USDA Income Question

[cracksmeup]

I was wondering if the income eligibility is based on current pay stubs or prior years tax return?  I'm pretty sure it would make the difference between us qualifying for it or not. I wanted to ask a lender but not many lenders in my area seem to know much about the rules. I live in a suburb of Philadelphia.  Any ideas?

[MitchL]

From my experience in trying to get USDA loan, it's both.

They check your prior year tax returns but they'll also look at current pay stubs.

Between my wife and I our income from tax returns showed we qualified but prior to closing they verified our stubs and did the math to project what we would make by end of the year and said we were over.  Had  to change to FHA loan.  When we filed our taxes after we went through closing, we were under the income threshold by about $300.

[BrianB_The_Loan_Professor]

It is always worst case for the borrower - if you made more last year they will use the taxes - if you are making more now they will use the current pay

For loan purposes it would be current income but for eligibility (household income) it is the higher of the two

Brian