"Doctor Loan/Physician Loan Programs"

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ssanth2 said:
My wife and I are trying to apply for a mortgage loan under the doctor program. We got conditional pre-approval on our loan based on just our credit scores and salary. Everything was going on smoothly until our loan officer was informed by his underwriter that because my wife has a 1099 (independent contractor) and not a W2, we needed to have 2 years worth of pay stubs.

The loan officer should have picked up on it earlier ,if he knew, but apparently knew only when the underwriter brought it up. Has anybody come across this situation? I am pretty sure there are other lenders/banks/brokers who have successfully processed loans with similar situations; LTV okay, 10% down available, credit score okay, but not able to get a loan because of 1099 and less than 2 years on the job.

Need some help ASAP since we already signed a contract with the builder and need to find a lender to give us a commitment to lend and obviously follow through to closing after construction.
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Hello ssanth2! What state are you buying in?
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ssanth2 said:
My wife and I are trying to apply for a mortgage loan under the doctor program. We got conditional pre-approval on our loan based on just our credit scores and salary. Everything was going on smoothly until our loan officer was informed by his underwriter that because my wife has a 1099 (independent contractor) and not a W2, we needed to have 2 years worth of pay stubs.

The loan officer should have picked up on it earlier ,if he knew, but apparently knew only when the underwriter brought it up. Has anybody come across this situation? I am pretty sure there are other lenders/banks/brokers who have successfully processed loans with similar situations; LTV okay, 10% down available, credit score okay, but not able to get a loan because of 1099 and less than 2 years on the job.

Need some help ASAP since we already signed a contract with the builder and need to find a lender to give us a commitment to lend and obviously follow through to closing after construction.
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Were you able to find a solution. We are in the same situation with suntrust bank. have closing in 10 days and they just brough up this issue on friday!
 
doctorFred said:
FYI for anyone interested:

In the process of securing a Bank of America physician loan in NYC area. Rate is 4.125%, 10% down, no PMI, no points. Annoyed because the rate was in the 3.8% range a few weeks ago and the other party drug their feet with the contract.
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Update on my previous post: dealing with BOA's mortgage program has been, in short, a nightmare. They took two months to approve our mortgage, during which time we had to ask for an extension on our contract or risk losing our home. We've dealt with half a dozen different BOA employees, from sales to underwriting to customer service, and none of them has the foggiest idea what the others are up to. And that's when we're fortunate enough to actually speak to someone on the phone.

It's all worked out in the end, but we cannot in good conscience recommend BOA for their doctor loan program unless you literally have no other alternatives. After our ordeal, it was no surprise to learn that the BOA mortgage division is now being sued by the NY AG for a number of violations, including requiring applicants to repeatedly submit the same documents, moving at a snail's pace, and not communicating with their clients.
 
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doctorFred said:
Update on my previous post: dealing with BOA's mortgage program has been, in short, a nightmare. They took two months to approve our mortgage, during which time we had to ask for an extension on our contract or risk losing our home. We've dealt with half a dozen different BOA employees, from sales to underwriting to customer service, and none of them has the foggiest idea what the others are up to. And that's when we're fortunate enough to actually speak to someone on the phone.

It's all worked out in the end, but we cannot in good conscience recommend BOA for their doctor loan program unless you literally have no other alternatives. After our ordeal, it was no surprise to learn that the BOA mortgage division is now being sued by the NY AG for a number of violations, including requiring applicants to repeatedly submit the same documents, moving at a snail's pace, and not communicating with their clients.
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We are in the process of doing something similar with Huntington bank... Needless to say I am really frustrated.

Our closing date had been set for 3 months and all parties should have been aware of it. I took off work (as did my wife) and drove up to Cleveland. I have been here for 6 days now waiting on who knows what... We still do not have a clear to close and then on top of that there is an internal audit that the bank wants to do which will further delay me putting my stuff from the trailer into the house. Oh yeah, we rented the largest trailer Uhaul offers and are waiting to put that stuff in the house we should already own.

