USRD to Adjust Income Limits

Effective January 20, 2009, an income limit modification will allow easier qualification for buyers using 100% USRD loan. Previously, income limits were based upon family size from 1-8 with each size based upon 115% of median family income. Although that is not changing, we will move to a 2 tier system using the income for a family of 4 for family size 1-4, and income limits for a family of 8 for sizes 5-8. Family household larger than 8 will have an additional 8% per individual added to the 8 person income limit.

This is definately going to help individual and married couples with family sizes less than 4 or between 5-8, qualify for homes easier. To give an example using current income guidelines: a family size of 1 was limited in income to a maximum of $53,250. Using the new guideline, that individual could not qualify for a 100% USRD loan having a maximum income of $76,100.

Of course, at this point, we do not know what the 2009 median incomes figures will be, but should they stay the same, our new system for maximum income limits will be:
Family Size 1-4 = $76,100
Family Size 5-8 = $100,450

Since this loan is one of the only loans available for non-veterans wanting 100% financing, this should be a great loan to use. Make sure your listings are advertising for 100% if located in an eligible area. Maps are available. Email info@mortgageinwashington.com for any Washington county you need a map for. We will be hosting seminars about USRD before the year end. Watch this blog for details.