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The Oregon USDA Guaranteed Rural Home Loan does not have a maximum loan amount like FHA. This loan depends on your repayment ability and the appraised value of the home you are buying.  We will determine the ratio of your Gross (before taxes) Income to your new monthly Oregon USDA Guaranteed Rural Home Loan payment.  This is referred to as the Front End Ratio and generally like it to be around 29%.  It can go higher if there are compensating factors like a great credit score or extra savings.  There are a number of compensating factors when working on a Oregon USDA Rural Home Loan. However, they must be actual factors and not just a “these are good people and will make their payments,” type of note.

Next we will calculate your Gross Income to your total monthly expenses including your new Oregon USDA Guaranteed Rural Home Loan payment.  The back end ratio should be around 41%, but also can go higher with compensating factors.

We’ll use these ratios to determine the maximum Oregon USDA Guaranteed Rural Home Loan amount that you can qualify for based on the maximum income allowed for your family size. I will go into how to calculate this number with my next post. It is not, necessarily the same as your monthly income times 12. Come back for this information. Also, here is a link to a guest article that I wrote for Thesa Chambers, the best person to call in La Pine Oregon, a truly rural area.

Contact me and I’ll show you not only how much you can qualify for, but also how much cheaper the Oregon USDA Rural Home Loan is than FHA or Conventional financing. You can reach me at 541-342-7576/541-221-3455 Cell or my e-mail at eugeneloanguy@gmail.com. You can also fill out this short contact form and I will get right back to you.

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