Because nothing got done over the course of 5 days since our "closing date" my wife had to buy a plane ticket and fly back to work. Really there was no reason for her to even make the trip and take off of work. On top of that we had to scramble to get a power of attorney done and notarized on a Saturday evening so on the off chance they give us clear to close, we don't have to wait 2 days while the paper work is overnighted to her and back. Thank god she is a lawyer and could just create the POA on short notice.

This brings me to my next point, my wife and I are a doctor and a lawyer. What the **** do they need to think about here? Needless to say we are in the dark and pissing everyone off left and right while we wait for the pencil pushers to get around to stamping a form.

And we wonder why there is/was a mortgage crisis.
 
I'm going through this with BoA right now. Unfortunately I have no other choice in VT.
 
Instatewaiter said:
This brings me to my next point, my wife and I are a doctor and a lawyer. What the **** do they need to think about here? Needless to say we are in the dark and pissing everyone off left and right while we wait for the pencil pushers to get around to stamping a form.

And we wonder why there is/was a mortgage crisis.
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preaching to the choir. my wife and i are BOTH DOCTORS, and we're applying for a pretty small mortgage, too.
 
So the only real value in Doctor Loans is for those who have medical school debt, correct?

Otherwise, if you have little/no loans, its better going the regular route?
 
CDI said:
So the only real value in Doctor Loans is for those who have medical school debt, correct?

Otherwise, if you have little/no loans, its better going the regular route?
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It's the low or no down payment requirement that's appealing for most folks.
 
CDI said:
So the only real value in Doctor Loans is for those who have medical school debt, correct?

Otherwise, if you have little/no loans, its better going the regular route?
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The benefits are you don't have to have documented income (a contract is acceptable), student loans are ignored, and no down payment is needed.

I'm embarrassed that this is the longest thread in this forum. It's supposed to be about investing, but all anyone is interested in doing is taking out more debt. :)
 
ActiveDutyMD said:
The benefits are you don't have to have documented income (a contract is acceptable), student loans are ignored, and no down payment is needed.

I'm embarrassed that this is the longest thread in this forum. It's supposed to be about investing, but all anyone is interested in doing is taking out more debt. :)
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Thanks! Will keep that in mind.

I bought some shares of AHS. And I'm watching MNKD bounce around for now, waiting on that Phase III Trial outcome. :laugh: (My investing contribution.)
 
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ActiveDutyMD said:
It's supposed to be about investing, but all anyone is interested in doing is taking out more debt. :)
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The title of the forum suggests that it's half about investing, and half about finance. This thread is definitely within the realm of finance... and I don't know about others, but I'm definitely looking at real estate through an investor's lens.
 
ActiveDutyMD said:
The benefits are you don't have to have documented income (a contract is acceptable), student loans are ignored, and no down payment is needed.

I'm embarrassed that this is the longest thread in this forum. It's supposed to be about investing, but all anyone is interested in doing is taking out more debt. :)
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Also, vs FHA (the other loan most residents could qualify for) there is no PMI required with the physician loan, these days that's $150 a month difference plus the upfront portion which varies.

Not that the loan is right for everyone, just wanted to add that!
 
Sheldor said:
Also, vs FHA (the other loan most residents could qualify for) there is no PMI required with the physician loan, these days that's $150 a month difference plus the upfront portion which varies.

Not that the loan is right for everyone, just wanted to add that!
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Oh yea, how'd I forget that?
 
My wife and I just completed a physician mortgage. (Disclaimer: I am in finance and my wife is the physician, but I feel like it's OK for me to comment on a finance thread.) We looked at several places and went "through the motions" with more than one place. We ended up going with Regions Bank and Chris Roberts, even though we originally expected to go with a different bank. We were originally quoted 4.375% (this is early this year before rates went up) and Chris was up-front that if we could really get that rate we should go with the other provider. Obviously I appreciated him being honest and to the point about that.

