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USDA 502 Direct Mortgage Loan

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USDA 502 Direct Mortgage Loan

Recently, my fico score was at a point where it was good to continue with the mortgage application for USDA 502 Direct loan. I am super happy because I have been wanting to find a new home. However, I also have an auto loan that I want to refinance because the interest rates are super high. I was told by the lady at the office where I'm getting help applying for the USDA 502 direct loan that I should be fine right now to get an eligibility letter and then in 3 months apply to refinance my vehicle. I am scared that once I submit my mortgage application and get approved then when I go in three months to apply for refinancing that I won't get approved for that because now my debt to income ratio is high. Any thoughts on this? Please help with feedback 

Message 1 of 2
Valued Contributor

Re: USDA 502 Direct Mortgage Loan

I would think that your lender has already done the DTI calculations to give you the qualification.  Iirc the max DTI allowed with USDA is somewhere around 42% (I would check on the USDA direct site or with your lender to make sure).  Then it's a simple calculation. 

Message 2 of 2
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