Effective Monday, April 20, 2009, the income eligibility guidelines for USDA 100% guaranteed mortgage loan financing will be changed. The change, unlike most changes in our current mortgage industry, is for the better. So what is the change?… Higher income limits in bracketed tiers versus the original per family member sections.
Normally, I would compare the difference, but who really cares what once was if new is better. (If you really want to see the old values, click here.) So here is what the new tiers with higher limits looks like:
|County||1-4 PERSONS||5-8 PERSONS|
|All counties except those listed below||73,600||97,150|
|Clay, Duval, Nassau, St Johns||74,900||98,850|
|Not Eligible in Broward, Pinellas, Monroe|
|For each person over 8-persons, add 8% of the 4-person limit.|
AND TOTAL INCOME CAN BE MUCH HIGHER THAN THE ADJUSTED INCOME LIMITS
If you total income exceeds the limits, certain adjustments can be made, such as childcare expenses for children age 12 or younger. You can deduct $480 for anyone under 18 or a student who is not one of the applicants. Other deductions may be available. No need to memorize deductions. Use the calculator here <Click ‘single family’ under “Income Eligibility”>
Example: Lake County 4-person family (2 adults, 2 children) has a gross income of $84,560. Child care for the two children age 12 or less is $10,000 annually. Is the threshold income at or below the limit? YES! $85,860 less
$10,000 child care less $480 for each child = $74,900. They are within the limit.
Want to see if you qualify or become pre-approved? Call us today to get the process started, or simply click “Apply Now” on the right or top of the page and complete our short application. By the way, check out today’s rates on USDA 100% guaranteed home loans by clicking on today’s date in the DAILY RATES Calendar.