Forbearance of student loans beyond intern year

[EsotericAlchemy]

Hey all,

I am a PGY-1 in intern year and working on buying a townhouse. One of the requirements for the doctors mortgage that I’m applying for is that my loans must be in forbearance or deferment for 12 months after closing. The issue I’ve ran into is that my internship forbearance runs for the duration of intern year (June 2019-July 2020). The forbearance request that I submitted has an end date of July 2020 provided by my GME program but I’m in an integrated categorical intern/residency.

Is there any way around this? Has anyone dealt with this before while obtaining a mortgage during residency?

Cheers.

---

Members don't see this ad.

 

[RangerBob]

My physician loan didn’t require this. I was one IBR and then subsequently REPAYE. I was never in forbearance.

First recommendation is to get out of forbearance. Your interest keeps accumulating and capitalizing. With REPAYE your interest stops capitalizing and you get the interest subsidy. My monthly payments were about $300/month, which is very manageable on a resident’s salary. If you can’t afford that, I wouldn’t be looking into a home.

With that said, if you’re set on getting a home with the current lender, then just ask for a few months more of forbearance. I think they can only give you 12 months at a time, but federal loans are very flexible. I believe mandatory forbearance is till a thing-if you’re a medical resident, it’s mandatory thy put your loans in forbearance if you ask. Your lender should have the forms. You probably can’t submit it until closer to when the new forbearance period would start-talk to your lender.

What bank are you using? I used 5/3 Bank. Got a decent rate on a 7/1 ARM (only planned to stay in the home a max of 4-5 years, but I wanted a little more flexibility just in case). Laurel Road has good rates right now (we explored physician loan mortgage options with a few banks over the last month as we’re considering buying in the next few months).