Updated Income Limits for the USDA Guaranteed Rural Housing Program

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Original content by Jeff Wilmoth

Updated Income Limits for the USDA Guaranteed Rural Housing Program 

Effective June 2, 2010, the USDA Guaranteed Rural Housing (GRH) Program offers even greater flexibility for your clients in terms of income limits.  The base income limits for the USDA Guaranteed Rural Housing (GRH) Program have increased.  The standard 2 tier system is still in place, however now more families can have access to the program due to the increased income limits.  The 1st tier provides an income limit for household sizes of 1-4 persons and the 2nd tier provides an income limit for household sizes of 5-8 persons.

Here are the Base Income Limits for all non-high cost counties:

1-4 Person                           5-8 Person

  $74,050                                $97,750

So, regardless of whether we have a buyer purchasing a home in a high-cost (metro areas) or out in "the sticks" (non-high cost county), the benefit is that all 1-4 person households will qualify based on the 4 person limit and all 5-8 person households will qualify based on the 8 person limit. 

Tip: The number of persons used for income eligibility is always the number of persons living in the home, not the number of applicants on the file.  

The new income limits can be found at the USDA Rural Development Eligibility Home page by following either of the links provided below:

http://eligibility.sc.egov.usda.gov 

(Click on "Guaranteed Housing" under the "Income limits" tab on the left side of the page)

 

OR,

http://www.rurdev.usda.gov/rhs/sfh/sfh%20guaranteed%20loan%20income%20limits.htm

(Direct link to the 2010 Guaranteed Rural Housing (GRH) income Limits)

 

Wait a minute, it gets better...

For those buying in markets located within high-cost counties of Georgia, such as Coweta, Spalding, Fulton, Carroll, Heard, Henry and even Pike County, to name a few, there are also the Maximum Adjusted Income Limits.   Because those counties mentioned are considered part of the Atlanta-Sandy Springs-Marietta Metropolitan Statistical Area, the income limits are increased to allow for the higher cost of living.  A Metropolitan Statistical Area (MSA) is generally a county or group of counties with a combined population of at least 50,000.  In addition, adjacent counties are included in a metro area according to commuting patterns.

The Maximum Adjusted Income Limits for counties included in the Atlanta-Sandy Springs-Marietta Metropolitan Statistical Area (high-cost counties) are...

1-4 Person                           5-8 Person

  $82,600                               $109,050

Depending on your debt ratios, you can buy a lot of home in Metro Atlanta! 

When in doubt rely on the professionals...

Many may assume that everything is dead if your annual income exceeds the Maximum Adjusted Income Limits.  However, there are a few ways to help those whose annual income may exceed the Maximum Adjusted Income Limits.  For example, for each resident of the household that is under 18 Years Old, Disabled or a Full Time Student, there is a $480 deduction to the annual income.  In addition, the program allows for adjustments regarding various child care expenses.   The most important factor regarding whether or not you qualify is that you should not assume anything and rely on the experts.  By allowing the loan originator to "spend some quality time" with you, you are increasing your odds of a smoother transaction. 

As a reminder, unlike other home-financing programs, there are no loan limits for the USDA Guaranteed Rural Housing Program. The maximum loan amount for USDA Guaranteed Rural Housing applicants is based entirely on their ability to meet the repayment ratios for the program, while simultaneously staying within the program's income limits. 

Interested in more information on the USDA Guaranteed Rural Housing (GRH) Program?  Please visit our website  or

 apply online link

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Jeff Wilmoth | HomeStar Financial Corporation...Serving all of Georgia!

848 Jesse Jewell Parkway Gainesville, GA 30501

Cell 404.597.5662 | EFax 678.623.0444
jeff@jeffwilmoth.com

Apply online: www.jeffwilmoth.com

Mortgage Loan Originator NMLS ID: 206798; HomeStar Financial Corporation, NMLS ID: 70864; Georgia Residential Mortgagee Licensee #17368; Nationally Approved USDA lender USDA GRH program; FHA Lender ID - 897400009;  VA - 64103600000

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