USDA Income Limits for 2024

USDA income limits determine eligibility for Rural Development Home Loans. Updated annually, these limits vary by location and family size. Changes reflect shifts in median incomes, ensuring assistance reaches those with financial need to promote the program’s goal of promoting sustainable rural communities in West Michigan and the rest of the country.


Who Qualifies for USDA Loans?

To obtain a USDA Loan, borrowers must meet a variety of eligibility requirements.

Borrower Requirements
Income limits aren’t the only parameter to keep in mind when it comes to USDA Loans in Michigan. Although these loans highlight a 0% down payment, borrowers must meet the following requirements to qualify:

  • Property must be in an eligible location
  • Eligible properties must be single-family, owner-occupied homes
  • Income must be below USDA-set limits: $110,650 for Michigan households with 4 persons or less
  • Minimum FICO score of 620
  • Property cannot be a working farm
  • The property’s appraisal must meet USDA standards
  • Max loan amount of $377,600 in Michigan
  • Maximum debt-to-income ratio of 41%
  • Borrower must be a US citizen or non-citizen national

To ensure you qualify, check all guidelines here.


USDA Income Limits & Guidelines in Michigan and Beyond

USDA income limits are determined based on the median household incomes and housing costs in specific geographic areas. The U.S. is divided into regions, and within each region, loan limits are established to reflect local economic conditions. These limits ensure that the USDA Loan Program effectively assists individuals and families in qualifying areas with varying costs of living.
In Michigan, the income limits for 2024 are $110,650 for families of four or less and $182,550 for families with five or more people in the household. In areas with higher living costs, the income limits may be higher to accommodate the local economic context. On the flip side, in areas with lower living expenses, the income limits may also be lower.


What is a USDA Loan?

A USDA Loan (also called a Rural Development Loan) is a mortgage program offered by the United States Department of Agriculture, designed to assist low to moderate-income households in rural areas. USDA Loans in Michigan provide affordable financing with low-interest rates and require no down payment. These loans aim to promote attainable homeownership, stimulate rural development, and enhance the economic stability of eligible communities.


Buy with Rural Development Loan in Michigan

Buying a home in Michigan with an RD Loan offers eligible borrowers a chance to secure affordable financing. With low interest rates and no down payment requirements, RD Loans promote homeownership in both rural and some suburban areas of West Michigan. Michigan families with 1–4 people in the household can secure these loans as long as their income does not exceed $110,650. Families of 5–8 are eligible assuming their income is $182,550 or less.


Benefits of using a USDA Loan for Your Primary Residence

There are some notable benefits to using a USDA Loan to purchase your primary residence including:

  • With no down payment required, you can finance 100% of your home
  • Better credit flexibility
  • Low mortgage insurance
  • No required minimum cash or assets

Alternatives with higher income limits
If your income exceeds the limits for a USDA Loan, there are alternatives to explore with higher income limits, such as:


Check Your Eligibility to Buy USDA Homes for Sale in Michigan

Looking to buy a home in West Michigan? Check your eligibility now to see if you qualify for a USDA Loan with our tailored mortgage solutions. Experience the ease of low-interest rates and no down payment. Don’t miss out on the opportunity to own your dream home — our Loan Officers are ready to help!



Do you pay PMI on USDA Loans?
Private mortgage insurance is not required for USDA Loans, but the loans do have an up-front and monthly guarantee fee.

What are the USDA income limits?
For home buyers in Michigan with 1-4 people, the 2023 limit is $110,650. For 5-8 people, the 2023 limit is $182,550.

How much does a USDA Loan pre-approval cost?
USDA Loan pre-approvals are free.

What counts as income for USDA Loans?
Your gross income from all income sources is applied to the income limit for a USDA Loan. This includes self-employed and 1099 income from all persons expected to reside in the home.

What documents do I need for a USDA Loan?

  • Two most recent bank statements or asset statements for all accounts
  • Two years of tax returns
  • Pay stubs from the last four weeks
  • Written explanations of any gaps of employment of 30 days or more in the last 24 months
  • Verification of Identity
  • If applicable, 12 months of payment history for received alimony or child support

USDA income limits are updated annually — see if you qualify this year!