A family of four in a rural area has a combined annual income of $75,000. The area median income for their location is $65,000. Are they eligible for a USDA loan based on income requirements?
Correct Answer
C) No, their income exceeds 115% of AMI
The family's income of $75,000 represents 115.4% of the $65,000 AMI, which exceeds the typical 115% AMI limit for USDA loans. Therefore, they would not be income-eligible for the program.
Why This Is the Correct Answer
The family's income of $75,000 represents 115.4% of the $65,000 AMI, which exceeds the typical 115% AMI limit for USDA loans. Therefore, they would not be income-eligible for the program.
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