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Help! Prevent my home loan from going down in flames

Discussion in 'General Residency Issues' started by margaritaboy, Apr 30, 2004.

  1. margaritaboy

    margaritaboy Senior Member
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    This question can be answered by all, but is aimed in particular at those upcomming interns who have applied for a physician loan through the Bank of America.

    Situation: My fiancee and I have put a bid on a home. One of the conditions for the Bank of America physician loan is that we provide documentation that payments on our student loans will not be due for at least 12 months after we close on the house. My Bank of America representative has told us that such documentation usually come directly from the lender of the student loans, or from the student's finacial aid office.

    However, Direct Loans will not put anything on paper that states that we qualify or would qualify for deference/forebarrence, and will not even entertain an application for such until the end of our grace period. Our student finacial aid officer will also not write a letter, saying only Direct Loans can determine my elidgibility for deference/foreberrence.

    Question: What documentation are you guys using for this B of A loan condition, and where are you guys getting it?????

    If you provide me with usefull information, I might just have to buy you a coke.....
     
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  3. Seaglass

    Seaglass Quantum Member
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    My lender is T.H.E. I simply called their 1-800 number, told the lady that I needed a letter stating that my loans would be in grace period or forebearable if the right circumstances were met, and they sent it right away. It doesn't say that I am guarunteed no payments this year, but it states that it is possible. Talking to David Benson he expressed understanding that we would not be able to get a paper that says our loans are deferred since that's something that won't happen for 6 months anyways.

    C
     
  4. johnd

    johnd Member
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    Will direct loans even provide you with their criteria for forebearance?

    My guy at B of A said that he would even accept things printed off the web. However, I never could find a place that stated that residents are guaranteed forebearance while in residency (though I think this is true). Fortunately, I was able to get a letter from my lender.


    I guess you could consider consolidating your loans right now and make the company you consolidate with provide you with the letter.

    Another thought...you should look at your promissory note. Maybe it says something that B of A accepts.

    I don't know why B of A has this stupid arbitrary date of 12 months. :thumbdown:
     
  5. margaritaboy

    margaritaboy Senior Member
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    Here is the link with forbearance criteria for Direct Loans:

    http://www.dlssonline.com/forb/forb-req.asp?ForbID=irfb

    If our B of A rep. accepted things printed off the web, that sure would help. Unfortunantly, it sounds to me like they need something a little more formal. Our rep. has said they usually need something called an 'EDU' form from the lender, but they have accepted things from student financial aid offices.
     
  6. Goofy

    Goofy Senior Member
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    I find it humorous that so many on this forum believe that because a mortgage is called 'physician mortgage' it must be the best way to obtain mortgage financing.

    In almost all cases, it is probably the worst scenario. It draws unnecessary attention to debt that is likely either in deferrment or forbearance. This debt should play next to no role in processing your loans.

    By utilizing 'physician loans' you attract unnecessary scrutiny, probably wind up with higher rates and fees, and accumulate tremendous red tape that must be circumnavigated.

    I have obtained several mortgage loans with above average debt load, with average fico scores. Not once did I face the problems catalogued on this site.

    My advice is to go through a mortgage broker. They will weed out many of the problems posed by fixed banking institutions.

    Finally, run away from anything marketed as 'physician loan' etc... When it comes to banking products, this usually is something best kept under wraps.
     
  7. johnd

    johnd Member
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    Actually, while the bank of america loan is difficult to qualify for because of strict fico scores, it is actually pretty much the best deal out there. Especially when you consider the fact that most 4th year med students don't have a lot of $ saved up for a down payment.

    There is not many other places that offer 0 points, no pmi, no down payment.
     
  8. margaritaboy

    margaritaboy Senior Member
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    Actually, student debt played a roll in all the loans in which I inquired.

    Look, dude. Research the issue. I'm asking for advice and help. If you want to pontificate on what a great deal you got on your home loan, then open another thread.
     
  9. beriberi

    beriberi Senior Member
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    My vote is consolidate your loans now and then defer them. Most people wait until the end of their grace to consolidate, but you can do it at any time (is my understanding). Also, it would give you a fixed payment that would be documentable.

