USDA-RD applicant income requirements are you must have the ability to personally occupy the dwelling; be a citizen of the U.S. and first-time buyers.
Applicants must have adequate and dependable income, typically with a history of 24 months.
Qualifying ratios are 29/41; however, higher ratios considered with strong compensating factors, including good credit scores (660+), stable employment history, potential for increased earnings, and ability to save.
Income to be verified with a written VERIFICATION OF EMPLOYMENT (VOE) and one month’s current pay stubs, OR one month’s pay stubs and two years of W2’s.
2/1 buy downs qualifying ratios are calculated using note rate.
Debts with more than 6 monthly payments remaining must be included in qualifying ratios.
Student loan payments must be included in ratios even if loans are currently in deferment.
Self employed borrowers require two year history with 1040’s.
Disability and Social Security benefits – 3 year continuance documented with award letter or 2 months bank statements, grossed up 125%.
Salary increases within 60 days of the first payment due date are acceptable.
Part time employment must have a history of no less than 12 months.
Alimony and child support income must continue for 3 years and have no less than a 12 month history.
Any income of a non-purchasing spouse must be verified to make sure income limits are not exceeded.