The Section 502 Direct Loan Program, also known as USDA Direct Loans, is a program that aids low and very-low-income individuals purchase decent healthy, safe and clean housing in eligible rural areas. That’s accomplished though offering payment assistance which boosts a borrower’s capacity to repay. This payment assistance can be described as a form of subsidy that lowers the mortgage repayment for a brief period, and the amount of assistance is contingent upon the adjusted family income. USDA Section 502 Direct Loans in Kentucky aren’t the same thing as USDA Section 502 Guaranteed Loans in Kentucky. The USDA Guaranteed Loan Program is more popular and accommodates a wider range of applicant incomes.
Can I get a USDA Direct Loan in Kentucky?
USDA Direct Loans in Kentucky are low income loans that can be used to purchase homes in rural areas. To qualify for Direct Loans, applicants must have low or very low income, which is defined by the USDA as 50% to 80% of the Area Median Income (AMI). Like other rural housing loan programs, USDA Direct Loans are a mortgage with no down payment. The median income for the entire state of KY is $50,589, although that figure may vary from county to county. The maximum yearly income limits for Kentucky USDA Direct Loan approval are listed below. Other than meeting Kentucky USDA Direct Loan income limits, applicants must adhere to the following criteria to be eligible:
- You have no decent clean, safe, and sanitary housing presently.
- You can’t be able to get a mortgage from another source with terms and conditions that could reasonably expected to be met.
- You must use this property for your primary residence.
- You must possess the legal capacity to be able to contract a loan
- You must meet citizenship or eligible noncitizen requirements.
- You can’t be barred or suspended from participation in federal programs.
Additionally, the subject property must meet the following conditions:
- Be a modestly sized home for that area.
- Market value can’t be in excess of the areas applicable loan limit.
- Can’t be designed for the production of income.
What areas in KY are eligible for USDA Direct Loans?
The property in question must be in an approved rural area. USDA Rural Development provides a webpage where you can search specific addresses in KY here.
How much can I borrow with a USDA Direct Home Loan?
The size of the mortgage that an applicant’s eligible for depends on their ability to repay. Rural Development takes into account income, assets, debt, and payment assistance when weighing eligibility for USDA Direct home loans. No matter what the repayment ability is, you can’t borrow more than the local loan limit for the county where the home is located.
Are there other mortgage options with low down payment or no down payment in Kentucky?
Yes, there may be other low down payment mortgage options, and no down payment mortgage options in Kentucky besides USDA Direct Loans. You can begin by researching Kentucky USDA Guaranteed Loans, Kentucky FHA Loans, and Kentucky VA Loans if you’re a veteran in KY or qualified family member. You may also want to look into helpful programs for down payment assistance in Kentucky.
Kentucky USDA Direct Loan Maximum Income Limits
Area | 1 Person | 2 Person |
3 Person | 4 Person |
5 Person |
|---|---|---|---|---|---|
| Adair County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Allen County, KY HUD Metro FMR Area | $44,900 | $44,900 | $44,900 | $44,900 | $59,250 |
| Anderson County, KY | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Ballard County, KY | $48,250 | $48,250 | $48,250 | $48,250 | $63,700 |
| Barren County, KY | $42,100 | $42,100 | $42,100 | $42,100 | $55,550 |
| Bath County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Bell County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Bowling Green, KY HUD Metro FMR Area | $49,600 | $49,600 | $49,600 | $49,600 | $65,450 |
| Boyle County, KY | $45,200 | $45,200 | $45,200 | $45,200 | $59,650 |
| Breathitt County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Breckinridge County, KY | $47,600 | $47,600 | $47,600 | $47,600 | $62,850 |
| Butler County, KY HUD Metro FMR Area | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Caldwell County, KY | $43,750 | $43,750 | $43,750 | $43,750 | $57,750 |
| Calloway County, KY | $47,450 | $47,450 | $47,450 | $47,450 | $62,650 |
| Carlisle County, KY | $44,300 | $44,300 | $44,300 | $44,300 | $58,500 |
| Carroll County, KY | $45,600 | $45,600 | $45,600 | $45,600 | $60,200 |
| Carter County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Casey County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Cincinnati, OH-KY-IN HUD Metro FMR Area | $65,050 | $65,050 | $65,050 | $65,050 | $85,850 |
| Clarksville, TN-KY MSA | $48,700 | $48,700 | $48,700 | $48,700 | $64,300 |
| Clay County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Clinton County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Crittenden County, KY | $44,650 | $44,650 | $44,650 | $44,650 | $58,950 |
| Cumberland County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Elizabethtown, KY HUD Metro FMR Area | $54,100 | $54,100 | $54,100 | $54,100 | $71,400 |
| Elliott County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Estill County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Evansville, IN-KY MSA | $53,750 | $53,750 | $53,750 | $53,750 | $70,950 |
