Down payment assistance income limits explained
Down payment assistance income limits are set per county and per program, usually as a percentage of the HUD area median income. Agencies cap against qualifying or household income defined in their own program guide, which is often not the number on your tax return. Household size and county both move the limit.
Quick answer: Down payment assistance income limits explained: what you need to know
Down payment assistance income limits are set per county and per program, usually as a percentage of the HUD area median income. Agencies cap against qualifying or household income defined in their own program guide, which is often not the number on your tax return. Household size and county both move the limit.
TL;DR
- Which income the agency actually counts
- How the number itself is built
- Household size and county
- If you are over the limit
Quick questions
- Do down payment assistance income limits use gross or net income?
- Agencies cap against gross income before taxes, calculated the way their program guide defines it. Some use the qualifying income from the first-mortgage underwrite, others include all adult household income, and bond programs often annualise current earnings instead of using last year's tax return.
- Does my spouse's income count if they are not on the loan?
- It depends on the program. Household-income programs count every adult occupant's income whether or not they are on the loan or the title. Qualifying-income programs count only the income used to approve the first mortgage. The program guide is the deciding document.
- Can I use assistance if I earn too much for the state program?
- Possibly. City, county, employer, Federal Home Loan Bank and lender-funded assistance set independent limits, and several are higher than the state tier. Check the county the property is in and confirm the purchase-price limit as well as the income cap.
Published Last updated
- Reviewed September 2026
- Data verified August 12, 2026
- Data source: HUD
Which income the agency actually counts
Every assistance program defines the income it measures, and the definitions are not interchangeable. Some agencies cap against qualifying income — the income the first-mortgage underwriter uses to approve the loan. Others cap against household income, which includes earnings from adults in the home who are not on the loan.
That single difference decides eligibility more often than any other rule. A borrower can be comfortably under a qualifying-income cap and clearly over a household-income cap with the same paperwork.
- Qualifying income: the stable, documented income used to underwrite the first mortgage.
- Household income: qualifying income plus income from other adult occupants, as defined by the agency.
- Projected income: some bond programs annualise current earnings rather than using last year's totals.
- Non-taxable income may be grossed up by the underwriter but counted at face value by the agency.
How the number itself is built
Most limits are derived from the HUD area median income (AMI) for the county or metropolitan area, then expressed as a percentage — 80%, 100%, 115%, 140% and 150% are all common tiers. Bond-funded programs frequently publish a flat dollar limit per county instead, sometimes with a higher figure for households of three or more.
Because AMI is republished on HUD's own schedule, a limit that was accurate last quarter can move without the program changing anything else. We record when we last checked each figure rather than presenting an undated number as current.
Household size and county
Two applicants with identical pay can face different caps. Larger households usually get a higher limit, and adjacent counties in the same metro can be several thousand dollars apart because AMI is calculated per area, not per state.
Buyers shopping across a county line should check the limit for the county the property sits in — the program follows the property, not the applicant's current address.
If you are over the limit
Being over one program's cap does not end the search. Assistance is layered: city and county funds, employer programs, Federal Home Loan Bank grants and lender-funded assistance all set their own limits, and several sit well above the state tier.
- Check the city and county funds where the property is located — local caps are often higher.
- Look at programs with occupation set-asides, which sometimes carry their own income tier.
- Ask whether the agency counts only borrower income; removing a non-purchasing occupant's income can change the answer.
- Confirm the purchase-price limit too — it stops as many files as the income cap does.
Questions buyers ask about this
- Do down payment assistance income limits use gross or net income?
- Agencies cap against gross income before taxes, calculated the way their program guide defines it. Some use the qualifying income from the first-mortgage underwrite, others include all adult household income, and bond programs often annualise current earnings instead of using last year's tax return.
- Does my spouse's income count if they are not on the loan?
- It depends on the program. Household-income programs count every adult occupant's income whether or not they are on the loan or the title. Qualifying-income programs count only the income used to approve the first mortgage. The program guide is the deciding document.
- Can I use assistance if I earn too much for the state program?
- Possibly. City, county, employer, Federal Home Loan Bank and lender-funded assistance set independent limits, and several are higher than the state tier. Check the county the property is in and confirm the purchase-price limit as well as the income cap.
- Is the income limit based on my income or my whole household's?
- It depends on the program. Bond-financed and mortgage revenue bond programs usually count the income of everyone who will occupy the home and is of legal age, whether or not they are on the loan. Non-bond programs more often count only borrower income. Ask which test applies before you assume you are over or under.
- Do agencies use gross or net income?
- Gross income, before taxes and deductions, is the standard measure. Agencies typically annualise your current earnings rather than averaging past tax years, which is why a recent raise can push you over a cap even when last year's return looks fine.
- Does overtime, bonus or commission count toward the limit?
- Usually yes if it is expected to continue. Agencies commonly annualise a recent average of variable pay. Documenting a genuinely one-off bonus as non-recurring is the difference between qualifying and not in borderline files.
- What if my income goes up after I reserve the assistance?
- Most agencies test income as of the reservation and again at closing. A material increase between the two can require a re-test. Tell your lender immediately rather than letting it surface in a final verification of employment.
- Do income limits change during the year?
- Yes. Limits are usually rebuilt when HUD publishes new area median income figures, and agencies adopt them on their own effective dates. A cap you read six months ago may no longer be current, so always check the effective date on the table.
- Are income limits higher in targeted areas?
- Often. Many agencies publish a second, more generous set of limits for federally targeted census tracts, sometimes alongside a waiver of the first-time buyer rule. If your property sits in one, ask for the targeted-area table specifically.
- Does household size change the limit?
