Homeownership is often described as one of the most significant and emotional financial decisions of a person’s life. For CRNAs, this process can be complicated by student loan debt and demanding work schedules. In this episode, we talk with Becky Sims, a mortgage loan officer at Lake Michigan Credit Union, who shares her decades of experience and specialized knowledge to demystify home buying.
A Career Built on Helping Others
Becky’s journey into mortgage lending began in 1994, starting on the operations and underwriting side before transitioning to sales around 15 years ago. What keeps her passionate is the joy and satisfaction she finds in helping people. She loves guiding individuals through the biggest purchase of their lives, especially first-time homebuyers who are “blown away that they can do this.” For Becky, the process is not merely transactional; it’s about building relationships and partnering with her clients on their homeownership journey.
The Power of the Physician Loan Program
A highlight of her work is the specialty physician loan program, which includes CRNAs. This program is a game-changer, especially for new graduates. It allows them to buy a home with “no money down and no PMI” (private mortgage insurance), which is typically required on loans with less than a 20% down payment.
The program also has a major advantage for CRNAs with student debt, as it does “not include student loans when we’re calculating debt-to-income ratios.” This is particularly powerful because new CRNAs are “coming outta school with probably some debt and not a ton of money,” yet they have a contract with a “great income.” The program allows them to use their contract as qualifying income even before they start their new job, enabling them to “get settled in before they start work.”
Advice for Today’s Market
When it comes to buying a first home, Becky’s advice is to be conservative. While mortgage guidelines may allow you to borrow up to 45% of your gross income, she cautions that this “does not leave you with any disposable income.” Her recommendation is to aim for a more conservative 25% debt-to-income ratio, especially with a CRNA salary.
This approach ensures you can still “travel or go out to eat” and enjoy your life. She also advises prospective homebuyers to educate themselves on the local market and work with a realtor, as low inventory and a competitive market often require making quick decisions on what might be the largest purchase of your life.
The average mortgage process takes about 30 days, although Becky notes there are many moving parts outside of her control, like appraisals and inspections. For CRNAs, the required documents typically include a photo ID, their employment contract or a pay stub, and bank statements to cover closing costs.
For new graduates, a transcript or diploma may be requested in lieu of a two-year work history. The physician loan program extends to W2 employees as well as 1099 contractors, though a 1099 applicant typically needs a one-year work history as a CRNA. The loan itself is a “portfolio loan,” meaning it stays on the credit union’s books and is not transferred, which is a nice feature for borrowers.
A Community-Focused Approach
Becky works for Lake Michigan Credit Union, which has been in business since 1933 and is the biggest lending credit union in Michigan. As a credit union, they are a non-profit organization, which allows them to offer “better interest rates, lower closing costs,” and even a 3% return on checking accounts.
The credit union also has a strong presence in Florida, catering to “snowbirds” who split their time between the states. This community-focused model aligns with Becky’s personal values. Her professional life is also built with a great deal of flexibility, allowing her to work after hours to accommodate her CRNA clients’ demanding schedules.
Success and Homeownership
When asked about her personal definition of success, Becky’s answer is simple: “It is just being happy. It’s being happy, I think is successful. It’s not about money, just finding happiness every day.” For CRNAs, homeownership can be a key part of that happiness, and Becky’s program is specifically designed to make that goal more attainable.
See How Home Ownership Can Fit Into Your Financial Plan
Becky’s excellent advice on being a conservative buyer and using a specialized loan program is a testament to the power of thoughtful financial planning. While getting a mortgage is a crucial step, it’s just one piece of your overall financial puzzle. The decision to buy a home and the debt-to-income ratio you choose impact your ability to save for retirement, invest in other goals, and build the life you want.
A comprehensive financial plan ensures that your homeownership goals align with your broader objectives. It helps you navigate the complexities of managing student loan debt while simultaneously saving for retirement and building long-term wealth. With a strategic approach, your home becomes a powerful asset within a well-structured plan, providing not only a place to live but also a foundation for your financial future.
Ready to see how Oak Capital Advisors can help? Schedule a Meeting.
Links Relevant to this Episode
Download Your Free Copy of MoneyRx For CRNAs: Secrets and Strategies to Maximize Wealth and Retirement
Looking for more financial planning tips and resources for CRNAs? Check out the MoneyRx for CRNAs Podcast home page for additional podcast episodes.
Never miss a new episode! Subscribe wherever you listen to podcasts.
