Income Limits Updated for USDA

USDA has announced the income limits for Section 502 Guaranteed Rural Housing Program have changed, effective June 2, 2010.  The new income limits can be found at the USDA Rural Development Eligibility Home page by following either of the links provided below.

http://eligibility.sc.egov.usda.gov

(click on “Guaranteed Housing” under the “Income limits” tab on the left side of the page)

or

http://www.rurdev.usda.gov/rhs/sfh/sfh%20guaranteed%20loan%20income%20limits.htm

(Direct link to the 2010 Income Limits)

The number of people used for income eligibility is the number of people living in the home,  including foster adults and foster children, not the number of applicants on the file.

The basic income limit for non-high cost counties are:

So, regardless of whether you are purchasing a home in a high-cost area or a non-high cost area the benefit is that if you only have 1 – 2 people in your household you get the benefit of a 4 person household, and if you have 5 people in your household you get the benefit of an 8 person household.

Don’t assume just because you income is over the income limit that you don’t qualify. USDA allows for deductions to income, these are only for income limit qualifying not debt ratio qualifications; so, you still get the benefit of your full income. Each household member under 18 Years old, Disabled, or Full Time Student receives a $480 deduction to your annual income. There is also an allowance for documented child care expenses.

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