Student Loan Debt

One very important benefit working with a mortgage lender that has a true "Doctor or Medical Professionals Loan Program" is in the evaluation of student loan debt. May firms will not count student loan debt for graduating medical school students if they are starting a residency program. Typically Residents with at least 6 months or more in the current program will also be considered as those school loan payments are not counted. If you are completing a residency program and starting a new full-time position lenders will require the full balance for all student loans and the required monthly payment. Providing the lender with this information as soon as possible will help with a lender's evaluation. 

Many Residents apply for income-based repayment programs. These programs can be challenging to get full payments as the evaluation for future payments is typically based on the prior year's tax returns. If you are thinking of buying a home you may wish to file your taxes as quickly as you can so that the future student loan payments can be calculated. If you decide to refinace student loans be sure to ask that provider if there are hardship features or benefits that will allow for forgiveness. Many private student loan lenders will not offer features that are flexible so be certain to ask about all program benefits. For your mortgage lender many firms will allow for an extended graduated repayment plan. This option can be helpful for offering a low monthly payment. That number can be used for the debt-to-income ratio for a new mortgage. 

Student loan forgiveness programs are typically not allowed for qualifying. Even if you are participating in a program that will pay off your mortgage, the lender will count that payment in your debt-to-income ratio. If you can not obtain a monthly paymet for student loans, the lenders use an estimated payment rate usually at 1%. This means if you have $300,000 in student loan debts, the lender will use $3,000 per month for payment servicing. That estimated numer can make it hard to meet affordability concepts. 

Be certain to review all student loans with your lender as some debts can be double counted or the debt may have been sold and reported wrong on your credit report. Before contacting a lender to check eligibility, it is very practical to have dcouments and facts you can share so you can start the evaluation the right way.