For computing annual income, which assets are considered?

The correct approach to computing annual income for a USDA Rural Housing Loan involves considering the assets of all household members. This is because the USDA guidelines take into account the financial resources of everyone residing in the household, as it provides a more comprehensive understanding of the family's financial situation.

In doing so, this method includes a broader spectrum of financial support and resources available for meeting mortgage payments and household expenses. It acknowledges that the contributions of all individuals living in the home, whether through income or assets, can significantly impact the household's ability to qualify for a loan.

Other options focus too narrowly on specific asset categories or limit the scope to individual borrowers, which does not accurately reflect the USDA's intent to assess the overall financial health of the entire household. This comprehensive view ensures that the loan process considers the cooperative financial dynamics of all members residing in the home.