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sounds like they are denying you because you don't have much wiggle room to do repairs , roof etc and I think that they might be telling you ,. you don't have enough to pay the mortgage without insulting you .I would wait if I were you too many people go into mortgage half cocked and then find out they cant really do anything because there is not enough money in the budget .
Thanks so much...the zip code is 28605. I also think there is something funky going on with the lender. I did sign a rate lock for 3.3% 30 year fixed...
Sorry, that reply was meant for another respondent. Inspection report showed roof was in good shape, the house is in really good shape too..heating, structure, no mold. Kitchen and stove, fridge are in good shape. Older/outdated but working. Also, seller made over $8k in USDA required repairs.
My husband and I had bought a lot thinking we might build a couple of years ago but now I have put that on the market at a very sellable price. I'm confident that lot is going to sell in the next couple of years and I will have at least gotten the money I put in it back...this is going to provide us more than enough to have a repair fund.
In this area, the mortgage will be around the same as the amount of rent we would have to pay. We have purposefully kept as low debt as possible so that we can afford the $1600 per month PITI..
The house is in 28605...I did communicate with the state director and he said he was forwarding my file for review. I spoke with the loan officer this morning and he said that the ONLY reason they were denying my loan at this time is because of my 2013 AGI being $63,500. He said that taking into account my husband's salary (he got a salaried position this year) of $48k, and if I made the same income at some point in the future, that we would be over the income limit. That year I had a crazy sale of $1.7 million...my commission for that one sale was $50k...it was like winning the lottery. That was the only time in my 20 year career I have had a sale like that and I haven't had one since. My average sale is $200k. I am going over the USDA income analysis guidelines and it states that "nonrecurring or sporadic income" cannot be included and this one time sale definitely falls into that category. If I take that sale off of our AGI, my income from real estate sales would have been closer to $10k...
I'm thinking the lender looked at your income from a Lender's perspective, seeking to minimize it (and thus risk) by seeing your declining income from 2013 to 2014, and thus grading you on a negative curve, so to speak, and also not look at your husband's income with any "optimism." Lenders seek the lowest quotient, while USDA seeks the highest, relative to their income caps. Still, lender should have done it both ways. If you are comfortable telling us the Lender, that might also help.
Quick fix might be to leave this lender, get refunds for appraisal, move to another lender after filing 2015 taxes, then use 2014 and 2015 to seemingly meet the numbers and avoid further mayhem? The bush-league mistake would seem to be your lender's failure to look at income the way USDA does. We try to fit you into a window, meeting our debt ratio requirements, but still under the USDA cap, and lenders need to do that prior to USDA pre-qualification.
Having said all this, your lender could be straight lying to you for reasons unknown. I would still seek certainty by talking with one or both persons mentioned at the top of my post so that you can verify if indeed they have a problem with your income.
Hi, I did speak to Pam Hysong but she said I was in the wrong department. Eventually I got put through to William Kenney and he said he would be asking someone to review the file but I have heard nothing more. I spoke to the loan officer this morning and he said the way they calculated my income and the way the USDA underwriter calculated it was different...they took out that "nonrecurring, sporadic" $51k commission from 2013 like the guidelines state but I'm assuming the USDA underwriter didn't take out that one commission from my income.
Well, that's a beautiful area and sounds like a wonderful house. People at USDA can be very helpful. I hope something good happens for you! Keep us posted.
OP, as much angst as you are feeling, try to keep in mind this particular week between two major holidays is the lowest staffed any mortgage entity will experience all year. It's not fair, but the other 50 weeks a year, the support and operations staff puts in as many hours as needed. Keep the inquiry alive, but don't have any expectations until next week.
My experience with VA, FHA and USDA has been nothing but positive.
Edited to add: I wonder if how this file was presented to USDA, and possibly, if it ever was.
Last edited by SmartMoney; 12-29-2015 at 10:17 PM..
Reason: To add:
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