USDA Loans
Hello world! If you’re looking to buy a rural home, you are in the right place. I’ve created this blog to provide a place where people can come to learn about the benefits and features of purchasing a home by using the USDA Guaranteed Rual Home Loan.
But if you’re looking to finance a farm, let’s get you over to FarmerMac!
The USDA Guaranteed Rural Home Loan program was created to help low to moderate income families buy homes in designated rural areas with 100% financing. It really provides people with the most cost efficient way to finance a home. This site also includes everything about loans for the USDA Tucson area.
Please look around my site and feel free to contact me with any questions. I will be adding content and tools on a regular basis, so be sure to bookmark me and check back often.
You can apply for a USDA Guaranteed Rural Home Loan Tucson Loans here.
Understanding Adjusted Income:
The USDA does indeed set income limitations for qualifying for the USDA Rural Home Loan, but a little known fact is that most folks have “adjustments” to their income that will help them to qualify for the USDA Rural Development Home Loan.
The USDA will Review two types of income for qualifying for the USDA Rural Development Home Loan:
- Adjusted Household Income
- Repayment Income (Gross Earnings)
What do the USDA Rural Development Home Loan guidelines consider as “Adjusted Household Income”? It is basically gross income MINUS any eligible deductions.
Here is a list of 7 eligible deductions for qualifying for a USDA Rural Development Home Loan.
- $480 deduction for each child under the age of 18
- Verified childcare expenses
- $480 deduction for disabled dependents 18 years old or older
- $480 deduction for a full time student 18 years old or older
- $400 deduction for any eligible elderly family member
- A deduction for the care of children 12 years of age or younger, to the extent necessary to allow a member of the family to be gainfully employed
- A deduction of the amount of which the aggregate of the following expenses of the household exceeds 3% of the gross annual income: medical expenses for elderly family, Reasonable attendant care, auxiliary apparatus expenditures for dependent family members.
These adjustments to income can help you qualify for the USDA Rural Development Home Loan if your basic income puts you over the limit. For more information on qualifying income, please call us at 520-225-0380.
We’ll talk about Repayment Income in the next post.
Click here to Apply for a USDA Rural Development Home Loan.
Understanding Repayment Income:
USDA Rural Home Loan qualifying uses two different income types to determine qualification for the USDA Rural Home Loan. In the previous post we discussed Adjusted Household Income and in this post we will discuss what the USDA Rural Home Loan qualifies as Repayment Income.
The USDA considers Gross Income and Repayment Income as the same thing and is used in determining if you can afford the payment by looking at a DTI Ratio (debt to income).
USDA Rural Home Loan Repayment Income includes:
- All income that is considered stable and dependable
- The income of the person signing the promissory note
- Income anticipated to last for at least 24 more months
- At an underwriter discretion – Projected Income may be considered
- Non-Taxable income such as child support or SSI
- Vehicle allowances provided by an employer
- At an underwriter discretion – Pending pay increases if documented
Understanding income can help you qualify for the USDA Rural Development Home Loan. For more information on qualifying income, please call us at 520-225-0380.
Click here to Apply for a USDA Rural Development Home Loan.
