The U.S. Department of Agriculture (USDA) recently issued a Special Procedure Notice to announce updated 2021 income limits for the Rural Development Single Family Guaranteed Loan Program. The new income limits apply to loans submitted on or after May 12, 2021.
The income limits for the Single Family Guaranteed Loan Program increased for all U.S. counties. Prior to the update, the standard income limit was $90,300 for a 1-4 person household and $119,200 for a 5-8 person household. As of May 12, 2021, the standard loan limit in most counties is $91,900 for a 1-4-person household and $121,300 for a 5-8-person household. For households that exceed eight members, the income limit is increased by eight percent of the 1-4 limit for each additional person.
Income limits do vary greatly for high-cost counties to account for a higher cost of living. A complete list of the 2021 income limits can be viewed here.
Both the USDA’s Guaranteed Underwriting System (GUS) and the Income Eligibility calculator on the USDA Eligibility Website have been updated to use the new income limits. Additionally, Appendix 9 of the USDA Single Family Handbook, HB-1-3550, and Appendix 5 of the Single Family Guaranteed Loan Program Technical Handbook, HB-1-3555, have been updated to reflect the 2021 income limits.
The USDA housing income limits apply to the entire household. Any member of the household that is 18 years old or older and earns income must be included in the total even if they are not included in the loan application. Customers using DocMagic’s USDA Single Family Guaranteed Loan Programs should ensure they are using the 2021 income limits that are in effect based on the subject property county and state.
