USDA Loan Income Question

[Mommyto2boys]

Are the USDA Guar. loan income requirements for W2 employees based on last years tax return details or the current gross monthly income on pay stubs?

[ShanetheMortgageMan]

For eligibility purposes typically it's the current gross monthly income on the paycheck stubs.  For qualifying purposes it could be an average if the situation warrants it.

[housewanted6]

Shane,

Could you please go a little further in detail for me on what is used for income verification?  A brief back story for why:

Based on last year's w-2's, we are $6K below the highest income level in our county for a family of 4 to "qualify" for USDA guarateed loans.  The trouble lies in that I have started to receive anual bonuses this year as well as a pay increase.  As luck would have it, my bonus that is being paid in 2009 is higher than originally factored at the beginning of 2008 due to us exceeding projections and expectations thoughout 2008.  From what I am being told, when we go to verify our income, they will take our YTD earnings and factor that through the end of the year.  Because of this, mine will be drastically over-stated due to my bonus.  Is there any way around this?  We should get a credit for two kids and daycare, but we might be pushed past the income threshhold. 

As you can tell, there is a fine line that we are walking with this.  It might just be the difference between a down payment & PMI or not having either.  Thank you for your time.  

Message Edited by housewanted6 on 04-05-2009 07:46 PM

[Anonymous]

Talk to a lender, now.

To determine your income both for eligibility and the loan, they may take your current salary, plus your average bonus from the past two years. By averaging the bonus, there's a chance you might be okay.