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Well Compass came bank with even higher rates
4.5 for 7/1 ARM
5.25 for fixed 30
With pretty high orignation fees.
4.5 for 7/1 ARM
5.25 for fixed 30
With pretty high orignation fees.
"Doctor Loan/Physician Loan Programs"
- Thread starter slazenger
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PM sent
I can so relate. Rental prices skyrocketed since I last rented here. I've always had a good credit score and wish I had purchased sooner. I met with Janine recently and will start looking at properties this weekend! Janine referred me to 2-3 different lenders she works with and I went with the lender with lowest closing fees. I have the preapproval letter so I'm clear to look at some properties now. I may even go with 15 yr conventional with rates only 3.3%.
So far so good..
The only thing that was a bit time consuming was gathering pay stubs, taxes etc to submit to the loan officer but Janine gave me a heads up on what to expect. Other than that, it has been a pretty smooth process so far. As long as your credit is good, you should be ok. And have some cash saved up for closing fees as well.
Have you spoken to different lenders or a real estate agent who knows the program really well? It seems a $416k home would only require a zero down, but then it could differ with lenders I guess. I have just enough cash for the closing cost and going to put a little bit down payment. A couple of the lenders did a comparison of how much my monthly would be with PMI (non doctor loan) vs non-PMI loan (doctor loan program) and the doctor loan wins hands down. I'll be saving roughly $300/monthly using the doctor loan. Rates pretty much the same as a a regular loan since I have great credit so no difference in rates for the most part.
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As I have said numerous times, in CA there is no 0% down physician programs.
And I don't talk to realtors about finance. I go to the source, the Bank's themselves.
I am surprised that you are getting no difference in rates in conventional vs physician, since physician is lender paid PMI, in essence.
Can you put the rate quotes you actually got?
And I don't talk to realtors about finance. I go to the source, the Bank's themselves.
I am surprised that you are getting no difference in rates in conventional vs physician, since physician is lender paid PMI, in essence.
Can you put the rate quotes you actually got?
I posted a few months ago when I started looking for a lender and wanted to share my experience in case this helps anyone else. I was able to use a local bank in North Carolina and got a rate of 3.625% on a 7/1 ARM with 0% down and no PMI- also a big bonus was that origination fee was very low- just a $125 fee. This was through a physician loan program and I was able to close quickly after finding a house. I had to put my student loans into a 12 month voluntary forbearance in order to get approved but I plan to switch this to IBR once residency starts. If anyone else is looking for a lender in North Carolina, PM me and I can give you details.
I used NewBridge bank- as far as I know they are only in NC. I also checked rates with SunTrust and Bank of America but NewBridge had the lowest fees and best interest rate offers- they also were easy to work with as far as getting approved despite student debt.
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What kind of rates can someone currently get for a physician loan in TX and who are the providers?
Thanks
Thanks
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I used Russ Gelberg at fifth third (he was a friend of my uncle-in-law's; [email protected]) for a home purchase in Ohio. For the house we bought, the "rent vs. buy calculators" said we'd have to rent a similar house for less than $800, which wasn't happening. We financed $187.5k at 3.5% with a 7/1 ARM (we intend to be out of the area after 5 years). Good experience, easy to apply, quick to respond. I recommend him (disclaimer: I get no referral fees or anything).
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Congratulations to all who finished up their first week of residency, and those who recently finished!
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I'd be happy to give you the rates for your specific situation. We currently provide loans in Texas at texasphysicianhomeloans.com. Feel free to PM me or visit our site for more info. Good luck to you!
This could not have come at a better time. Thanks.
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Happy to help!
I'm surprised to read some have been given rates of high 4's. Quote I received for a 30-year conventional was 4.4% under the Doctor Loan Program. Comparing the doctor loan vs regular conventional on a 30 yr loan, the Doctor Loan is a much better option. My credit is above 720 and I'm purchasing in Washington DC. Not sure if the location makes a difference in rates, but the highest I received for a 30yr was 4.4% by all doctor loan lenders in the area. Highest for regular conventional 30yr was 4.189. The realtor I'm working with knew all lenders in the area that offer the doctor loan program, so it helped narrow down my options.
PMI is an average 1% of the financed amount per year. For a $500k home, this is roughly $420/month so another reason why I chose the doctor loan program since the lender pays the PMI. The properties in the location I'm looking are in the mid 700k for a townhouse. After getting a break down of the doctor loan program with no pmi VS regular conventional with pmi, the doctor loan program is a much better option for me. I'm also placing a small down payment.
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^^^
I ended up going with a different property.
810 credit, 5% down. Rate is 3.53%. 0 points or origination fees.
From the rates I had in April, the rates in July are significantly lower.
Closing next week.
I went to check with CHase last week on a conventional. They offered 3.67% and PMI was $167 a month. They told me they couldn't match what I was getting.
