What is a marksheet loan?

What happens if your income increases beyond the limit for USDA loan after you are moved in?

• My wife and I are starting to look for houses a bit, but still will be gathering our downpayment for a few months. I've looked into the USDA loan, but unfortunately (?), we're above the income limits. We're planning our finances such that we can afford the mortgage on just one income (just in case), so for the houses we're looking at, I would qualify for the mortgage using just my income (which is below the limit), but when hers is factored in, we're well above the ceiling. We're likely not going to have 20% this summer (when we'd like to buy), so we'll probably be looking at an FHA loan, which means we'll have PMI and a minimum down payment. Kind of frustrating that because we're a better overall candidate for a loan, we're going to have to pay MORE money than we would have with a USDA. First question - Suppose I had bought a house before we were married using a USDA loan. After we were married, she moved in with me. What would have happened to our loan in that scenario (it's the single family guaranteed loan). 2nd Question - Is there any way I could apply for a USDA loan and NOT count her income? (Even if it's leaving her off of the deed and everything?). I don't think there is, but I figured I'd check.

• Answer:

  To get around the USDA income rules, you would have to purchase before you were married. Afterwards, her income would have to be disclosed even if her income were not being used for ratio calculations in qualifying.