When I received an application the rate on there was 4.75%!!!! This was after confirming the rate over e-mail less than a week prior. The crummy part was that I was now less than 30 days from closing and I ended up needing to go back to Chris to get the job done. They were able to scramble and get stuff done in time... Chris even started the process for me when he was on a family vacation (it was apparently raining though so it's only "very" heroic, not "incredibly" heroic).

In any case, the big things you want to look for are rates, closing costs and level of service, and I feel like we got all three. I should also mention objectivity, I suppose. Regions seems to be "big enough" to get stuff done, but not so big that you get crap service. The experience was positive enough (we just closed yesterday) that I felt compelled to write a good review somewhere.

I think they operate in most states (if not all) where physician mortgages are legal.

http://www.regionsmortgage.com/chrisroberts

We had looked at a few online (highly advertised) places that were essentially mortgage brokers who charged something like a 2% origination fee, which would have been over $10k in our case. This led me to try and go directly through a bank... I feel like it's quite a bit cheaper, although it can be a bit more of a hassle to rate shop. I did look at more than one place though and Regions is pretty much right where everybody else is (and they don't falsely advertise)! They also have a little better loan limits than some other places. In Missouri at least, you can do up to $650k with zero down, and 5% down for up to $1 million. I think maybe 10% for over $1 million but we weren't looking in that range so don't quote me on that one.
 
Joefish142857 said:
My wife and I just completed a physician mortgage. (Disclaimer: I am in finance and my wife is the physician, but I feel like it's OK for me to comment on a finance thread.) We looked at several places and went "through the motions" with more than one place. We ended up going with Regions Bank and Chris Roberts, even though we originally expected to go with a different bank. We were originally quoted 4.375% (this is early this year before rates went up) and Chris was up-front that if we could really get that rate we should go with the other provider. Obviously I appreciated him being honest and to the point about that.

When I received an application the rate on there was 4.75%!!!! This was after confirming the rate over e-mail less than a week prior. The crummy part was that I was now less than 30 days from closing and I ended up needing to go back to Chris to get the job done. They were able to scramble and get stuff done in time... Chris even started the process for me when he was on a family vacation (it was apparently raining though so it's only "very" heroic, not "incredibly" heroic).

In any case, the big things you want to look for are rates, closing costs and level of service, and I feel like we got all three. I should also mention objectivity, I suppose. Regions seems to be "big enough" to get stuff done, but not so big that you get crap service. The experience was positive enough (we just closed yesterday) that I felt compelled to write a good review somewhere.

I think they operate in most states (if not all) where physician mortgages are legal.

http://www.regionsmortgage.com/chrisroberts

We had looked at a few online (highly advertised) places that were essentially mortgage brokers who charged something like a 2% origination fee, which would have been over $10k in our case. This led me to try and go directly through a bank... I feel like it's quite a bit cheaper, although it can be a bit more of a hassle to rate shop. I did look at more than one place though and Regions is pretty much right where everybody else is (and they don't falsely advertise)! They also have a little better loan limits than some other places. In Missouri at least, you can do up to $650k with zero down, and 5% down for up to $1 million. I think maybe 10% for over $1 million but we weren't looking in that range so don't quote me on that one.
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Congrats on the loan.

By any chance is your wife a member on SDN? It may add some further credibility to your first post, otherwise from a distance the post seems more like a solicitation.
 
CDI said:
Congrats on the loan.

By any chance is your wife a member on SDN? It may add some further credibility to your first post, otherwise from a distance the post seems more like a solicitation.
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Hmm... I don't think she is a member, but I could be wrong. Obviously the issue with a public forum is anonymity so I am not prepared to say "she is completing her residency at ____." Maybe it would add to the credibility to say that she has $300k+ of student loan debt, is studying for her PM&R boards for August 12th, and is just today finishing her 150th EMG procedure (performed)? Other than that, I am not sure I have anything for you.

