Mortgages and student loans

[msl2007]

I have been talking to banks about mortgages.
The banks that offer physician loans say that they are special because they don't have to count student loans in your debt, and that places that claim that deferred loans don't count will end up screwing you in the end and your loan will fall through. However, when I talk to "regular" banks without the physician loans (including my local stingy bank), they say that they don't count unless they are in repayment.
Both banks are in a position to lie as I see it.
What is the truth? I don't want to lose my mortgage at the last minute, but I could get greater flexibility without going with a physician only loan.
(I do realize that my "unique" income could screw this up later anyways, abd physicain only mortgaes offer true 100% where otherwise that is rare.)

What are your thoughts, what do you know about this?

Also, what are your thoughts about builders giving you a discount or extras only if you use their mortgage company?

TIA

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[dpmd]

As for your first question. I applied for a mortgage in med school (with my husband making a decent income), and at that point probably had close to 100K in loans (private undergrad plus I took extra in first year for the specific purpose of putting a down payment on a house). They did not count my deferred loans, and the loan funded without a problem. Take that for what its worth.

 

[mshheaddoc]

If you can prove that your loans will be deferred then conventional loans will not include them in your debt ratio.

Usually you can get a better rate conventionally if you can ... FHA is the way to go!

I'll answer the rest of the questions tomorrow as I have to run!

 

[Jocomama]

1. Ask the bank if they hold the note, or is it a Fannie Mae/Feddie Mac product. If the latter, then FNMA Destop Underwriter and FHMLC has it's own code. RUn your loan through each, and see if it asks specific extras

I have been talking to banks about mortgages.
The banks that offer physician loans say that they are special because they don't have to count student loans in your debt, and that places that claim that deferred loans don't count will end up screwing you in the end and your loan will fall through. However, when I talk to "regular" banks without the physician loans (including my local stingy bank), they say that they don't count unless they are in repayment.
Both banks are in a position to lie as I see it.
What is the truth? I don't want to lose my mortgage at the last minute, but I could get greater flexibility without going with a physician only loan.
(I do realize that my "unique" income could screw this up later anyways, abd physicain only mortgaes offer true 100% where otherwise that is rare.)

What are your thoughts, what do you know about this?

Also, what are your thoughts about builders giving you a discount or extras only if you use their mortgage company?

TIA

 

[chickenscratch]

a question for both Jocomama and mshheaddoc:

you both seem to have a great grasp on the lending market, esp for those of us who are just about to enter into the housing market from residency.
I fall into the massive student debt category, $200K, and I'm moving to wisconsin for residency. The way i understand it, banks who keep a loan in their in-house portfolio allows them not avoid following the Fannie Mae guidelines of including student debt. Otherwise, you have to include the minimum monthly payment in the debt/income ratio. The "Doctor Loans" avoid this by keeping the loan within the bank and not selling it to the larger mortgage market which must follow the Fannie Mae rules. Am i way off?

My questions are:
1)Why do you not reccomend physicianloans.com? I've found their rates and service to be good. Lender Closing Costs from them ~$1200.

2)FHA would have to take my student loan debt into account, right? I don't see how conventional loans can be an option on residents salary and a big debt load. For others w/o debt, then it seems like an option.

Thanks a million.

 

[acberry]

Fannie and Freddie loans require the lender to get a proposed payment on deferred loans, and use this payment in the debt calculations.
FHA does not count them as long as it can be proven that they will be deferred for at least 1 year after the mortgage is funded. Portfolio loans from banks (Physician/Resident Loans) vary with the bank, you'll need to get the loan originator to clarify

 

[Jocomama]

Yes - those banks willing to portfolio the loan offer a true doctor loan, which is more lenient and doesn't hit you with minimum monthly payment that you would be paying if loan was not deferred. However, most underwriting is still done according to FNMA guidelines, the only difference being the leniency on deferred loans. You still have to meet a debt ratio (income/minimum monthly payment of mortgage and student loans) - it is just higher, to allow more flexibility.

physician loans is just another broker using lenders that have dr loans. IT is a marketing gimmick. I would rather see you go directly to BofA, suntrust, or COuntrywide. Especially in lieu of the subprime mortgage problems and current senate involvement. Things are changing - stay with a large bank or lender.

FHA - you will have MI, no way out. DOn't do FHA unless you cannot quality under a doctor program.

You can PM me for more details, etc.

a question for both Jocomama and mshheaddoc:

you both seem to have a great grasp on the lending market, esp for those of us who are just about to enter into the housing market from residency.
I fall into the massive student debt category, $200K, and I'm moving to wisconsin for residency. The way i understand it, banks who keep a loan in their in-house portfolio allows them not avoid following the Fannie Mae guidelines of including student debt. Otherwise, you have to include the minimum monthly payment in the debt/income ratio. The "Doctor Loans" avoid this by keeping the loan within the bank and not selling it to the larger mortgage market which must follow the Fannie Mae rules. Am i way off?

My questions are:
1)Why do you not reccomend physicianloans.com? I've found their rates and service to be good. Lender Closing Costs from them ~$1200.

2)FHA would have to take my student loan debt into account, right? I don't see how conventional loans can be an option on residents salary and a big debt load. For others w/o debt, then it seems like an option.

Thanks a million.