I have seen PMI vary from lender, from as little as 0.4% vs 1.5%
I ended up going with a different property.
810 credit, 5% down. Rate is 3.53%. 0 points or origination fees.
From the rates I had in April, the rates in July are significantly lower.
Closing next week.
I went to check with CHase last week on a conventional. They offered 3.67% and PMI was $167 a month. They told me they couldn't match what I was getting.
I have seen PMI vary from lender, from as little as 0.4% vs 1.5%
I forgot to add; the rates of 4.4% (really 4.39%) was based on a zero down payment 30 yr conventional. I have roughly 5% downpayment. From what I know, the more you have in down payment, the lower the rates. Would like to have more in downpayment but the taxes (high tax living area), cost of property and closing costs adds up. It's worth it though in the city I'm purchasing in since the market is appreciating rather quickly.
Is this 15 or 30 yr conventional? You have excellent credit btw!
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Yup I would have loved to go with a 0% down payment. But in CA, I don't have that option.
So I gave 5% down+ closing cost+10K required in reserves. I want to live in it a few years, see how I like the practice. The place would rent for about +550/month more than my mortgage. So if I decide to leave in a few years, I can rent it out and make it an investment property.
Thus I bought way below my comfort zone. Interestingly, I am moving only 22 miles from my fellowship. My "mortgage +taxes" will be $400 a month less than my rent, and with attending salary vs fellowship salary, I am actualy going "down" in living expenses, which I am stoked about.
Rate was for 30 year.
Credit was 610 in January. 200 points bumped in the last 4 months, due to paying all debt off.
Now everyday I keep getting more credit card offers than regular mail.
NICUfello, would you mind sharing which of the lenders (BofA, BBVA, Utah) you ended up going with? I'm down in Orange County just starting the process of buying and would love to know who you used to get those terms. Thanks!
I'd also be interested in seeing more reports of products people are getting.
I'm in the process of buying in Orange County as well. Credit is 790. 10% down. Applying for a physician loan through B of A for jumbo non-conforming (>$700k) loan. I solo qualified so my wife's job will help with the monthly mortgage payment. We're about 3 weeks from closing and B of A now saying they might be able to give me a 4.375% 30 year fixed rate. Initially they said 4.5%. Origination fee is $800. No discount points.
I'm in the process of buying in Orange County as well. Credit is 790. 10% down. Applying for a physician loan through B of A for jumbo non-conforming (>$700k) loan. I solo qualified so my wife's job will help with the monthly mortgage payment. We're about 3 weeks from closing and B of A now saying they might be able to give me a 4.375% 30 year fixed rate. Initially they said 4.5%. Origination fee is $800. No discount points.
We bought a year ago in the Bay Area, 25-30% down, 1.1 mil loan. 3.75% 30 yrs 0 points through BofA. They got the job done in the end but they're known to lag so make sure you stay on them. They ended up waiving some fees and providing some additional credits for slacking.
When you say "0 points" - did you mean no fees to discount the interest rate or did you mean no origination fee?
I'm leaning on B of A to remove/reduce as many of these fees as possible. Thanks.
0 points to discount the interest rate.
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Gobruins brings up a good "point" for discussion.
When comparing lenders, while rate should not be the only consideration, it's important to understand what origination fees and/or points really mean. As referenced in IRS Publication 936, http://www.irs.gov/pub/irs-pdf/p936.pdf, both are considered"pre-paid interest" paid one-time at closing to get the benefit of a lower interest rate. Some refer to "total points" as inclusive of origination fees and discount points, but some do not, so beware! The best course of action is to always get a lender worksheet or something similar to provide a breakdown of these fees. Most commonly, clients will ask for a "Good Faith Estimate," but a "Good Faith Estimate" is a legally-binding document for a lender, and won't be provided to you until you formally apply and receive disclosurse for your loan.
The decision of whether to pay points or origination fees to obtain a better rate is widely debated, but the general rule is to base that decision largely on the time you plan to retain the home and/or mortgage in question, and when you would see the net benefit of paying these fees upfront by obtaining the better rate. A trusted mortgage advisor can "point" you in the right dirction.
I hope this helps!
When comparing lenders, while rate should not be the only consideration, it's important to understand what origination fees and/or points really mean. As referenced in IRS Publication 936, http://www.irs.gov/pub/irs-pdf/p936.pdf, both are considered"pre-paid interest" paid one-time at closing to get the benefit of a lower interest rate. Some refer to "total points" as inclusive of origination fees and discount points, but some do not, so beware! The best course of action is to always get a lender worksheet or something similar to provide a breakdown of these fees. Most commonly, clients will ask for a "Good Faith Estimate," but a "Good Faith Estimate" is a legally-binding document for a lender, and won't be provided to you until you formally apply and receive disclosurse for your loan.
