Home Mortgage Nightmare

Discussion in 'Medical Students - DO' started by maysqrd, Nov 5, 2002.

  1. maysqrd

    maysqrd Go A's!

    Sep 27, 2002
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    Okay so I get accepted to med school, yeah! Then my husband and I decided to refinance our house to pay off all debts other than my student loans to make our cash flow better during med school. Good idea, right?? AHHH!! I have to vent on this.

    Mortgage Lender: "You have all these student loans? You aren't working, how can you pay for these student loans?"

    Me: "I am a student, my loans are all in deferrment and will continue that way thru medical school so I am not required to pay on them until after I graduate."

    Lender: "What? You are going to medical school? So you won't have a job for the next XXX years? How do you intend to pay this mortgage?"

    For those of you relocating for med school and considering purchasing a new house it isn't easy. What I found out was that they do not like you as a medical student. They love you once you graduate but not until then. I had to agree to NOT be a co-borrower on my mortgage in order to qualify for the refinance because they didn't want my students loans on the debt to income ratio. In order to get my refinance to reduce my cash flow during medical school, they required that I take my name off the title and put it solely in my husband's name because he is the only one with enough income to qualify for the loan.

    So unless your spouse makes enough money to compensate for what ever debt you both have, including deferred student loans, then you will not qualify for a mortgage with your name on it during medical school. And, since most of us are living off student loans to get thru medical school anyway, DON'T try to tell the lender that this is your income to pay your bills, they will laugh you out of the office if you try to claim the financial aid money or loans as income.

    I am the only one that has had this experience or has anyone else suffered this nightmare? :(
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  3. DrZippy2b

    DrZippy2b Senior Member

    Sep 24, 2002
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    I completely understand where you are coming from. Mortgages aren't easy things to work, even when your debt to income is in a good range and you are both working. So don't let this get you down. Things always find a way of working themselves out.

    We decided (due mainly to his work) to move to the Bay this winter. Part of the reason why is because without me working, we're worried about qualifying for the loan later on. We know we can afford it, so we are working all the paperwork now while I still have an "indefinite separation date" (a nice way for saying I can stay in the Air Force as long as I continue to make rank and they still like me and have no plans to kick me out). I guess it's kinda shady, but we make the money now, and have been saving like mad to be able to live while I'm in school. So, we are going to try to take the path of least resistance.

    I'll let you know if it works.

  4. Nic_machiavelli

    Oct 8, 2002
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    We just refinanced and the matter of the med-school debt didn't even come up. Did you approach other lenders?

    The reason I mention this is to stress the importance of shopping around. It wouldn't surprise me if they mentioned your loans just to give you a higher interest rate.

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