I've been starting to check into a USDA 502 Direct Mortgage and have a couple of issues I am concerned about impacting my eligibility for this type of loan. Based on my salary and credit history I should have no problems qualifying, except for possibly the issues below. If anyone knows the answers to the questions below, the information would be greatly appreciated.
1) I own a commercial building approximately 70 miles from where I work. The market value is probably quite low (have been trying to sell for $35k and no luck). It occasionally generates some rental income, but after deducting expenses it is usually a net loss on my 1040 Sch E. I am only about $1,000 below the maximum income for the direct program, so the rental income would push me over by itself but doesn't when expenses on the property are subtracted out. Just wondering if either owning another property or receiving some rent (even for a net loss) will have an impact on qualifying for the USDA Direct Loan?
2) I have some non-retirement investment accounts with a market value below $10k. Will these affect my ability to qualify for the USDA Direct program?
Edit: One additional question. To qualify for the max mortgage for my county, I need to pay off a student loan and credit card to be able to fit the max mortgage ($148k) payment and keep my DTI below 41%. I assume those should be paid off before I submit the USDA mortgage app, and if so approximately how long should I wait after paying them off to submit the loan app?