One of the most common misconceptions about the USDA loan program is that it’s only
for low-income families. In reality, the USDA’s income limits are surprisingly generous,
allowing a large portion of the Texas workforce to qualify for % financing. As we move
into , understanding these limits is crucial for anyone looking to buy a home outside
major city centers.
The USDA sets income limits based on household size and the specific county where the
property is located. For , the standard income limit for a household of to people in
most Texas counties is $,. For larger households of to people, the limit increases
to $,. It’s important to note that the USDA considers the total household income,
not just the income of the applicants on the loan. This means that if you have a working
spouse or an adult child living with you, their income must be factored into the calculation,
even if they aren’t co-signing the mortgage.
Fortunately, the USDA also allows for certain deductions that can help you qualify if your
gross income is slightly over the limit. For example, you can deduct childcare expenses for
children under , medical expenses for elderly or disabled family members, and a
standard deduction for each dependent. Working with an experienced USDA lender in Texas
can help you navigate these calculations and ensure you maximize your eligibility for this
incredible zero-down program.