Any real estate loan experts out there? I have some very specific questions

[LeatherRebel5150 | 1,135]

This is a long shot but is anyone here well versed in USDA Direct loans? There are a couple of questions I've not been able to find an answer to and I thought I might as well try here to.

So anyone well versed in these specific loans? before I even try asking directly?

[a3quit4s | 4,526]

I would just ask away, even if someone on the internet says they are an expert I’d still not treat it as any more than speculation. You pay experts for their advice lol

[LeatherRebel5150 | 1,135]

14 minutes ago, a3quit4s said:

I would just ask away, even if someone on the internet says they are an expert I’d still not treat it as any more than speculation. You pay experts for their advice lol

 I guess, you have a point. So my questions are:

The incomes of all adult occupants are taken into account for the loan amount/approval. But what happens some time after the purchase of the home and the occupancy number changes (marriage/divorce/death/etc)

When looking at assets, how are joint accounts considered when one of the account holders won't be one of the occupants?

[a3quit4s | 4,526]

1 hour ago, LeatherRebel5150 said:

 I guess, you have a point. So my questions are:

The incomes of all adult occupants are taken into account for the loan amount/approval. But what happens some time after the purchase of the home and the occupancy number changes (marriage/divorce/death/etc)

When looking at assets, how are joint accounts considered when one of the account holders won't be one of the occupants?

I think there are state specific rules in play here as well so it might be helpful to list what state you are curious on

Your first question I would speculate that after you are given the loan it won’t matter much how many occupants live in the house as long as the mortgage gets paid. On the second I’ll again speculate that if you have access to the account/money it’ll still count as yours whether or not the joint owner lives in the property. The fact sheet also says they only look at income but you are probably right to assume they look at assets as well when determining the subsidy granted. 
 

They have a neat eligibility assessment tool here which may answer some questions for you as well

https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=assessmentType

Edited February 9, 2024 by a3quit4s

[LeatherRebel5150 | 1,135]

8 hours ago, a3quit4s said:

I think there are state specific rules in play here as well so it might be helpful to list what state you are curious on

Your first question I would speculate that after you are given the loan it won’t matter much how many occupants live in the house as long as the mortgage gets paid. On the second I’ll again speculate that if you have access to the account/money it’ll still count as yours whether or not the joint owner lives in the property. The fact sheet also says they only look at income but you are probably right to assume they look at assets as well when determining the subsidy granted. 
 

They have a neat eligibility assessment tool here which may answer some questions for you as well

https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=assessmentType

Yea Ive gone through the tool and read all the documents I can find. They don’t answer these two key questions. There’s no way I can make any assumptions on a government program, it’s a good way to get screwed.

Im in NJ and I know what the income limits are and they’re very clear that any adult in the home will count towards the income limits but they are very unclear on occupancy changes. What’s to stop someone from just saying “yup only me moving in.” and then bringing a sibling in a week later? 

The second question is much more important. Because your assets are not used to determine the loan amount they’ll qualify you for. There are asset limits (the exact number Im also having a hard time pinning down). If you exceed said limit then you’re required to use anything in excess of the limit towards the purchase of the house. Which kinda defeats one of the benefits of this loan type which is 0% down payment, but whatever.

So if the limit is 15k and you have 17k is assets across various checking/savings accounts. Then you’re required to use that excess 2k. 
 

Now if you have a joint account with someone that can be a problem, because theoretically all of what’s in that account may is not fully yours. If that person were to live with you, all fine and dandy because all their stuff goes into the calculation anyway. But if they don’t then is the whole amount still considered your asset and you would be required to use said funds? Then you could be digging into funds that aren’t “yours.”

 

[a3quit4s | 4,526]

If your serious about applying I’d just start going through the application process, you’ll likely get paired up with someone who can answer your specific questions