Kentucky USDA Loan Guidelines

Borrower Eligibility

• U.S. citizens
• Permanent resident aliens
• First time homebuyers allowed
• Non-occupant co-borrowers NOT allowed

Commitment Fee

• USDA charges a 1% Commitment Fee
• Commitment Fee can be financed into the loan
• Example:
  • Purchase price – $100,000
  • Base Loan amount – $100,000
  • Commitment Fee – $1,010 ($100,000 [purchase price] /.99 – 100,000)
  • Maximum financed loan amount = $101,010

Downpayment Requirement

• No down payment is required
• If borrower has adequate liquid assets (i.e. 20% of the property purchase price) to obtain conventional financing the borrower may be ineligible for the USDA Rural Development Loan

Eligible Properties

• Must be in an eligible USDA Rural Development Location
• Owner-occupied properties
• Existing attached & detached single family residences
• New construction with permanent financing only
• PUD’s (i.e. Townhomes)
• Condo-units. HUD, VA, FNMA or FHLMC approved project
• Log cabin homes, provided Appraisal Report lists other comparable log cabin homes that have recently sold in…