Part 3 – USDA Income Guidelines: 2024 USDA Eligibility for Overtime, Bonus, and Commission Income
USDA Income Guidelines: 2024 USDA Eligibility for Overtime, Bonus, and Commission Income
Making the most out of the updated USDA income guidelines requires the proper calculation of all available income!
However, because everyone is not paid the same, it is also important to understand the most recent and updated qualifying guidelines used for calculating USDA Eligibility for Overtime, Bonus, and Commission Income.
In today’s video, I’ll show you how to make the most out of your USDA loan qualification by reviewing the improved and increased flexibility provided for these types of income sources.
Plus, if you are ready to take the next step towards learning the USDA qualifying process, download our USDA Blueprint for Success FREE report which is designed to give you an overview of the USDA Home Loan process, eligibility requirements, and much more. Download it now!
USDA Income Guidelines: 2024 USDA Eligibility for Overtime, Bonus, and Commission Income
1. 2024 USDA Income Eligibility Guidelines
As a quick review, USDA guidelines group income into two categories:
- Annual income is used when calculating eligibility for 2024-2025 USDA Income Limits.
- Repayment income is used to calculate debt ratios and the USDA maximum loan amount.
As for the income that can be used for determining your loan qualification, USDA provides qualifying flexibility for the foll
owing:
- Overtime
- Bonuses
- Commissions
The good news is that these requirements have recently changed and are now greatly improved!
2. USDA Eligibility for Overtime, Bonus, and Commission Income
USDA previously required a two-year history for income that was earned from overtime, bonuses, and commissions.
However, updated USDA guidelines now only require a one-year history for us to count this income towards your USDA qualifying sales price!
While it is ideal that these types of earnings are from the same place of employment, this is not required either.
Additionally, while the continuance of this type of income will be presumed unless there is documented evidence that the income will cease, USDA guidelines will require that:
“Underwriters must analyze overtime for the current pay period and YTD earnings. Significant variances (increase or decrease) of 20 percent or greater in income from the previous 12 months must be analyzed and documented before considering the income stable and dependable.”
3. How are USDA income eligibility requirements calculated?
Most of all, don’t be caught up in calculation confusion! Let our USDA expertise, efficiency, and program knowledge work for you!
In fact, my team and I are built to help walk homebuyers through the USDA process step by step.
Remember, to just call, text, or email to discuss your scenario so we can show you the “Metroplex” difference!
Call/Text: 863-593-2001
(800) 806-9836 Ext 280
SeanS@MPLX.org
P.S. Remember to download our USDA Blueprint for Success FREE report which is designed to give you an overview of the USDA Home Loan process, eligibility requirements, and much more!
