Analysis of lending practices of credit institutions in a metro and a rural area in Kentucky in 1975 shows that much of the differences in credit terms for housing is associated with location of the borrowers. Rural borrowers depend heavily on local banks; savings and loan associations are major housing lenders in the metro area. In general, terms on housing loans offered by banks are more stringent than those offered by savings and loan associations. Few housing loans were being made across county lines. Home buyers in the rural area had fewer years to repay the loans and were required to make larger downpayments. Insufficient downpayment was the leading reason given for rejecting loans.