Special Procedure Notice from USDA sets Higher Income Limits for Oklahoma USDA Borrowers 06/08/2022

USDA RURAL DEVELOPMENT INCOME ELIGIBILITY FOR 2022

The USDA Rural Development income limits for all of Oklahoma have been increased to $103,500 for a 1-4 person household and $136,600 for 5+ household. This is an all-time high which will allow much higher purchase prices for those using the program to purchase a home with no down payment. The USDA home loan program provides an affordable, zero-down home financing option for home buyers in many areas of Oklahoma. You do not need to be a first-time home buyer to take advantage of this program. The USDA sets standard income limits to ensure these home loans are readily available to the people they serve. 

To be eligible for a USDA home loan, your total household income cannot exceed the local USDA income limits. USDA loan income limits act like an eligibility threshold. If your household’s combined total income is less than USDA’s limit, you can apply for the USDA zero-down loan program. USDA sets new limits every year. These limits are capped at around 15% above the average median income for households in the area. USDA qualifies applicants using income from each adult earner in the household, regardless of whether they are on the loan application or not. Add each adult’s annual income to find your household’s total annual income to get an idea of where you stand. 

The Misconception: USDA loans limit how much home buyers can borrow in addition to setting income limits.

Maximum program loan amount limits do not apply to USDA home loans. USDA income limits are often confused with maximum loan amount limits applying to other mortgage progrmas like FHA or Conventional home loans. In reality, there is no such loan amount limit for USDA home loans. USDA loans empower buyers to borrow as much as they are able to repay. In other words, if you meet the USDA underwriting requirements, you can likely borrow as much as the USDA Rural Development Loan Program will give you.

Speak with a Scissortail Financial home loan specialist today to get started!