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COVID-19 related federal student loan forbearance will end in January 2022, forcing many medical school graduates to start making their payments.
So upcoming doctors will need to cope with this debt, workplace stress, and the challenge of affording a new home.
By considering these doctors’ financial situations, like higher DTI ratios and tight finances and credit histories many banks offer medical professional mortgages.
Expert originators can help these borrowers by educating them with these loans and the process, and provide more guidance to help them afford payments over the life of their loan.
The final pause on student loan repayments will end in January 2022 and young medical school grads will need lenders’ help.
According to the Association of American Medical Colleges’ most recent data of the 20,000 US medical school graduates in 2019, 73% hold debt. The median debt amounted to $200,000.
Medical professionals have very little opportunity to build up their credit and qualify for a standard mortgage. Taking into consideration the specific circumstances specialized mortgage products are designed.
A mortgage loan officer (MLOs) can introduce borrowers to this program which will allow young doctors and dentists to secure mortgages with no or low down payments, flexible debt-to-income ratios, and secure 100 % financing with no private mortgage insurance.
Fannie Mae’s HomeReady program is another such loan option, which needs 3% down to qualify. They offer lower mortgage insurance payments and are lenient with loan qualifications.
Not many medical professionals know about these mortgage products which needs to be made aware by originators or MLOs and help these medical professional homebuyers with paperwork, pre-qualification, etc., so they can act swiftly to secure the home they want to buy.
MLOs can advise these borrowers on additional protections with financial and legal obligations that can affect their homeownership status by exploring a trust, which is a nontraditional method of title vesting that safeguards the borrower’s home during a lawsuit, which is regular in the medical industry.
Above all, doctors and dentists serve our society. MLOs can step up to guide them with their debts and find unique and reliable solutions to help them to own a home.
Reference Source: MPA
