Problem # 1 – Most new Doctors work as Professional contractors at Hospitals or Medical Facilities rather than regular employees. Operating as a Professional Corporation helps in many ways, but almost always makes it more difficult to qualify for a traditional mortgage and buy a home.
Qualifying buyers with 1120 or 1120S tax returns & K-1’s has gotten more difficult in the recent years. Providing 2 full years of tax returns and enough income to qualify for that new home can force new Doctors into waiting 3 or more years to get established and buy a home.
Problem #2 – The average Medical School Graduate enters the professional world with over $150,000 in student debt. Unfortunately, underwriting guidelines have tightened and say a lender can no longer accept an income based or graduated payment plan or ignore deferred student loans.
Now lenders must follow a mandated 1% rule. Whatever is the greater between 1% of the cumulative balance or the actual amortized payment MUST be used for qualification. (1% of $150,000 = $1500/mo.)
Our Doctor Loan Program allows exceptions to the 2 year self employment rule and counting deferred student loan indebtedness in ratios.
In addition, we allow up to 95% LTV loans to the Conforming Loan Limit $424,100.
Call us 1st to AVOID mortgage problems,
Call us 2nd to SOLVE them!
885 E Collins Blvd Ste 110
Richardson, TX 75081
My Branch Closes FHA / VA & USDA Loans at 580+ in Texas, Oklahoma & Louisiana
Gold Financial Services is a Division of Amcap Mortgage, Ltd. NMLS #129122. Equal Housing Lender
J. Scott Harris is a Nationally Recognized Mortgage & Social Media Authority.