What is “adjusted household income” and why is it important?

 

The adjusted household income is used to determine one of your eligibility criteria for Rural Development assistance.

 

This loan product has an income limit based on the total projected income of all adults who anticipate living in the household.  The income limit varies by number of persons who will reside in the household and the location of the property.

 

The web site http://eligibility.sc.egov.usda.gov/ has a calculator for determining the adjusted household income. The applicants are eligible for assistance if the calculator determines they are within the income guidelines.

 

In order to use the calculator correctly, it is important to determine the number of persons that will be residing in the household and allowable adjustments.  The adjustments can include child care expense for children 12 years old or younger and other annual adjustments as shown in the calculator.

 

Adjusted household income may be different than the repayment income.  Repayment income is based on the stable and dependable income of the person(s) signing the promissory note.  The lender will determine the amount of your repayment income.