USDA Rural Development Mortgage Guidelines

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Zero Down Payment




Loan Limits

Interest Rates

Buyer Eligibility

Property Eligibility


Loan Process


Mortgage Debt To Income Ratios

The mortgage debt to income ratios allowed for this 100 percent loan to value mortgage are fairly flexible considering it requires no money down.

The ratios are set at 29/41 unless the home being purchased was built to the 2000 energy code in which case the ratios would increase to 31/43.

However, ... However, ... The underwriter can issue a waiver with documented compensating factors.

Compensating Factors:

  • The principle, interest, taxes, and insurance (PITI or more commonly know as the new house payment) is less than what the applicant is paying currently for rent.
  • A credit score over 660
  • Substantial cash on hand after the closing
  • Accumulated savings
  • potential increase in income due to specialized training or education in their profession
  • Conservative use of credit
  • Long job history

Student Loans

Student loans must be counted in the ratio EVEN IF they are deferred.



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