USDA Rural Development recently published the newly increased income limits for the USDA Guaranteed Rural Housing loan program. The updated income limits started in mid 2024 and will carry into 2025. This is great news, as even more home buyers will now be eligible for the 100% financing options that USDA loans provide.
The new USDA income limits for most locations are listed below. Check the USDA’s eligibility website to check limits for your area and calculate deductions. Note, some higher-cost locations do have higher income limits. Some important notes to keep in mind:
- Remember that USDA permits certain eligible household income deductions for each minor and also documented childcare expenses, disabilities, etc.
- USDA housing income limits apply to the entire household, this means any household member that is over 18 and generates income (even if they are not listed on the loan application)
| New Income Limits as of 2025 | Previous Income Limits | ||
| 1-4 Household | 5-8 Household | 1-4 Household | 5-8 Household |
| $112,450 | $148,450 | $110,650 | $146,050 |
USDA 502 Guaranteed loans still offer select benefits for eligible homebuyers, let’s recap a few below:
- 100% Financing
- Reduced mortgage insurance costs (compared to FHA and Conventional loans)
- Sellers concessions are permitted for closing costs
- Secure 30-year fix rate, with no early payoff or recapture penalty
- Any eligible and approved homebuyer can take advantage of USDA home financing, not just first-time buyers
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