Here’s how you can save on a mortgage designed for new associates and transitioning associates. Rent or Buy? This is often the question attorneys ask themselves over their first decade out of law school. While many attorneys have the desire to purchase a home as a long-term investment, they simply do not have the cash […]
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Here’s how you can save on a mortgage designed for new associates and transitioning associates.
Rent or Buy?
This is often the question attorneys ask themselves over their first decade out of law school.
While many attorneys have the desire to purchase a home as a long-term investment, they simply do not have the cash saved up for the standard 20% down payment due to high student loan debt.
One solution is a professional mortgage product that allows for low to no down payment. Flagstar Bank recently developed a program that includes licensed attorneys with the following benefits on a primary residential mortgage:
No down payment up to $1,000,000 with a 720 FICO score. Low down payment up to $1,500,000 with a 700 FICO score. No Private Mortgage Insurance.
- Primary residence only.
- NO PMI.
- NO Prepayment Penalty (you can refinance and/or sell at any time).
- Fixed and adjustable-rate terms available.
- Competitive interest rates compared to conventional mortgages, with the option to refinance later to secure a lower rate.
- Close up to 60 days prior to your new start date. (Must have Professional License or evidence that licensing boards have been passed prior to closing). Must be within 10 years of the start of your profession.
- No private mortgage insurance (PMI) required, which can save borrowers thousands of dollars annually.
- Student Loans: If student loan debt is deferred, the borrower must qualify using a payment of 1% of the outstanding balance of the student loan(s).
- Co-signers, US citizens and permanent resident aliens.
- The greater of three months or the reserves determined by Desktop Underwriter (we have to show this in any of your accounts).
- Single-family home, town home, FNMA warrantable condo (full review required), modular homes.
- Gifts are allowed from immediate family.
- Must be within 10 years of practicing; can use school toward the two-year history of employment.
Who Is Ideal for This Lawyer Mortgage Program?
There are several types of attorneys this mortgage program is geared toward, especially those burdened with significant student loan debt:
Brand New Associates
Associates straight out of law school are typically straddled with student loans and have very little cash available for a down payment. This mortgage loans program allows a new associate to purchase and close on a home: A) Up to 60 days prior to new employment; B) With no down payment required; and C) Only salary or non-fluctuating base pay may be used to qualify, the employment offer must be non-contingent, and borrower has sufficient assets to support the mortgage payment and other obligations prior to the start of employment. Furthermore, the entire down payment can be gifted by a family member, and the program allows for non-occupant co-borrowers.
Transitioning Associates with High Student Loan Debt
New job? There is nothing more stressful than starting a new job. Trying to find housing on top of this only adds to the stress. A traditional mortgage requires you to start employment and have at least one pay stub prior to closing. The attorney mortgage allows you to close up to 60 days before you start your new job.
For more information, please contact:
Rafi Sabbagh, Vice President of Sales (248) 205-4314, cell (248) 388-1266rafi.sabbagh@flagstar.com NMLS # 501221
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