topic Re: USDA Guarantee Loan Amount in Mortgage Loans

USDA Guarantee Loan Amount

RLZQ0581 — Wed, 13 Dec 2023 15:16:05 GMT

Hello. I worked 7 long years to get my credit straight as well as my financial situation. I was so excited to finally reach mortage scores all over the 700 mark. I have no debt but I make $60,000 after taxes. I am the caretaker of my disabled brother and also his payee for his disabilty. But I was told his income would only count to qualify our household and not as far as how much loan we could get. He will not be on the mortagage. So a friend of mine was telling me I would only qualify at most for $200,000 which won't help because I'm in a very high cost area where home start at $400,000. I would like to know if this is true before I waste my time and apply. As you can imagine I am very crushed but that's life. Is there any possible way they would approve me for at least $400,000 or should I just give up and be content to live in my apartment forever. I feel as if all of my hard work is down the drain

Re: USDA Guarantee Loan Amount

VAMortgageGuy — Wed, 13 Dec 2023 20:11:07 GMT

@RLZQ0581 wrote:
Hello. I worked 7 long years to get my credit straight as well as my financial situation. I was so excited to finally reach mortage scores all over the 700 mark. I have no debt but I make $60,000 after taxes. I am the caretaker of my disabled brother and also his payee for his disabilty. But I was told his income would only count to qualify our household and not as far as how much loan we could get. He will not be on the mortagage. So a friend of mine was telling me I would only qualify at most for $200,000 which won't help because I'm in a very high cost area where home start at $400,000. I would like to know if this is true before I waste my time and apply. As you can imagine I am very crushed but that's life. Is there any possible way they would approve me for at least $400,000 or should I just give up and be content to live in my apartment forever. I feel as if all of my hard work is down the drain

Since you are your brother's caretaker and the payee, that income can be counted as effective income provided it will continue for at least 3 years. Also, if the income is not taxed, we can gross it up 25%.

Re: USDA Guarantee Loan Amount

RLZQ0581 — Wed, 13 Dec 2023 20:38:45 GMT

Thank you so much for your reply. At least now I feel I can give it a shot and see how it goes.

Re: USDA Guarantee Loan Amount

VAMortgageGuy — Wed, 13 Dec 2023 20:52:03 GMT

You're welcome.

Re: USDA Guarantee Loan Amount

RLZQ0581 — Fri, 09 Feb 2024 16:16:26 GMT

Hello. I am working with a lender now and he is not metioning anything about grossing up and also said I cannot use my brother's income unless he applies with me which I didn't want to do because I know his credit score is low and I told the lender this but he still wants to plug my brother's information in just to see" is what he said. He said all of my information is fine but I most likely won't qualify for more than $230,000 on my income which sucks because there are no houses where I live under $350,000. I'm wondering if I should try another lender or just give up for the time being.

Re: USDA Guarantee Loan Amount

rileydude — Fri, 09 Feb 2024 18:13:23 GMT

Get a different lender...SSDI, VA disability..all of those federal tax-exempt compensations are grossed up !!

Re: USDA Guarantee Loan Amount

VAMortgageGuy — Fri, 09 Feb 2024 20:47:04 GMT

@RLZQ0581 wrote:
Hello. I am working with a lender now and he is not metioning anything about grossing up and also said I cannot use my brother's income unless he applies with me which I didn't want to do because I know his credit score is low and I told the lender this but he still wants to plug my brother's information in just to see" is what he said. He said all of my information is fine but I most likely won't qualify for more than $230,000 on my income which sucks because there are no houses where I live under $350,000. I'm wondering if I should try another lender or just give up for the time being.

Definitely need to ask another lender.

Re: USDA Guarantee Loan Amount

ShanetheMortgageMan — Fri, 09 Feb 2024 21:38:45 GMT

If the income your brother receives is social security disability income then the below guidelines are what would apply. You'll need to provide documentation that you are his legal guardian + the disability income verification letter from Social Security.

Screenshot 2024-02-09 133238.png

Further, you can gross up any eligible income that isn't subject to federal taxes by an additional 25%. So if it's $1k/mo of income not subject to federal taxes then it counts as $1,250/mo when it comes to qualifying. Be prepared to provide tax returns to document what portion of the income isn't taxable.

