Kentucky USDA Rural Housing Mortgage Lender: Kentucky Rural Housing USDA Maximum Income by Coun...

2026 Kentucky USDA Rural Housing Income Limits

Kentucky USDA loan income limits for 2026 vary by county and household size. These limits apply to the USDA Single-Family Guaranteed Loan Program and are based on total household income, not just the borrowers on the loan.

Kentucky USDA Rural Housing Mortgage Lender – Income Limits by County

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2026 USDA Income Limits – Most Kentucky Counties

• Households 1–4 people: $119,850
• Households 5–8 people: $158,250

These limits apply to most rural Kentucky counties eligible for USDA financing. Higher-cost metro areas and select Northern Kentucky counties follow different limits.

View Official USDA Income Limits by County (PDF)

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Jefferson County / Louisville Metro USDA Income Limits (2026)

The Louisville metro area notes and surrounding counties (Oldham, Bullitt, Spencer) are commonly referenced alongside Louisville housing searches. Remember: Jefferson County itself is not USDA-eligible, but surrounding eligible areas can be.

• Households 1–4 people: $119,850
• Households 5–8 people: $158,250

Important USDA Eligibility Note:

Entire counties of Jefferson County and Fayette County are not USDA-eligible. In addition, parts of the following counties are ineligible due to population density:

Daviess (Owensboro), McCracken (Paducah), Madison (Richmond), Clark (Winchester), Warren (Bowling Green), Hardin (Fort Knox / Radcliff), Bullitt (Hillview, Maryville, Zoneton, Fairdale, Brooks), Franklin (Frankfort), Henderson (city limits), Christian (Hopkinsville / Fort Campbell), Boyd (Ashland city limits), and northern portions of Boone, Kenton, and Campbell Counties (Covington, Florence, Hebron, Richwood, Ludlow, Fort Thomas, Bellevue, Ryland Heights).

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2026 Northern Kentucky USDA Income Limits

Northern Kentucky USDA income limits are higher due to their inclusion in the Cincinnati–OH–KY–IN Metropolitan Statistical Area (MSA). USDA applies these higher limits even though many surrounding areas remain USDA-eligible.

Boone, Kenton & Campbell Counties (Northern KY)

• Households 1–4 people: $128,600
• Households 5–8 people: $169,800

These limits apply to USDA-eligible portions of Boone, Kenton, and Campbell Counties. City limits and high-density areas such as Covington, Florence, Fort Thomas, Bellevue, Ludlow, Richwood, Hebron, and other urbanized zones remain ineligible.

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Grant, Owen & Pendleton Counties (Northern KY)

• Households 1–4 people: $128,600
• Households 5–8 people: $169,800

These counties benefit from the same Cincinnati MSA income tier while maintaining broader USDA-eligible rural areas.

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USDA-Eligible Cities & Areas in Northern Kentucky

• Burlington
• Independence
• Walton
• Alexandria
• Highland Heights (partial)
• Cold Spring (partial)
• Grant County
• Owen County
• Pendleton County

Eligibility is based on exact property address. Buyers should always verify both income and property eligibility using the official USDA tools.

Check USDA Income & Property Eligibility

USDA-Eligible Cities in Northern Kentucky

• Burlington
• Hebron
• Independence
• Walton
• Alexandria
• Highland Heights
• Cold Spring
• Grant County
• Owen County
• Pendleton County

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Reminder: USDA Rural Housing loans are not limited to first-time homebuyers. Current homeowners may qualify, provided the new home will be their primary residence and USDA eligibility requirements are met.

For the most accurate and up-to-date determination, always verify both income and property eligibility using the official USDA tools.

Check USDA Income & Property Eligibility

Kentucky USDA Rural Housing Mortgage Lender: Kentucky Rural Housing USDA Maximum Income by County

Kentucky USDA Rural Housing Mortgage Lender: Kentucky Rural Housing USDA Maximum Income by Coun...: 

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.

See if I’m eligible Call or text today 502-905-3708

• 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

Open official USDA eligibility map View Kentucky USDA income limits

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

1. Open the official USDA property eligibility map.
2. Enter the full address (or browse areas if you haven’t picked a home yet).
3. Confirm the result shows the property as eligible.

Check the USDA eligibility map Request an address check

USDA eligibility in Kentucky: the 3 checks that matter

Use this as your quick filter before you spend time touring homes.

Start USDA pre-approval Call or text 502-905-3708

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.

Start my USDA quote Call 859-963-2712

Disclosure: Closing costs and prepaid items may still apply. Loan approval is subject to underwriting and program guidelines.

