Length of Time Since Residency

Length of Time Since Residency: Things to consider when selecting a lender
Some physician mortgage lenders place a limit on the length of time that you have been out of residency. Other lenders have no restricts whatsoever on length of time since residency. If it has been over 10 years since you have graduated medical school, make sure to ask the mortgage specialist right away if their bank has any restrictions on residency. If this is something you ask upfront before starting the conversation with your loan officer, it will save you time in the long run. The sooner you know, the sooner you can move onto another bank that offers a Doctor or Residency Mortgage Loan without any residency time requirements.
Good luck!

5 Responses

  1. I will begin residency with an income of 5k/mo as of May this coming year. Does this residency contract count for anything in terms of a loan approval in the absence of a two year display of income? My husband and I, both students till now, have not shown any income over the past several years. We have primarily lived off of student loans. We have 10k in savings, our credit scores are both in the mid 700’ds, we have a 2 year rent history of 1.5k/mo, and we have been leasing two cars for the past 2 years for roughly $250/ mo. My husband is currently earning 3k a month from his job. We would be first time home owners. Do we have a route to home ownership now, or must we wait until we have established a two year old record of our income?

    1. Hi Jason,

      Yes, you have a few options in this situation. If you are currently in residency, and have an income at your position, the lender will calculate your eligibility based on your residency income. If you are currently in residency and have a Job offer letter from your future employer, the lender will let you use your FUTURE income on your employment contract just as long as you close on your home within 60 days of your start date. The way you document your previous 2 years income (if you don’t have a 2 year employment history) is that you simply provide your medical school transcripts. Many lenders will take this as a way of documenting your “work history”

      Good luck!

  2. There are physician home loans that are able to exclude student debt that is not currently in repayment from your debt to income ratios and even use stipend income to qualify in some cases.

    Some are able to allow you to close on the purchase of your new home up to 60 days prior to your first day on the job in some cases.

  3. Usually Doctor loans are for new purchases only.
    I think if you used a Doctor loan to buy your home , you could use it again for a refinance In that situation.

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