There is a mandate coming down soon from the United States Department of Agriculture in regard to their Rural Development loans.
USDA loan approvals (whether direct or guaranteed) will require that the borrower meet the 29/41 debt ratios in order for the loan to be approved. There will be no exceptions.
The reason? USDA is 100% financing, and the default rate on these loans is increasing. People with higher debt ratios that 29/41 are by far the greatest percentage of these defaults.
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