Kentucky USDA Rural Housing — Income Limits by County

2025 Kentucky USDA Rural Housing Income Limits

Check your county’s USDA income limits and property eligibility map

Search for Your County: Or Select from the List: -- Choose a Kentucky County --

1-4 Person Household:

5-8 Person Household:

Use the map below to check if a property address is located in a USDA-eligible area for 2025.

© 2025

enter address below: 👇👇👇👇

Joel Lobb (NMLS#57916)
Senior  Loan Officer

Text/call 502-905-3708

kentuckyloan@gmail.com

Kentucky USDA Rural Development Single Family Housing Guaranteed Loan Program

Fill out my form!

Kentucky USDA Rural Development Single Family Housing
Guaranteed Loan Program

APPLICANT BENEFITS

 100 percent financing available with no down payment required. Eligible repairs and 
closing costs may be included in the loan up to the appraised value of the property. 
 Upfront guarantee fee may be included in the loan amount above the appraised value. 
 Existing or new construction homes including all Planned Unit Development’s (PUD’s) are 
eligible. 
 Condominiums may be eligible. 
 30 year loan terms with fixed interest rates. 
 No pre-payment penalties. 
 Satisfactory credit and qualifying ratios apply. Nontraditional credit histories may be 
eligible. 

APPLICANT REQUIREMENTS

The following information is not all inclusive. For complete information refer to RD 
Instruction 1980-D, supplemented by applicable Administrative Notices (AN) available 
online at http://www.rurdev.usda.gov/RegulationsAndGuidance.html.  http://www.rurdev.usda.gov/RegulationsAndGuidance.html.
APPLICANT ELIGIBILTY 
The applicant must: 
 Be a U.S. Citizen, legally admitted as a permanent resident, or be a qualified alien. 
 Have the legal capacity to incur the loan obligation. 
 Be unable to secure credit with rate and terms reasonable to the applicant without a 
guarantee from the Single Family Housing Guaranteed Loan Program (SFHGLP).
 Not own a home within the local commuting area at the time of loan closing. Applicants that 
do own a home that is structurally unsound or functionally inadequate, or is located outside 
of the local commuting area may still be eligible for guaranteed loan consideration.
 Occupy the home purchased in an eligible rural area as their permanent primary residence. 
 Have stable and dependable income to ensure repayment ability. Households may not 
exceed the moderate income limit established for the applicable rural area. 
 Have an acceptable credit history that demonstrates the willingness and ability to meet 
financial obligations as they become due. If applicants exhibit unacceptable credit per RD 
Instruction 1980-D, section 1980.345(d) the approved lender may still consider the 
applicant if documented evidence of strong compensating factors as outlined in section 
1980.345(d)(3) exists. 

ANNUAL INCOME LIMITS

 Annual income includes the total gross income of the applicant, co-applicant, and any other 
adult (age 18 and up) household members. 
 Adjustments to annual income may be deducted for program eligibility determination. 
Deductions may be made for dependants, eligible annual childcare expenses, disability 
expenses, and annual medical expenses for elderly families. Please discuss eligible 
deductions with your SFHGLP contact. 
 Income limits are published for each county as an Exhibit to RD Instruction 1980-D and are 
available online at: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

REPAYMENT ABILITY: DEBT/INCOME RATIOS

 Repayment ability is determined by calculating the following ratios: 
- PITI (Principal, Interest, Real Estate Taxes, and Homeowner Insurance): The total PITI 
payment divided by the repayment income must be 29 percent or less. 
- Total Debt (TD): The PITI payment plus all other monthly debt obligation payments 
divided by the repayment income must be 41 percent or less.
 Repayment ratios that exceed 29 and/or 41 percentmay be approved by Rural 
Development when a ratio waiver request is provided by the approved lender. The ratio 
waiver must document and provide evidence of strong compensating factors to support the 
request. USDA Rural Development Single Family Housing Guaranteed Loan Division October 2012
1400 Independence Ave., S.W. Washington D.C. 20250-0784
202.720.1452
Examples of strong compensating factors include but are not limited to: 
- Current rent/housing payment is equal to or less than the proposed PITI. 
- Applicant has a history of devoting a similar percentage of income to housing expense 
similar to the PITI over the previous 12 months. 
- Strong credit score and repayment history. 
- Reserves are available post loan closing, which evidence the applicant’s ability to 
accumulate savings. 

PROPERTY REQUIREMENTS
ELIGIBLE RURAL AREA

The property must be located in an eligible rural area as defined in 7 CFR 3550.10 as:
1. Open country which is not part of or associated with an urban area. 
2. Any town, village, city or place, including the immediate adjacent densely settled area, 
which is not part of or associated with an urban area and which: 
a. Has a population not in excess of 10,000 if it is rural in character, or 
b. Has a population in excess of 10,000 but not in excess of 20,000, is not contained within 
a Standard Metropolitan Statistical Area, and has a serious lack of mortgage credit for
very low, low and moderate income households as determined by the Secretary of 
Agriculture and the Secretary of HUD.
Property eligibility is available online and through GUS. 

EXISTING HOMES

 Properties must meet HUD Handbooks 4150.2 and 4905.1. An FHA Roster appraiser or 
licensed residential appraiser deemed qualified by the approved lender may certify to this 
determination. 
 A separate home inspection report prepared by the appraiser or a home inspector deemed 
qualified by the approved lender is an acceptable option to ensure properties meet 
minimum standards. 
 Homes must be structurally sound, functionally adequate and in good repair, or will be 
improved to meet good repair. 
 There are no thermal performance standards for existing homes. 
 Private water systems/wells: The local health authority or state certified laboratory must 
perform a water quality analysis, which must meet state and local standards. 
 Private septic systems: The septic system must be free of observable evidence of failure. An 
FHA Roster appraiser, government health authority, licensed septic professional or 
qualified home inspector may perform the septic system evaluation. 
 Termite: If required by the lender, appraiser, inspector, or State law, a pest inspection must 
be obtained to confirm the property is free of active termite infestation. 
 Repairs: Any repairs necessary for the dwelling to be structurally sound, functionally 
adequate and in good repair must be completed prior to the request of the loan note
guarantee. Exception: Escrow accounts that meet the requirements of RD Instruction 
1980-D, section 1980.315 are allowed for exterior weather delayed repairs. When eligible 
escrow accounts are established per section 1980.360(2)(ii) the loan note guarantee will be 
issued without the repairs complete. 
 Existing homes have been completed for more than 12 months or have been completed for 
less than 12 months but have been previously occupied. USDA Rural Development Single Family Housing Guaranteed Loan Division October 2012

NEW CONSTRUTION

 Evidence the home was built in accordance with certified plans and specifications (e.g., 
International Residential Building Code, CABO, BOCO, etc.) must be obtained through an 
eligible building permit, certificate of occupancy, or certification for a qualified individual or 
organization that reviews plans and specifications. 
 Evidence of construction inspections performed throughout the project in accordance with 
section 1980.341(b)(2) must be retained. Acceptable documentation includes an eligible 
certificate of occupancy or copies of three inspections performed: (1) inspections prior to 
footing and foundation poured, (2) inspections of plumbing, electrical, and mechanicals 
before the shell is enclosed, and (3) a final inspection will meet requirements.
 Evidence of a builder’s warranty. Minimum one year issued by the builder. If the builder 
has offered a 10 year insured builder’s warranty acceptable to the Agency, this may be 
accepted and evidence of construction inspections will be waived. 
 Thermal performance requirements must meet the 2006 IECC code. An eligible building 
permit, certificate of occupancy, final inspection, or 10 year insured builder’s warranty is 
acceptable evidence this requirement has been met. 
 New construction homes have been completed (as evidenced by a certificate of occupancy)
for less than 12 months and have never been occupied. 
 New manufactured homes must be purchased from an approved dealer –contractors (your 
SFHGLP contact can provide a list of those approved in your state). A unit is considered 
new if the purchase agreement is dated within 12 months of the date the unit was 
manufactured. The date of manufacture is available on the factory installed plate on the 
unit. 

LOAN REQUIREMENTS
LOAN PURPOSES

 Loans must be secured by a first lien on real property in an eligible rural area. 
Loan funds may be used to: 
 Purchase an existing or new construction (stick built, modular, or manufactured) home. 
 Purchase or pay off a site as part of a new construction package. 
 Purchase and improve an existing home. Improvements must be complete before a loan 
note guarantee will be issued. Exception: Escrow accounts are allowed for weather delayed 
exterior repairs only.
 Include eligible loan fees, including legal fees, title services, and eligible closing costs. 
 Refinance existing Section 502 Direct and Guaranteed loans. If only the principal balance 
and the guarantee fee will be financed, no new appraisal is required. If the applicant wishes 
to include eligible closing costs into the loan, a new appraisal is required. A new appraisal is 
always required for Section 502 Direct loan refinances. 
LOAN LIMITS
 The maximum loan amount is 100 percent of the appraised value plus the upfront 
guarantee fee.

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Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell

http://mylouisvillekentuckymortgage.com