Borrower Eligibility - Income Limits
USDA loans are intended for moderate-income families, those having annual household income at or below 115% of the median income for the area. USDA provides a website that shows the income limits by state, county, and family size. More >>>>>>>>
Applicants can also get a preliminary determination of income eligibility through the USDA website. More >>>>>>>>
Below is the first screen in the site whereby the applicant enters the state, county, and household members:
Applicants can also get a preliminary determination of income eligibility through the USDA website. More >>>>>>>>
Below is the first screen in the site whereby the applicant enters the state, county, and household members:
This the second screen into which the applicant enters the household income and any applicable expenses and deductions:
This is the third screen provides a preliminary determination based on entries in the two screens above. In this case, the household consists of two parents and three children. One applicant earns $5,800 per month and the other earns $4,500 per month for a total of $123,600. The adjusted annual income after a deduction for each child is $122,160, and therefore the applicants are eligible since the income limit for their county is $123,630.
Buying Power within the Income Limits
The loan summary below shows how the applicants in the example above could purchase a property in the $500,000 range. (Income of $123,600 / 12 = $10,300 per month. $3,025.50 / $10,300 = 29.37%)
