USDA - Annual Income Limit Exceptions

[Anonymous]

Hi,

I have been going through the process of finding the perfect USDA house for about 2 years now. I have been pre-approved this entire time. Now that I have found the house, made 1400 in earnest payments and 450 in appraisal, I find out from the lender that my household income is about 2,000 over the limit. I am single, purchasing this house in my own name, but have a live in girlfriend. Without her income, we would be under the household limit. I have looked at the standard deductions for calculating household income, but I don't qualify for any of them.

This really hits below the belt, because I can't afford downpayment and FHA's Mortgage Insurance, and I am looking at walking away from almost $2,000 to leave this house. I'm looking for any possible advice on ways to explain the difference in the money to USDA to let them accept me.  If you averaged our two salaries over the past two years, we would be under the limit. If you took away her bonuses 

It seems the only way to do this is to cut ties with the girlfriend who I currently share a bank account with, and try again later. This would allow me to possibly keep due diligence and earnest money but I will likely have to do the appraisal and inspection again due to time passed. Plus, I would like to do this as honest as possible.

So, tl;dr

 * How can I convince USDA that my barely over income should be accepted

 * Should I hold the lender responsible for approving me for USDA, having me spend 500 on appraisal, and then telling me I must do FHA? Im certainly he wont want to give me the money back as he's already payed the appraiser, but I feel this is his fault, not mine. I should have been a bit more informed, but I trusted him to make decsions in all of our best interests, which this clearly is not.

[tooleman694]

I think the only choice is FHA or Conventional.

[basballguy]

are there any babies in the equation?  USDA allows child care deductions.

If not, make one! 

[JM-AM]

Even if you eliminated the G/F from the note, what does that do for you to qualify on your own?

You will be under the limit, but what about home puchase price? What about your DTI? Have to consider what happens when you take G/F income out of the equation.

Being honest usually is always the better way to go with taking G/F off the loan, but such is life that G/F's and B/F's break up all the time and get back together.

[Anonymous]

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@JM-AM wrote:

Even if you eliminated the G/F from the note, what does that do for you to qualify on your own?

You will be under the limit, but what about home puchase price? What about your DTI? Have to consider what happens when you take G/F income out of the equation.

Being honest usually is always the better way to go with taking G/F off the loan, but such is life that G/F's and B/F's break up all the time and get back together.

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I meet all the requirements on my own. It wasnt until late in the game that they added her w2 which pushed us over. She is not included in the loan, but since we have a joint account, they concider her part of the household. I want to be honest about this as well, I'm just looking at a serious financial difference between these options.

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@basballguy wrote:

are there any babies in the equation?  USDA allows child care deductions.

If not, make one! 

eeek! Don't wish that on me! There are no babies to account for :/

[JM-AM]

Well the technicality with USDA is that anyone living in the household is suppose to include their income. With the joint account it made it easy for them to assume this person was going to live with you.

I agree and believe in the ethnical thing to do.

I for sure wouldnt break up with my G/F over a home purchase, I would probably try and figure out another way to succeed and be home owners. But thats a choice you will have to make. Good luck......

[Shogun]

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@basballguy wrote:

are there any babies in the equation?  USDA allows child care deductions.

If not, make one! 

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LOL!!!