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USDA Garuntee loan

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Anonymous
Not applicable

USDA Garuntee loan

Hi all!
I am having some issues with a USDA loan and needing to ask some questions......

My debt to income is fine,
They are just having issues with how much money I have in the bank. Usually out of each check I have about 500 extra.
But the lender is not wanting to see the $500 dollars they are wanting to see $2000 in the bank.

I get paid the 1st and the 15th, I really don't have much debt.
The first check I pay rent, and from that check I have 750-800 left over. My payment for housing if USDA is approved will go up 400$ (including taxes and insurance). Also my boss has sent in all verification of my raise that will be shown on my next paycheck..... which I understand they can't really use it yet, but they did ask my boss for that verification. So after the raise and new mortgage I'll have 600-650 left over.

The 15th check, I pay car payment ($364) utilities (145$) cable ($127-135) car insurance ($103, after the mortgage bc of the homeowners insurance it will go down 30$), cell phone ($200) and from there I usually have $500 left over.... depending on if utilities is more or whatever....

Just wondering if this is normal for a bankstatement to hold this up?
Credit is fine, but NEW! Like maybe a year old. Built my credit this year...... using rent and cable/internet as non traditional trade lines.

Oh no nsfs, no bankruptcies, no collections......

Just my money in my account..... making me a nervous wreck like I never get this approved! Smiley Sad
Message 1 of 3
2 REPLIES 2
kc0039
Established Contributor

Re: USDA Garuntee loan

What I'm getting from this is the lender is requiring you to show $2,000 in your bank account. I believe they want you to show this to have proof that you have the money for closing costs. It's normal. If you can't prove you have the funds to close, your loan will get suspended or worse not get approved. If this worries you that much, get a gift for $2,000 and leave it in the bank account. Ask your loan officer on how to do this and what kind of documentation they need.

Licensed in IL
Message 2 of 3
Anonymous
Not applicable

Re: USDA Garuntee loan

That may be a lender reserve overlay as we did not have that but we do have money in a retirement account. Rd.usda.gov has the handbooks that lenders are to follow. Worth reading. The other issue is that your doing what is called "payment shock" and depending on how much shock there is that may be why they want to see if you can actually handle that jump. We went down 300 a month from our rent payment so we didn't have shock either.
Message 3 of 3
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