A Kentucky USDA home loan is a zero-dollar-down mortgage option provided by USDA’s Department of Rural Development.
Is a Kentucky USDA loan more beneficial than a Kentucky conventional loan?
• zero down payment
• competitive interest rates
• lower-than-average monthly mortgage insurance
• relaxed credit requirements versus conventional loans
• no loan limits
How do I determine eligibility for a Kentucky Rural Housing USDA loan?
2025 Kentucky USDA Rural Housing Income Limits by County Type
What does that mean?
It means if before you were told you make too much to qualify for a Kentucky USDA loan, you might qualify now
• Employment.
No Down Payments
Property Eligibility –
Job History –
Income Limits – The USDA program is intended to assist low and moderate-income households, therefore, to be eligible for a USDA loan, your household income may not exceed the moderate-income limits established for the specific county in which you are financing a home. Our Loan Specialists can help you determine your eligibility, or may view the eligibility requirements on this page of the USDA website:
DTI Ratio– One of the main criteria in determining if you will be approved or not is your debt-to-income ratio. While you must not make too much money, you also must not have too much debt. Your debt-to-income ratio is how much monthly debt you have (only those debts which show on your credit report are counted) compared to your qualifying income. So if your household income is $4,000/month, and your currently monthly debts (excluding rent), combined with your new mortgage payment are $1,500/month, this would equal 37.5% DTI ratios (this was calculated by taking $1,500 and dividing it by $4,000). Generally, your DTI ratio must be 41% or lower; however, in certain cases, a DTI of up to 44% may be acceptable. Our Loan Specialists can help determine your qualifying ratio and discuss these options with you.
Credit Score – The minimum credit score varies from lender to lender, but most want to see at least a 620 to 640-credit score for you to be approved with the automated GUS underwriting system used by USDA
Mortgage Insurance – USDA loans have their own version of mortgage insurance. It is called the “Guaranteed Fee” and works similarly to FHA loans which have an upfront and monthly mortgage insurance premium (MIP). With USDA loans, there is a 1.00% upfront guarantee fee which may be financed on top of your loan, and a 0.35% annual guarantee fee that is divided into 12 payments each year. The amount of your annual fee (paid monthly) adjusts each year and goes down as your loan balance does. Use our USDA calculator to get an idea of what your monthly payment will be:
Updated Eligibility Requirements for USDA Loans on Manufactured Homes (Effective May 5, 2025)
To be eligible, the manufactured home (new or existing) must meet all of the following:
- Must be a previously uninstalled unit — it can’t have been moved from a prior site.
- Minimum 400 sq. ft. of floor area
- Installed on a HUD-compliant permanent foundation, following both manufacturer’s requirements and HUD standards (see HUD-4930.3G)
- ️ Must have HUD Certification Label and Data Plate intact
- Manufactured within 20 years of the loan closing date
- ️ No structural modifications since factory construction (excluding code-approved porches or decks)
- ️ Must meet FMHCSS standards, including Uo Value Zone (energy efficiency standards)
- Must be classified and taxed as real estate in the state of Kentucky
π Alternatives to HUD Label
If original HUD Certification Labels are missing, lenders may accept a verification letter from the Institute for Building Technology and Safety (IBTS).
This letter includes HUD-equivalent information.USDA Restrictions for Manufactured Home Loans
Even with these expanded guidelines, USDA will not guarantee loans under the following circumstances:
- If the unit was moved from another residential site
- Homes older than 20 years at time of closing (unless already USDA-financed)
- No permanent HUD-compliant foundation
- Structural alterations not inspected or permitted
- Homes with a tow hitch, running gear, or axles still attached
- Personal property or furniture included in financing
- Additions not built to engineered designs and approved by a local code official
- Single-wides are eligible — as long as they meet the 400 sq. ft. minimum and all HUD/USDA requirements
- Homes must remain on their original foundation/site
- Must be manufactured within 20 years of the closing date
- Must be permanently affixed and taxed as real estate
- This rule is now permanent and applies nationwide
Supporting USDA Guidance:
- π USDA Handbook HB-1-3555 – Chapter 13
- π️ HUD Permanent Foundation Guide (HUD-4930.3G)
- π Final Rule Summary (USDA Procedure Notice 640)
Senior Loan Officer
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/
See links below for more information about Kentucky USDA Rural Housing Loans.
