USDA Loan and savings account

[Anonymous]

First time poster..

My offer was accepted yesterday. I was speaking to the bank on the phone today and she was asking me about my bank accounts. When I got to savings account I told her what I had. This year I got two bonuses which equates to almost $16,000. One has been paid in January, the other will be paid in March. My tax return has also come in. So by end of Feb ill have close to 20k in my savings. My W-2 from last year shows me under the income limits. I am curious to know how they will look at my pay statements now that they are inflated when they show the bonus payments. Also, should I move some money out of my savings to get my account below 5% needed to open an FHA loan. House is 155k. Pretty much what it comes down to, is how do I make this work? Earnest money is already paid and house is 3.5 months out from being completed. The bank said we would apply for the loan about 2 months out. The last thing i want to do is get that close only to find out we will not get approved. Will they deny is because my bonuses? Thanks

[kc0039]

We won't count the tax return as income. USDA guaranteed housing loan also requires that if you can afford the house through conventional means, they will deny your loan since funds are limited. What's wrong with going through a conventional loan?

[Anonymous]

Pmi, putting 8k down, etc. it will financially strain me.

[kc0039]

The 8k down I can see it straining you, but USDA has PMI as well. Not as much as Conventional and FHA, but PMI is PMI. Where do you stand on income per year and what county and state are you located in?

[Anonymous]

But the payment would still be significantly lower. Nash county nc. Usually i get around an 8k bonus after taxes are taken back. This year about 16k. Will they deny it strictly due to my savings? I have about 3400 on my wifes car. I made 69k last year.

[kc0039]

---

@Anonymous wrote:
But the payment would still be significantly lower. Nash county nc. Usually i get around an 8k bonus after taxes are taken back. This year about 16k. Will they deny it strictly due to my savings? I have about 3400 on my wifes car. I made 69k last year.

---

If you mean Ashe county, NC the income should not go over $75,650.00. Call your loan officer and ask her/him if you qualify

[Anonymous]

No its nash county. Im under the limit, loan officer at the bank made sure. The issue of my savings only came up with her today. Ive already agreed to purchase and contract is signed. I need to make this happen. Would it be beneficial to take money out of savings and pay down debt to get me under 7-8k savings?

[kc0039]

Paying down debt is always a good thing. It would make you a better candidate as well. If it were me, I'd take half the money out and pay down debt, especially credit cards. As soon as you fill out the application, tell your loan officer about it so s/he won't be surprised. I'd leave $10k for closing costs and some reserves.

[Anonymous]

Closing costs will be paid by the builder so im good there. How will my bonuses both being so early in the year affect my chances? In other words, ill make close to 80k this year by years end, but half of that will show up in the first 3-4 months of the year and will be there in my pay stubs that i submit

[kc0039]

That will have to depend on the verification of employment and the paystubs you provide. I cannot answer that unless I  have those two in front of me. Those bonuses being sent to you first thing in the year affects you greatly since it'll be part of the income calculation.