Because USDA loans are meant to assist low-to-moderate income homebuyers, the USDA sets income limits based on the property’s location and household size. The base USDA income limits are generally as follows but income limits are set for the county you are purchasing in:·
1-4 member household: $90,300
· 5-8 member household: $119,200
USDA counts the total annual income of every adult member in a household towards the USDA income limit, regardless if they are a part of the loan.
But it’s also not as simple as looking at your annual pay. USDA ultimately looks at what it calls adjusted annual income, which takes into account acceptable deductions for things like child care, medical expenses and more.
What is the USDA Loan Property Eligibility – USDA loans are only available to homebuyers wishing to purchase in what the USDA considers a rural area, although some suburban areas may be eligible as well.
The USDA defines a qualified “rural” area as any area with a population under 35,000, is rural in character and has a serious lack of mortgage credit for low- and moderate-income families.
Additionally, USDA loans are only available to homebuyers wishing to purchase a single-family home that will be their primary residence. Homes with acreage may be eligible, if the site size is typical for the area and not used principally for income-producing purposes. Income-producing property and vacation homes do not qualify.
Boundary lines for USDA property eligibility can change every year.
An FHA loan is popular especially among first time home buyers because they allow down payments of 3.5% for credit scores of 580+. Borrowers credit score can be between 500 – 579 if a 10% down payment is made. Contact us today to get the process started!Read More
A USDA loan is special type of a zero down payment mortgage that eligible homebuyers in rural and suburban areas can get through the USDA Loan Program and they have great interest rates to go with the. Contact us today to get the process started!Read More
The VA loan allows veterans a great loan option by using their VA benefits and come with 0% down payment and no private mortgage insurance (PMI). Interest rates are typically lower than other mortgage programs and the VA will allow higher debt..Read More
"We have been in our apartment for several years and with another child on the way we really wanted to buy a home of our own. We didn't have much money saved and didn't have great credit so we didn't think we would get approved but they were able to match us with a great loan program and get us into our own home with more room and a monthly payment that was lower than our rent! "