Below we have listed some tips for helps Florida teachers glide through the mortgage pre approval and application process. Regardless if you are looking for a No down payment USDA mortgage, FHA home loan or conventional loan, the tips below will help. The great news is all of Lake City, Live Oak, and Madison FL is approved for $0 down USDA home financing! USDA RD is a perfect teacher loan program.
One of the first things a lender or bank will want to see is evidence of full time employment. This is usually done by providing recent tax returns and paycheck stubs. However, some FL teachers only work part time or are considered “full time substitutes” who may or may not work a consistent 40 hour work week.
When a lender reviews part time income for qualifying purposes, a two year history of part time work needs to be documented. If the teacher has been working for a minimum of two years and can document that work history by providing W2 statements from the statements along with a letter from the school then the lender can use the teacher’s income in order to help qualify.
If you are a Florida full time teacher but don’t have a two year history of teaching then you will need to find your transcript from your college showing your graduation date. If you’ve just graduated, are working full time and can provide recent paystubs to prove it then the lender can in fact use your income for qualifying.
It’s also important to properly calculate your monthly income. Lenders use a debt-to-income ratio which is a number calculated by dividing total monthly debt by the gross monthly income. For example, your total housing payment plus your car payment might be $1200 per month and your gross income is $3000 per month. $1200 divided by $3000 is 40%, well within debt ratio guidelines.
Common mistakes teachers can make when figuring monthly income is making sure the gross amount is used for qualifying or the amount before any deductions are taken out. Other times a teacher can get paid every other week instead of twice per month. If a teacher makes $1500 every 2 weeks, that works to 39,000 per year or $3,250 per month. Correctly documenting income for teachers is easily accomplished when the proper procedures are followed. So go ahead, dig out those forms and give us a call at 800-743-7556 or just submit your quick info request form on the right side of this page.
All of Hamilton, Suwannee, Madison and Columbia County are eligible for the USDA Rural Housing program. USDA Mortgage Source is Florida’s leading USDA RD loan provider serving you 7 days a week. Questions? just submit the short Info Request Form on this page for fast service. You can also contact us at 7 days a week at ph: 800-743-7556
Proudly serving all teachers in Madison County, Hamilton, Suwannee and Columbia County – including Madison, Eridu, Greenville, Lee, Branford, Dowling Park, Live Oak, McAlpin, O’Brien, Three Rivers, Wellborn, Fort White, Lake City, Lulu, Watertown, Jasper, Jennings FL, White Springs FL, Teacher Program, 2020 teacher