USDA Home Loans Income Limits 2016 | Best Home Loan | Home Loan Prices | How To Get Home Loan

If you have read this blog at all, you know I am big on USDA Home Loans.There is no down payment required, it’s affordable and intended for low-to-moderate income families, and up until recently there was no monthly mortgage insurance. Even now that we are facing a Monthly Mortgage Insurance Premium For USDA Home Loans, it’s still more affordable the the mortgage insurance for FHA and Conventional home loans for many borrowers.USDA Home Loans Income Limits 2016.I’ve driven all over Clark County, WA and Washington County, OR to show that, even though this is a “rural development” loan, you don’t have to live in BFE to qualify for this great program.

Now that I feel like we’ve covered some of the basics, I want to delve deeper into the nuts and bolts of USDA home loans.Specifically, I am going to talk about that “low-to-moderate” income item I mentioned above.USDA Home Loans Income Limits.First of all, when I say “USDA home loans”, I am referring to the USDA Rural Development “Single Family Housing Guaranteed Loan Program“.When what a mouthful!The Guaranteed program is what I offer through my company. There is another program, which is the “Direct” program. That is intended for low-to-very low income families.So what is “low-to-moderate” income? Well, the answer is geographically specific. The USDA has segmented geographical areas, and assigned a maximum household income to those areas.

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That limit is up to 115% of the median income for the area. I have previously outlined the UDSA income limits for Oregon and Washington. Household IncomeIf you were paying really close attention, you may have noticed that I said “household” in the previous paragraph. That phrase means exactly what it sounds like. The income of the entire household is on the table. So, if you apply for a USDA Home Loan Programs 2016 and you are the only borrower, you may be thinking you are well below 115% of the median income for the area.However, you need to take into consideration the income of your spouse, your teenager, etc.Its the little things. A lot of people hold themselves out to be experts in one thing or another, but little details like this are what separate the wheat from the chaff. In fact, I recently talked to someone who had been pre-qualified through a big bank for a USDA Home Loan Process.The communication from that bank was not to the client’s satisfaction. As a result, she sought out what you might call a “second opinion”. within a few minutes of talking to her, I was able to tell her that a USDA Home Loan Rates wasn’t possible because her husband, who wasn’t on the loan, earned too much money.

This “Household Income” requirement has always somewhat baffled me. Mainly because you don’t have to take into account the other earner’s debts. That is unless the other earner is your spouse and you live in a community property state but that’s a topic for another post . Do you have questions about USDA Home Loans or Real Estate Home Loan Financing in general? Feel free to contact me at 503.799.4112, or hit me up via any of the following online contact methods.

Biphoo