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Student Loans Impact On Qualifying For A Doctor Mortgage and Student Loans Under Trump?

Doctor Mortgage

I think this is one of the most important questions you need to ask your lender and the reality is, every physician mortgage loan or doctor mortgage loan has different under riding guidelines and they’re going to look at your student loans a little bit differently. So, it is incredibly important that you address this, not only with the loan officer but with the under rider who is ultimately going to approve your loan, as early in the process as possible.

 I recently had a client who I started working with and then by the advice of a realtor I ended up working with another lender, who also was a purveyor of doctor mortgage programs and I continued to follow up with him after they told me they were going another route. Unfortunately, as I continued to follow up they said, “We’re good, everything looks okay.” Then I got a text message from this client saying “No, once the loan made its way to the under rider we were actually declined and we lost the home. “ I just thought, that is an absolute shame. There are a couple of things that potentially could’ve been done to save that result.

Review Loan File

The first thing that could’ve been done is to ask the under rider to review your loan file prior to making an offer on your home. So, you can ask for what’s called a credit and income approval, where you take your income, your assets, all your liabilities including your student loans, you ask not only the loan officer to review but the under the rider to review and to issue a credit and income approval. That way you know you’re going to be okay.

Client Reviews

The other thing I think that could’ve been employed is to do some real digging on the client reviews and the testimonials that that particular bank had with other physicians. If there are not a plethora of glowing reviews, then it might be worth your time to continue your search.

What Will Happen to my Student Loans Under Trump?

Recent college graduates who borrow are leaving school with an average of $34,000 in student loans. The total loan balance in the United States has nearly tripled in the past decade, to $1.3 trillion. Now, nothing’s going to happen to the loan program without Congress’ signoff. But we can read the tea leaves from the president’s budget request for cutbacks to the loan program  and regulatory moves from Education Secretary Betsy DeVos.

Oversight Of Servicers

First, DeVos has pulled back on oversight of servicers. These are the for-profit companies that manage your student loan payments. That’s an issue because these servicers have faced a lot of complaints, including lawsuits. The federal Consumer Financial Protection Bureau alleges that one of these companies —“illegally cheats borrowers out of repayment rights through shortcuts and deception. ” There have also been allegations of misapplied payments, unclear communication, and subprime lending. So the advice for those chipping away at your loans right now: When you deal with servicers, stay organized, keep records of your calls and emails and letters, and do your own research and homework.

Public Service Loan

Second, if you were considering a program called public service loan forgiveness, there may be a reason to be cautious. Public service loan forgiveness erases student loans after 10 years of employment for the government or a qualifying nonprofit. Almost half a million people are enrolled in this program teachers, doctors, lawyers even some NPR employees. But President Trump wants to cancel the program. It’s unclear right now whether that would mean grandfathering in the people already enrolled and even the program’s advocates believe it could be downsized or capped. 2017 is the year that the first enrollees in public service loan forgiveness are supposed to start getting their loans erased.

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