limit for their area.
More simply put, if an applicant’s income is at or below the income limits for their area and they have the ability to repay the loan, they likely meet the income eligibility requirements for the USDA loan.
Many automatically assume that since the program is meant for low to medium income borrowers, there is a limit on what homes they can buy. This is incorrect. The USDA does not have set loan limits as with VA or FHA loans, but bases the maximum loan amount on the borrower’s ability to qualify.
Breaking Down the USDA Loan Income Limits
USDA loan income limits vary by location and household size with a base income-limit for the entire U.S.
The base USDA income limits are:
1-4 member household: $82,700
5-8 member household: $109,150
Households with 1-4 members have different limits as households with 5-8. Similarly, applicants living in high-cost counties will have a higher income limit than those living in counties with a more average cost of living.