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Announcement 2026-062 USDA Updated Adjusted Annual Income Deductions

Announcement 2026-062 USDA Updated Adjusted Annual Income Deductions

USDA Updated Adjusted Annual Income Deductions

Newrez LLC "Newrez" Approved Correspondent Clients, the Single-Family Housing Guaranteed Loan Program (SFHGLP) announced on August 4, 2026, increases to the adjusted annual income deductions.


Handbook 1-3555 allows applicants age 62 or older to receive an elderly family deduction when calculating adjusted annual income. Effective immediately, this annual deduction has increased to $550 per household.
 
Handbook 1-3555 also provides a deduction for each eligible dependent in the household. This deduction has increased to $500 per dependent.
 
Handbook updates reflecting these changes will be released soon. The Guaranteed Underwriting System (GUS) is already applying the new deduction amounts correctly.


Interim Guidance


This communication is issued as interim guidance to address SFH Guaranteed Origination Notice ahead of a forthcoming update to Handbook 1-3555. Until USDA Rural Development publishes the revised handbook language, the guidance outlined above should be followed for all applicable loans.