    However, it is important to note that not everyone can defer their loans during residency. I certainly can't. If you have less than around 100K, you will not qualify for economic hardship.

    If you have a spouse that works, you should be able to document your payment amount and still have enough to fit into your debt ratio. T.H.E. was very helpful when I asked them to document what my payments would be for my lender (they faxed the info within and hour and then mailed it).

    If your spouse doesn't work and your loans aren't deferable, and you are applying for a large mortgage then you will need a cosigner. That may be the direction to go with this, because it will clear things up quickly.
     
  10. beriberi

    beriberi Senior Member
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    I also would like to add, for the record, that every lender I talked to could see my student debt on my credit report (the Physician loan people and everyone else) and wanted to know what I would do about it.

    The physician lenders that I spoke with understood better what my loan terms would be and how to document them. I ended up not going with them because I got a better rate at ING.
     
  11. Goofy

    Goofy Senior Member
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    Saying it's the 'best deal out there' doesn't make it so. It may be competitive, but having gone through this process in excess of 4 times in the past 4 years, I assure you it aint the best. I certainly hope your not relying solely on the information on this board for competitive mortgage rates. I have three local guys who can lock in slightly lower rates with but a phone call.

    Pmi is easy to avoid, and listing it as a feature of this product displays a lack of knowledge of the loan process. Virtually any bank will structure a no pmi loan if you are inquisitive enough. There is no reason to EVER pay pmi, even with NO downpayment.

    Further, featuring '0 points' as a feature is absolutely meaningless. The whole concept of points was constructed to dupe uninformed prospective buyers. Sadly, your post smells of the very customer this ruze was created for. What matters are closing costs. And by that, I mean everything, not simply what the bank calls closing costs.

    All the properties I have purchased have been with nothing down, no pmi, and no points (and no closing costs). Go figure. I did this with 5 different lenders. I was even able to secure rates lower than anything advertised.

    Your loan is a sham. I realize my criticism will draw violent reprisal. Once you come down to earth and realize the insight I may have buried here, perhaps you will learn to save a buck. Either way, your gonna have to pay the loan back; not me.
     
  12. Goofy

    Goofy Senior Member
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    I suppose your isolated parable establishes the rule. What specific role did it play? It appears on your credit report, but as long as its in forbearance or deferrment, it should play NO ROLE. That debt is largely insured by the government. Your mistake was applying for a 'physician loan'. Get over it and yourself. Maybe the loan will fall through, and you will have an opportunity to save some real money, instead of falling prey to a commonplace banking subterfuge.

    Don't tell me to 'research the issue' simply because I'm exposing your silly decision to follow anonymous medical student banter in obtaining a home mortgage. I will continue to express my first amendment rights here, whether it suits you or not. In this thread or otherwise.

    I'm sorry I refuse to massage your feelings as others have done, but I call a spade a spade. Patrolling the boards in an attempt to weed out differening opinions, in an effort lend an air of verisimilitude to your horrendous financial decision is not my problem. If disagreement, even harsh disagreement bothers you, than it will remain YOUR problem.

    I'm not some puckish charlatan here for the specific purpose of annoying you. Although having ones crude and improvident mortgage strategem exposed can certainly be construed as 'annoying', it aint the purpose. It is my hope that some, even if its a discerning few, might avoid the same silly mistakes you have so blatantly broadcast.

    Moving on...
     
  13. Goofy

    Goofy Senior Member
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    Beriberi,

    I'm afraid you are terribly wrong about the deferrment process. I'm not sure which lender is feeding you this krap, but I assure you, the advice is pure rubbish. EVERY resident can defer loans while in residency. EVERY fellow can defer while in fellowship. You are confusing deferrment and forbearance. What your spouse makes is completely irrelevent, and if your consolidator is telling you otherwise, they are in violation of the federally mandated consolidation program and should be served papers. Period

    These aren't impish dictum that are made by banks, it is federal policy. More than that, it is a federal program. Don't accept anyone telling you otherwise, they are simply wrong, and quite frankly, are liable.

