USDA Income Limits
Wondering if your household earns too much for a USDA loan? USDA counts the income of every adult in the home, subtracts allowed deductions and compares the result to the limit for your county and household size.
Quick answer
Saxton Mortgage offers USDA loans. At loan approval, your household’s adjusted income must be below the moderate-income limit for your county and household size. Income is projected for the coming year and includes every adult in the household, even adults not on the loan. Allowed deductions are then subtracted.
How USDA income eligibility works
Each item below is a USDA rule or a requirement of at least one USDA program we offer.
- Your household’s adjusted income must meet the limit for your county, state and household size.
- The income of every adult in the household counts, including adults who are not on the loan.
- Income is calculated for the coming year, based on what each adult expects to receive.
- Allowed deductions are subtracted to reach adjusted income.
- Income for each adult household member is verified for the previous two years, with IRS transcripts.
- The home must be your primary residence, and non-occupant co-borrowers are not allowed.
Your whole household counts
Limits set by county
Deductions lower your total
Student earnings partly excluded
Some members are not counted
Two income tests, not one
What Income Counts For USDA Limits?
Everyone’s. USDA looks at the adjusted income of every adult who will live in the home, not just the people on the loan.
USDA loans have a household income limit. To check it, the lender documents the income of every adult member of your household, not just the borrowers, and calculates annual income for the coming 12 months. Allowed deductions are then subtracted to reach adjusted annual income, which must meet the limit for your county, state and household size. Current limits are on the USDA Income and Property Eligibility website and in USDA’s automated system, GUS.
A few rules change who counts. A household member is anyone who routinely lives in the home as a principal residence, except live-in aides, foster children and foster adults. For an adult full-time student who is not a borrower or a borrower’s spouse, only the first $480 of earned income counts. A spouse’s income counts unless you have lived apart for at least three months for reasons other than military or work assignment, or divorce or legal separation proceedings have started.
Other income counts too. Rental income counts no matter how long you have had it, and households with $50,000 or more in net family assets outside retirement accounts have those assets reviewed for income. Passing the income limit is separate from qualifying to repay the loan, and the two calculations often differ. See our USDA rural home loan page for the rest of the program.
Why choose Saxton for a USDA loan
This page is for buyers checking whether their household income fits a USDA loan.
We Count Every Adult
We document the income of every adult in your household, not just the people on the loan.
Deductions Are Applied
Allowed deductions come off annual income before it is compared to the limit.
Students Count Partly
Only the first $480 of earned income counts for an adult full-time student who is not a borrower or a borrower’s spouse.
Spouses Living Apart
A spouse’s income is left out after three months apart, or once divorce or legal separation proceedings start.
Assets Get Reviewed
Net family assets of $50,000 or more, outside retirement accounts, are reviewed for income.
Two Separate Tests
The household income limit and your ability to repay are calculated separately.
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Frequently Asked Questions
Straight answers about USDA household income limits.
Saxton Mortgage offers USDA loans. At loan approval, your household’s adjusted income must be below the moderate-income limit for your county and household size. Income is projected for the coming year and includes every adult in the household, even adults not on the loan. Allowed deductions are then subtracted.
It depends on your county, state and household size. Your household’s adjusted annual income must meet that limit. Current limits are on the USDA Income and Property Eligibility website and in USDA’s GUS system.
If they are an adult who will live in the home, yes. USDA counts the income of all adult household members, including adults who are not on the loan.
Only partly. For an adult full-time student who is not a borrower or a borrower’s spouse, only the first $480 of earned income counts.
If they are looking for work, their previous earnings are still included. They can be left out with evidence they are not seeking work again, such as a tendered resignation, an official termination or a signed statement.
They can. Households with $50,000 or more in net family assets, not counting retirement accounts, have those assets reviewed, and income from assets is included.
Live-in aides, foster children and foster adults are not counted. A household member who is temporarily away but will live in the home is still counted.
Not yet. The income limit is one test. The lender also calculates repayment income to see whether you can repay the loan along with your other debts, and the two numbers often differ.
Find out what you qualify for
Tell us who lives in your home and what each adult earns, and we will check your household against the USDA limit for your county.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.