USDA Home Loan Adjusted Annual Income

July 21, 2012 by Leave a Comment
usda loansUSDA No Money Down Loans are one of the most requested programs of ANY loan program we do.  We recently had two different families buying a home in North Carolina who had been told that they didn’t qualify for the program – who actually did.  The problem for them was that the Loan Officer they originally talked to was not aware of the Adjustments you can make to Household Annual Income.
In one case, a grandmother lived in the home.  She was not going to be on the mortgage loan, but the loan officer counted her income – taking the family over the maximum income limit for the County.  The Grandmother was disabled – and as you can see below, her income did not have to be counted, so the family is buying a new home, and moving at the end of the week!
The second family that contacted us live near a college, and in August, an 18 year old nephew is moving with them while he attends college.  We have all of the documentation regarding his attendance to the school, and all correspondence lists his Aunt’s home address as his address – that works!  The difference between having 4 family members in the household and having 5 meant that this family is NOT over the income limit and they can buy a home! [Read more...]
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USDA Home Loan Income Calculations in NC

June 7, 2012 by 3 Comments

income qualifications usda home loansBasic Applicant Eligibility For USDA Home Loan

  • Have the ability to personally occupy the dwelling
  • Be a citizen of the United States or be admitted for permanent residency
  • Non-occupant co-borrowers are not permitted
  • Generally, borrowers must sell their existing home – although, if it is a Company Directed Relocation, and you can not logically commute, you may be able to keep the existing home.

Income Eligibility USDA Home Loans NC

USDA RD Mortgage Guidelines state that the:

“Applicants must have adequate and dependable income, typically with a history of 24 months.”

We have certainly made loans to students who just graduated with a degree, and found employment within their field of study.  USDA Underwriters generally want to see the First Paystub prior to closing, so a Letter of  Offer can get the loan approved… but you will usually have to receive your first pay check before the loan can close.

Contract Employees must generally have 2 full years of employment within the same company to be eligible for a USDA Home Loan in NC.

“Qualifying ratios are 29/41; however, higher ratios considered with strong compensating factors, including good credit scores (660+), stable employment history, potential for increased earnings, and ability to save.”

Compensating factors we’ve used in the past to show the “Potential for Increased Earnings” to USDA Underwriters were overtime received consistently for over 9 months, and a copy of a college degree that correlates with the current position.  Remember the USDA Catch 22… Overtime that does not have a 2 year history will not be counted in the Ratios… HOWEVER, it will be calculated in the Maximum Income Numbers for that County. [Read more...]

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