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Answers (9)
- Scott Frey, "scottmfrey"
- Contributions:4
James-
It has been my experience with USDA that they are VERY firm about the income limits with this program. Anything that looks like some sort of manipulation will more than likley not turn out in your favor. As has been suggested, you will need to be able to document everything you're telling the loan officer/underwriter. I agree with what was said, that they will tend to look at the "worst case" scenario when making income limit determinations.
Best of luck to you!
It has been my experience with USDA that they are VERY firm about the income limits with this program. Anything that looks like some sort of manipulation will more than likley not turn out in your favor. As has been suggested, you will need to be able to document everything you're telling the loan officer/underwriter. I agree with what was said, that they will tend to look at the "worst case" scenario when making income limit determinations.
Best of luck to you!
- James Gordon ABR SFR SRS, "jmgordon"
- Contributions:171
You may want to talk to Sandee Barrett and find out for sure. She is a loan officer at the Union Savings Bank on Main. She is truthful and they have very low fees.
- Justin Kennedy, "thatloanguy"
- Contributions:43
Jamesallen74, the specialist on this forum can help with all questions. Since the USDA option looks very slim, can you elaborate on the reason for utilizing the USDA GRH program. We may be able to offer other suggestions.
my 2 cent, cutting back hours will not work to pass the income limits. The underwriter will use worse case numbers. Plus, more than likely the underwriter will use your bonus as income for program limits but not for income qualifying (used to determine ratio's) income. Not much you can do, maybe check other local counties their limit might be higher.
- Tara Talbot, "Tara Talbot"
- Contributions:147
Now I would consider having a child and wanting to cut hours as legitimate. Perhaps you may need to do some written explanations to underwriting on this.
However, it will be to the descretion of the underwriter. This is a government guaranteed loan program and they have strict income guidelines. Their undewriters take what you have made year to date and annualize it. If there is a drop, they will expect a good explanation of why it has gone down.
However, it will be to the descretion of the underwriter. This is a government guaranteed loan program and they have strict income guidelines. Their undewriters take what you have made year to date and annualize it. If there is a drop, they will expect a good explanation of why it has gone down.
- jamesallen74
- Contributions:7
Just for further clarification, she is going to cut her hours anyway, for several reason I won't go into here. Regardless of the loan process and guidelines. Even if we went FHA instead.
- jamesallen74
- Contributions:7
Thanks for the input (you too Wetdawgs).
@Tara: What I find interesting is that what if my wife wanted, regardless of this situation, to cut back her hours anyway to stay at home more, like for maybe an upcoming child? They wouldn't consider that legitimate?
@Tara: What I find interesting is that what if my wife wanted, regardless of this situation, to cut back her hours anyway to stay at home more, like for maybe an upcoming child? They wouldn't consider that legitimate?
- Tara Talbot, "Tara Talbot"
- Contributions:147
In my experience, you cannot limit work hours in order to "qualify" for RD. The underwriter will consider income over time. There would have to be a ligitimate reason for your wife cutting back her hours. Is she ill, is the company cutting back? They set income limits for a reason.
On your bonuses, again that issue would need to be documented by your employer. There must be a logical explanation for why you won't receive it in future.
The government makes the rules, they make sure we follow the rules.
On your bonuses, again that issue would need to be documented by your employer. There must be a logical explanation for why you won't receive it in future.
The government makes the rules, they make sure we follow the rules.
- wetdawgs
- Contributions:26834
this document may be useful for some information about qualifications. (note: link to government website, not a commercial website)
- jamesallen74
- Contributions:7
FYI, the area we are looking at is definitely an approved area. Our credit scores are good, and ratios are under the 41/29 requirement. Currently rent, never owned home/prop before.
Question about USDA Rural Loan (Guarantee) income determination
1. When should she do this, right away (we don't plan to buy a house until autumn this year) or right before we plan to buy? Basically, does the USDA approver determine what the hours she WILL work in the future, or will they go by how much she worked in the past?
2. Also, I got a bonus this month (one time per year) that also bumps us up. It's not a guarantee that I will get one next year. Do they have to include that in the total they estimate that I will make next year? Many in my department did not get a bonus (performance issues).
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