    I find your advice about grace to be nothing short of a quixotic scheme. There are very real reasons to delay consolidation until the end of grace. What are they? I thought you would never ask. If you don't qualify for economic forbearance, you will avoid significant interest from accruing. My advice, wait as long as possible without having grace expire. With places like sallie mae, you can usually start the process 2 weeks before grace expires without any problem.

    I'm afraid you have been fed a line, and unfortunately, you bought it hook line and sinker.
     
  14. Goofy

    Goofy Senior Member
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    Of course they can see it. It's a loan. You can see it too, just get a free online fico report. That doesn't mean it should be factored into their algorithm, as you are not making monthly payments on it. They are federally insured loans that are not being payed. For all intents and purposes, they don't exist. That 'physician only' loans make this a sticking point further demonstrates how inherently bad these types of loans are.
     
  15. Seaglass

    Seaglass Quantum Member
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    They're not a "sticking point," the lenders just want to know that you're not making payments on them. Since most of us are graduating 4th years that can't consolidate now, since you have to be in your grace period/forebearance (eg. after graduation) many of us can't show that we definitely won't have to pay. I'm not arguing that this loan is better than any other because I can't say, I know it was the best one I found. Anyway, I don't see how this particular guy/gal's problem would be different with any other lender unless they just plain don't care about your student loans, and I don't see how that would happen. Kleb, are you saying they never asked about your loans/required documentation?
     
  16. margaritaboy

    margaritaboy Senior Member
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    Ditto. All lenders I spoke with had knowledge of my student debt, and that influenced perameters of the loan in one way or another.

    Thanks for your reply, beriberi. You are right that I can consolodate now, but unfortunantly Direct Loans will not even entertain an application for deference/forbearance until the end of my grace period which is in January 2005. In fact, I cannot forfeit my grace period for any reason (and normally who would want to?). Thanks for the idea, I thought we had something there until I called Direct Loans.

    I know several folks just like me got B of A home loans, and I am still convinced that a viable solution will present itself if I talk to the right person.
     
  17. Seaglass

    Seaglass Quantum Member
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    Margarita, you can't even get a letter from them stating that you will a) have a grace period and b) be eligable for deferment? That doesn't require them to commit to anything and it was good enough for my B of A loan.

    C
     
  18. Goofy

    Goofy Senior Member
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    They KNOW your not making payments on them. Your credit report is very clear about these things, thats what it is there for. Whether you are in grace or deferment, your not making payments, and it shouldn't be an issue at all.

    The only comments that have been made about my sizeable debt was 'wow, medical school is expensive.' That a 'physician' lender doesn't demonstrate particular knowledge about this sends up red flags as far as I'm concerned.

    I would add that I have done several mortgages in the past few years, with another pending. My wife has an extremely lucretive job, that by the meter above would disqualify me from deferrment. Guess what, with a little thought, I managed to have the interest avoided as well as the payments.

    My suggestion to those of you on this board who are seriously interested in learning about this process, move beyond this board.

    Unfortunately as a group, the medical community are very poor businessmen, and handlers of anything financial. That my remarks were received with consternation above is emblematic of an even bigger problem; a desire to put blinders on to the truth. Don't take my word for it, but at least research it a bit beyond the rhetorical medical student forum banter replete in this and other threads. You will do yourself and your loved ones a real service if you do.
     
  19. margaritaboy

    margaritaboy Senior Member
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    cg1155 you understand my situation perfectly! That is exatly my problem. I know someone out there has done this before and can help me...

    For those that are confused:

    As stated in my OP, I cannot apply for deference/forbearance until the end of my grace period. Hence, it is difficult to provide proof that I will not be repaying my loans. Hence, all lenders take into account my student debt in some way. Grace period is 6 months. There is no way to document RIGHT NOW that I will absolutely NOT be repaying loans after the grace period.

    Aside: Don't feed the trolls.
     
  20. johnd

    johnd Member
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    I'm sure that all of your leverage with mortgage companies comes from your amazing business acumen and shrewd negotiation skills and has nothing to do with...


