USDA Direct loan rejection: Clarifying some inaccurate info posted here

[Anonymous]

I have just been rejected for a USDA direct loan. Shanethemortgageman is a very helpful poster, however he is incorrect (or perhaps policy has recently changed?) about two things per this loan:

1)  the non-occupant co-borrower cannot make all the income. This is explicitely the reason I was rejected.

2)  The two year income history is non-waivable. IE, recent graduates cannot have just started a new job.

This is according to the USDA people in Wray, Colorado. Hopefully this helps someone. 

[bbb3601]

We were going to do direct in Ohio (but made 800 too much) and I am a new grad. I provided transcript, degree, was out of probation and would have had no issue meeting income guideline.

[ReBuild-OH17]

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@Anonymous wrote:

I have just been rejected for a USDA direct loan. Shanethemortgageman is a very helpful poster, however he is incorrect (or perhaps policy has recently changed?) about two things per this loan:

1)  the non-occupant co-borrower cannot make all the income. This is explicitely the reason I was rejected.

2)  The two year income history is non-waivable. IE, recent graduates cannot have just started a new job.

This is according to the USDA people in Wray, Colorado. Hopefully this helps someone. 

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Did you try another lender? Maybe this is that particular lenders guidelines. Just my 2 cents...

[bbb3601]

USDA Direct is the Lender.......

[Anonymous]

interesting. I'll put it out there that I didn't have a great experience with this office, so that could be a factor. It took over a month for them to evaluate a prequalification worksheet. They initially rejected me for incorrect reasons. I had to explain to them their own policy regarding non-occupant co-borrower via info I had read online.  They acknowledged the error and said they would re-evaluate and get back to me.

Fast-forward ANOTHER full two weeks later I received a call back stating that I had been rejected because I needed to earn some of the money used to qualify. 

After I was rejected,, I asked if being a recent graduate would allow me to bypass (or at least excuse) the 2 year income requirement. She said no, however she had proven previously that she didn't exactly know what she was talking about.

I have also spoken to- but not formally applied at- a USDA office in another state. That office, again only over the phone, stated that recent graduates are cut some slack regarding income history/employment history.

So, to clarify, I was formally rejected for a lack of income sans non-occupant co-borrower. No other reason.