Getting a mortgage as a med student?

[LO281OK]

I have heard conflicting accounts from secondary and tertiary parties with regard to medical students getting home mortgages.

Account A: It is hard for med students to get mortgages due to lack of income.

Account B: It is relatively easy to get a mortgage as a med student because you will be able to pay it (based on financial aid, loans, future income potential).

Does anyone have personal experience they are willing to share?

Thanks in advance.

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[SoCuteMD]

Financial aid is not documentable income. You will need either "no-doc" loan (no documentation, slightly higher rate) or a parent with income willing to cosign.

 

[LO281OK]

Financial aid is not documentable income. You will need either "no-doc" loan (no documentation, slightly higher rate) or a parent with income willing to cosign.

What about a grandparent with land (as collateral). Also, would the parents income level help/hinder the upper limit of the mortgage value? Thanks so much for your post.

 

[SoCuteMD]

Parents can't hurt or help unless they are on the note. You'd have to talk to a lender about the "land as collateral" thing but I honestly wouldn't get too excited about it. My general experience was that lenders didn't care about anything other than my parents (or whoever was cosigning, it really doesn't matter who it is) having a good credit score and having enough income to pay my mortgage.

All the mortgage company really cares about is that it's monthly check will be on time and will not bounce, so they really do want cosigners with documentable income. If your grandparents do not have a mortgage of their own and have enough social security and pension income, they will probably go for it. You may want to think carefully about it, though, since I'm not sure what happens if your cosigner passes away. You may be forced to sell or something.

 

[sweetdoc]

I'm not sure about getting a mortgage as a student, but it should be fairly easy if you are currently working. I plan on getting a mortgage soon (ie while I still have a job) which will probably get you lower interest rates.

sweetdoc

PS - If you are thinking about getting a mortgage, make sure you check out your credit report and make sure there is nothing fishy on it.

 

[SoCuteMD]

Yeah, I guess I made the assumption that you would be in the same boat I was - moving to a new state. If you are staying in the same state (I think you can even be moving to another part of the state) the bank will have no issue financing it. If so, just get started on it and don't breathe a word to the loan officer about your med school acceptance!!!

 

[LO281OK]

Yeah, I guess I made the assumption that you would be in the same boat I was - moving to a new state. If you are staying in the same state (I think you can even be moving to another part of the state) the bank will have no issue financing it. If so, just get started on it and don't breathe a word to the loan officer about your med school acceptance!!!

I was just about to mention this issue. If we get into and matriculate at Wake Forest (NC) would there be an issue getting a mortgage being that we will be moving from SC? Basically woudl we be required to get a cosigner for moving into a little/no income situation in another state? The other choice is Charleston, SC. So the state line issue could come into play.

 

[SoCuteMD]

Sorry, this is getting rather repetitive, so this will be my last post on this thread.

In state: may be able to swing it if currently employed.

Out of state: no way, no how. Will need a cosigner. Probably with documentable income. Unless you want a no-doc loan, for which there will be a premium (higher rate).

Consult a mortgage broker, but beware of mentioning quitting your job/med school if you are staying in state as that could help you circumvent the cosigner issue.