Kentucky USDA Rural Development zero down kentucky home loan Rural development
How USDA Government Underwriters calculate your Debt-to-Income or DTI ratio.
One of the most frequent questions that come from perspectives Kentucky home buyers is
“How Much House Can I Afford?”
Answering this question is determined based on calculating what are known as the borrower’s Debt-to-Income or DTI ratios. The established standard DTI ratio used for a USDA Loan is based on two sets of ratios, which are as follows:
- Front-end or housing ratio – the monthly mortgage payment cannot exceed 29% of the gross monthly income.
- Back-end or total debt ratio – the total debts, including the new monthly mortgage payment, cannot exceed 41% of the gross monthly income.
A monthly mortgage payment includes the principal and interest payment on the mortgage note, as well as the monthly pro-rated portion of the annual fee, property tax and homeowner insurance premium.
Specific to the USDA Rural Loan program is the…
View original post 534 more words
Kentucky First-Time Home Buyer Programs | USDA, FHA, VA & KHC Loans 