Post # 1
My husband and I just found out that the area 5 minutes where we are renting in North Carolina is considered a rural area under the USDA. Based on our income, we should be able to qualify. For those who went through the USDA, will you describe your experience and/or time line?
Also, how far back do they look at your bank deposits? We’ve had our joint account for around six months now but are waiting to get moving on things until after we file our taxes so we’ll know where we will be. We’ll probably wait another month or so before talking to credit unions or banks.
Another question, my in laws are planning to gift us a rather large sum of money. How invasive will the USDA be about this? We could wait until after everything is settled before depositing the money if they need to go into their financial information too.
Ugh, that just reminded me about the Christmas money I received. Will they really care about that too? It’s just around $200.
Thanks in advance.
Post # 4
Hi, My husband and I got a USDA loan on our home in Franklin County NC.
They look at your last 2 bank statements and last 2 paystubs and your last 2 years W2 and 1040 tax form if i remember correctly.
We werent married yet at the time so we had to do two separate applications in order to both go on the mortgage. I was paying my DH for the rent by check every month so we had to write an explanation for it so they didn’t count that as his income.
We used Monarch Mortgage and they were very nice and helpful. As long as your income on your w2s for the last year including bonuses is below the income qualification level then you shouldnt have a problem. They may ask for an explanation on one time checks like christmas money if you do it right now. but that won’t hold you back.
Post # 5
@hkygal: I got a USDA loan for my house, it was pretty smooth. The only real potential for a hiccup is the appraisal, it not only has to come back with a high enough value but it also needs to pass FHA/HUD guidelines which amount to safety inspections, basically if things are not up to their saftey standards they won’t approve the loan. Most houses this wont be an issue, but a fixer upper, or a house where the previous owner did a lot of DIY without paying attention to code may be an issue. The other issue our lender made us aware of is that it is significantly more difficult to get the loan on a property with a pool. I would higly reccomend working with a broker/realtor with USDA loan experience.
How easy it is depends on your credit score, if it is over 660 then you won’t have any trouble. They will want 2 months of bank statements, 2 months of paychecks (possibly more if you got a raise or your pay changed in that period) and 2 years of W2s (you will need to provide more tax info if you are self employed or own a buisness). If there are any irregulaties in the info yo provide you will need to send in more. I didn’t have to deal with gift money from family as we had enough to cover the costs. I know some loans have limits on gift funds, I am not sure about USDA, just keep in mind, they can always ask for more bank statements so if you are getting gift funds be prepared to explain it and be upfront with your broker.
If you are under a 660 gredit score but above their minimum you can still get the loan but you will have to submit a lot more paperwork. They will ask about every deposit, 99% of the time you just have to write a letter explaining what it was, if it is a significant amount you will have to back that letter up with proof. If you deposit money save your documentation. Even if it is from something like selling stuff on craigslist, save emails and even have the person sign something.
Post # 6
I’m closing on a USDA loan Friday. Timeline – longer than conventional or FHA. Where I am, USDA committment took 8 business days after my lender was done with underwriting. Some states are months behind. It depends what your conditions are – I had to write a letter explaining how the move would affect my job commute.
They will ask for an explanation on any deposit amount they find unusual for you. So again, that depends on the person.