Wondering if you can buy a home in Calvert City with little or no money down? If you earn a modest income and want to live in a smaller community, a USDA loan could be a fit. You might be closer to keys-in-hand than you think.
In this guide, you’ll learn how USDA loans work, who qualifies in Marshall County, what the fees look like, and how the process plays out locally. You will also get a simple checklist to get started and local tips to keep your purchase on track. Let’s dive in.
How USDA loans work
USDA Single-Family Housing Guaranteed Loans help low- to moderate-income buyers purchase a primary residence in eligible rural areas. Loans are made by private lenders and guaranteed by USDA Rural Development.
- 100% financing is often available to qualified borrowers.
- Owner-occupied, single-family homes only.
- Private lenders originate and service the loan; USDA provides the guarantee.
For program details, see the official USDA overview of the USDA Single-Family Housing Guaranteed Loan Program.
Calvert City property eligibility
USDA eligibility is map-based. A property must sit inside an area the USDA defines as rural. Calvert City and much of Marshall County have rural characteristics, so many addresses are likely to be eligible, but you need to verify each property.
- Check any address using the USDA property and income eligibility tool.
- Eligible property types typically include single-family homes, some approved condos, modular homes, and certain manufactured homes that meet program standards.
- Investment properties and most vacation-only homes are not eligible.
Property condition and types
USDA requires homes to meet Minimum Property Requirements to be safe, sanitary, and structurally sound. If the appraisal flags issues, the seller may need to complete repairs before closing. Manufactured homes must meet title and foundation standards and be properly connected to utilities to qualify.
In Calvert City, you will see a mix of traditional single-family homes and manufactured housing. Not every manufactured home will meet program rules, so confirm details early to avoid delays.
Borrower eligibility basics
USDA loans focus on buyers who intend to live in the home as their primary residence. You can be a first-time or repeat buyer if you meet the rules.
- Occupancy: You must plan to live in the home full time.
- Citizenship: U.S. citizens, U.S. non-citizen nationals, or qualified aliens are eligible under program rules.
- Income: Household income must fall at or below county limits, which vary by household size and change periodically. Use the USDA income lookup for Marshall County to confirm your current limit.
- Credit: USDA does not set a nationwide minimum score, but lenders look for a history of on-time payments and the ability to repay. Many lenders prefer mid-600s or higher, and debt-to-income targets often center around 41 percent, with some flexibility based on compensating factors.
Ask potential lenders about their credit overlays and DTI guidelines. Requirements can vary between institutions.
Costs, fees, and what to expect
USDA loans do not require a down payment, but you will still have closing costs and program fees.
- USDA guarantee fees: The program charges an upfront guarantee fee and a small annual fee on the outstanding balance that is added to your monthly payment. As an example commonly cited in 2023–2024, the upfront fee is around 1.0 percent of the loan amount, and the annual fee is around 0.35 percent. Confirm current rates with a lender or on USDA’s site because fees can change.
- Closing costs: Expect standard items like appraisal, title, recording, and prepaid taxes and insurance. Seller-paid concessions are possible within program limits and can help with your cash to close.
- Appraisal and repairs: If repairs are required to meet USDA standards, budget time and funds accordingly.
Step-by-step process in Marshall County
Research eligibility. Use the USDA eligibility map and income tool to check addresses and household limits for Marshall County.
Get pre-approved. Contact USDA-approved lenders to compare rates, fees, and overlays. Ask directly about credit score preferences and DTI caps.
Shop eligible homes. Focus your search on properties within eligible boundaries and that are likely to meet condition standards.
Make an offer. Include any USDA-related financing contingencies your lender recommends.
Appraisal and underwriting. The lender orders the appraisal and processes your file; the home must appraise at or above the purchase price and meet USDA property requirements.
USDA guarantee. After underwriting, your lender submits the file to USDA for the final guarantee review.
Close. You sign final documents, pay or finance the upfront guarantee fee, and receive keys.
Timeline to close
Most USDA purchases take about 30 to 60 days from contract to closing. In Marshall County, timing can depend on appraisal scheduling, availability of local contractors for required repairs, and USDA processing windows. Lenders who regularly handle USDA loans can reduce hiccups.
Local tips for Calvert City buyers
- Check flood zones early. Some parcels near waterways may sit in a floodplain, which can affect insurance costs and lender approval. Review the property on the FEMA Flood Map Service Center.
- Verify manufactured home details. If you are considering a manufactured home, make sure foundation, title, and utility connections meet USDA standards before you write an offer.
- Lean on state resources. For housing education and potential assistance programs, explore the Kentucky Housing Corporation. For program contacts and guidance, see the USDA Kentucky State Office.
- Ask about seller concessions. USDA allows typical seller-paid closing costs within program limits, which can reduce your cash to close if negotiated.
Quick buyer checklist
- Confirm the address on the USDA eligibility map.
- Check household income against Marshall County limits in the same tool.
- Gather documents: recent pay stubs, W-2s, tax returns, bank statements, ID, and Social Security numbers.
- Get pre-approved by a USDA-approved lender; ask about credit overlays and DTI.
- Review seller disclosures and ask about the age of roof, HVAC, plumbing, and electrical.
- Check flood zone status and potential insurance requirements.
- Prepare for appraisal-driven repairs and get quotes if needed.
Why this loan can fit Calvert City
USDA financing is designed for rural communities, which aligns well with Calvert City and much of Marshall County. If you meet income and credit guidelines and choose a home inside the eligible map area, the no required down payment feature can make homeownership more reachable. Paired with competitive interest rates and seller-paid costs when negotiated, USDA can be a practical path to owning your first or next home here.
Work with a local guide
Choosing the right property, confirming eligibility, and navigating repairs or seller concessions can be a lot to juggle. Sunday Property Group knows Western Kentucky and can help you target USDA-eligible homes, coordinate with USDA-savvy lenders, and keep your transaction moving on schedule. Ready to look at homes in Calvert City and Marshall County? Connect with Sunday Property Group to get started.
FAQs
Is Calvert City eligible for USDA loans?
- Many addresses in Calvert City and Marshall County are likely eligible, but you must verify each property on the USDA eligibility map.
Do USDA loans require a down payment?
- USDA guaranteed loans generally allow 100 percent financing for qualified borrowers, so no down payment is required.
What are the income limits for Marshall County?
- Limits vary by household size and are updated periodically, so use the USDA income lookup to confirm current figures for Marshall County.
What credit score do I need for a USDA loan?
- USDA does not set one minimum score, but many lenders look for credit in the mid-600s or better along with stable income and manageable debts.
Can I buy a manufactured home with USDA financing?
- Possibly, if the home meets program requirements for title, a permanent foundation, utility connections, and other standards.
How long does a USDA loan take to close?
- Most USDA purchases in this area take about 30 to 60 days, with timing affected by appraisals, repairs, and USDA review.
