- 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...]