USDA Refinance Loan – Household Income Qualifications

Date: January 14, 2013

All borrowers seeking to refinance their existing USDA Rural Loan will need to meet USDA income qualification guidelines. These guidelines are designed to ensure that the household income is less than the maximum amount as established by Rural Development.

Factors that can impact a household’s USDA income eligibility in which the income now exceeds USDA Guidelines can include:

Change in household size, such as marriage, in which the household income has gone from one to two income earners
Job promotions and changes in employment in which the borrower's income has increased
College students that have graduated from school and now have a job
Stay-at-home parents that have returned to the work force

Bottom line the USDA Loan program is designed for moderate income households. Households with incomes that exceed these limitations will be ineligible for a new USDA Loan. To determine if your household income meets USDA Guidelines use this online income calculation tool


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