What is one of the criteria regarding debt-to-income ratios for ineligibility?

The criteria regarding debt-to-income ratios for ineligibility for USDA Rural Housing loans specify that an applicant can be ineligible if their housing expenses exceed 28% of their gross monthly income and their total debt exceeds 36%. This means that if an applicant's monthly housing expenses are greater than 28% of their income and their total monthly debt payments exceed 36% of their income, they may not qualify for the loan.

This guideline is put in place to ensure that borrowers do not become overextended financially, which helps maintain both the borrower’s financial stability and the overall integrity of the loan program. By adhering to these ratios, the USDA aims to foster responsible lending and borrowing practices, ensuring that applicants can realistically manage their debts alongside their housing costs.

Other options may reflect various percentages regarding housing expenses and total debts, but only the specified combination of exceeding both the 28% and 36% thresholds identifies a clear criterion for ineligibility.