USDA Guaranteed question... can the house be too nice to qualify?

[tammyjk]

I spoke with someone who did get around the no inground pool thing, but from what I understand it was a big hassle.  I've looked at a few homes with pools and found the biggest hassel is finding a home that has a pool in good working order.  If it doesnt, you will need to pay to have it cleaned etc so they can insure its in working order.  This was the biggest reason my broker steared me away from an inground pool on USDA financing.  Besides, a pool can be paid off in a few years if I wish to add one, which I probably will.  I would rather finance a pool for a few years than the added expense in a mortgage for 30. 

[Melissalyn17]

---

@Tpelc23 wrote:

USDA guarantedd does not matter size or anything, just as long as  loan is at or below the max amount allowed by USDA for the area. Oh and no pool. The  requirement you are talking is USDA Direct.

---

I can't find a max amount allowed for our area. My husband says he was told 500,000 by two lenders, but that seems insanely high and we'd be nowhere near that. We are in looking in Saint Johns, Florida and the only thing I can find is the max amount we can make, which we are under that.

[tooleman694]

I am doing an USDA loan, one because we are beyond the limits of FHA and just dont have the down for conventional. Our broker said there are no limits for the mortgage amount but you cant earn over the income limit. So to find the loan limits you need to do your math. It is high.

So you figure out what the max income for the area is, and what kind of home that income can afford with no debt and you have your limit.

[Melissalyn17]

---

@tooleman694 wrote:

I am doing an USDA loan, one because we are beyond the limits of FHA and just dont have the down for conventional. Our broker said there are no limits for the mortgage amount but you cant earn over the income limit. So to find the loan limits you need to do your math. It is high.

So you figure out what the max income for the area is, and what kind of home that income can afford with no debt and you have your limit.

---

Ok thanks! We have already calculated our own max loan payment amount (using our DTI), so depending on the interest rate we get will depend on our max loan amount. We are about 10,000 under the max income limit, so we should be fine price wise. We tried to stay on the conservative side because we wanted our payment to be around our rent payment amount.

[tooleman694]

We are actually above the limit, but they allow you to adjust your income with some deductions. we just barely made it thru.

This has been so stressful lol.

The sucky thing is that my Wife has terrible credit so she will not be on the loan. but they count all of her debt against my DTI and use her income for the limits.

[Melissalyn17]

---

@tooleman694 wrote:

We are actually above the limit, but they allow you to adjust your income with some deductions. we just barely made it thru.

This has been so stressful lol.

The sucky thing is that my Wife has terrible credit so she will not be on the loan. but they count all of her debt against my DTI and use her income for the limits.

---

Wow I didn't know they did that if the person wasn't on the loan, that really does suck.

[tooleman694]

Yup it really sucks.

If I went conventional they wouldnt even look at her stuff. If we went FHA they would ignore her student loan debt because it is deferred.

[Anonymous]

---

@tooleman694 wrote:

Yup it really sucks.

If I went conventional they wouldnt even look at her stuff. If we went FHA they would ignore her student loan debt because it is deferred.

---

That's strange; maybe you live in a community property state? DH acquired our guaranteed loan and none of my debts were used. Also I was not privy to any restrictions put upon the size/design of the home. Ours has granite, a deck, SS appliances, oversized soaker tub, etc, none of which were an issue.