SFH Direct Loan and Grant Programs
October 1, 2021
Updates to FY 2021 Area Loan Limits and Related Changes
The Fiscal Year (FY) 2021 area loan limits (based on the guidance in Handbook-1-3550, Chapter 5, Paragraph 5.6 A) were effective February 1, 2021, and are available at https://www.rd.usda.gov/files/RD-SFHAreaLoanLimitMap.pdf.
However, in light of recent trends in the housing market which have resulted in rapidly increasing sale prices, seven states have revised certain area loan limits effective October 1, 2021. These states are: California, Hawaii/Western Pacific, Idaho, Montana, New Mexico, Utah, and Virginia.
The updated FY 2021 area loan limits are also reflected in the following resources, so it is important for all users to use the latest versions:
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Section 502 Worksheet for Computing Income and Maximum Loan Calculator (as found on the Single Family Direct Home Loan and Direct Loan Application Packagers pages). In addition to area loan limit updates, other revisions include:
- Option to accommodate up to a 20 person household size
- Correction to Western Pacific income limits
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American Rescue Plan Act (ARPA) Worksheet for Computing Income (as found on the Direct SharePoint page > General Info folder and Direct Loan Application Packagers pages). In addition to area loan limit updates, other revisions include:
- Same revisions noted for Section 502 Worksheet (20 person household size, correction to Western Pacific income limits)
- Notes added to the Expenses/Deductions section for guidance on households expenses/deductions that exceed the household income
- An area for multiple loans was added on the 502 and 504 tab
- On the 502 tab, the interest rate field was moved for better visibility
- Other minor revisions
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Section 504 Automated Worksheet (as found on the Single Family Housing Repair Loans & Grants page). In addition to area loan limit updates, other revisions include:
- Same revisions noted for Section 502 Worksheet (20 person household size, correction to Western Pacific income limits)
- A section for computing the ‘Average Method’ for income eligibility
- A question addressing an applicant’s legal capacity to apply for the loan/grant
- A warning flag that the loan amount cannot exceed equity in the property
- An application narrative section
- Single Family Housing Direct Self-Assessment Tool
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