USDA Guar and Income limits

[beanie7132]

I know about the income guidelines - we are currently under contract for a new build and are using USDA guaranteed. We sign disclosures with the lender tomorrow. 

My question is this..... my household income fits just nicely right under the USDA income limit for the area we are purchasing in. What happens if after we close, I get a significant increase in pay that sets our household income above the limit? 

What happens then.... they dont come back and take the house or penalize me or anything do they?

[ShanetheMortgageMan]

Nope, it's only the amount that is verified at the time you get the loan.  Be careful if you are going to get a future raise and you already know it though, a verification of employment form will be completed by your employer and it asks when your next anticipated raise is and for how much... if they put anything in there, then the eligible income will be the amount including that next raise.

[beanie7132]

How far out would be safe?

I ask because i was offered a promotion and significant pay increase. Employer knows about my mortgage and that i cant take an increase right now. So they would hold back the increase and promotion until after i close......

[ShanetheMortgageMan]

If your employer confirms you will be getting a pay raise at any time in the future it'll be used in the eligible income calculation.

[beanie7132]

now it seems I am in a pickle. grrrrrr. 

Thank you Shane!

[ShanetheMortgageMan]

Well ask your employer's HR department what they'd verify.  If your raise isn't official yet then I don't see how they'd verify a specific date you'd be getting it.

[beanie7132]

Thats the problem.... It will be official in the next week or so. Technically, I was offered the promotion, and told them I cannot have a change in payrate until after I close. 

However, they are working on the compensation package now to present to me for acceptance of the position and rate of pay. They know I cant take the monies now, and they agreed to hold off until after I close..... I am just worried about portion of the VOE form you mentioned earlier. 

Id essentially be asking my employer to lie......

[ShanetheMortgageMan]

That is a conundrum then.

[beanie7132]

Found out I should be ok. As long as I do not accept the monetary offer until AFTER closing, then there is no paperwork for HR. So, technically, no lying. 

feeling much better.

[ShanetheMortgageMan]

Awesome!