- Almost always. Limits typically step up at one or two persons versus three or more, and some programs step at every household size. Counting household members correctly is as important as counting income.
- What if I am just over the limit?
- Look at whether the property is in a targeted area, whether a different program in the same state uses a higher cap, and whether any income is genuinely non-recurring. Never restructure income to appear eligible — misrepresentation on an agency application is fraud.
Ready to see which programs fit you?
Answer 10 quick questions and see the down payment assistance programs worth checking..
See your own numbers
Free tools using current stored limits and your inputs. Estimates are educational, not loan offers.
- Eligibility checkAnswer a few questions to see which program types may fit.Open tool
- Affordability calculatorEstimate a comfortable price range from your income and debts.Open tool
- DPA calculatorEstimate how assistance could change your cash to close.Open tool
Want a personalized quote?
Buying in Florida or Colorado? Request a scenario review from a licensed mortgage broker.
October 2026 Assistance Income Limits Review
We reviewed HUD area median income datasets, state housing finance agency income limit tables, county-level purchase price and income caps and program guide definitions of qualifying income relevant to this page. No material changes requiring substantive revisions were identified this month. The information and sources shown here remain current as of our latest review.
- Checked: HUD area median income datasets
- Checked: state housing finance agency income limit tables
- Checked: county-level purchase price and income caps
- Checked: program guide definitions of qualifying income
- Sources:
- HUD
- Data last verified:
- 2026-08-12
This page's scheduled monthly review is overdue. The section above reflects our latest completed review, not a new one for the current month.
Current data & page updates
- Page last reviewed
- September 27, 2026
- Page last substantively updated
- September 27, 2026
- Data last verified
- August 12, 2026
- Primary sources
- HUD
- Next scheduled review
- October 27, 2026
- Current monthly review
- October 2026
- Live data feed
- No
This page is past its scheduled review date and is queued for the next review cycle.
Licensing & Disclosures
Simply Approved Mortgages LLC | NMLS #2620881
Florida Branch Office (Miami, FL) | Branch NMLS #2688012
Florida Mortgage Broker License #MBR7685 | Colorado Mortgage Company Registration
Business Phone: (877) 813-7219
Equal Housing Opportunity
Broker identification. Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans with third-party lenders and do not make the lender's final credit decision or fund the loan. We arrange residential mortgage loans in Florida and Colorado.
Down payment assistance programs. Down payment and closing-cost assistance programs listed or referenced on this site may be administered by third parties, including state housing finance agencies, cities, counties, Federal Home Loan Banks, nonprofit organizations, lenders, and other program sponsors. Simply Approved Mortgages LLC does not administer, control, fund, or guarantee third-party assistance unless expressly stated otherwise.
Listing or displaying a program does not constitute an offer of that program, a representation that funding is currently available, or a determination that a borrower or property qualifies. Program availability, funding, assistance amounts, income limits, purchase-price limits, credit requirements, occupancy requirements, geographic restrictions, homebuyer education requirements, participating-lender requirements, repayment terms, and other eligibility criteria vary by program and may change or become unavailable without notice. Eligibility and current program terms must be confirmed for the particular transaction.
Types of assistance. Down payment or closing-cost assistance may be structured as a grant, forgivable loan, deferred-payment loan, repayable second mortgage or other form of assistance. Assistance structured as a lien or secondary financing may be subject to repayment, forgiveness, occupancy, resale, refinance, or other conditions. Assistance should not be considered "free money" unless the applicable program documents expressly provide that the assistance is a grant with no repayment obligation.
Receiving or potentially qualifying for down payment assistance does not guarantee mortgage approval, guarantee receipt of assistance, or necessarily eliminate all funds that a borrower may be required to contribute to a transaction.
Credit and program terms. All loans are subject to lender credit approval, underwriting, acceptable appraisal, title review, insurance, and supporting documentation. Eligibility, programs, rates, APRs, points, fees, payments, terms, loan amounts, down-payment requirements, and availability may vary based on borrower, property, occupancy, credit profile, loan-to-value ratio, debt-to-income ratio, lender, assistance program, and location and may change without notice. Not all borrowers, properties, products, or programs will qualify or be available in every location. Nothing on this site constitutes a loan approval, rate lock, offer, commitment to lend, guarantee of assistance, or guarantee of closing.
Rates, payments and calculators. Rates, APRs, payments, down payments, estimated assistance amounts, affordability, home prices, closing costs, savings, and other calculator or scenario results displayed on this site are estimates or illustrations unless expressly stated otherwise. Actual eligibility, assistance, and loan terms may differ. Taxes, homeowners insurance, mortgage insurance, association dues, lender charges, broker compensation, discount points, third-party charges, and other costs may apply. Advertised rates, payments, APRs, down payments, and other credit terms are subject to the assumptions and disclosures presented with the applicable advertisement.
Government affiliation. Simply Approved Mortgages LLC is not a government agency and is not affiliated with, acting on behalf of, sponsored by, or endorsed by HUD, FHA, VA, USDA, any housing finance agency, or any other federal, state, or local government agency. References to government agencies, housing authorities, assistance programs, data, forms, or resources are provided for informational purposes and do not imply sponsorship or endorsement of Simply Approved Mortgages LLC.
Fair lending. Equal Housing Opportunity. Simply Approved Mortgages LLC conducts business in accordance with applicable federal and state fair-housing and equal-credit-opportunity laws and does not discriminate on any prohibited basis.
No professional advice. Content on this site is educational and general in nature and is not legal, tax, accounting, financial, or investment advice. Borrowers should review the applicable program documents and consult qualified professionals regarding their individual circumstances.