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…

Kentucky FHA Loan Requirements for 2022 to include Credit Fico Scores, Down Payment, Income and Job history

 How long  will it take to close on your Rural Development USDA Loan in Kentucky?

On average, 30 to 45 days is usually okay. Sometimes quicker than 30 days, if the file is clean and submitted early to USDA office and the appraisal comes back okay.

It may take a 2-3 day longer turn time to Underwrite a USDA loan vs FHA, VA, Conventional loan. Not that big of a difference

The loan approval process for a USDA Loan is not like any other loan. Like all loan programs, the USDA Loan will have a lender that will assign the loan file to an Underwriter, who in turn will determine if the loan meets the loan program guidelines for approval.

Unlike other loan program, once the loan is approved by the lender/Underwriter, the file will be sent to one of the  centralized processing sites for the  Rural Development Offices in…