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USDA loans in Kentucky

Quick answer

USDA loans in Kentucky offer 0% down for moderate-income buyers purchasing in eligible rural and suburban areas, with a 1% upfront and 0.35% annual fee.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

USDA loan snapshot for Kentucky

ItemEstimate
Minimum down payment0%
Minimum credit scoreTypically 640 for automated approval
Typical KY home value$192,300
3.5% down on typical home$6,731
20% down on typical home$38,460
Avg. effective property tax0.77%/yr (~$123/mo)
Income for typical home (31% rule)$59,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which Kentucky programs pair with USDA loans?

  • Regular Down Payment Assistance: A repayable second mortgage covering down payment and closing costs.
  • Affordable Down Payment Assistance: A lower-rate assistance option for buyers with lower household incomes.

Details and current limits: Kentucky Housing Corporation (KHC).

How do I know if a home is USDA eligible?

Use the USDA eligibility map on the Rural Development website. Areas outside major cities — including many fast-growing suburbs and small towns — often qualify. Eligibility is reviewed periodically, so check the specific address.

USDA income limits

Income limits are based on the county and household size, and they count income from all adult household members, not just borrowers. Many areas allow roughly $110,000–$150,000+ for a household of 1–4 people.

USDA loans in Kentucky cities

LouisvilleLexingtonBowling GreenOwensboroCovingtonGeorgetownRichmondFlorenceElizabethtownNicholasvilleHopkinsvilleIndependenceJeffersontownFrankfortHendersonPaducahRadcliffAshlandErlangerMadisonvilleWinchesterMount WashingtonBurlingtonMurraySt. MatthewsShelbyvilleFort ThomasDanvilleBereaShivelyGlasgowShepherdsvilleNewportBardstownSomersetLawrenceburgCampbellsvilleFort Campbell NorthLyndonAlexandriaVersaillesFrancisvilleFranklinLa GrangeParis

Frequently asked questions

Only in USDA-eligible areas. Many rural and suburban parts of Kentucky qualify; check a specific address on the USDA eligibility map.

Often yes. Kentucky Housing Corporation (KHC) and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

Answer a few questions on Purchase Mortgage Loan and we'll match you with lenders and loan officers in our network who serve Kentucky.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.