Re: USDA Guarantee Loan Amount

RLZQ0581 — Fri, 16 Feb 2024 14:25:46 GMT

Thanks everyone. I was able to apply the information given here and got a very generous pre approval amount and am now in the process of looking for a home in my area. I appreciate all of the help.

Re: USDA Guarantee Loan Amount

ShanetheMortgageMan — Fri, 16 Feb 2024 19:12:09 GMT

@RLZQ0581 wrote:
Thanks everyone. I was able to apply the information given here and got a very generous pre approval amount and am now in the process of looking for a home in my area. I appreciate all of the help.

Boom! The myFICO forums save the day again. Happy house hunting!

Did I Do Or Say Something Wrong?

RLZQ0581 — Thu, 07 Mar 2024 14:59:21 GMT

I'm a first time homebuyer. I'm a single mom with an iterlecual disability and I have a young daughter and I also take care of my disabled brother. Other than my little family I mentioned I have no other family so you can imagin how scary it is trying to navigate the loan process. I decided to buy a house and because I have trouble understanding some things so I decided to get a realtor to guide me. The realtor recommened his preferred lender and I was also comparing rates with the builder's lender. When I would talk to the preferred lender he would talk exremly fast and would not answer many questions or didn't seem to know certain things. I would come home and cry because I was just really afraid of getting screwed. I just could not understand until I began talking to the builder's lender and they explained everything in detial, answered all questions and was very patient. I also go a better rate and terms with them. I felt as if a weight was lifted off of my shoulders. Before had I asked my realtor to go with me but he said he didn't want to make the two hour drive again since it was not a home showing. He was also late to two showings previously so I said ok because I did not want to bother him. The next day the realtor called and asked which lender I was going to use and when I told him I will use the builder's lender and they are now sending my file to underwriting. The realtor has cut off all contact with me. Is this normal? I guess I don't need him at this point am I correct? Was just wondering if it was normal or did I do things in a way that was not professional? As I said I'm very new to this and this has been one of the most stressful things in my life. But I'm feeling so bad because I hope I did things correctly.

Re: Did I Do Or Say Something Wrong?

Horseshoez — Thu, 07 Mar 2024 15:08:04 GMT

A few comments in no particular order:

You did the right thing, so take a deep breath and relax.
It sounds like your realtor and his or her preferred lender are doing a behind the scenes deal, which I believe is at best, unethical, and possibly not completely legal depending upon where you are located.
Regarding whether you need the realtor, it might make sense to read the contract you have with this individual, there may be some things which bind you to them for this particular sale.
You're going to want a real estate attorney to represent you, find one now and have them help you through the rest of the process.

Re: Did I Do Or Say Something Wrong?

RLZQ0581 — Wed, 27 Mar 2024 23:31:33 GMT

Thank you so much. I'm thankful for all of the help I have received here. My home is being built now and looking to close by the end of summer!

Re: Did I Do Or Say Something Wrong?

VAMortgageGuy — Thu, 28 Mar 2024 17:02:32 GMT

If your agent was not present on your first visit to the builder, they're likely not going to get paid by the builder. This is pretty common with new construction.

When you told the agent you were going with the builder's preferred lender, they dropped you because they're not going to make any money, not because your selected a different lender.

Does that make sense?

Re: Did I Do Or Say Something Wrong?

RLZQ0581 — Thu, 28 Mar 2024 19:13:18 GMT

The agent came with me twice to my appoitments. It also shows in my contract that he will be paid. He is listed. I still say it's very strange behavoir but I'm over it and just happy everything is going smoothly. I also found out others who are building didn't even use an agent but you live and learn.

Re: USDA Guarantee Loan Amount

RLZQ0581 — Thu, 18 Jul 2024 16:01:16 GMT

Update: My home is just about finished being built and I close on August 6th So thankful for this forum my dream has come true!

Re: USDA Guarantee Loan Amount

MissLiz — Thu, 18 Jul 2024 16:15:34 GMT

@RLZQ0581 wrote:
Update: My home is just about finished being built and I close on August 6th So thankful for this forum my dream has come true!

@RLZQ0581 That's amazing! Congratulations on your new home!

Re: USDA Guarantee Loan Amount

ShanetheMortgageMan — Thu, 18 Jul 2024 16:17:46 GMT

@RLZQ0581 wrote:
Update: My home is just about finished being built and I close on August 6th So thankful for this forum my dream has come true!

You did it, congrats! Now the fun will really start.