USDA Loan Income Limits Eligibility: How much can you borrow?

Nice rural homeMany prospective home buyers are surprised to learn that there are no loan limits with USDA loans, also known as USDA rural housing loans.

Most loans are offered with a maximum loan limit, conventional and FHA mortgages come to mind. But the USDA does not impose a top end borrowing limit. The reason is due to the USDA income limits that are established annually.

The 2022 income limit restricts the loan amount that the home buyer is able to borrow. The following limits are the base income for the Standard income limits for the Single-Family Guaranteed Loan Program. The income limits may be higher in your area. See USDA Income Eligibility Site

1-4 member households are $103,500
5-8 member household are $136,600

Each spring, the USDA establishes new limits (May or June typically). These ceilings are set at around 15% over the area's typical family income.

Frequently asked questions about USDA home loans

Q. Does USDA have a purchase price limit?
A. The USDA does not have a purchase price limit

Q. Can I roll closing costs into my mortgage?
A. It may be possible to include the closing costs with the loan amount, provided that the appraised value is high enough to cover the closing costs.

Q. Can I get a USDA loan on a second home or investment property?
A. Unfortunately, the USDA does not offer financing for second homes or investment properties.

Read more about USDA loans with our questions and answers page