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WHAT IS THE MAXIMUM DTI ON USDA LOANS
My wife and i are interested in qualifying for a USDA loan because there is no money down. I am self-employed so I am worried about my income. What is the maximum debt-to-income ratio on USDA loans.
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1 Reply
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Borrowers are interested in the USDA loan program because of its no down payment feature. However, they must meet specific debt-to-income ratio requirements. Ordinarily, the highest front-end DTI ratio (housing expenses) allowed for a USDA loan is 29%. The back-end ratio (total debt) cannot exceed 41%. Nevertheless, these numbers may be surpassed whenever there are considerable compensating factors. Compensating factors include having an excellent credit rating or substantial cash reserves. Ensure your earnings can be verified easily since you work for yourself. This is important if qualification is to happen.