What Are the Income Requirements of a USDA Loan?
Published by Contour Mortgage on September 25 2017

What Are the Income Requirements of a USDA Loan?

Topics: USDA

At first thought, people may think USDA loans are meant for those living way out in the country, far removed from city or even suburban life. However, even though the loan is backed by the U.S. Department of Agriculture, it is meant for anyone purchasing a home in any eligible rural or suburban area. But like any other mortgage loan, there are income requirements.

USDA loan is a great mortgage option, especially first-time home buyers, because the down payment doesn’t have to be as substantial as it would with a conventional mortgage. Interest rates also tend to be on the lower side. Still, there are certain requirements applicants must meet to be approved. One of those requirements has to do with income.

USDA loan income requirements are dependent upon the area in which an applicant wishes to purchase a home, as well as the number of people present in the household.

Specifically, income requirements vary—the federal executive department’s website provides a complete outline of USDA loan income requirements. This breaks down the information by state, county, and number of people living in the home.

For example, a one- to four-person household in Nassau or Suffolk County on Long Island cannot make more than $125,950 a year. However, a five- to eight-person household in the same area cannot make more than $166,250 a year to qualify for a USDA loan—at least, the guaranteed single-family loan.

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Just moving from Long Island to New York City shows a difference in income limits. In fact, a one- to four-person household cannot make more than $119,950 a year in the city, while a five- to eight-person household can only make a maximum of $158,350 a year.

Going to another state entirely can sometimes show an even bigger difference. For instance, the income limit for a one- to four-person household in Baltimore, Maryland is $103,350. The limit increases to $136,400 for a five- to eight-person household.

To learn more about income and property eligibility, click here.

There are additional requirements applicants must meet, as well.

While income is definitely one of the most important criteria for USDA loan eligibility, there are other requirements.

These include certain stipulations and conditions regarding USDA loans concerning property location (which is noted above) and usage, as well as credit history. These additional USDA loan requirements are available for review in one of our other posts.


To learn more about USDA loans and their requirements for approval, speak to a mortgage lender today who has experience providing USDA loans to home buyers.

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