The income limits for USDA/RHS loans are based on what percentage of the US median income?

The income limits for USDA/RHS loans are based on 115% of the US median income. This guideline is in place to ensure that the loans are accessible to those who are considered to have low to moderate income in rural areas. By setting the limit at 115%, the USDA/RHS programs can serve a wider range of applicants, allowing more individuals and families who have financial needs to qualify for assistance.

This percentage reflects a commitment to fostering homeownership and improving living conditions in rural communities. Those eligible typically have incomes at or below this threshold, which can help them benefit from favorable loan terms and rates. This factor is crucial when assessing the qualifications for these specific loans and understanding their outreach goals.