Quick USDA question..

[Truth316]

I haven't started the process of getting approved, right now I'm trying to take in as much information as possible. My question is I pay Child care but it's to my mother-in-law. It's more convenient for my kids to go to her instead of a daycare. Will the USDA accept me paying my mother-in-law to baby sit?

[Gmood1]

Do you report it on your tax returns?

[Truth316]

To be honest I'm not sure, my dad runs a Tax business and I just let him handle my taxes. I'll check with my dad and see if he added child care to my taxes . I can say this, I don't claim my kids on my taxes, but their mother does.

[Gmood1]

He probably didn't. You have to claim the children as your dependents in order to get the child care credit.
I was just curious, because you will have to furnish two years of tax returns.
If you pay in cash and show no real pattern on your bank statements. It may never be brought up.

I'm going purely off memory here. Will you just be in the home as a full time resident? Or will the kids be there as well? All of that will be ask when you apply for the USDA loan.

Just make sure your tax return info matches loan info. If not they will ask for an explanation.
Paying child care shouldn't be a probably IME as long as DTI is where it needs to be.

[Truth316]

Yes it will be my 2 kids and myself, thing is my income will be a little to high for the USDA Direct (which is the route I really wanna take) without the child care deductions. Also DTI is fine I have no debt but 3 credit cards with a combined limit of $1,300 and my uti is like 3%.

[Gmood1]

Talk to a loan originator that deals with USDA. They may still be able to get you qualified. They use an average adjusted gross income over a 2 year period. So if you earned less the tax year before. You could still qualify even if you earned more the most recent tax year. Guaranteed USDA is another option with a process that moves faster from what I've seen here on the site.

I'm by no means an expert. I bought my home USDA guaranteed just a little over a year ago.
From start to finish it took about 6 weeks.

[Truth316]

Thanks for taken the time to answer some of my concerns. My base pay is 40k/year but last year i made 46k and this year 60k O_o so im sure how they will average that.

[Gmood1]

---

@Truth316 wrote:
Thanks for taken the time to answer some of my concerns. My base pay is 40k/year but last year i made 46k and this year 60k O_o so im sure how they will average that.

---

They sure will, you should be fine. In my area 75.6K is the threshold for one person until you hit 5 household members and then it's 100K.

I purposely held back working extra hours to make sure I qualified. The money I saved well out weighed the over time after taxes I would have seen.

Check out the map and your area. Good luck!

http://www.rd.usda.gov/files/RD-GRHLimitMap.pdf