Here’s how you can save on a JD 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 financially savvy 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 an attorney-specific mortgage product that allows for low to no down payment. Flagstar Bank recently developed such a program for licensed attorneys with the following benefits on a primary residential mortgage:
0% down payment up to $1,000,000 with a 720 FICO score. 5% down 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).
- Available in 10-year, 5-year and 7-year ARMs only. (Fixed for initial term, 5, 7, or 10 years, and then goes variable with an annual change if not refinanced into a fixed loan. The lifetime cap is 5% above your start rate). The loan is fully amortized over 30 years (it is not a balloon).
- 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 will be calculated into the debt to income-ratio. Income-based repayment is ok to use as long as it reflects $1 or more.
- Co-signers, US Citizens, & Green Card Holders allowed.
- Three months of reserves required (we have to show this in any of your accounts).
- Single-family Home, town home, 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) With student loans not factored in if they will be in deferment for the next 12 months.
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.
Why This Program Exists
Flagstar Bank is currently the only national mortgage lender to offer an attorney-specific mortgage. Flagstar recognizes that attorneys have job stability, income continuity, and creditworthiness, making them ideal candidates for professional mortgage loans. The risk to the bank is almost non-existent. Flagstar is also eager to develop long-term relationships with attorneys and other high-income earners.
For more information, please contact:
Rafi Sabbagh, Vice President of Sales(248) 205-4314, cell (248) 388-1266 rafi.sabbagh@flagstar.com NMLS # 501221
SPONSORED CONTENT. Product Spotlight showcases content provided by Attorney at Work sponsors and advertisers. This does not constitute endorsement by Attorney at Work. See Terms and Conditions for more information.
