A family of four is applying for a USDA loan in an area where the median income is $60,000. What is the maximum annual household income they can have to qualify?
Correct Answer
C) $69,000
USDA income limits are set at 115% of area median income. For this family: $60,000 × 1.15 = $69,000. This calculation ensures that moderate-income families can access homeownership in rural areas through USDA financing.
Why This Is the Correct Answer
USDA income limits are set at 115% of area median income. For this family: $60,000 × 1.15 = $69,000. This calculation ensures that moderate-income families can access homeownership in rural areas through USDA financing.
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