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Rural (USDA) loan question!

My wife and I are about to close on a home with a USDA backed rural housing. We are within about 5 thousand dollars of the income limit. My wife does plan to work in the future, within a few months probably. Will this cause problems for this loan? How is it audited? Will they kick us out or take our loan away if we are making just over the limit? THANKS!
  • July 09 2013 - Saratoga Springs
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Answers (1)

They will not audit you after you close, but the lender should be aware of any known changes to your future finances. Full disclosure of all material facts means that you can sleep at night and know that you wont get nailed for mortgage fraud. USDA loans are required to underwritten twice. Once by your lender and then again by USDA. If the USDA sees anything fishy, they will deny your loan.

Keep in mind that if you did make more money after closing on your home and later went to refinance, you could possibly disqualify yourself for a refinance as a USDA loan. You would need to refinance out of USDA and into FHA or Conventional.

Good luck and congratulations on your home purchase.

Brandon
  • July 18 2013
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