Professional Mortgage Loan Programs are designed for eligible professionals and executive borrowers. These loans make purchasing a primary residence with up to 100% financing and no private mortgage insurance possible.
You finally did it, graduated medical school, and are ready to embark on your lifelong dream of being a doctor. But you have student loan debt making your debt-to-income (DTI) too high and limited income saved for a down payment. Like many other professionals, CPAs, Veterinarians, and Dentists, you might think you will be doomed to rent, but options are available to young professionals like you.
Key Takeaways:
- A professional mortgage loan is a type of mortgage that allows high debt-to-income (DTI) and loan-to-value (LTV) ratios for qualified borrowers.
- Lenders can offer professional and executive mortgage loan programs because they recognize the high income and job security that comes with professional and executive careers.
- Having high student loan debt should not hold you back from being a homeowner.
What is a Professional Mortgage?
A professional mortgage loan is a type of mortgage that allows high debt-to-income (DTI) and loan-to-value (LTV) ratios for qualified borrowers. These loans help young professionals in high-earning occupations make dreams of homeownership come true.
An example of this is a Veterinarian who, on average, has $157,146 in student loan debt. Typically, a Veterinarian with a high DTI due to their student loan debt would not qualify for a traditional mortgage where lenders prefer a DTI of 43% or less. However, a professional and executive mortgage allows for a higher DTI; for example, TRB allows for a DTI of 50% if student loan payments are deferred and a 45% DTI with active payments. This extra wiggle room in DTI can mean the difference between getting approved or denied.
Lenders can offer professional and executive mortgage loan programs because they recognize the high income and job security that comes with professional and executive careers. These two factors make them high-qualified borrowers once the DTI is increased.
What are the Benefits of a Professional Mortgage Loan Program
- Reduced down payment
- No private mortgage insurance
- Higher DTI
- Higher LTV
Related Article:
Three Mortgage Options for First Time Homebuyers
Sifting through the mortgage options when you’re a first-time homebuyer can be tough. But there are three options that every first-time homebuyer should consider: the FHA, Fannie Mae HomeReady and Freddie Mac Home Possible programs.
Read MoreWho Qualifies for a Professional Mortgage Loan Program?
- Medical Doctors
- Medical Residents
- Dentists
- Pharmacists
- Optometrists
- Ophthalmologists
- Psychiatrists (licensed as MDs)
- Physician Assistant
- Registered Nurse
- Veterinarians
- Attorneys
- Certified Public Accountants
- Architects
- Engineers
- University/College Professors
- University/College Directors
How Do You Apply for a Professional Mortgage Loan?
Pre-Approval
Before shopping for your new home, speak to a Mortgage Loan Officer to find out how much you qualify for. Knowing the loan amount you are pre-approved for helps you know the price range of houses you can realistically look at. This keeps you from falling in love with a house that is out of your financial reach. Also, in competitive real estate markets, a buyer with a pre-approval will often stand out among other potential buyers.
Pre-approvals also speed up the mortgage application process since your Mortgage Lender will already have some of the information and documentation they need for your mortgage application.
Find a Home
Buying a home is one of your most significant financial decisions. Maybe you want to be near family. Or you have always dreamed of owning a historic home on Main Street. Make a list of your wants and needs to narrow your search options.
Make sure to take the time to research real estate agents in the area and read their reviews. A Realtor will help you navigate the market and find the perfect property that suits your needs.
Useful Links
Apply for Credit
Now that you have picked out your house, the next step is to apply for credit. The good thing is that the mortgage application process is straightforward, especially if you already have pre-approval. After you apply, you will need to provide your Mortgage Loan Officer with the necessary loan documents to move along with the progress of your loan.
Closing
Your closing date is one of the most important things. Whether you want to enjoy the holidays near a new fireplace or host a family reunion, whatever the reason, a quick closing on the house is essential. The average time from signing a contract to signing closing documents is typically 30 days.
Bottom Line
Having high student loan debt should not hold you back from being a homeowner. After a long day’s work, everyone deserves to be able to come back to their home and relax.
Contact one of our Mortgage Loan Officers today if you are interested in a Professional and Executive Mortgage Loan. For more information about other loan programs we offer, please visit our website at, Mortgage – Home Loans & Refinance from Texas Regional Bank.
