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Message
Frustrated with Rural Development loan process
Posted on 8/1/13 at 4:52 pm
Posted on 8/1/13 at 4:52 pm
Got a contract on a house on 7/9. Yesterday our mortgage guy calls and said that the RD office called and said we were over the income limit. The thought never even occurred to me that we could possibly be over. I'm a firefighter and other guys with the same incentive pay, certifications, and time on as me make a certain amount so that's what I put down. They calculated me as making 4k more than that. I have a side job that I might make at the MOST an extra 5k a year. My wife works at a non-profit and also makes an additional $3,600 for being the Children's Director at our church. Apparently they are even counting her mileage reimbursement for when she has to drive to the courthouse. We have both sat down together and came up with a maximum number of what we could possibly make and it was $300 under the income limit. This is the very first time I've been accused of making too much in my profession.
Ok, venting over.
Ok, venting over.
2
Posted on 8/1/13 at 5:08 pm to TBass82
quote:
I'm a firefighter and other guys with the same incentive pay, certifications, and time on as me make a certain amount so that's what I put down.
Posted on 8/1/13 at 5:37 pm to iknowmorethanyou
I gave me lender my paystubs, W-2's and everything else and he didn't think it would be the amount it was either. When I told me realtor (who also is on my department) how much they said I make he laughed and said "You WISH you made that much!"
Posted on 8/1/13 at 6:54 pm to TBass82
Who is your lender? I had RD tell me the same thing that I made too much money. However, they were taking my income for the 1st 4 months and prorating it for the whole year. I am a commissioned employee that had a couple of very good months to start the year. Their calculation was not an accurate amount.
My lender was able to take the 2 previous calendar years + the first 4 months of 2013 and get a true amount. RD took that amount and I was under. Maybe this could be done if previous years were less and this year is going to be higher than normal?
My lender was able to take the 2 previous calendar years + the first 4 months of 2013 and get a true amount. RD took that amount and I was under. Maybe this could be done if previous years were less and this year is going to be higher than normal?
Posted on 8/1/13 at 9:10 pm to mglsu21
You gave them your taxes and you also signed a 4506T more than likely. That gives them the ability to actually see what you filed on your taxes. IE-What the federales say you make, man.
You can be frustrated but they're gonna be by the book and they ain't gonna fudge anything. All of your part time jobs. All of your income. Any incentives. You may not like it but they aren't out to screw you.
Oh, and you have zero idea what others in your department make on the side or claim as losses, etc. just because "they tell you," or "I know the girl in payroll," does not mean the info is accurate.
You can be frustrated but they're gonna be by the book and they ain't gonna fudge anything. All of your part time jobs. All of your income. Any incentives. You may not like it but they aren't out to screw you.
Oh, and you have zero idea what others in your department make on the side or claim as losses, etc. just because "they tell you," or "I know the girl in payroll," does not mean the info is accurate.
Posted on 8/1/13 at 9:37 pm to GFunk
I understand all that and I'm not expecting them to bend the rules or make exceptions. Nor am I trying to trick the system or fudge anything. I honestly just didn't see this coming.
As far as the what the other guys I was just talking solely what they make from the department, not counting income from side jobs. I've compared w-2's and bi-monthly pay stubs and no one in my position has approached the number that RD came up with. As a matter of fact it is barely less than someone two ranks higher than me with 11 years more experience. But I know they have their system and I know they won't deviate from it, nor do I expect them to. Like I said, I just didnt see this coming.
We have several other options, we just feel this was our best option.
As far as the what the other guys I was just talking solely what they make from the department, not counting income from side jobs. I've compared w-2's and bi-monthly pay stubs and no one in my position has approached the number that RD came up with. As a matter of fact it is barely less than someone two ranks higher than me with 11 years more experience. But I know they have their system and I know they won't deviate from it, nor do I expect them to. Like I said, I just didnt see this coming.
We have several other options, we just feel this was our best option.
This post was edited on 8/1/13 at 9:41 pm
Posted on 8/1/13 at 10:12 pm to TBass82
How much are they saying you are over the limit?
The lender should have calculated your income before sending the file to RD. I have never had RD reject one of my loans.
Do you have any childcare expense?
The lender should have calculated your income before sending the file to RD. I have never had RD reject one of my loans.
Do you have any childcare expense?
Posted on 8/1/13 at 10:30 pm to novabill
No children yet, just got married in April.
Posted on 8/1/13 at 10:43 pm to TBass82
all income going to continue for both you and the wife? any changes expected in the next 12 months?
Posted on 8/1/13 at 10:47 pm to novabill
My wife will be quitting her job in January to do her student teaching, she's working and in school right now but won't be able to work and student teach at the same time.
Posted on 8/1/13 at 10:59 pm to TBass82
RD will be looking at the money you will earn in the next 12 months.
Make sure you loan officer knows this and make sure you document her decrease in income. Maybe a letter from her school stating she is scheduled to student teach for x number of months and is not allowed to work during that time frame.
This should reduce your income enough to qualify.
Note, make sure to calculate your debt to income ratio without this income. You have to navigate between making too much for the program and not making enough money to qualify for the payment.
Make sure you loan officer knows this and make sure you document her decrease in income. Maybe a letter from her school stating she is scheduled to student teach for x number of months and is not allowed to work during that time frame.
This should reduce your income enough to qualify.
Note, make sure to calculate your debt to income ratio without this income. You have to navigate between making too much for the program and not making enough money to qualify for the payment.
Posted on 8/1/13 at 11:13 pm to novabill
You gave me hope until I read your note! Unfortunately we both have a note on our vehicles and she has student loans. There's no way in hell we'd qualify with just my income. I really appreciate the information though.
Posted on 8/2/13 at 8:36 am to TBass82
quote:
You gave me hope until I read your note! Unfortunately we both have a note on our vehicles and she has student loans. There's no way in hell we'd qualify with just my income. I really appreciate the information though.
You said that your wife makes $3,600 at the church. Is that monthly or yearly? You were referring to other figures as yearly so that's why I am asking.
Posted on 8/2/13 at 8:53 am to mglsu21
I'm vaguely interested in this for my next home. What is the income limit? is it a national limit or does it vary by state/region/county (parish)?
Posted on 8/2/13 at 9:30 am to TigerFanatic99
It can differ a little bit by state/city. Here is the link for Indiana.
RD income Indiana
Also a 5+ family household can be allowed a higher income maximum than a 1-4 family size.
ETA: BTW the bottom column "MOD.INC-GUAR.LOAN" is the maximum amount allowed by RD
RD income Indiana
Also a 5+ family household can be allowed a higher income maximum than a 1-4 family size.
ETA: BTW the bottom column "MOD.INC-GUAR.LOAN" is the maximum amount allowed by RD
This post was edited on 8/2/13 at 9:35 am
Posted on 8/2/13 at 11:08 am to mglsu21
Thanks a lot!
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