    How could you possibly know my loan is a sham?? I didn't post any of the details. Your replies smack of someone who has been turned down by the very programs you are trying to discredit. I actually had 3 different lenders who were competing for my business tell me that the B of A loan was the best one out there and they couldn't come close to beating it.
     
  21. johnd

    johnd Member
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    Are you sure about this? You can consolidate with any of a number of companies and I know a lot of people who have already done it prior to graduation.

    That link you posted showing the forebearance requirements was exactly the type of thing my B of A guy was looking for. Are you absolutely sure you can't use that. If not, I think your only option is to go ahead and consolidate
     
  22. margaritaboy

    margaritaboy Senior Member
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    As dumb as it may sound: No I can't. I've been on the phone with Direct Loans all day. I've tried to get a letter from them, but they say:
    1. They can't put in writing that I am, or will be eligible for deferment/forbearance because they would then be legally liable. They can't asses eligibility until I apply.
    2. They have no provision for writing a personalized letter for anyone. They say the best they can do is fax either me or the bank a copy of their policies, which maybe the only thing I can do.

    Note: They have been patient and helpful on the phone. It's just that ultimately they can't do anything for me.

    My student financial aid dude at my school says:
    1. I cannot determine your eligibility for deferment/forbearance. Only Direct Loans can do this.

    By the way. Thanks to everyone who has offered help thus far.
     
  23. margaritaboy

    margaritaboy Senior Member
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    I'll try it to send it to the loan officer.

    I haven't yet explored other companies for loan consolidation, though that is a good idea.

    Thanks, I give it a try.
     
  24. Goofy

    Goofy Senior Member
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    Because unlike some in this thread, I have the ability to think critically and actually reason (I'm a master of both inductive and deductive subtypes). Read your own words. You stated "There is not many other places that offer 0 points, no pmi, no down payment." This very statement exposes your situation. Virtually EVERY bank offers no pmi without down payment loans. Using '0 points' as a feature is meaningless. What are the rates, what are the closing costs? You highlight this ridiculous and inherently erroneous statement as the meter of excellence. Based on that assumption, I reasoned you obtained a loan at best as good as, but likely even worse, than your very meter. I'm saying there are far better products out there. I don't need OJ to tell me he is a murderer. I can reason that one out too. Go figure.

    Yes, you have exposed my subterfuge. My plan was to masquerade as a physician on an anonymous message forum purely to dispense rhetoric and annoy others as retribution for being 'turned down' by a bank for a loan. Do you even comprehend how sick your accusation is? Ok, now I have officially been humored.

    If 'lenders who were competing' makes you feel good, than why not go to http://www.bankrate.com/brm/rate/mtg_home.asp. I'm afraid I am not about to embark on a journey of making people feel good, so it is unlikely for you to find this kind of fulfillment in my replies.

    Go get em tiger
     
  25. WingZero

    WingZero Senior Member
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    Kind of related... I just consolidated my loans through Direct Loans and my grace period ends at the end of this calendar year, at which time I will apply for economic deferment / forbearance. Several people have told me that regardless of your loan burden / income, you can qualify for economic hardship deferment while in residency. Are there any loopholes I'm unaware of? Is there a specific way to fill out the application, etc? Forgive the ignorance, but any help is greatly appreciated.
     
  26. beriberi

    beriberi Senior Member
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    WingZero: here is a link for the economic hardship deferrment calculatory. This is from my lender, but I am under the impression that econ hardship deferrment standards come from the government.

    http://www.northstar.org/hardshipcalc.aspx?typ=Health

    I also was told that if you do not qualify with the above calculator, they can qualify you based on last year's tax return. However, as I am married, that will not work (husband had income last year).

    Forbearance, from what I can tell, is entirely at the discretion of the lender. Unlike deferrments, there are not standards that loan companies have to follow. Typically, they will not grant them in 12 month increments, which is problematic for home lenders (of the four that I have spoken with, all wanted 12 month of no payments necessary to be documents, and I was told that it is a federal rule if you are to qualify for an FHA loan).

    Hope this helps.
     
  27. WingZero

    WingZero Senior Member
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    BeriBeri - thanks for the info... quick question - I haven't filed a tax return since 2000 (haven't made any money in med school) so I'm wondering if I can use that? If so, then I'm golden.
     
