USDA Guarantee Loan Amount

[RLZQ0581]

Hello. I worked 7 long years to get my credit straight as well as my financial situation. I was so excited to finally reach mortage scores all over the 700 mark. I have no debt but I make $60,000 after taxes. I am the caretaker of my disabled brother and also his payee for his disabilty. But I was told his income would only count to qualify our household and not as far as how much loan we could get. He will not be on the mortagage. So a friend of mine was telling me I would only qualify at most for $200,000 which won't help because I'm in a very high cost area where home start at $400,000. I would like to know if this is true before I waste my time and apply. As you can imagine I am very crushed but that's life. Is there any possible way they would approve me for at least $400,000 or should I just give up and be content to live in my apartment forever. I feel as if all of my hard work is down the drain

[VAMortgageGuy]

---

@RLZQ0581 wrote:

Hello. I worked 7 long years to get my credit straight as well as my financial situation. I was so excited to finally reach mortage scores all over the 700 mark. I have no debt but I make $60,000 after taxes. I am the caretaker of my disabled brother and also his payee for his disabilty. But I was told his income would only count to qualify our household and not as far as how much loan we could get. He will not be on the mortagage. So a friend of mine was telling me I would only qualify at most for $200,000 which won't help because I'm in a very high cost area where home start at $400,000. I would like to know if this is true before I waste my time and apply. As you can imagine I am very crushed but that's life. Is there any possible way they would approve me for at least $400,000 or should I just give up and be content to live in my apartment forever. I feel as if all of my hard work is down the drain

---

Since you are your brother's caretaker and the payee, that income can be counted as effective income provided it will continue for at least 3 years. Also, if the income is not taxed, we can gross it up 25%.

[RLZQ0581]

Thank you so much for your reply. At least now I feel I can give it a shot and see how it goes.  

[VAMortgageGuy]

You're welcome.

[RLZQ0581]

Hello. I am working with a lender now and he is not metioning anything about grossing up and also said I cannot use my brother's income unless he applies with me which I didn't want to do because I know his credit score is low and I told the lender this but he still wants to plug my brother's information in just to see" is what he said. He said all of my information is fine but I most likely won't qualify for more than $230,000 on my income which sucks because there are no houses where I live under $350,000. I'm wondering if I should try another lender or just give up for the time being.

[rileydude]

Get a different lender...SSDI, VA disability..all of those federal tax-exempt compensations are grossed up !!

[VAMortgageGuy]

---

@RLZQ0581 wrote:

Hello. I am working with a lender now and he is not metioning anything about grossing up and also said I cannot use my brother's income unless he applies with me which I didn't want to do because I know his credit score is low and I told the lender this but he still wants to plug my brother's information in just to see" is what he said. He said all of my information is fine but I most likely won't qualify for more than $230,000 on my income which sucks because there are no houses where I live under $350,000. I'm wondering if I should try another lender or just give up for the time being.

---

---

@RLZQ0581 wrote:

Hello. I am working with a lender now and he is not metioning anything about grossing up and also said I cannot use my brother's income unless he applies with me which I didn't want to do because I know his credit score is low and I told the lender this but he still wants to plug my brother's information in just to see" is what he said. He said all of my information is fine but I most likely won't qualify for more than $230,000 on my income which sucks because there are no houses where I live under $350,000. I'm wondering if I should try another lender or just give up for the time being.

---

Definitely need to ask another lender.

[ShanetheMortgageMan]

If the income your brother receives is social security disability income then the below guidelines are what would apply.  You'll need to provide documentation that you are his legal guardian + the disability income verification letter from Social Security. 

Further, you can gross up any eligible income that isn't subject to federal taxes by an additional 25%.   So if it's $1k/mo of income not subject to federal taxes then it counts as $1,250/mo when it comes to qualifying.  Be prepared to provide tax returns to document what portion of the income isn't taxable.

[RLZQ0581]

Thanks everyone. I was able to apply the information given here and got a very generous pre approval amount and am now in the process of looking for a home in my area. I appreciate all of the help. 

[ShanetheMortgageMan]

---

@RLZQ0581 wrote:

Thanks everyone. I was able to apply the information given here and got a very generous pre approval amount and am now in the process of looking for a home in my area. I appreciate all of the help. 

---

Boom!  The myFICO forums save the day again.  Happy house hunting!