0% down for eligible veterans and service members
VA eligibility and zero-down options in Kentucky
KHC down payment assistance
DPA options for qualified Kentucky buyers
How KHC pairs with FHA, USDA, VA, and conventional
Ready to check USDA eligibility in Kentucky?
If you send an address and household size, you can get a clear “yes/no” direction and next steps fast.
Disclosure: Closing costs and prepaid items may still apply. Loan approval is subject to underwriting and program guidelines.
