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February 15, 2025

USDA Income Limits: What are the requirements to qualify for a Zero-Down Home Loan in Arkansas?

If you're considering buying a home in Arkansas and need a loan with little to no money down you may want to consider the USDA Home Loan Program. Offering $0 down and interest rates lower than the Conventional Loan the USDA Loan is become a popular choice for people. There are several loan requirements that are unique to the USDA Loan and one of those are the household income limits. The limits vary based on the number of people living in the home and the location of the property. Knowing the USDA income limits for your area before starting the loan process is important to determine if you qualify. In this post, we'll break down USDA income limits, how they are calculated, and which towns and cities in Arkansas offer homes eligible for USDA financing.

What Are USDA Income Limits?

The USDA Loan is for low to moderate-income families and the USDA sets income limits to make sure the people utilizing the program fall into the low to moderate category. The limits are calculated based on the size of the household and the median income of the area where the home is being purchased. It's also important to note that this is household income and not qualifying income. Qualifying income refers to the income of the borrowers on the actual loan and household references the income of all individuals in the home regardless if they are on the loan or not. For most areas in Arkansas, the USDA income limits for 2025 are: ✔ 1-4 member household: $112,450 annual income ✔ 5-8 member household: $148,450 annual income These limits are done based on the county so it's important to check your specific county to ensure your household income is not over the limit.

USDA Income Limits for Different Counties In Arkansas

The vast majority of Arkansas is USDA-eligible and this includes all the small towns along with the suburban areas near larger cities. Below, we highlight income limits for different counties of Arkansas and examples of towns where USDA loans are commonly used.

Central Arkansas

USDA-Eligible Towns:

Northwest Arkansas

USDA-Eligible Towns:

Northeast Arkansas

  USDA-Eligible Towns:

Southern Arkansas

USDA-Eligible Towns:

How USDA Income Limits Are Calculated

The USDA income limits are based on the total household income. This includes all of the income from all working adults who will be living in the home. There are a few instances where deductions from the income can be made such as: ✔ $480 per dependent in the household ✔ Childcare expenses for children under 12 ✔ Medical expenses (if an elderly member is in the home) These are all things that could help if the household income is over the limit.

How Do You Check USDA Income Limits for Your County?

If you are considering buying a home with the USDA loan you should check the income limits for your area by doing the following: 1️⃣ Visit the USDA Eligibility Website: USDA Income Eligibility 2️⃣ Select Your State and County 3️⃣ Enter Your Household Information 4️⃣ View the Current USDA Income Limits for Your Area

Reasons Why the USDA Loan is Beneficial for Arkansas Homebuyers

✔ Zero Down Payment: The biggest advantage—buy a home with no money down. ✔ Low Mortgage Insurance: Lower than FHA loan mortgage insurance costs. ✔ Competitive Interest Rates: USDA loans often offer better rates than conventional loans. ✔ Flexible Credit Guidelines: Great for first-time buyers or those with limited credit history. With so many USDA-eligible areas in Arkansas thousands of homebuyers have taken advantage of this loan program.

Ready to Find a USDA-Eligible Home in Arkansas?

If you're looking to buy a home in Greenbrier, Prairie Grove, Brookland, or any other USDA-eligible area, now is the perfect time to take advantage of zero-down financing. Want to know if your income qualifies for a USDA loan? Contact us today to check your eligibility, or browse homes in USDA-eligible areas now!

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