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USDA Income Requirements

12 February 2010 137 Comments

USDA Home Loans are primarily for low income households or for households in rural areas. Most loans are for the purchase of a home home, however there are instances where funds can be used to build, renovate, and repair. Rural Development Loans can also be used to refinance a home as long as the home is currently secured with a Rural Development Loan.

Applicants for a loan may have up 115% of the median income for an area. The easiest way to determine qualifying income for a area is to the USDA website.  Families must be able to afford the mortgage payments, along with taxes and insurance.  In addition they must have reasonable credit histories.

Loans are for 30 years. There is no prepayment penalty. The lender sets the interest rate. The is no required down payment. The lender must also determine repayment feasibility using ratios of repayment income to PITI and other monthly debt. When searching for Little Rock Real Estate you can look in the outskirts for USDA homes.

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