USDA Rural Housing announced the annual household income limits for the Single Family Housing 502 Guaranteed Loan Program were recently increased. This is great news as more households across the country will now meet the income eligibility requirements.
Annual household income limits for most locations are now set to $90,300 for households of 1 to 4 and $119,200 for households of 5 or more. The USDA mortgage income caps are even higher for certain high-cost locations in South Florida, California, Colorado, etc. Home buyers can look up and calculate their household income at the USDA link here.
|New Income Limits as of May 2020||Previous Income Limits|
|1-4 Household Members||5-8 Household Members||1-4||5-8|
It’s important for buyers to remember that USDA permits certain deductions for household income. Examples of eligible deductions include:
- Children/Dependents living in the home
- Childcare / daycare expenses
- Elderly care
- Home buyers with disabilities
Buyers should also note that the USDA income restrictions apply to ALL household members that generate income, regardless if they are listed on the loan application or not.
The USDA income limits are typically adjusted each year. The current income caps listed should be valid into 2021, please be sure to check the blog for any updates. Please call us above or just submit the Info Request Form on this page anytime with any questions.
The USDA mortgage remains one of the last 100% home loans available to qualified home buyers. The program offers many benefits including the following:
- 100% financing
- Buyers can receive sellers concessions for closing costs, or roll into their loan with supporting appraisal
- Low 30 year fixed interest rates
- Zero penalties for paying off the loan early
- NO restrictions on how long you must live in the home
Buyers can read more about the USDA mortgage and all the frequently asked questions here. Be sure to contact us today to learn more about eligibility restrictions and how to apply.