USDA recently updated the 502 Guaranteed Housing loan program income limits. For those buyers that are unaware, unlike other government mortgage programs like FHA or VA, the USDA Rural Housing program has household income limits in place that home buyers must meet to be eligible for financing.
The income limits depend on a variety of factors like household size, property state/county and the number of dependents and/or children living in the household. Applicants will want to keep in mind a few things when figuring household income eligibility:
**Post Update Alert: Home buyers can find the latest 2019 USDA income limits here. Please contact us 7 days a week if you need assistance, or what to learn more about applying for a USDA loan. Just submit the info request form on this page.
- The income limits apply to all members of the household even if they are NOT included on the loan application. Example: John and Betty are married with two young children. They both work regular full-time jobs and are planning to apply for a USDA loan. Betty is also caring for her elderly mother who lives with the family. Betty’s mother will not be included on the loan application, but she does receive $1,100 per month in social security income each month. Even though her mother won’t be listed on the loan application, her income will be included to determine overall household income eligibility.
- Certain expenses related to childcare can be deduced from the household income caps. There are also deductions for elderly and disabled household members.
- Income limits are based on total household gross income.
- Rural Development income caps are set based on family size. Most of the U.S. has a 1-4 member yearly income cap of $82,700 and $109,150 for larger households of 5-8+ members. However, certain locations in California, Alaska, Florida, Virginia, Colorado, Connecticut, Massachusetts, among other higher cost states have limits much higher. Be sure to check the interactive USDA income map below, look under the MOD.INC-GUAR.LOAN field. The current limits posted are valid through 2019.
USDA offers many advantages for eligible homebuyers across the nation. The program is still 100% financing in qualified locations nationwide. Furthermore, the program is not limited exclusively to first time home buyers. The program is great for any eligible property located in a rural defined location by USDA. Please browse the website and USDA FAQ’s to learn more about the requirements and restrictions.
Will the current income limits be the same in 2018? I’m pretty close to the limit now, but not planning to purchase my home until January. I also could get a yearly raise at that time as well.
Yes, the current household income limits should remain the same through 2018, please bookmark the blog to stay up to date on any changes.
We are literally like $1,080 over the income limit…is there any other help for people who just barely miss it?
The USDA income limits are firm. However, if you haven’t already, please contact us to have a USDA loan specialist review the income with you. There may be deductions you are not counting for.
The last 2 years I made just about 2,000 over the income limit, however this year I will make less then the income limit. Will I be eligible as this year I am below the income limit.
Yes, USDA will average out your YTD income so far in 2018 to determine eligibility.