USDA Direct Loans a Good Option?
I got turned down by a bank for a USDA direct loan. I am making between $2600- $3000 a month with about $ 250 in debts. My credit was 743, but the bank said my DTI was too high, and some income couldn't be verified. Is it a hassle to apply for a USDA direct loan? As in a lot of red tape? Landlord is selling the house I am living in soon, and I don't want to rent any more..
- A HunchLv 72 months ago
Unless you looking for a specific loan, you can't get turned down for DTI.Before selecting a home, you need to get pre-approved. This will tell you home much you are allowed to borrow.
You haven't mentioned what your verifiable income is. Let's pretend it is $2600 a month. That would allow you to purchase a place for up to about $93000.
- If you were considering buying the property you are currently residing in, if the purchase price is more than $93000 = your DTI is too high. This takes into account the expenses you will incur when you own the house, not the $250 you owe right now.