USDA Rural Development recently increased the household income limits for the 502 Guaranteed Program. This is great news, as this change will permit more families to qualify for the 100% Government-backed mortgage program.
The current USDA income limits are listed below, these limits apply to most locations in the U.S. and will be valid thought the rest of 2025 and into 2026. Also note, more expensive, high-cost locations allow even higher income caps. Please see the income calculator link below.
Most U.S. Locations:
Family Size 1–4 members: $119,850
Family Size 5+ members: $158,250
The USDA Rural Housing program provides mortgages to home buyers in eligible rural areas with no down payment needed. Many popular locations are still eligible and are actually considered “rural” Buyers shouldn’t assume their area is not eligible before checking the USDA map below.
USDA loans are designed to provide competitive financing to individuals and families who want safe, sanitary, and modest accommodations. These loans are originated by approved USDA lenders and backed by the United States Department of Agriculture Rural Development.
Single-Family Housing (502 Guaranteed Loan)
Single-Family Housing 502 Guaranteed loan program allows moderate-income individuals and families to own a decent dwelling as their home. This program is ideal for households that don’t have a 5 or 10% down payment often required by conventional mortgages.
USDA Mortgage Requirements:
- Household income must be below the set county USDA income limit
- Applicants must personally occupy the property as a primary residence. The property must be located in a USDA-eligible location – check property address here
- Borrowers will need to have credit over 620 with no serious financial hardships in recent years
- Two years of steady employment and income
USDA Rural Development offers many benefits to first-time buyers:
- 101% Financing (Up to Appraised Value)
- Low monthly mortgage insurance (nearly 40% less compared to FHA loans)
- No Down payment needed – 100% financing.
- NOT reserved exclusively for first-time home buyers, the program can be used by move-up buyers as well.
- No bank or saving reserves required
- No limit on seller concessions, the home seller can pay all closing costs.
- 100% Gift Allowed from family, etc.
- Easy credit score guidelines (640 score required for automated approval)
- No maximum purchase price or loan amount limit. Buyers qualify based on their debt and income
- A secure low 30-year interest rate
- Any single-family home (in good overall repair) is eligible. The home must be located in a USDA approved area.
- No special home buyer class to get started. Get qualified with a letter of pre-approval and start house shopping in the same day!
Borrowers that have questions can contact Coast 2 Coast 7 days a week by calling ph: 904-342-5507 or by submitting the Quick Request Form on this page.