The goal was to share some real experiences that I had... esp. given the comments about horrible experiences and service I thought it would be relevant. Perhaps I should have toned down my enthusiasm and attention to detail, then.

Credibility? Just real experiences. Obviously I did not talk to every single bank or broker out there, just had a very different set of experiences from one place to the next. Just because I took the time to use paragraphs and punctuation doesn't mean it's a solicitation. I am aware that there are weird things out there in terms of companies using PR firms to post to social media sites, etc. (e.g. Reddit) but please try to ignore the fact that I just joined today. Usually there IS a reason that people join these things, isn't there?

If I am breaking any rules and it's too solicit-y let me know and I can edit the post.
 
Vishal Goel said:
Were you able to find a solution. We are in the same situation with suntrust bank. have closing in 10 days and they just brough up this issue on friday!
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The problem with 1099 income is that it's not as guaranteed as a typical (W2) salary. Even though I receive a W2 I ran into the same problem because I work for a small franchise... I did not have to provide pay stubs, but I did have to provide tax returns for 2011 and 2012, and also a recent paystub.

This is only an issue if you are trying to use joint income in your debt-to-income ratio (although usually these days they say X% of your income can go toward mortgage payments). I did run into different #s with different banks while I was shopping around. The tradeoff is that banks with tougher qualification standards sometimes offer lower mortgage rates (which makes sense because they are taking on less risk).

Most 1099 income people have a good amount of variation in pay though so while asking for income history is not surprising, it is annoying if they don't "catch" it until the very end though.
 
CDI said:
Congrats on the loan.

By any chance is your wife a member on SDN? It may add some further credibility to your first post, otherwise from a distance the post seems more like a solicitation.
Click to expand...
Hmm... I don't think she is a member, but I could be wrong. Obviously the issue with a public forum is anonymity so I am not prepared to say "she is completing her residency at ____." Maybe it would add to the credibility to say that she has $300k+ of student loan debt, is studying for her PM&R boards for August 12th, and is just today finishing her 150th EMG procedure (performed)? Other than that, I am not sure I have anything for you.

The goal was to share some real experiences that I had... esp. given the comments about horrible experiences and service I thought it would be relevant. Perhaps I should have toned down my enthusiasm and attention to detail, then.

Credibility? Just real experiences. Obviously I did not talk to every single bank or broker out there, just had a very different set of experiences from one place to the next. Just because I took the time to use paragraphs and punctuation doesn't mean it's a solicitation. I am aware that there are weird things out there in terms of companies using PR firms to post to social media sites, etc. (e.g. Reddit) but please try to ignore the fact that I just joined today. Usually there IS a reason that people join these things, isn't there?

If I am breaking any rules and it's too solicit-y let me know and I can edit the post.
 
Joefish142857 said:
Hmm... I don't think she is a member, but I could be wrong. Obviously the issue with a public forum is anonymity so I am not prepared to say "she is completing her residency at ____." Maybe it would add to the credibility to say that she has $300k+ of student loan debt, is studying for her PM&R boards for August 12th, and is just today finishing her 150th EMG procedure (performed)? Other than that, I am not sure I have anything for you.

The goal was to share some real experiences that I had... esp. given the comments about horrible experiences and service I thought it would be relevant. Perhaps I should have toned down my enthusiasm and attention to detail, then.

Credibility? Just real experiences. Obviously I did not talk to every single bank or broker out there, just had a very different set of experiences from one place to the next. Just because I took the time to use paragraphs and punctuation doesn't mean it's a solicitation. I am aware that there are weird things out there in terms of companies using PR firms to post to social media sites, etc. (e.g. Reddit) but please try to ignore the fact that I just joined today. Usually there IS a reason that people join these things, isn't there?

