WHAT ARE THE KENTUCKY USDA MORTGAGE LOAN REQUIREMENTS?
To decide if you qualify for an USDA Mortgage Loan, we will look at:

•Your income and your monthly expenses. Standard debt-to-income ratios are 29/41 for USDA Loans. These ratios may be exceeded with compensation factors.

•Your credit history (this is important, but USDA’s credit standards are flexible). A FICO score of 581 or above is required for all loans. You can possibly do a no score loan but it is more difficult

•Your overall pattern rather than to individual problems you may have had.

To be eligible for an USDA mortgage, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio).

Your credit background will be fairly considered. At least a 581 FICO credit score is required to obtain an USDA approval through USDA, but most lenders will want a 620 and some a 640 or higher to do the loan.

You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio).

These percentages may be exceeded with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area.

Maximum USDA Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

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