Kentucky Rural Housing USDA Credit and Income Guidelines


  • No Down Payment required, 100% financing available
  • 30 year fixed rate only no other terms allowed.
  • Not limited to First Time Home buyers! Also available for the move up home buyer.
  • More affordable than FHA when compared to mortgage insurance
  • Seller concession fees at 6%
  • No Bankruptcies last 3 years or foreclosures last 3 years
  • Typical max income household income limits are centered on how many people are going to live in the home and which county you are going to buy a home in. Most Counties in Kentucky are maxed at $87k for a household of four or less, and up to $115k for a household of five or more. 
  • Debt to income ratios are usually centered around 45% on the back-end ratio, meaning the new house payment plus the monthly bills on the credit report cannot be more than 45% of our total gross qualifying income. 
  • There is also a front end ratio, which is the new house payment only divided by the gross monthly income. This can vary anywhere between 20% to 35% I have seen on some borrowers depending on your credit scores and assets. 
  • If you have access to 20% down payment, you cannot use the USDA loan program.
  • Only new manufactured homes are allowed for USDA loans and the dealer must be approved contractor with USDA 
  • Swimming pools are okay for USDA loans on appraisals.
  • Working farms are not allowed with USDA loan, but there is no acreage limits on 
  • USDA loans. 




  • Guarantee Fee applies. May be financed and added to the loan amount
  • Flexible credit guidelines and 620 FICO***Even though USDA states in the guidelines that they will go down to a 581, most lenders will not go below 620 to 640 score range  that I work with. 
  • Manual underwrites, meaning if you get a refer through the Automated system their is chance you can still get approved. 
  • Ratios per GUS Approval--GUS stands for their Automated Underwriting System which lenders use to get borrowers pre-approved. It will review credit, income, and assets along with area, purchase prince amount and determine your loan pre-approval
  • Flipped properties within 90 days of seller acquisition are allowed
  • Household income may not exceed 115% of the area's median income level*
  • Transferred appraisals are okay, so FHA will work for USDA appraisals.








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