If I am breaking any rules and it's too solicit-y let me know and I can edit the post.
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I'm sure the strong referral you've given can definitely help someone here who is looking for a physicians loan. I was only unsure since you had opened an account here on SDN for the sole purpose of posting an experience & referral.
 
I tried to get a doctors loan and they want 5% down payment
 
platon24 said:
I tried to get a doctors loan and they want 5% down payment
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5% down is actually very good... most banks will go up to a certain amount for zero down, but beyond that they will want 5%. Much easier than saving up the "typical" 20% down payment, although the interest rate will be a bit higher than a traditional 80/20 loan.

Rates have gone way up in the past several months... it's a bummer. In the grand scheme though, rates are probably lower than a lot of student loan debt (which is stupid) and low in the context of the last 20-30 years.
 
Thank you for the testimonial! It was a pleasure working with you and your family. I would like to further clarify some of the details of our program for future reference on this thread. Our program is offered in any state where Regions has a physical banking foot print (see below). The physician/dentist mortgage product currently has a maximum loan amount of $650,000 with zero down, and $750,000 with 5%. There are a few areas in our foot print that may require 5-10% down.

Regions Bank foot print: AL, AR, FL, GA, IA, IL, IN, KY, LA, MS, MO, NC, SC, TN, TX, and VA


Joefish142857 said:
My wife and I just completed a physician mortgage. (Disclaimer: I am in finance and my wife is the physician, but I feel like it's OK for me to comment on a finance thread.) We looked at several places and went "through the motions" with more than one place. We ended up going with Regions Bank and Chris Roberts, even though we originally expected to go with a different bank. We were originally quoted 4.375% (this is early this year before rates went up) and Chris was up-front that if we could really get that rate we should go with the other provider. Obviously I appreciated him being honest and to the point about that.

When I received an application the rate on there was 4.75%!!!! This was after confirming the rate over e-mail less than a week prior. The crummy part was that I was now less than 30 days from closing and I ended up needing to go back to Chris to get the job done. They were able to scramble and get stuff done in time... Chris even started the process for me when he was on a family vacation (it was apparently raining though so it's only "very" heroic, not "incredibly" heroic).

In any case, the big things you want to look for are rates, closing costs and level of service, and I feel like we got all three. I should also mention objectivity, I suppose. Regions seems to be "big enough" to get stuff done, but not so big that you get crap service. The experience was positive enough (we just closed yesterday) that I felt compelled to write a good review somewhere.


I think they operate in most states (if not all) where physician mortgages are legal.

http://www.regionsmortgage.com/chrisroberts

We had looked at a few online (highly advertised) places that were essentially mortgage brokers who charged something like a 2% origination fee, which would have been over $10k in our case. This led me to try and go directly through a bank... I feel like it's quite a bit cheaper, although it can be a bit more of a hassle to rate shop. I did look at more than one place though and Regions is pretty much right where everybody else is (and they don't falsely advertise)! They also have a little better loan limits than some other places. In Missouri at least, you can do up to $650k with zero down, and 5% down for up to $1 million. I think maybe 10% for over $1 million but we weren't looking in that range so don't quote me on that one.
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I am looking for physician loan in CA and planning on purchasing a condo. My understanding is that BBVA Compass does not allow condo purchases using a physician loan. Suntrust only does physician loans if you have banking relationship with them for over 1 year, which I don't. Do I have any other options?
 
yeah, they do but there is $850K limit. There is not much you can buy in CA for that.
 
Eyefixer said:
I am looking for physician loan in CA and planning on purchasing a condo. My understanding is that BBVA Compass does not allow condo purchases using a physician loan. Suntrust only does physician loans if you have banking relationship with them for over 1 year, which I don't. Do I have any other options?
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We offer physician loans in CA. Feel free to PM me or visit californiaphysicianhomeloans.com and contact me. I am happy to answer all your questions and see what we can do for your particular situation.
 
