This conforming loan product is specially tailored to support young doctors who've recently entered the work force and who are looking to purchase a new home. As you know, one common thread linking most fledgling doctors is a mountain of student debt. This debt is often on deferment for a number of years in order to help newly employed doctors establish their careers. Unfortunately, standard conforming guidelines mandate that even future, deferred payments be included in all debt ratios. If documentation is not available to outline what the future payment will be, standard guidelines hit the borrower with a monthly payment equal to 1% of the outstanding student loan balance. On $200,000 of student loans, this would amount to an additional $2000 monthly payment being factored into the borrower's debt payments, making it extremely difficult for many to qualify for a purchase loan in our area. Our new conforming doctor's loan program allows us to fully discount the student debt payments in order to qualify the buyer with purchase financing. Here are a few more details:
- Borrowers who've recently completed a medical residency or medical clinical fellowship program may exclude student loan payments if deferred or in forbearance for a period of at least 12 months from funding.
- Loan amounts to $625,500 in most Bay Area counties.
- 95%, 30-year fixed financing.
- SFD, Warrantable Condo or PUD.
- Minimum 720 credit score.
- The doctor's income is fully qualified, even if only recently hired.