Income must be likely to continue for how many years to be considered as repayment income?

To determine if income can be classified as repayment income under USDA Rural Housing Loan guidelines, the standard requirement is that the income must be likely to continue for at least three years. This three-year timeframe is significant as it provides assurance to lenders about the borrower's ability to meet future mortgage payments based on stable and predictable income.

Income that is viewed as temporary or uncertain—such as bonuses, overtime, or part-time work—often does not meet this duration requirement because it may not be consistently available over an extended period. By establishing a three-year benchmark, the guidelines aim to help ensure that borrowers have a reliable source of earnings that can support their financial obligations in the long term. This approach protects both the lender and the borrower by promoting sustainable borrowing practices, reducing the risk of default, and ensuring that borrowers are not overextending themselves based on unreliable income sources.