Rural Development Loan

What is a DTI?  DTI stands for Debt to Income. With Rural Development Loans, the requested debt to income ratios are 29/41 but these numbers may be able to go a little higher if you have compensating factors.

DTI Broken Down

Your DTI is comprised of 2 numbers.  The first number represents what percentage your monthly mortgage payment, including taxes and insurance, is of your gross monthly income. A Rural Development Loan requires that your monthly mortgage payment not exceed 29% of your gross monthly income. This number can be adjusted with compensating factors.

The second number on your DTI represents what percentage all of your bills including your mortgage, when added together, is of your gross monthly income.  Rural Development Loans request that this percentage not to exceed 41% of your gross monthly income.  Again, this number can be adjusted with compensating factors.

Compensating Factors for Rural Development Loan DTI’s

Compensating factors are things regarding your personal situation that may make you a more secure borrower. These compensating factors could be your credit score, how long you have been on the job, income increases, and others.
For more information on Rural Development Loans and Debt to Income, please contact me.