I was looking into physician loans in Oklahoma / Texas where I will more than likely match this spring and one of two banks in Oklahoma just sent me this:

"I wanted to follow up with you regarding your inquiry on our physician loan program. Unfortunately the program is going away effective tomorrow due to the changes in the mortgage regulations that are going into place, the CFPB basically told us that we cannot offer segregated products to a specific profession without it being considered discrimination."

Can anyone go in depth on this? Is this just this bank or a new policy nation wide?
 
zinjanthropus said:
Bump- there are some industry folks on here who should be able to address this question
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Our program is alive and well. There will be tons of new changes that come down on Jan. 10th (CFPB's new QM rule), but this is my first time hearing anything like that.
 
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Phlame217 said:
I was looking into physician loans in Oklahoma / Texas where I will more than likely match this spring and one of two banks in Oklahoma just sent me this:

"I wanted to follow up with you regarding your inquiry on our physician loan program. Unfortunately the program is going away effective tomorrow due to the changes in the mortgage regulations that are going into place, the CFPB basically told us that we cannot offer segregated products to a specific profession without it being considered discrimination."

Can anyone go in depth on this? Is this just this bank or a new policy nation wide?
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This is very interesting and the first I've heard of the CFPB taking this approach. I'll do some more research and update this thread. As of now, it hasn't affected our product offering.
 
53PhysicianLend said:
This is very interesting and the first I've heard of the CFPB taking this approach. I'll do some more research and update this thread. As of now, it hasn't affected our product offering.
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Thank you. I still haven't heard back from the other bank in Oklahoma (there were only 2 offering them here according to my research).
 
Need some help on my financial situaiton in AZ

I just landed a job. Start date is next summer. I was planning to rent a year, save up 20%, but my friends are recommending we buy.

Here is my situation
  • I would like a house in the 350-450K range
  • Currently I have $20K for a down payment
  • I have some credit card debt (7K) that I can pay off from my downpayment currently saved.
  • I have student loans and a 200$ car payment
  • No other debts
  • My current rent is $2300
  • Last two years I made 55K, and 57K.
  • I will be making 200K per my contract starting next year

Will I qualify for a doc mortgage loan? Who is lending in AZ? Should I wait another year and get up to 20%?

The homes in AZ have increased by about 50-70K in the last 12 months. I am afraid if I wait antoher year it will go up a lot more

Appreciate some help.

First time home buyer.
 
Phlame217 said:
Thank you. I still haven't heard back from the other bank in Oklahoma (there were only 2 offering them here according to my research).
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Well.... I haven't been able to find anything to support the actions taken on by the Oklahoma bank regarding their Doctor Loan program. I am certainly not saying that bank is wrong. The CFPB has tremendous power. For whatever reason, I can't find it published anywhere. I'll let you know if I hear anything.

Mike Z
Physician Specialist
Fifth Third Bank
937-530-3006
[email protected]
 
NICUfello said:
Need some help on my financial situaiton in AZ

I just landed a job. Start date is next summer. I was planning to rent a year, save up 20%, but my friends are recommending we buy.

Here is my situation
  • I would like a house in the 350-450K range
  • Currently I have $20K for a down payment
  • I have some credit card debt (7K) that I can pay off from my downpayment currently saved.
  • I have student loans and a 200$ car payment
  • No other debts
  • My current rent is $2300
  • Last two years I made 55K, and 57K.
  • I will be making 200K per my contract starting next year

Will I qualify for a doc mortgage loan? Who is lending in AZ? Should I wait another year and get up to 20%?

The homes in AZ have increased by about 50-70K in the last 12 months. I am afraid if I wait antoher year it will go up a lot more

Appreciate some help.

First time home buyer.
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Check out Josh Mettle and his team @ City Wide. They can help you in AZ. 801-747-1210


Mike Z
Physician Specialist
Fifth Third Bank
937-530-3006
[email protected]
 
53PhysicianLend said:
Check out Josh Mettle and his team @ City Wide. They can help you in AZ. 801-747-1210


Mike Z
Physician Specialist
Fifth Third Bank
937-530-3006
[email protected]
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Thank you Mike.