- 100% Financing Zero Down
- 2-1 and 1-0 buydowns for Kentucky Rural Housing USDA RD loans Interest Rates.
- 2-1 and 1-0 buydowns for Kentucky Rural Housing USDA RD loans Interest Rates.
- 2022 Kentucky USDA Income and Property Guidelines
- 2022 Kentucky USDA Income Limits Increased
- 2022 Kentucky USDA Mortgage Guides Updated
- 2023 Kentucky USDA Underwriting Guideline Mortgage Changes for Income, Credit, Work History and Assets
- 40 year term loan
- 502 Guaranteed Loan
- 620 credit score USDA Loan Kentucky
- annual mi fee
- Appraisals
- bank statements
- Bankruptcy
- Bullitt County KY
- cashout refinance
- collections on USDA loans
- conditional commitments
- Conventional Mortgage Rates Today
- coronavirus Kentucky USDA Loans
- COVID-19 Kentucky USDA Rural Housing Loan
- Credit Bad
- credit reports
- credit scores
- Credit Waiver
- Current USDA and RHS Guidelines
- Debt Ratio and Deferred Student Loans
- debt ratios
- Direct Loan USDA
- DIRECT LOANS
- Down Payment and Closing Costs Assistance
- down payment grant
- down payment grant ky housing
- employment
- fico scores
- Foreclosures
- funds available for 2021 USDA loans
- Guarantee Fee and the Annual Fee for RHS loans
- Guaranteed Section 502 Loans
- GUS Accept Findings USDA
- Home Insurance Maximum Deductible
- Homes for Sale (Foreclosures owned by USDA/RHS KY
- Homes for Sale in Kentucky by USDA
- Income Based Repayment (IBR) plans
- INCOME ELIGIBILITY
- Income Limits
- ineligible areas
- Interest Rate Buydowns
- job gaps
- job time
- Kentucky Direct Single Family Housing Program
- Kentucky FHA
- kentucky first time home buyer
- KHC
- low-interest loans from the U.S. Department of Agriculture
- manufactured homes
- map changes for 2013 Ky USDA homes
- MAPS
- MI Changes for USDA Oct 2011
- mobile homes
- mortgage insurance annual fee
- Payment Shock
- PAYOFFS
- POA Power of Attorney USDA Loans
- property eligibility
- Property Eligibility Cities
- Property Eligilibity
- Property/Appraisal Requirements for USDA Loan
- Rates Today
- Refinance Pilot Program Streamline
- refinance USDA loan
- rent
- rural development
- Rural Development loan
- Section 504 Repair Loan and Grant Program
- Self-employed USDA Loans
- Seller Concessions
- seller paid closing costs
- septic test
- SFH Direct property
- short sale USDA loans
- Student Loans
- Subsidy Recapture
- Swimming Pools for USDA Loans
- tradeline minimum for USDA Approval
- tradelines on USDA lanos
- turn times underwriting
- Uncategorized
- underwriting turn times files USDA
- USDA
- USDA /Rural Housing Loan Offices in Ky
- USDA Loan
- USDA REVISIONS TO HB-1-3555
- USDA RURAL DEVELOPMENT DIRECT HOUSING LOANS
- USDA/RHS Income limits by Ky Counties
- VA
- well test
- work history
- Zero Down Home Loans
- Kentucky Rural Housing USDA Buydown Program
- Kentucky USDA Underwriting Guideline Mortgage Changes for Income, Credit, Work History and Assets
- Kentucky USDA Underwriting Guideline Mortgage Changes for Income, Credit, Work History and Assets
- What credit score do you need for a Kentucky mortgage loan approval in 2022?
- $0 Down, 100% Financing for Kentucky USDA Rural Housing Loans