What are the USDA Income Eligibility Requirements for First Time Homebuyers?
What are the Income Eligibility Requirements for the USDA?
The USDA Guaranteed Loan program provides home ownership opportunities for Americans living in rural areas that have low to moderate income levels, so what are the USDA income eligibility requirements? When qualifying for a USDA loan, one of the key points to understand is that a family household’s total income is taken into consideration which cannot exceed the USDA income eligibility requirements limit for that county.
USDA Income Eligibility Requirements and Income Limits
With other types of programs, such as FHA, VA or Conventional loans, only income from the loan applicants is calculated for approval. For USDA income eligibility, it requires that we calculate the total income from all household members when calculating USDA qualifying income regardless of who is on the loan.
Also when calculating for USDA income limits, applicants may be eligible to make certain deductions to their gross income such as annual child care expenses and itemized amounts for each minor child. This helps to reduce the total income calculated for the household income part of the USDA loan qualifying process.
Income calculations vary from state to state and from county to county for USDA income eligibility.