USDA Loan Program

USDA Loan Program:
The U.S. Department of Agriculture (USDA) goal is to assist low to moderate income borrowers to achieve their dream of home ownership for primary residences.  The USDA extends 100% financing  on loans to families who meet the HUD median income property requirement and property eligibility requirements. USDA loans have assisted thousands of homeowners to purchase a home with affordable interest rates and loan terms.  USDA Loans are an attractive option because:

  • 100% financing, no down payment required.  Seller assist can cover all closing costs if negotiated properly.
  • Flexible credit guidelines.
  • Income eligibility and property must be in required area.
  • Dependent on lender and USDA approval
  • Upfront mortgage insurance 1% monthly mortgage insurance .35

USDA Rural Housing announced the annual household income limits for the Single Family Housing  502 Guaranteed Loan Program were recently increased. This is great news as more households across the country will now meet the income eligibility requirements.  Home buyers can look up and calculate their household income at the USDA link here.

It’s important for buyers to remember that USDA permits certain deductions for household income. Examples of eligible deductions include:

  • Children/Dependents living in the home
  • Childcare / daycare expenses
  • Elderly care
  • Home buyers with disabilities

Buyers should also note that the USDA income restrictions apply to ALL household members that generate income, regardless if they are listed on the loan application or not.

The USDA income limits are typically adjusted each year. The current income caps listed should be valid until mid-2019.  CM Mortgage typically lends in the following Pennsylvania counties listed below.

Income Eligibility (Household size 1-4, annual gross household income):

Chester County, PA HUD Metro FMR Area:  $100,500
Delaware County, PA HUD Metro FMR Area: $100,500
Montgomery County, PA HUD Metro FMR Area:  $100,500
Bucks County, PA HUD Metro FMR Area:   $100,500
Lancaster County, PA HUD Metro FMR Area:  $84,900
Berks County, PA HUD Metro FMR Area:  $82,700