Question concerning 100% loan

[ldohve]

Hi:

We applied for a 100%rural home loan a couple days ago. My parents live with us as well, so all together there are 6 people. When we applied we gave the loan officer all the paperwork ie paystubs, taxes. Well, our loan officer called us and said we were denied because we were over the eligibility amount by $160.00 per month. What happened is my husband worked some overtime last year. So, the underwriter used his pay from the W2s (which included the overtime) instead of his base pay. We provided paystubs to prove the base pay. My question is what amount should of the underwriter used? It does not seem fair to use my husbands overtime because that is not a certain. Should we go somewhere else or what?

Thanks in advance!

ldohve

[Anonymous]

The outcome will likely be the same anywhere.  When determining if you fall within the maximum program limits, they will count any income recieved even when some of that income is not eligible to be counted as income for the actual loan documentation. 

[ldohve]

Hi:

When the loan officer crunched number he said if the underwriter would not have used the overtime we would have been excepted.

ldohve

[Anonymous]

I understand that.  But if your husband made a couple hundred or more per month in overtime last year, that is going to count towards any maximum income limits.

[ldohve]

Yea, I understand. We whad our hopes up. We were approved instead for a FHA loan. Thanks for your help!

ldohve