USDA Updated Adjusted Annual Income Deductions
The Single Family Housing Guaranteed Loan Program has increased both the elderly family and dependent deductions used to calculate adjusted annual income.
Effective immediately, USDA Rural Development has increased two of the deductions Handbook 1-3555 allows when calculating adjusted annual income. Higher deductions mean lower adjusted annual income — which can bring more borrowers under the applicable income limit.
| Per Eligible Dependent | Elderly Family (Age 62+) |
|---|---|
| $500 (was $480) | $550 (was $525) |
The dependent deduction applies per eligible dependent in the household. The elderly family deduction is a single deduction per household where an applicant is age 62 or older.
System & Handbook Status
Guaranteed Underwriting System (GUS): already applying the new deduction amounts correctly – no action needed to trigger the change.
Handbook 1-3555: updates reflecting these changes will be released by the Agency soon.
What This Means For You
- Use $500 per dependent and $550 for elderly family households on all adjusted annual income calculations.
- Revisit borrowers previously declined for exceeding the income limit — the larger deductions may now bring them into eligibility.
- Update any manual worksheets or internal calculators still using the prior $480 / $525 amounts.