Скачать или смотреть New USDA Loan Rules Could Limit Your Home Buying Power in Kentucky

What’s Changing with USDA Loans in 2025?
The USDA is updating its affordability guidelines by setting the maximum PITI ratio at 29%.

What’s PITI? It stands for Principal, Interest, Taxes, and Insurance—your total monthly housing payment compared to your gross monthly income.

Here’s the key difference:
Before November 4, 2025 – USDA allowed more flexible debt-to-income ratios.
After November 4, 2025 – Borrowers will be capped at 29% of gross monthly income for their housing payment.
Translation for Kentucky homebuyers: On the same income, you may qualify for a smaller loan amount than you would under current rules.

Exceptions: How Strong Borrowers Can Still Qualify Above 29%
The 29% cap isn’t a hard stop for everyone. If you have strong credit and compensating factors, you may still qualify for a higher PITI ratio.

Two Main Pathways:
1. Automated Approval (GUS Accept)
The USDA’s automated underwriting system (GUS) looks at your entire financial picture. If it issues an “Accept,” higher PITI ratios may still be allowed.

2. Ratio Waiver (Up to 32%)
You may qualify for a waiver allowing up to a 32% PITI ratio if:

All borrowers have credit scores of 680 or higher
Your application shows approved compensating factors, such as:
Verified cash reserves
Stable employment history
Low overall debt-to-income ratio
Past successful homeownership (per HB-1-3555, Chapter 11, Section 11.3)
This gives responsible Kentucky first-time homebuyers with solid credit extra flexibility—even under the new rule.

Joel Lobb is a licensed Kentucky Mortgage Loan Officer (NMLS #57916) with more than 20 years of experience helping families across Kentucky achieve homeownership. Specializing in FHA, VA, USDA, and KHC loan programs, Joel has guided over 1,300 families through the mortgage process—including hundreds of borrowers with credit scores in the 580–620 range.

Licensing Information
• NMLS Personal ID: 57916
• Company NMLS ID: 1738461 (EVO Mortgage)
• Licensed to originate mortgage loans in Kentucky only
• Equal Housing Lender

Contact Information
Phone: (502) 905-3708
Email: [email protected]

Legal Disclaimers
This website is for educational purposes only and does not constitute financial or legal advice. Loan programs, rates, and requirements are subject to change without notice. Not all borrowers will qualify. This information is not endorsed or sponsored by FHA, VA, USDA, Fannie Mae, or any government agency.

Joel Lobb is licensed to originate mortgages in Kentucky only.

Equal Housing Lender. All rights reserved. Licensed by the Kentucky Department of Financial Institutions.

Joel Lobb

Email - [email protected]
📞 Call/Text - 502-905-3708


www.mylouisvillekentuckymortgage.com
911 Barret Ave., Louisville, KY 40204

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

Kentucky Mortgage Loan Expert For Kentucky FHA, VA, USDA, Fannie Mae and KHC Down payment Assistance Loans