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Old 09-28-2013, 09:26 AM
 
Location: 78245
1,229 posts, read 3,828,891 times
Reputation: 474

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Question on income level. In our area the qualification limit on income is 74750 for USDA.

Our income for 2011 and 2012 was about 50 and 58k. in 2013 it will be about 70 agi however in 2014 god willing our income would be about 90k. we need until about june next year to get student loans under control and qualify credit wise so my question is.

Do we qualify for USDA based upon previous years income or are we disqualified due to current (2014) income projections? Can I then, raise my amount paid into my retirement plan to reduce my Income to the level to qualify, granted we also have day care i/a/o $4500.00 per year?

Would the underwriter see my paycheck stub and account for the amount going towards my 401k and reduce accordingly or just look at my gross before deductions? Every lender I talk to seems to not really know and wants me to get the loan right away this year to qualify and when I bring up the time I need to qualify, they seem to not want to deal with me…
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Old 09-28-2013, 02:50 PM
 
Location: MID ATLANTIC
7,598 posts, read 17,614,249 times
Reputation: 8078
Anytime your gross earnings reflect you are over the income limit, you are out. The child care is the only thing comes off the top of the income, so that works. Costs are documented two ways, tax returns and by canceled checks or bank statements. (There is a provision for a major medical issue).

I had a woman recently make 10K under the limit 2 years in a row. This year, her year to date is tracking to put her over by 15K. She's out.

There's not much wiggle room for going over and zero sympathy for missing it by a dime. Our laws have changed to the point we can't keep someone's records around until they qualify for a program. Much of the material expires or is outdated every 90 days. Add to that, the guidelines change every two minutes, I'm not surprised you're having issues getting someone's attention for so far out in the future. What you are told today, may not be relevant tomorrow, or say 2014. But I will give you a hint: it's getting harder for buyers and will continue to get harder. It sounds to me you definitely need to have a plan B, because the moment you show evidence of tracking over the income, they can't give you the loan.
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Old 09-30-2013, 01:45 PM
 
3,317 posts, read 7,251,326 times
Reputation: 4095
Income limits are done on current YTD wages only
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Old 09-30-2013, 02:35 PM
 
Location: 78245
1,229 posts, read 3,828,891 times
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You say bank statements, but by the time it hits my bank, it's already deducted the amount I put in my 401k. What do you mean costs are documented two ways? Do you mean income?
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Old 09-30-2013, 02:36 PM
 
Location: 78245
1,229 posts, read 3,828,891 times
Reputation: 474
I did the math, we would be 86500 before daycare which is about 7k and the limit here is 74750.00... there is no wiggle room?
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Old 09-30-2013, 05:34 PM
 
3,317 posts, read 7,251,326 times
Reputation: 4095
SFH Section 502 GLP Eligibility Check Worksheet
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