Credit Score/DTI – The true limit on the price will be set by the traditional risk factors of credit score and debt-to-income (DTI) ratio since they will dictate the acceptable amount of risk. The lower qualification limits are usually a credit score of 640 or higher, and a DTI of 29% with mortgage costs or 45% including all debt. However, the USDA has been known to stretch these requirements to accommodate those in worse shape.
Income Limits – Guaranteed loans generally require that your income be less than 115% of the area median household income; direct loans require less than 80%. At less than 50%, you probably do not have sufficient income to qualify for a loan at all. You still have to convince a USDA lender, whether it is a third party or the government, that you are capable of paying back the loan.