Do you also have contact in CA?

I have a friend in CA, looking for physician loan. Salary is $180k. 0 down, not sure what she will qualify for.
 
There are also lenders that will add all closing costs etc into the body of the loan. While you get a better loan with 5% down etc (which is what I did), PhysicianLoans for example does 100% financing. I didn't go with them (interest rate was less competitive, 2% origination fee), but it's possible to get a house as a resident purely on your guaranteed salary and reasonable credit.
 
I didn't know that doctor loans did not consider student loan debt; is this true?

Are there any companies that provide 0% down loans? I am not in the list of states that was posted by Chris Roberts and I know that Compass Bank now requires 5% down.

I approached a traditional lender and was told that I could get a 5% downpayment (I don't think it was because of my occupation). I could also get no PMI but the interest rate would be a little worse. What's the advantage of getting a "doctor loan"? How do we know that a doctors loan is actually better than going to a traditional lender as they could charge higher fees/interest rate to compensate for the low down payment. It's also not possible to simply compare interest rates from different companies because the fees could be higher, thus nullifying the effect of a lower rate.

Is physicianbanks.com a reputable website?

Thanks for any input!
 
In the addition to Fred's post:

Physician Loans of all varities ignore student loan dept, which is what makes it possible for you to qualify for a relatively large purchase given an otherwise cumbersome income/debt ratio. This is possible in part as a resident because they know you are able to forbear you loans if you so choose. Some of these physician loans are 5% down, but there are 100% financed loans, which I personally do not have but know several people who do. I don't know what states they serve off hand but do know that every cost is literally included into the loan so that you don't need any cash up front. The downside is obviously that you are taking out a bigger loan. The upside is you don't need any money.

http://www.physicianloans.com/ offers 100% financing doctor loans. When I last checked, the interest rates were pretty competitive but the origination fee was 2%, whereas other lenders were charging 1%. How much you are able to sink into closing costs and down payment defines how picky you can be when it comes to these terms, but most everything is negotiable to some extent.
 
So for an attending with student loans that are not in deferment, it sounds like there is no benefit to getting a doctor loan. 0% down with a 2% origination doesn't seem like a good deal. If there was no PMI, I think it would make sense to go with one of these lenders, but hard to say that they wouldn't make up the difference elsewhere.
 
So this is my current situation (now that agreement has been signed and fellowship will finish in 4 months).

Would like to purchase a townhome. Los Angeles County. Looking at prices of 280-350k. I have the 5% down. However, not sure how much I can come to the table with on the closing cost etc (won't seller cover some?).

First time home buyer. I would like to buy the townhome this summer.

The area my job is in, I would like to buy a single family house in about 3-4 years. Prices are 650-750K. Thus I want to live in a Townhome/Condo for a few years, live below my means, and have 20% down for the next house, and rent the condo out when I move. College Area, renters shouldn't be an issue.

I checked with few physician lenders (compass, bofa, etc), no one is doing 0% down. Its all 5% down. I DON'T need to buy 60 days ahead of my job starting, so that isn't an issue for me.

I understand that PMI isn't tax deductible. What would be the cheapest loan for me ? I plan to be in the 22% on the townhome by making more payments, so that I can get rid of PMI very quickly.

I am also ok with going with a 5% down, NO PMI loan, but the closing costs are quite scary.

For example, on a 350K loan, I received a closing cost (with 5% down included) of $28,000.
On a $438K loan, I received a closing cost estimate (with 5% down included) of $35,000.

I am seeing rates 4.5%-5.2%. Closing costs being quoted of $10,000-$120000. Is that accurate? Reason I ask is, if that is accurate, I would need more money, and would have to rent for 2-3 months while I save some extra.

I don't want to have my 5% down, and go to closing and be unable to buy.
 
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