Author: Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans

Kentucky Rural Housing USDA Guidelines

 

KENTUCKY USDA HOME LOANS

 

USDA Home Loans in Kentucky?

Kentucky USDA Home Loans supplies 100% financing for a home purchase, or refinancing in a USDA designated area.

 Many large metropolitan cities have suburban areas that qualify for the USDA mortgage program.  Click Here for an interactive map of eligible areas in Kentucky here!

 

The KY USDA home loans are perfect for first time buyers for many reasons. They have low interest rates, absolutely no down payment, no mortgage insurance, flexible credit guidelines, and most of the closing costs can be worked into the overall amount of the loan.

 

Advantages of a USDA vs. FHA & Other Loans

The USDA Home Loan program offers many advantages that traditional mortgage programs simply do not offer. First of all, all USDA home loans come with low interest rates, 100% financing, and require zero down payment. In fact, the USDA home loan program is the only home loan program in the country, besides the military, that requires absolutely no money for the purchase of a home. Instead, these funds can be used to pay to furnish the home, closing costs, make home renovations.

USDA home loans also have very flexible credit guidelines compared to most traditional lenders, with non-traditional credit histories being accepted. FHA home loans require a minimum of 3.5% down payment and have relatively high monthly mortgage insurance premiums.

 

Kentucky USDA Income Eligibility

Because USDA home loans are designed for moderate, to low income families, there are income limit restrictions. To be eligible for a USDA loan, your adjusted annual household income cannot exceed 115% of the median average income for that area.

This means if your total household income is above the average median income for that area, you may not be able to qualify. However, there are special deductions in place, such as childcare expenses, caring for elderly family members, or children in college, that can help to reduce your overall annual income. The borrower’s total housing and other consumer credit payments should account for no more than 4% of the total income. Income limits vary by county. Check your county Kentucky  income limits here!

 

USDA Credit Eligibility

While it is true that USDA home loan program offers some the most credit flexible guidelines available, you still will need to have a minimum credit score of 620 to 640 to qualify.

However, some lenders may accept a credit score of as low as 580, if you can prove that some of your debts were circumstantial, temporary in nature, or beyond your control.

You must also have any bankruptcies or foreclosures discharged in the last 3 years, no outstanding tax liens and no accounts that have gone to collections within the past 12 months.

Click to access faqs_loan_origination.pdf

Joel LobbSenior  Loan Officer(NMLS#57916) Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com/

 

text or call my phone: (502) 905-3708

email me at kentuckyloan@gmail.com

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.

NMLS ID# 57916, (www.nmlsconsumeraccess.org). USDA Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation

Share this: