usda guidlines for mortgage

More info needed, but in general.. ALL conforming loan products require tax returns for self employed (S/E) borrowers.. And ALL conforming loan products will require tax transcripts to verify the returns you provided are the same one's you filed with the IRS... (loan fraud prevention).. And ALL conforming loan products require the lender to document you have the necessary funds to close by obtaining a copy of your most recent 2 months bank statements.. Again, without looking at your complete profile, I can only assume, but my guess is the reason she is pushing conventional is because the latest guidelines only require 1 years tax returns if you are an S/E borrower. For income purposes, if you provide 2 years, and your year over year is increasing, then the lender must take the average monthly over 2 years.. if your year over year is decreasing, then they take the most current year divided by 12 to determine your monthly average. Since lending guidelines have maximum DTI's.. and USDA has a maximum allowable income requirement.. it's possible that conventional is the loan product you need to go with.. Realistically, you need to be having this discussion with your loan officer rather than going to an internet post.. Trust me.. a competent loan officer will find a way to make the loan work.. they are not out there trying to make your life difficult.. everything they do has a reason.. just talk to them and let them explain.. I'm a preferred Lender with California and Arizona being my primary markets. 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 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Self employed borrowers, regardless of loan type, have a higher degree of income proof requirements. If you have both business and personal returns, we will need to see both, and usually for the past two filed years. We also must verify with the IRS itself your tax transcripts to see if what you provided matches what the IRS has on file to prevent income fraud. Something may have changed along the way based on what they are seeing - USDA loans have strict debt-to-income requirements, and you always need to show any cash to close needed with bank statements.