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Understanding Adjusted Household Income:

If you check out my previous post, you will see that the USDA sets maximum income limitations based on family size for qualifying for the Oregon USDA Guaranteed Rural Home Loan. However, it is possible that you may have “adjustments” to your income that will help qualify for the Oregon USDA Rural Development Home Loan.

The USDA will Review two types of income for qualifying for the Oregon USDA Rural Development Home Loan:

1. Adjusted Household Income
2. Repayment Income (Gross Earnings)

What do the Oregon USDA Guaranteed Rural Development Home Loan guidelines consider as “Adjusted Household Income”? Basically, it is the gross income of all members of the household over the age of 18, MINUS any eligible deductions. We aren’t currently counting the babysitting income for 16 year olds, but any reportable income by the remainder of the family is counted.

Here is a list of 7 eligible deductions for qualifying for a USDA Rural Development Home Loan.

• $480 deduction for each child under the age of 18
• Verified childcare expenses
• $480 deduction for disabled dependents 18 years old or older
• $480 deduction for a full time student 18 years old or older
• $400 deduction for any eligible elderly family member
• A deduction for the care of children 12 years of age or younger, to the extent necessary to allow a member of the family to be gainfully employed
• A deduction of the amount of which the aggregate of the following expenses of the household exceeds 3% of the gross annual income: medical expenses for elderly family, reasonable attendant care, auxiliary apparatus expenditures for dependent family members. (I realize this is a bit confusing, but it is  written by the government.)

These adjustments to income can help you qualify for the Oregon USDA Rural Development Home Loan if your basic income puts you over the limit. For more information on qualifying income, please call us at 541-342-7576/541-221-3455 Cell. You can also reach me e-mail at eugeneloanguy@gmail.com.

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