Kentucky USDA Mortgage Loan Requirements – Quick Reference
Income: Up to 115% of local area median. Check your income limit
Debt-to-Income Ratios: 29% (housing) / 41% (total), can be exceeded with strong compensating factors
Credit: 640+ FICO recommended for GUS approval
Property: Must be in a USDA-eligible rural area (verify address here)
Owner occupancy only; no investment properties
Zero down payment required; closing costs can be financed if appraisal permits
Can I Get a USDA Loan After Bankruptcy?
Chapter 7 Bankruptcy: Eligible after 3 years from discharge.
Chapter 13 Bankruptcy: Eligible after 1 year of on-time court-approved payments.
Eligible Property Types
Single-family homes
Condos (FHA/VA/Fannie/Freddie approved)
PUDs (townhomes)
New manufactured homes (approved dealer, affixed foundation)
Existing homes must be “modest” (no luxury estates, co-ops, log homes, or investment property)
Benefits of the Kentucky USDA Guaranteed Loan
Zero down payment required
Low monthly mortgage insurance
No reserves required
Generous qualifying income limits
Not limited to first-time buyers
Expanded qualifying ratios for strong borrowers
Seller can pay all closing costs
30-year fixed rates—no prepayment penalty
