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Answers (4)
- James Ryan, "GreatRateFolks"
- Contributions:1038
As long as you have cancelled checks for the rent, on approx the same day each month to the same landlord, and a written rental agreement with that landlord, you should be fine. However, if the new mortgage payment is two times higher or more than your rent, expect a higher level of scrutiny from the underwriters. In terms of lowering your student loan balances, that is certainly NOT a requirement for USDA per se, but may have been a suggestion from your lender to lower your overall Debt to Income (DTI) ratio to get your loan approved that much more quickly, but that is a guess since I do not have the whole package to review. The link provided to the USDA site is a good one...I hope these comments help you in your process! Jim.
Just give him the rent as needed with the dates it was due. a landlord can deposit a check when ever they want.
If you are paying rent. always put the first of the month. not the 2 or the 3rd. put the 1st.
If you are paying rent. always put the first of the month. not the 2 or the 3rd. put the 1st.
- housebuyinmama
- Contributions:4
Would that be considered as "skipping rent" even though our landlord has completely agreed with the arrangement and is willing to put that into writing?
We can afford our debt completely, we just want to put ourselves in a better situation to be able to purchase.
Also, as far as buying a house, we aren't trying to be extravagent or anything, but purchasing something that with insurance, etc will be as close to our rental payment as possible. We have paid anywhere between 900-1200 in rent over the last three years so I'm certain we can afford it plus any emergencies that come up by the time we buy.
We can afford our debt completely, we just want to put ourselves in a better situation to be able to purchase.
Also, as far as buying a house, we aren't trying to be extravagent or anything, but purchasing something that with insurance, etc will be as close to our rental payment as possible. We have paid anywhere between 900-1200 in rent over the last three years so I'm certain we can afford it plus any emergencies that come up by the time we buy.
- wetdawgs
- Contributions:26841
Here is a link to some of the qualifications of the USDA loan program.
One of the qualifications is that you must be able to afford the mortgage payments, and several months of skipping rent due to other debts would bring that into question if I were a loan officer evaluating your application (but I'm not a loan officer)
Student loans are indeed calculated into the big picture of your debt to income ratio.
Real life happens - transmission, brakes etc will continue to happen when you own a home. They should not be emergencies, but things that are planned for in advance. The furnace will go, or the water heater or the roof will have a leak. Please don't buy a home until you are prepared with an emergency fund to cover those items and still able to pay the mortgage, taxes and insurance.
One of the qualifications is that you must be able to afford the mortgage payments, and several months of skipping rent due to other debts would bring that into question if I were a loan officer evaluating your application (but I'm not a loan officer)
Student loans are indeed calculated into the big picture of your debt to income ratio.
Real life happens - transmission, brakes etc will continue to happen when you own a home. They should not be emergencies, but things that are planned for in advance. The furnace will go, or the water heater or the roof will have a leak. Please don't buy a home until you are prepared with an emergency fund to cover those items and still able to pay the mortgage, taxes and insurance.
Semi unique situation and need a bit of advice.. USDA rural..
Recently we became a bit more serious about wanting to buy a home.. so we contacted our friend and explained the situation. We recently got into a bit more debt than we were comfortable with (transmission went out in our car.. unavoidable basically).. So he said as long as paid him something he didn't care.. that he wants us to be able to buy a house.. so now we are paying down our debt.. (a total of around 9400 in total (previous debt plus recent debt)...
My problem now is will this impact us getting a USDA rural loan, because we won't be able to show 12 months of rent checks? I mean, we will be paying him something but not the full amount that we had previously been paying him. On top of that, a mortage broker told us that we would have to reduce our student loans to be able to get a USDA loan.. but I haven't read that anywhere.. can anyone shed some light?
Thanks!
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