2023 Colorado USDA Guaranteed Income Limits

2023 Colorado USDA Guaranteed income limits


Below is information regarding the household income limits for the USDA Guaranteed program in Colorado. In general, most Counties in Colorado will be limited to $118,150 for a household of up to 4 people and $155,950 for households with 5 people or more. There are a few high-cost Counties where household income is more flexible. See chart below.

We strongly encourage our borrowers to utilize the self-assessment tool offered by USDA before applying for a loan. The USDA guaranteed tool will not calculate how much a borrower will qualify for but will tell you which program will be the best fit. Link below. 

USDA underwriters will be looking at two different income calculations to determine if a borrower(s) will be eligible for a USDA loan. The first calculation is to see if the borrower(s) qualifies under the maximum income limits below in the chart. The 2nd calculation is to determine the debt-to-income ratio to see if the borrower(s) can repay the loan. For example, if a borrower will be receiving income from a roommate, that income must be included in the max household income calculation but cannot be used to help with the debt-to-income ratio. This means it will not help a homebuyer qualify for a bigger loan amount but could potentially disqualify them because the rent they receive from their roommate would push them over the maximum income limits. 

Acceptable income types:

  • W2 Wage Income – Must have min one year of employment history. Can be a combination of W2 employment, military, & education.
  • Self-employment – Must provide a two-year history. No exceptions.
  • 2nd job – requires a one-year history to use for qualifying purposes.
  • Child support & alimony. Must show a 6-month history if court-ordered or a 12-month history if voluntary.
  • Fixed income (disability, social security, etc). No history required but must continue for 3+ years.
  • Stock Dividends & Capital gains. Requires a two-year history to help with qualifying (Debt to income)
  • Benefits received by the applicant on behalf of an adult household member may be used for repayment income when there is evidence they are the legal guardian for the non-applicant adult household member

Eligible deductions to help homebuyers reduce their income:

  • Dependents. Subtract $480 per eligible dependent. 
  • Child Care Expenses. Deduct child care expenses for children under 12 such as daycare or babysitting. Must be able to document. 
  • Elderly Household. Deduct $400 if borrower or co-borrower is over the age of 62. 
  • Care of Household Members with Disabilities such as daily living assistance, wheelchairs, ramps, adaption needs, workplace equipment, etc.
  • Medical Expenses. Deduct medical expenses that exceed 3% of the annual household income. Examples include insurance premiums, prescriptions, dental and eye exams, eyeglasses, medical/health products or apparatus, hearing aids, visiting or live in care providers
  • Full-time students aged 18 and above who will not be on the loan will only have $480 of their earnings included in the annual income calculation.
County 1-4 Person 5+ Person
Boulder $138,300 $182,550
Fort Collins $130,650 $172,450
Greeley $120,550 $159,150
Archuleta, Alamosa, Pueblo, Grand Junction, Co Springs & Teller, Baca, Bent, Chaffee, Cheyenne, Conejos, Costilla, Crowley, Custer, Delta, Dolores, Fremont, Garfield, Grand, Gunnison, Hinsdale, Huerfano, Jackson, Kiowa, Kit Carson, Lake, Las Animas, Lincoln, Logan, Mineral, Moffat, Montezuma, Montrose, Morgan, Otero, Ouray, Phillips, Prowers, Rio Blanco, Rio Grande, Saguache, San Juan, San Miguel, Sedgwick, Washington, Yuma $118,150 $155,950
Eagle $136,050 $179,600
La Plata $119,540 $157,650
Pitkin $131,450 $173,500
Routt $124,550 $164,400
Summit $127,450 $168,250

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