“Robert Spinosa, the doctor will see you now.”
“Hello Mr. Spinosa, what brings you in today? Annual check up?”
Well, actually you, Doc. You’re bringing me in today. I hear you’re trying to buy a house.
“Uhhh, how did you know?”
Maybe it’s the aura of the student loans that I could sense from the waiting area. We both know medical school doesn’t come cheaply, right? So I just figured I’d come in for a sort of annual check-up for both of us and find out if your student loan payments have been in deferment or forbearance for a year or more?
“A few of them are — yes.”
Great. Did you know in that on our doctor loan we can exclude those payments from your debt-to-income ratio? Your “DTI?” That can make it materially easier to qualify.
“Wow! You mean that as a doctor, there’s something I actually did not know?”
Well, let’s not dwell, Doc…
“Yeah, but we don’t have a 20% down payment saved up. What with completing my medical degree, getting signed on here at the clinic, and with our first child on the way, saving for a down payment has taken a bit of a financial back seat, if you will…”
We will. In fact, we’ll allow a 5% down payment up to a loan amount up to $1MM. That’ll get you into a property worth about $1,050,000. And if you have access to gift funds, a 10% down payment will get you up to a loan amount of $1.5MM. So there, your purchase price range increases to about $1.6MM. And not only that…
“…hold on a minute. You’re saying that if I come up with 5% and our parents gift us another 5%, we have a 10% down payment and can begin to think about affording a median-priced home here in our area? It doesn’t seem plausible. Is there a catch?”
No catch. And no PMI if you can make a 10% down payment. It’s really a great program. Specifically tailored to medical professionals like you, as well as surgeons, dentists and veterinarians — basically those that have gone through medical school.
“What about the process? Is it invasive?”
….uhh, I turn 50 in a few years. Let’s just say you win that one, Doc.
Next patient, please,
Vice President of Mortgage Lending
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