In my previous post I talked about USDA Home Loan Income Limits. Before we determine if you meet the Income Limits we need to determine your annual income. USDA income determinations are based on your current and projected income. If it is difficult to determine the current projected income we are allowed to use an average of the previous 12 months.
The types of income that may be considered include:
Current verified income from full or part-time employment including
- Seasonal work
- Commissions
- Overtime
- Bonuses
- Unemployment compensation
- Tips
- Car Allowances
Other types of income we may consider include:
- Social Security Income
- VA Benefits
- Disability Income
- Retirement Income
- Interest & Dividends
- Alimony & Child Support
When calculating your income for a USDA Home Loan we always use your Gross Income before any deductions for payroll taxes or employee benefit programs. Since the USDA Home Loan has the Income Limits it is very important to make sure your income is determined correctly and we are able to fully document where the income is coming from and how it is paid to you and that it will continue to be paid.
Of course there are other types of income that people receive and there are also types of income that we are not able to use such as Foster Care.
This information is intended as a guide only. Never assume that you may not be eligible for the USDA Home Loan without talking to a qualified USDA Lender.
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