USDA loan program available to rural home buyers


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With an abundance of homes for sale in most of rural Kentucky, buyers continue to have plenty of choices and lots of bargaining power. With the help of USDA Rural Development’s no down payment home loan programs, dreams of homeownership can come true.

The Rural Housing Direct Home Loan Program offers 100 percent financing with no down payment required for low-and very-low income individuals or families. These loans are made directly through USDA Rural Development and offer a payback period of up to 33 years; very low income applications unable to afford the 33-year period may qualify for 38 years. The repayment of the loan may be subsidized by the federal government, based on household income. Direct loans may be made for the purchase of an existing home or new home construction.

The loan amount is determined by the repayment ability of the borrower. Loans made under this program are to individuals and families meeting county specific income guidelines who would not otherwise qualify for a conventional loan. County income limits for the programs are posted on the Rural Development Kentucky website at http://www.rd.usda.gov/ky and by clicking on “Check Eligibility” on the bottom of the screen.

Rural Housing Programs offer a broad range of homeownership assistance available to individuals and families who wish to or currently live in rural areas, cities, and communities. The program has the ultimate goal of providing affordable homeownership opportunities to Kentucky residents.

USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life in rural communities. For further information on USDA Rural Development and programs offered, visit the website, email gayle.smallwood@ky.usda.gov, or call (270) 769-1555, extension 4.

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