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My wife has worked less then three months, we are looking to get a usda loan. She has been in school the last two years so she would still qualify under on education substitute for job tenure. I have a chap 7 BK with a home on it. So we want to just put her name on the mortgage. (she has a 670 credit score with no bk's) My question is how do they figure out the total income if she has only worked three months? What income will they use to qualify us with? by doreyj_154_846 from Bonita Springs, Florida. Jan 21st 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

The problem you run into is this.. Underwriters are people and they take their job serious, as such, they look at foreclosures and BK's very seriously.. In your wife's example.. she will have to fill in the application truthfully.. she has to list her residence history for the last 2 years, and whether she rented or owned.. , so in your scenario, she's renting now, (I'm assuming), but when she lists the home that she lived in and was lost in the BK, she cannot say she rented, and if she wasn't on the title, she cannot mark she owned.. so the lender will ask for a letter of explanation.. if she tells the truth, your loan is denied.. if she lie's, then that's loan fraud, and she could be in much greater trouble, since eventually the lender will find out.. Her income is determined by her pay stubs, and a verification of employment that is done by the lender, but again,,, that's not your biggest problem... you really should quit guessing and just contact someone local and apply with them.. this way you will know for sure, and see if there is some sort of "Go Around"... for your situation.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jan 22nd 2013
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

is she working in the field that she went to school for?? linda yourloanpartnerforlife@live.com

Jan 21st 2013
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Yes she is a RN

Jan 21st 2013
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

when was your bk??

Jan 21st 2013
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A year ago....I only want to put her on the loan.

Jan 21st 2013
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Craig Prickett (cpmtgnow)
#160 ranked lender in Florida - 98 contributions

I believe she needs to have graduated in her profession to substitute for Job Tenure. How long ago was your Chap 7 ? and what do you mean a BK7 with a home on it? Have you checked to see if the address of the property you wish qualifies for a USDA loan. You can check at USDA .gov... Too many unknowns in your question. Feel free to call me 954 558 4430 or complete a application at www.firstfloridafin.com. LoanSimple. "we make getting a loan Simple".. By the way I grew up in Fort Myers right up the road...Still have family around your neck of the woods

Jan 21st 2013
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I went BK 7 a year ago with a home on the BK. My wife was never on the home and she has never filed for a BK. She graduated from school three months ago and has been working in her field that she went to school for. What form of documentation are they going to ask for her's and mine since they want everyones that is in the household. Proof of income? Will it be my last two years of W-2's and her W-2 that is only for three months of the end of this last year on it. Or do they want pay stubs what do we need to show for the proof of income?

Jan 21st 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

Income is projected off current pay stubs, tax returns will be reviewed to make sure the household income is not more than the limit in your area, if you are not making less than last year updated pay stubs could be used to document lower income from you. There should not be an issue with your chapter 7.

Jan 22nd 2013
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Steven Ceceri (123LoanYes)
#12 ranked lender in Rhode Island - 723 contributions

Your wife needs to be the sole applicant and only her income and debt will be used to qualify. Your BK must be discharged for 2 years and seeing there was a home included, there is a 3 year waiting period from the time the house actually was foreclosed upon and taken back by the lien holder or purchased by a 3rd party at the foreclosure sale! I work with these files all the time, so call or email me directly if you have questions.

Jan 22nd 2013
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Steve Azarch (sazarch)
#18 ranked lender in Tennessee - 93 contributions

If you are getting a USDA loan, the lender will look at all incomes to make sure as a family or all people who will be living in the house that you do not make too much money to qualify for a RD loan even though your wife will be the only applicant for the loan.

Jan 22nd 2013
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Barclay Butler (Barclay)
#83 ranked lender in Illinois - 76 contributions

The underwriter will look at her current income. We can go to 46.9 / 56.9 debt ratios. If you are unsure you can spend a coulpe of minutes and fill out an application online www.barclaybutlerfinancial.com. Go to top left corner and select full secure loan aplication.

Jan 22nd 2013
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

It Depends

Jan 24th 2013
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