Six Deductions Allowed By USDA Rural Development Home Loans Woodland Park, Teller County Colorado
In order to qualify for a USDA loan, there are certain income limits depending upon the location of the property your clients are buying. Visit the USDA Home Loan income calculator to determine what the income limits are in Teller County which includes Woodland Park, Divide, Florrisant or Cripple Creek.
There are 6 common deductions that can be subtracted from gross income while still allowing your client to meet the USDA income limits.
Childcare expense is one of the biggest deductions (from gross income) that will help more buyers qualify. The only thing the lender will require is a short letter from a childcare provider detailing the amount of childcare paid annually. If your clients’ income is already below the limit, no documentation will be needed.
And one more benefit to mention: Childcare is NOT counted as a debt and will not affect the debt-to-income ratios.
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