  28. margaritaboy

    margaritaboy Senior Member
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    johnd,

    If you don't mind, would you PM me the name and phone # of your Bank of America guy. Maybe I can switch to him if my loan officier gives me a headache...

    Thanks!
     
  29. Bitters

    Bitters Member
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    dude,

    Rent an apartment for six months, get the deferment, buy the house.
    Problem solved. what's the rush.
     
  30. thegasman

    thegasman ASA Member
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    Klebsiella, you assume that your financial situation and loan status are similar to the rest of us which is not the case. You refered to your wife's " extremely lucrative job" which I'm guessing makes your mortgage broker feel much better about your student loan debt and theoretical monthly payments. For most of us mortgage brokers actually require much more documentation about student loan deferrment and cannot get the same low rates that the boa physician loans can. For example my boa loan is 4.675 with 0 points and 0 pmi. The best my mortgage broker could find was 4.675 with a 1% point and 0 pmi. And he required much more paperwork. Both loans were 0 down and minimal (1%) closing costs. Mortgage brokers around here will even tell you that they can't compete with the physicians loans.

    My boa rep will take internet info etc about loan def. This is a new requirement for them and the reps aren't too happy about the bank requiring deferrment documentation, so they don't take it too seriously here. From what I've found the Physician loans are by far the best deal and are the most understanding of student loan debt. (Unless of course you've got a sugar mama to balance out your debt)

    My loan co is letting me apply for deferrment now and I'm just going to give boa a copy of my app. I'm using my contract for the info for the def app.
     
  31. Joejitsu

    Joejitsu Member
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    I spoke to two BofA guys about the Dr's loan (started with one but filled out the paperwork with the other). The first guy we talked to seemed very knowledgeable and after gathering our information did not mention anything about having to have proof of deferment. The second guy (who seemed a bit less knowledgeable) asked for the proof of deferment and I told him I couldn't get that since I wouldn't even apply until after I graduate and consolidate (at this time I don't plan on deferring loans). I told him my estimated monthly payment would only be about $450 or so and he said that's fine and didn't say anything else about the paperwork. I hope I'm not missing something especially since I don't qualify for deferment based on the THE hardship calculator.

    Perhaps they only need proof of deferment if you debt is very large?

    Joe
     
  32. notstudying

    notstudying Senior Member
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    I'm with the above poster who pointed out the difference between Klebsiella's situation and the OPs. I'm also fortunate to be married to someone with a real income, and it is much easier to get a good interest rate and good terms with a income and a down payment. We have bought 5 houses (not all at once-we've moved WAY too often!) in the past 12 years, and have also refinanced 3 times, so I have a little experience with this. It is a very different process with a larger income. For our first mortgage (with a resident level salary) we literally had to get a letter from my husband's mother (we had lived in her house). Now, we get excellent rates and very few hassles.

    Not having PMI (private mortgage insurance) is most likely a good deal, since it is usually required on mortgages with less than a 20% down payment. It basically covers the bank in case you default on the mortgage, which is why they don't care about it with >20% equity (since they can get their money back pretty easily by foreclosing on the house). Points are gimmicky, but are a fact of life-no points and a great interest rate is better than points and a great interest rate-only the OP can determine that. Many factors go into the interest rate-from your income to credit history, and even the size of the loan (a "jumbo" mortgage-I think it's anything over the $250K range- will have a slightly higher rate). I have no idea how the closing costs are for the physician mortgages, but it makes sense that they would try to entice new physicians with good terms because they generally make good clients. I think it is also important to consider the lender-we've had trouble in the past with a lender who didn't pay the real estate taxes from the account, and many banks will sell their mortgages to third parties, so I'm a fan of knowing who I am dealing with, even if the closing costs are a little higher. Some people will automatically go for the lowest rate, but I'd prefer to insure against the hassle.

