How To Calculate Income For A USDA Loan

When calculating income for a USDA loan lenders will look at income in two ways. The first is the income as it relates to the income limits for the county to make sure the borrower's household does not make too much money for the program in the area.

Calculating Income

Next the lender will determine the ability to repay the loan. Income can come from different sources, generally the lender is looking at the history over a 2 year period. The income does not have to be completely without breaks however there should be consistency.

The lender will also determine the likelihood of the income continuing. Generally the lender wants to see that the income will continue for 3 years. This become an issue for things like child support, investment account income and alimony.