A dental assistant/hygienist mortgage loan or grant is a specific type of mortgage loan and grant aimed at assisting medical industry professionals such as dental assistant/hygienists achieve their dreams of home ownership. Unlike other mortgage loan options, a dental hygienist loan requires as low as a 3.5% down payment and is flexible in ways a conventional mortgage may not be. In short, this loan offers a low down payment and flexibility. Read on for more information about a dental assistant mortgage loan and how we can help you qualify.
Dental Assistant/Hygienist – Down Payment Gift Program
Those individuals in the dental health care profession such as dental assistants and hygienists may apply for a Gift/Grant to assist with the down payment of their home. This is a one-time Gift and there is no repayment if the home is maintained as their primary residence for at least 60 months from time of closing. The Grant becomes a second mortgage on the property with NO REPAYMENT if the purchaser lives in the home for five years. The repayment obligation decreased by 1/60 for each month they live in the home. At the end of five years (60 months) the Gift is totally forgiven.
Dental Assistant/Hygienist Loan v Traditional Mortgage
Dental assistant/hygienist loans are a specialty mortgage loan created to assist individuals in the medical field the opportunity to quality for a home loan. Conventional mortgages have clearly defined rules regarding debt to income ratios, proof of long term employment, a sizeable down payment, and private mortgage insurance.
Significant income and long-term employment are often requirements to qualify for a mortgage loan. Medical professionals have the potential to earn more money in the future and are less likely to default on their loans. Lenders keep this in mind and are willing to compromise on a few key points. In this instance even dental students are eligible to qualify for the program.
How a Dental Assistant Mortgage Loan Works
Compared to a conventional mortgage loan, a dental assistant loan offers a way for medical professionals the ability to quality for a home mortgage loan earlier than they would with other loan options. The grant will substitute for a down payment, and other options include flexibility with debt to income ratios and employment history, dental assistants can qualify with ease and afford to buy a home. Here’s how some of the other elements of a mortgage loan are different in this specialty loan type compared to conventional mortgage.
Debt To Income (DTI)
An important measurement of qualifications for a conventional mortgage. However, in a dental assistant’s mortgage loan the amount of money you owe compared to your income isn’t as big of a factor. In a conventional loan the DTI is required to be 50% or lower. Lenders check this to ensure that borrowers are able to easily manage their monthly payments without defaulting on the loan. The higher the DTI the more risky the loan. Dental assistant mortgage loans take this into account and are far more relaxed when it comes to DTI restrictions. Other debts are still scrutinized, like credit card debt, car loans, and other expenses are examined, but the higher DTI associated with medical professionals is not necessarily a disqualifier.
Designations to Generate Eligibility to Nurses Grants
- Dental Assistant
- Dental Hygienist
- Dental Laboratory Technicians
Grant/Gift Program Highlights
- The Grant is 3% to 5% of the selling price or appraised value, whichever is lowest.
- Down Payment Requirements: 3.5% is the minimum down payment.
- Maximum Sale Price: $420, 680, but may be greater is designated “high-cost” areas.
- Single Family Units only
- Applicant may own a second home and/or investment properties and still be eligible.
Income Limits: None.
Income Restrictions: None
In addition to a degree, in order to qualify for a dental assistant professional down payment grant a borrower will need to provide proof of employment and income, but offer much flexibility. A contract of employment is considered sufficient to verify income in the absence of a pay stub or W-2.
Other conditions must be met such as the property being purchased must be used as a primary residence. Lastly, these mortgage loans cannot be used to finance a second home or investment property and usually won’t be granted to multi-family residences such as condominiums.
Why Dental Assistant Grants & Specialty Loans Are A Good Idea
While the earning power behind a dental assistant/hygienist is high many nurses and medical professionals can’t qualify for a conventional loan. A dental assistant loan may have a slightly higher interest rate than the prime. Starting a home loan with less than 20% down may also place you in risk of ending up owing more than the property is worth for a period of time. Nonetheless, many dental medical professionals find the loan to be advantageous.
You can get answers to more of your questions, and speak to a dental assistant/hygienist grant and specialty mortgage loan by speaking with our officers today.