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Part 1 – USDA Income Guidelines: What are USDA Income Eligibility Requirements?

June 21st, 2024 by Sean Stephens

USDA Income Guidelines: What are USDA Income Eligibility Requirements in Florida, Texas, Tennessee, and Alabama?USDA Income Guidelines: What are USDA Income Eligibility Requirements in Florida, Texas, Tennessee, and Alabama?

By understanding USDA income eligibility requirements, you can better prepare for the USDA loan application process. In today’s short video, I will break down the guidelines and walk you through the USDA qualifying process.

However, before we get started please take advantage of our free Second Opinion ServiceSOS”. This free service is designed for both new pre-qualifications and those loans that are already in progress. Remember to just call, text, or email to discuss your scenario so we can go to work for you!

Call/Text: 863-593-2001
SeanS@MPLX.org

 

USDA Income Guidelines: What are USDA Income Eligibility Requirements?

Understanding USDA income eligibility requirements are key for both homebuyers and Realtors because it establishes USDA eligibility, your qualifying sales price, and overall budget when looking at homes. A proper qualification is critical to a successful loan closing.

Now, let’s breakdown and review the USDA income guidelines for determining all of the income within the household, which is referred to as USDA Annual Income, and also the qualifying income for those individuals who are just on the loan ,which is known as USDA Repayment Income.

USDA ANNUAL INCOME [7 CFR 3555.152(b)]

USDA guidelines state that:

Annual income includes all eligible income sources from all adult household members, not just parties to the loan note. The annual income for the household will be used to calculate the adjusted annual household income. The adjusted annual income determines if the household is eligible for a guaranteed loan.”

Remember that USDA income guidelines require calculation of all the income in the household when determining if a household’s income is within the published USDA income limits.

USDA Income Limits in Florida, Texas, Tennessee, & Alabama

Calculation of Annual Income

When calculating USDA Annual Income, guidelines additionally confirm that:

Annual income is calculated for the ensuing 12 months, based on income verifications, documentation, and household composition. Lenders must examine all evidence to ensure the calculation is supported.”

USDA REPAYMENT INCOME [7 CFR 3555.152(a)]

Now, for those individuals who are actually on the USDA Loan Application, separate calculations are required to determine their qualifying sales price, loan amount, and overall budget. USDA guidelines state that:

“Repayment income will determine if applicants have sufficient income to repay the mortgage in addition to recurring debts. Repayment income calculations often differ from the calculation of annual and adjusted annual income.”

“Repayment income is the stable and dependable income of the applicants who will be parties to the note. Co-signers and non-occupant co-borrowers are not permitted for a guaranteed loan transaction.”

As a USDA approved lender, we are responsible for the underwriting decision and calculation of income which requires documentation such as:Metroplex Mortgage Services Wins #1 USDA Lender Ranking in Florida. Sebring and Tampa FL USDA Approved Lender.

  • Historical receipt of earnings;
  • The likelihood of its future continuance; and
  • Analyzing any gaps in employment when determining stable and dependable income.

USDA Income Guidelines – Summary

As you can see, upfront expert analysis is critical when determining if the total household income is within USDA income limits and if b their USDA repayment income will support the USDA sales price and loan amount.

As a USDA Approved Lender, we will walk you through the USDA loan qualifying process step-by-step. Just call, text, or email to discuss your scenario and let us show you the “Metroplex” difference!

Call/Text: 863-593-2001
800-806-9836 Ext. 280
SeanS@MPLX.org

Thank you again for forwarding and sharing today’s video with any friends, family, co-workers, or clients who are looking to buy, sell, or refinance!

As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE.

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Metroplex Mortgage Services Wins #1 USDA Lender Ranking in Florida – Again!

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