USDA Loan Lenders in Kentucky 2026: Top 7 Ranked
Robert Davis
Kentucky Rural Housing Specialist | USDA Expert | 13+ Years
January 22, 2026
Looking for USDA loan lenders in Kentucky? Kentucky has 1,200+ USDA-approved lenders, but only 7 consistently deliver the best rates, fastest approvals, and rural KY expertise.
6.00%
Average USDA Rate
0%
Down Payment
97%
KY Eligible Areas
$0
Closing Costs*
🏆 Top 7 USDA Lenders in Kentucky 2026
Guaranteed Rate - Best USDA Lender Kentucky
2,600+ KY USDA loans
Why #1:
- 💰 Lowest USDA rates: 5.90%-6.10% APR
- ⚡ Close in 34 days average
- 🏆 #1 USDA lender in KY (2025)
- 📍 Knows all 120 KY counties
- 🎯 $0 closing costs option
Best For:
KY rural buyers who want fastest approval + lowest rates
📍 USDA Eligible Areas in Kentucky 2026
🎉 97% of Kentucky is USDA-eligible!
Kentucky has one of the HIGHEST USDA eligibility rates in America. Almost every area outside Louisville and Lexington qualifies.
✅ USDA-Eligible Areas (97%)
- • Louisville suburbs: Shepherdsville, Mt. Washington, Shelbyville, Elizabethtown
- • Lexington suburbs: Georgetown, Nicholasville, Winchester, Versailles
- • Northern KY: Florence, Erlanger, Independence (near Cincinnati)
- • All rural counties: 115 of 120 KY counties
❌ NOT USDA-Eligible (3%)
- • Louisville: Downtown + inner city only
- • Lexington: Downtown core only
Note: Even 10-15 minutes outside these downtowns = USDA-eligible!
✅ Kentucky USDA Loan Requirements 2026
Income Requirements
1-4 Person Household:
Max $103,500/year (most KY counties)
5-8 Person Household:
Max $136,600/year (most KY counties)
High-Cost KY Counties:
Jefferson, Fayette: Up to $110,000
Other Requirements
Credit Score:
640+ recommended (no USDA minimum)
Down Payment:
0% required (100% financing)
DTI Ratio:
41% max (29% front-end)
Property Type:
Single-family, townhome, condo (USDA-approved)
❓ FAQ: USDA Loans Kentucky 2026
Can I get a USDA loan near Louisville or Lexington?
YES! Most Louisville and Lexington suburbs are USDA-eligible.
Louisville USDA-Eligible Suburbs:
- Shepherdsville, Mt. Washington, Shelbyville (15-25 min from downtown)
- Elizabethtown, Bardstown, La Grange (25-35 min from downtown)
Lexington USDA-Eligible Suburbs:
- Georgetown, Nicholasville, Winchester (15-20 min from downtown)
- Versailles, Paris, Richmond (20-30 min from downtown)
What is the income limit for USDA loans in Kentucky?
Most KY Counties:
- 1-4 person household: $103,500/year
- 5-8 person household: $136,600/year
High-Cost KY Counties (Jefferson, Fayette):
- 1-4 person household: $110,000/year
- 5-8 person household: $145,200/year
Note: Income includes ALL household members over 18, not just borrowers.
How long does USDA loan approval take in Kentucky?
Average Timeline: 34-45 days
Breakdown:
- Pre-approval: 1-3 days
- Home search: 30-60 days
- Offer accepted: Day 1
- Appraisal: Day 7-14
- USDA underwriting: Day 14-34
- USDA final approval: Day 34-39
- Closing: Day 39-45
Tip: USDA loans take 5-10 days longer than conventional due to USDA final approval step.