USDA Mortgages in Pennsyvania, also know as Rural Development loans, have many benefits not seen in other types of mortgage financing.  These benefits include...

• True 100% no money down financing.
• The ability to finance in your closing costs (if the appraised value supports the loan amount)
• The seller may contribute up to 6% of the purchase price towards your closing costs
• Low interest rates
• More flexible credit and qualifying guidelines with minimum 620 credit score

 

USDA home loans do have income restrictions. If a household has too much income for this program, the USDA will not approve a mortgage application. Sometimes households are close to the county limit set by USDA and a few adjustments up or down to their income figure can make the difference between qualifying for a USDA mortgage or not.   Below we will review the adjustments that the USDA allows...

 

                   Deductions to Calculated Household Income for USDA Mortgages

                  The USDA allows for these Basic Deductions listed in the chart below... 

 

These deductions are mainly dependent related. The Child Care expenses are often shown with documentation from the daycare provider or can also be matched up with what is reported on the Borrower's tax returns.

Important Note to Remember : There is no double whammy with these deductions.

They are not counted as debts and are not used as part of the debt to income ratio. They are only used as deductions to possibly reduce income to within the USDA income limits. So these deductions will only benefit your USDA Mortgage application, not hurt it. If the verified income is already within the USDA income limits, there is no need to further document or explore any of these deductions.

 

                        Additions to Calculated Household Income for USDA Mortgages

The additions made to qualifying household income are mainly related to the IRS reported income of household members.  The USDA will also take into account income from all members of the household minus the above deductions to determine the adjusted family income, even if these household members are not listed on the mortgage application or on the deed. If they live in the house, the USDA will take their income into account. The income used will be the income they have listed on any W2s, 1099s or any reportable IRS tax documents. It is the final adjusted family income that must fall below the USDA income limits.

 

 

                                Pennsylvania USDA Income Limits By County  

County Name		1-4 Person Households (Guaranteed Loans)		5-8 Person Households (Guaranteed Loans)
ADAMS		$77,500		$102,300
ALLEGHENY		$74,050		$97,750
ARMSTRONG		$74,050		$97,150
BEAVER		$74,050		$97,750
BEDFORD		$74,050		$97,750
BERKS		$77,200		$101,900
BLAIR		$74,050		$97,750
BRADFORD		$74,050		$97,750
BUCKS		$92,300		$121,850
BUTLER		$74,050		$97,750
CAMBRIA		$74,050		$97,750
CAMERON		$74,050		$97,750
CARBON		$83,150		$109,750
CENTRE		$77,400		$102,150
CHESTER		$92,300		$121,850
CLARION		$74,050		$97,750
CLEARFIELD		$74,050		$97,750
CLINTON		$74,050		$97,750
COLUMBIA		$74,050		$97,750
CRAWFORD		$74,050		$97,750
CUMBERLAND		$83,400		$110,100
DAUPHIN		$83,400		$110,100
ELK		$74,050		$97,750
ERIE		$74,050		$97,750
FAYETTE		$74,050		$97,750
FOREST		$74,050		$97,750
FRANKLIN		$74,050		$97,750
FULTON		$74,050		$97,750
GREENE		$74,050		$97,750
HUNTINGDON		$74,050		$97,750
INDIANA		$74,050		$97,750
JEFFERSON		$74,050		$97,750
JUNIATA		$74,050		$97,750
LACKAWANNA		$74,050		$97,750
LANCASTER		$78,900		$104,150
LAWRENCE		$74,050		$97,750
LEBANON		$74,550		$98,400
LEHIGH		$83,150		$109,750
LUZERNE		$74,050		$97,750
LYCOMING		$74,050		$97,750
MCKEAN		$74,050		$97,750
MERCER		$74,050		$97,750
MIFFLIN		$74,050		$97,750
MONROE		$78,050		$103,050
MONTGOMERY		$92,300		$121,850
MONTOUR		$74,050		$97,750
NORTHAMPTON		$83,150		$109,750
NORTHUMBERLAND		$74,050		$97,750
PERRY		$83,400		$110,100
PIKE		$78,400		$103,500
POTTER		$74,050		$97,750
SCHUYLKILL		$74,050		$97,750
SNYDER		$74,050		$97,750
SOMERSET		$74,050		$97,750
SULLIVAN		$74,050		$97,750
SUSQUEHANNA		$74,050		$97,750
TIOGA		$74,050		$97,750
UNION		$74,050		$97,750
VENANGO		$74,050		$97,750
WARREN		$74,050		$97,750
WASHINGTON		$74,050		$97,750
WAYNE		$74,050		$97,750
WESTMORELAND		$74,050		$97,750
WYOMING		$74,050		$97,750
YORK		$79,700		$105,200

 

 

More information about qualifying for a USDA Mortgage in Pennsylvania can be with the links below.  Feel free to contact me with any additional questions or to see if this program can help with you next home purchase.

 

Pennsylvania USDA Mortgages

 

USDA Announces Some Changes to their Mortgage Program

 

 

 

Keith Landis is a Licensed Mortgage Consultant covering all of Pennsylvania.  He can be reached toll free at 877 334 6094 or on his cell at 412 726 1654. or by email at klandis@flagshipmortgage.net 

NMLS # 137243

further information can also be found here....