Question regarding USDA Mortgage-bank statement history and approval amount

[wednesdayaddamsd]

I have 2 questions. Planning on going USDA direct or possibly FHA. How far back are they going to look at my bank statements? Just wondering if I should deposit all of my paychecks in full rather than take cash out for groceries, etc. at the time of deposit to show full amounts?

Also, how does USDA determine how much you will be approved for? I make $31K per year, and my DTI is pretty low, it's just under 7% of my total income ( I have no debt except for a $175 per month student loan).

Thank you for any insight anyone can provide. )

[wednesdayaddamsd]

Anyone?

[gul1]

They asked for 2 months of statements with our VA loan. We have two accounts, one doesn't have much money in it and the other one is our main account where the paychecks go into. They only wanted statements of the account where the paychecks go into.

[wednesdayaddamsd]

Thanks gul. )

[ShanetheMortgageMan]

With USDA all of your liquid assets need to be disclosed and at least 2 months of statements for all is required, even an account which you just have $10 in to keep it open, the pension that can't be touched until you retire, etc.

With USDA typically your housing ratio (new housing payment : your gross income) is preferred to not be any higher than 29%, although above that can certainly qualify with good compensating factors (reseves, higher credit score).  Your total debt ratio (housing payment + consumer debts : your gross income) is preferred to be no higher than 41%, although again higher than that (up into the upper 40's) can qualify with compensating factors.

[wednesdayaddamsd]

Thank you so much!