I am in the process of the USDA Direct loan in Louisiana, and I although I have not closed yet, I am in the final stages. I'm hoping to have a closing date this week or next at the latest. I have read through the handbook, and it states they will re-verify your income if it has been over 120 days since it was verified.
- Re-verifying Employment and Income
The Loan Originator must obtain an oral verification of employment (VOE)
within 10 business days prior to the closing date. A written verification of employment,
also dated within 10 business days prior to settlement, may be accepted in lieu of an oral
VOE. Documentation to re-verify the applicant’s income must be updated before loan
closing if: (1) the closing will occur more than 120 days after the date on the
employment verification documents; (2) there is evidence to indicate a change in
financial status; or (3) the applicant’s employment status had changed within 4 months prior to
submission of the application. All re-verification activity should be documented carefully.
If the income re-verification indicates a significant change in income, the Loan
Originator should take the following steps:
Verify that the applicant is still income-eligible. A program loan cannot be granted if
the applicant’s adjusted income exceeds the moderate-income level at closing.
Regardless of whether the applicant’s income decreases or increases to change their
status from very-low or low income, no changes are needed on the loan obligation.
(There are no income restrictions for non-program applicants.)
Determine whether the applicant is eligible for payment subsidy. Payment subsidy
may be granted if the applicant’s adjusted income is at or below the applicable
moderate-income limit.
Consider whether the applicant could obtain 100 percent private financing and refer
the applicant to a private lender, if appropriate.
Confirm that the applicant has adequate repayment ability.
Here it the link to the handbook:
https://www.rd.usda.gov/files/3550-1chapter08.pdf
