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USDA - what income counts?

Sc2
New Member

USDA - what income counts?

We've decided to buy using the USDA guaranteed loan. My work situation is unique. I get paid a taxable hourly rate. I also get paid a nontaxable stipend since I travel for meals/housing/incidentals that is added directly to my paycheck. I spoke to one loan officer at our bank and she said we were under the income limit because the USDA only counts taxable income - not my stipends. Ended up having to change to a different loan officer at the same bank and she says that we exceed the income limit because the USDA DOES count stipends in annual income. We're getting conflicting info from the same bank. The second loan officer has emailed the USDA to clarify but she's out of town until next week. Anyone have experience with this?
Message 1 of 7
6 REPLIES
Frequent Contributor

Re: USDA - what income counts?


Sc2 wrote:
We've decided to buy using the USDA guaranteed loan. My work situation is unique. I get paid a taxable hourly rate. I also get paid a nontaxable stipend since I travel for meals/housing/incidentals that is added directly to my paycheck. I spoke to one loan officer at our bank and she said we were under the income limit because the USDA only counts taxable income - not my stipends. Ended up having to change to a different loan officer at the same bank and she says that we exceed the income limit because the USDA DOES count stipends in annual income. We're getting conflicting info from the same bank. The second loan officer has emailed the USDA to clarify but she's out of town until next week. Anyone have experience with this?

Give me until tomorrow afternoon. Going to another USDA presentation and I'll ask this question Smiley Happy

Mortgage Loan Officer in Greater Chicago area plus 47 states.
Message 2 of 7
Sc2
New Member

Re: USDA - what income counts?

Thank you!
Message 3 of 7
Frequent Contributor

Re: USDA - what income counts?

If it's part of gross wages we'll count it. If it isn't part of gross wages, we won't count it.

Mortgage Loan Officer in Greater Chicago area plus 47 states.
Message 4 of 7
Sc2
New Member

Re: USDA - what income counts?

Just for clarification - on my pay stubs my hourly rate is included on gross wages, stipends are not, they're under deductions. So, they would not be included nor counted towards the income limit. Is that correct?
Message 5 of 7
Member

Re: USDA - what income counts?

I'm doing USDA guaranteed and have been reading through their handbook. From what I've gathered, they calculate different incomes...a qualifying income to make sure you don't make too much money for the USDA program and one the lender uses to determine annual and repayment income. Perhaps this is where the confusion at your bank is coming from. 

 

Message 6 of 7
Frequent Contributor

Re: USDA - what income counts?

I can't see your paystubs and your tax returns. I would call our local USDA office and ask them if they can help you calculate. Most of them are willing to do it because they would like to be able to do a USDA loan

Mortgage Loan Officer in Greater Chicago area plus 47 states.
Message 7 of 7