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USDA Loans & DTI Ratio

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USDA Loans & DTI Ratio

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  1. USDA Loans & DTI Ratio USDA Loan is a special program that helps the borrower in buying a home in rural area. However, there are certain requirements including debt-to-income ratio, which a borrower has to fulfill in order to qualify for the loan.  Standard Debt-To-Income (DTI) Ratio For The USDA Loan: 29/41 Calculating DTI for USDA Loan 1 Calculate the monthly income earned by you and your co-borrower. Divide the annual pre-tax amount by 12. 2 3 Compute the front-end ratio. 4 Find out the bank-end ratio. What Is Front-End Ratio? Also called the PITI ratio (Principal, Interest, Taxes, Insurance), it is calculated by dividing a person’s monthly housing debt obligation with gross monthly income. Ideally it should be 29%. What Is Back-End Ratio? Commonly referred to as button ratio or total debt ratio, it is calculated by dividing major monthly debts by gross monthly income. Ideally it should be 41%. 107 W. Hwy. 190 Copperas Cove, TX 76522 254-542-5100 2201 Trimmier Rd. Killeen, TX 76541 254-680-6158 14641 S. Padre Island Dr., Ste. B Corpus Christi, TX 78418 3106 S. WS Young Dr., Bldg. D, Ste. 402 Killeen, TX 76542 254-953-7000 361-949-4647 10961 Gateway Blvd. West, Ste. 200 El Paso, TX 79935 915-843-2681 8522 Broadway St., Ste. 208 San Antonio, TX 78217 210-340-0404 1320 N. Zaragoza Rd., Ste. 111 El Paso, TX 79936 915-858-1996 7348 W. Adams Ave., Ste. 200 Temple, TX 76502 254-771-0020 16165 North 83rd Ave., Ste. 200 Peoria, AZ 85382 201 E. Central Texas Expwy., Ste. 1600 Harker Heights, TX 76548 254-680-6155 480-752-3110 100 W. Central Texas Expwy., Ste. 300 Harker Heights, TX 76548 254-690-3765 www.fcmloans4u.com Image Source: Designed by Freepik

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