| Fleming County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Floyd County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Franklin County, KY | $54,550 | $54,550 | $54,550 | $54,550 | $72,000 |
| Fulton County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Garrard County, KY | $47,750 | $47,750 | $47,750 | $47,750 | $63,050 |
| Grant County, KY HUD Metro FMR Area | $44,550 | $44,550 | $44,550 | $44,550 | $58,800 |
| Graves County, KY | $44,900 | $44,900 | $44,900 | $44,900 | $59,250 |
| Grayson County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Green County, KY | $41,350 | $41,350 | $41,350 | $41,350 | $54,600 |
| Harlan County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Harrison County, KY | $44,950 | $44,950 | $44,950 | $44,950 | $59,350 |
| Hart County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Hickman County, KY | $44,700 | $44,700 | $44,700 | $44,700 | $59,000 |
| Hopkins County, KY | $47,350 | $47,350 | $47,350 | $47,350 | $62,500 |
| Huntington-Ashland, WV-KY-OH HUD Metro FMR Area | $45,100 | $45,100 | $45,100 | $45,100 | $59,550 |
| Jackson County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Johnson County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Knott County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Knox County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Laurel County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Lawrence County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Lee County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Leslie County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Letcher County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Lewis County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Lexington-Fayette, KY MSA | $59,600 | $59,600 | $59,600 | $59,600 | $78,650 |
| Lincoln County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Livingston County, KY | $45,300 | $45,300 | $45,300 | $45,300 | $59,800 |
| Logan County, KY | $44,150 | $44,150 | $44,150 | $44,150 | $58,300 |
| Louisville, KY-IN HUD Metro FMR Area | $61,100 | $61,100 | $61,100 | $61,100 | $80,650 |
| Lyon County, KY | $50,950 | $50,950 | $50,950 | $50,950 | $67,250 |
| Madison County, KY | $52,700 | $52,700 | $52,700 | $52,700 | $69,550 |
| Magoffin County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Marion County, KY | $41,600 | $41,600 | $41,600 | $41,600 | $54,900 |
| Marshall County, KY | $49,050 | $49,050 | $49,050 | $49,050 | $64,750 |
| Martin County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Mason County, KY | $42,800 | $42,800 | $42,800 | $42,800 | $56,500 |
| McCracken County, KY | $48,650 | $48,650 | $48,650 | $48,650 | $64,200 |
| McCreary County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Meade County, KY HUD Metro FMR Area | $48,950 | $48,950 | $48,950 | $48,950 | $64,600 |
| Menifee County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Mercer County, KY | $50,550 | $50,550 | $50,550 | $50,550 | $66,750 |
| Metcalfe County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Monroe County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Montgomery County, KY | $41,500 | $41,500 | $41,500 | $41,500 | $54,800 |
| Morgan County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Muhlenberg County, KY | $44,650 | $44,650 | $44,650 | $44,650 | $58,950 |
| Nelson County, KY | $52,900 | $52,900 | $52,900 | $52,900 | $69,850 |
| Nicholas County, KY | $41,600 | $41,600 | $41,600 | $41,600 | $54,900 |
| Ohio County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Owen County, KY | $49,900 | $49,900 | $49,900 | $49,900 | $65,850 |
| Owensboro, KY MSA | $54,800 | $54,800 | $54,800 | $54,800 | $72,350 |
| Owsley County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Perry County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Pike County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Powell County, KY | $41,350 | $41,350 | $41,350 | $41,350 | $54,600 |
| Pulaski County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Robertson County, KY | $41,500 | $41,500 | $41,500 | $41,500 | $54,800 |
| Rockcastle County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Rowan County, KY | $42,700 | $42,700 | $42,700 | $42,700 | $56,350 |
| Russell County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Shelby County, KY HUD Metro FMR Area | $60,950 | $60,950 | $60,950 | $60,950 | $80,450 |
| Simpson County, KY | $44,800 | $44,800 | $44,800 | $44,800 | $59,150 |
| Spencer County, KY SEA | $61,100 | $61,100 | $61,100 | $61,100 | $80,650 |
| Taylor County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Todd County, KY | $43,300 | $43,300 | $43,300 | $43,300 | $57,150 |
| Union County, KY | $44,650 | $44,650 | $44,650 | $44,650 | $58,950 |
| Washington County, KY | $45,100 | $45,100 | $45,100 | $45,100 | $59,550 |
| Wayne County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Webster County, KY | $51,050 | $51,050 | $51,050 | $51,050 | $67,400 |
| Whitley County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
| Wolfe County, KY | $40,950 | $40,950 | $40,950 | $40,950 | $54,050 |
More USDA Loan Resources
USDA Direct Loan Income Limits (Low Income)
USDA Direct Loan Limits (Low Income)
All USDA Loan Limits
All USDA Loan Income Limits
USDA Loan Requirements
USDA Loan Programs
USDA Loan Calculator
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