USDA response

[jenndun]

Today I got a response from usda on my loan. They could only calculate my child support in the app which was 13k. Since I'm am now self employed and since it's not been two years they can't count SE. Which sucks because it would make my income double. My credit is fine the only issue is they my student loans are too much. I guess from reading the letter my total my total payments for all debt can not be more then 41% and with my student loans any payment would be over that. Which really sucks since I still have two or three years left in school. It took five years to get my associates and I just started my bachelors. So I called the student loan place and they said once my loans came due they could lower the payments to half what they are now. But not until. So is there anything I can do or do I just wait two years. Is there any other programs for low income that would subsidize payments or was this it. Thanks. I have to move in july so I was really hopeing this would go through. Thanks.

[jop3]

Virtually every loan program is going to require 2 years history on the self employment before you can use it to qualify, I'm sorry.

 

FHA loans do allow you to have a non-occupying coborrower for income purposes - do you have a parent or other family member that would go on the loan with you?

[sirrowan]

Today I got a response from usda on my loan. They could only calculate my child support in the app which was 13k. Since I'm am now self employed and since it's not been two years they can't count SE. Which sucks because it would make my income double. My credit is fine the only issue is they my student loans are too much. I guess from reading the letter my total my total payments for all debt can not be more then 41% and with my student loans any payment would be over that. Which really sucks since I still have two or three years left in school. It took five years to get my associates and I just started my bachelors. So I called the student loan place and they said once my loans came due they could lower the payments to half what they are now. But not until. So is there anything I can do or do I just wait two years. Is there any other programs for low income that would subsidize payments or was this it. Thanks. I have to move in july so I was really hopeing this would go through. Thanks.

 

Can you Defer your student loans while you are in school? If you can, and while your student loans are in the In School Deferment, then those payments wouldn't be included in your debt ratio (assuming that you'd be in In School Deferment for longer than a year).

 

Why can't you do the Income Contingent Plan? Or an extended payment plan?

 

You should have alot of options.

 

Have you checked out the Student Loan Forum?

[snowpuppy]

You can't get into either the IBR or the ICR until you have consolidated and are in repayment. While USDA's underwriters will look at the whole picture, I doubt there will be much wiggle room for a low income borrower with limited income and student loan debt.

 

Even with a very low SL payment, with only $13k in annual income, you're not going to be able to afford much of a house.

 

USDA's Direct Program is very similar to what you'd find in the market place as far as DTI so even another state subsidized program isn't going to get you much of a mortgage.