• No down payment required and 30 year fixed rate loans only with no prepayment penalty. There are two types of USDA loans offered. Direct and Guaranteed. Direct loans are offered directly by the local USDA office and Guaranteed loans are offers by participating lenders. Some USDA Direct loans have subsidy recuperate fees because the loan interest rate is subsidized based on your annual income.

Louisville/Jefferson County, KY-IN MSA
Louisville, KY-IN HUD Metro FMR Area

STATE:KENTUCKY ——————- A D J U S T E D I N C O M E L I M I T S ——————

VERY LOW INCOME      33500 33500 33500 33500 44200 44200 44200 44200
LOW INCOME                53600 53600 53600 53600 70750 70750 70750 70750
MOD.INC-GUAR.LOAN 78200 78200 78200 78200 103200 103200 103200 103200




Screenshot (3)
• Allows single family resident, condos that meet FHA, Fannie
Mae and Freddie Mac requirements, manufacture homes
less than 12 months old, and modular homes.
• There are income limitations and restrictions which vary
by different counties of Kentucky and numbers of family members in
a household. Typically $80k for a family household of four and up to $103k for a family household of five or more.
USDA will give some deductions depending on the
age, child-care expenses.

• The property itself has to be eligible for USDA as far as
location and condition of property goes. Condition of
property has to meet minimum HUD requirements which an appraiser will mostly make that decision.
• There are no loan or purchase limits for USDA as long
as the property and income meets the standards of this product.
• USDA has no minimum acreage based on their guidelines but
they will look at the houses on 5 acres or more very carefully to
make sure the house and the land ratio meets and guidelines.They typically do not like older homes. Double wide or manufactured homes must be brand new and from dealer’s lot.

• It has an upfront funding fee of 1% which will get financed to the loan.
Purchase price: $100K
Down-payment $0.00
Funding fee: $1000  (1% of funding fee + purchase price)
Loan Amount: $101,000.00
• There is also monthly mortgage insurance for USDA which is at .35% factor, which will make the monthly payment very affordable.
• Borrowers can finance the closing cost to their loan as long as the appraisal value supports the addition. For example:
Appraisal value of $100K
Purchase price of $97K
You can finance $3K of your closing cost to the loan.



Joel Lobb (NMLS#57916)
Senior  Loan Officer
American Mortgage Solutions, Inc.
Company ID #1364 | MB73346

Text/call 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#57916 http://www.nmlsconsumeraccess.org/
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

3 thoughts on “USDA Rural Housing Guidelines for Kentucky First Time Home Buyers

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