    On the issue of deferment-I haven't applied yet (I'm still a 4th year) but have been told by several advisors that the formula for determining eligibility is if the total monthly loan payments on federal loans (using a 10 year repayment period-even if you refinance for 30 years) is more than 20% of your gross monthly salary (only the original borrower's, not including spouse), and if the borrowers gross income minus the total monthly loan payments is <$2,222. Using this formula most residents with significant debt burdens will qualify.

    I have heard a rumor that the stafford loan rate is going to go down again this year in July, so people may want to check that out before consolidating yet. We are incredibly lucky to be locking in interest rates for school and mortgage loans now-our first mortgage was 7%, and we got a pretty good deal, and that was great considering the double digit rates from the 80s. Greenspan has basically said he's going to start raising the short term rates again (but it'll be after the stafford announcement), and long term rates are already creeping up, so this is likely to be the best we'll get.

    Hope this helps-and good luck to everyone shopping the house and mortgage markets!
     
  33. chicubs

    chicubs Junior Member
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    Klebsiella, just curious what you meant by this. Are you saying that EVERYONE can defer? I did a calculation with the loan officer at my school and we figured that I did not qualify for economic hardship and would therefore not be allowed to go into deferment. Rather, forebearance seemed to be my only option. If you know of a way to defer regardless of debt, it would be greatly apppreciated if you could pass along the knowledge.
     
  34. margaritaboy

    margaritaboy Senior Member
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    I also only qualify for forbearance.
     
  35. Pelivar

    Pelivar Brain donor
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    Margaritaboy,

    I applied for a mortgage through bank of america (David Benson) and only qualify for forbearance too. I just showed them a copy of my loan summary from Sallie Mae which shows that all my loans are Federal Stafford loans and then I printed out a page from thier webpage which says that in general stafford loans qualify for grace and forbearance/deferment. When I called BOA to ask if this was OK, they said it was fine and that this requirement was mostly just a formality. I also talked to the financial aid counselor at my school who said he would talk to the bank if I had any problems. I don't think that this is such a serious obsticle that it should stop you from getting your loan. Good luck.

    -P
     
  36. margaritaboy

    margaritaboy Senior Member
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    Thank You Pelivar!!! That was the reply I've been waiting for. I'll give it a try and let you know. You may have a free Coke comming your way...
     
  37. ophtho1122

    ophtho1122 Member
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    I also have a BOA loan and they requested the same deferment stuff from me. I went to UAB's (My school) student loan department and got the lady there to sign off on a letter stating that I had this option. BOA had no problem with this.
     
  38. fourthyear

    fourthyear Senior Member
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    I just printed up the policies from my lender's website stating what defferment and forbearance were and that all borrowers from my loan type were eleigible to apply for these. This was enough for my home loan lender to accept too.
     
  39. JAX_2002

    JAX_2002 New Member

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    MargaritaBoy,

    I'm in the same situation as you. My loans are with Direct Loans and am currently in the process of getting the Bank of America Loan. Had a bid on a house accepted and will hopefully close in 2 weeks. Also feeling the angst that comes with trying to make everything come together.

    I too spoke with Direct Loans on the phone and they won't furnish any documentation that states my loans would be in deferment after my grace period.

    What I did was to get a letter from my financial aid office that stated after graduation I would be in a grace period and then after that point I could defer my loans based on economic hardship. My loan coordinator out in the Oregon office stated that this should suffice w/o any problems and is forwarding it on to the underwriters.

    I just plan to keep tabs on the loan status via their web site and take it from there.

    Good Luck!

    -Jax
     
  40. margaritaboy

    margaritaboy Senior Member
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    May I ask who wrote your letter? You can post it or PM me. Mark Martin, the current financial aid dude for the medical school is a total troll. He has refused to write anything having to do with my loans and deferment/forbearance options, saying only Direct Loans can asses my eligibility, which of course they can't until the end of my grace period.

    It would be helpful to have the name of your contact, as she sounds like she is at least willing to try to help.

    I've sent my B of A loan officer the web pages that have been described above. I hope this will work, but if it doesn't I may try to get in touch with your contact in the financial aid office.

    Thanks.
     
  41. JAX_2002

    JAX_2002 New Member

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    I'm at University of Illinois at Chicago currently and it was the Assistant Director of Debt Management from our COM that wrote the letter for me. So she works for the University and not Direct Loans. Her name is Charlene Botley and she has been awesome with the graduating class this year.

    In her letter she basically stated that I will graduate on 5/7/2004 and would be in a grace period until at least 12/2004. She went on to state that after this point I would be "eligible" to receive a three-year economic hardship deferment.

    Does Mark Martin work for Direct Loans or is he in the FA office at your school? If he does work for your school bummer.

    Just some info on myself. I am classified as a "new borrower" and my loan totals are 142K and my monthly income as a PGY1 will be $3170.

    Feel free to PM me if you need!

    -Jax
     
  42. blotto geltaco

    blotto geltaco Old-timer
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    Hahahahahahahahaha

    This thread is pretty funny. For those of you who don't remember Klebsiella, this poster is possibly the most irritating ever in the history of SDN (least in my nearly 5 years surfing around this site). This poster intentionally antagonizes people and is basically a troll. Just ignore him and he'll eventually go away, just like last time. Funny how Klebsiella doesn't have much to say when the idiocy of his statements is pointed out. :sleep:
     
  43. ophtho1122

    ophtho1122 Member
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    Yeah, Mark Martin wouldn't help me at all. I had to go across the street to Financial services where we did our exit interviews for Direct loans. The lady that wrote the letter was named Cindy...can't remember her last name. Good luck!
     
  44. margaritaboy

    margaritaboy Senior Member
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    Dude, you're the man. Thanks! I'll check that out tomorrow AM.
     
  45. sunny9505

    sunny9505 Member
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    Hey there. I looked into the Dr Loan program, but my place won't be ready for 5 months and the B of Am markups were too excessive so I was going to go with Wells Fargo or COuntyWide because they will lock in with refundable fees. I have a 5% on a 5/1 ARM with a 1% origination fee/1 discount point. Is that way over what you guys are finding? Someone said they had a 4.65 rate in his post. My rate was locked in last week. I would really appreciate input as to if I am being ripped off because I have to pay my fee tomorrow. Thanks!
     
  46. Bitters

    Bitters Member
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    Got mine through countrywide with similar numbers to you. Be sure to ask about the TAMI option to avoid direct PMI. What this basically does is 1. boosts your interest rate a little to cover pmi . 2. Removes the direct payment PMI. You are paying the pmi but it is calculated in the overall payment not a separate monthly charge. My total payments are lower, and the amount then becomes tax deductable. Nobody at CW told me about this but when asked they knew all about it. It is worth investigating. TAMI = Tax Advantage Mortgage Insurance.
     
  47. HamSandwich

    HamSandwich Member
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    My lender asked for the same thing and when i told then it wasnt possible, they asked that I write a letter stating that i have loans and that i cant apply for deferment until my 6 month grace has expired. that was sufficient for them.
     
  48. beriberi

    beriberi Senior Member
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    Just wanted to put a plug in for ingdirect.com. They seem to have much better rates than anyone I have talked to. (Now a 4% on a 3/1 arm, 4.5% on 5/1). They lend you 80% of the price of the house, and some in the form of home equity line (so, no pmi or tami). I think you have to be able to put about 10% down, but I don't know if they are flexible on that.

    If you are buying in a low cost market, this works great.
     
  49. Seaglass

    Seaglass Quantum Member
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    Are they rolling in your closing costs (103% loan)? This is way more than my B of A loan although the rate seems a little low for the going rate this week. My loan is ~ .75 point origination no discount point.

    C
     
  50. HamSandwich

    HamSandwich Member
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    un problema con TAMI. if you dont ever refinance, then you will pay that until the end of the loan. PMI if paid directly will go away when you have 20% equity either by appreciation or your payments. just something to think about. however, i understand the screw it attitude and do everything you can to make your payment less. and you are right, PMI=not tax deductable, if it is lender paid, it is. some loans you can do 80/15/5 and that gets rid of PMI also.
     
  51. Bitters

    Bitters Member
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    I Will sell before I reach the 20% threshold so it seems logical in my situation. To do the TAMI.
     

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