The decision of whether to pay points or origination fees to obtain a better rate is widely debated, but the general rule is to base that decision largely on the time you plan to retain the home and/or mortgage in question, and when you would see the net benefit of paying these fees upfront by obtaining the better rate. A trusted mortgage advisor can "point" you in the right dirction.
I hope this helps!
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I'd be quite curious to see where you found this rate, as well. No origination at that kind of rate with that term is quite nice.
Outlook,
Thanks for the recommendation.. I contacted Janine awhile back and I'm scheduled to close next month! I waited though until I began my employment here in DC. I was able to get qualified for more than the original amount. Approved for about $700k, no PMI, 30yr fixed at 4.2%. 0-5% downpayment required, however, with closing costs out of pocket, I'm placing about 7% downpayment. To top it off, my mortgage will be less than my current monthly rent+parking+utils! DC rent is ridiculously expensive.
In comparison to conventional, the numbers for the Doctor Loan came out better. There is a PMI with conventional which was about $600-$700/month if I had gone with conventional placing less than a 10% down. My rate with the Doctor Loan was only .25% higher than if I had gone conventional. I can also pay a little bit more than the monthly mortgage to offset the .25% which is what I plan to do. Also, the conventional takes consideration all your student loans regardless if you are still in school or if deferred so this could either disqualify you from borrowing anything or the the bank can lower how much you can borrow.
The realtor suggested both doctor loan officers and conventional officers so that was pretty helpful. I found my own also to compare. I decided to go with a rowhouse (better for investment) vs a condo and from what I was told from my colleagues and friends who have lived here, its a good time to buy bc prices had been increasing quickly in this area.
Believe it or not, getting qualified was not half as bad as winning the actual contract. The first property we placed an offer on had over 5 offers and sold for much more to another buyer. I was disappointed bc I really liked the property. The second next property I really liked also had over 3-4 offers but we were able to get this one. I am in the process of getting the inspections done and scheduled to close next month! How did your loan process go and did you decide to do the Doctor Loan program?
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I agree. I shopped with 3-4 different lenders, maybe even 5, including both doctor loan and non doctor loan, and none gave me anything less than 4% at a 30yr fixed. The closest I got was 4.2% taking everything in consideration.. downpayment, credit score (above 700), debts etc.
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I think it has to be a typo or misinformation. You can't even find conventional loans from national lenders specializing in highly qualified and low-risk borrowers for those rates these days.
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I just got a 15 year mortgage at 3.125% (3.25% APR) with 20% down about a month ago. Under 4% is still very doable.
I know nothing about even the basics of physician loans. Where should I start looking to learn more?
I'm curious if there are any instances where the lender will give you a lower rate initially, then adjust your payment based on your income. Has this happened for any of you, or are mostly all of them fixed?
I'm curious if there are any instances where the lender will give you a lower rate initially, then adjust your payment based on your income. Has this happened for any of you, or are mostly all of them fixed?
Yeah, a friend of mine just got a 3.125% with no down payment. I think it was longer term though.
Just wanted to update this thread in case anybody finds it useful. I got a 30 year fixed at 4.5%, origination fees about $350 with 10% down with B of A.
Good luck to anybody else going through this process. I believe you can refinance after 3 payments so in a few months I'll start looking for something more attractive.
Good luck to anybody else going through this process. I believe you can refinance after 3 payments so in a few months I'll start looking for something more attractive.
We used John Wheaton at B of A for a physician loan for an Irvine property. Was a great experience.
He has a Yelp page if you want to read other's opinions: http://www.yelp.com/biz/john-wheaton-newport-beach
You can PM me if you have other questions.
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Can anyone recommend someone who is offering physician loans in Washington State?
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Our sister site http://washingtonphysicianmortgage.com/ offers physician loans in Washington state. We'd love to help!
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I have a couple of questions.
Why would a resident or attending physician need a physician loan to buy a house or property? Can't they just get the regular housing loan like everyone else?
Also, can medical students also avail of these physician loans? I ask because I'm an incoming M1 student, moving to Virginia in the Fall.
Yes, the federal loans and the Gradplus loans will cover the basics i.e.tuition, fees, books, rent, food, personal expenses,gas, car expenses etc. However if I also had a physician's loan, I could make my medical school experience more pleasant which could in turn make sure I perform better academically in medical school and do better on the board exams. So I could use the physician's loan to buy a new car (as opposed to a used car), rent a luxury furnished apartment, spend more on personal expenses etc. Is this feasible? Should I contact Bank of America or Suntrust?
Why would a resident or attending physician need a physician loan to buy a house or property? Can't they just get the regular housing loan like everyone else?
Also, can medical students also avail of these physician loans? I ask because I'm an incoming M1 student, moving to Virginia in the Fall.
Yes, the federal loans and the Gradplus loans will cover the basics i.e.tuition, fees, books, rent, food, personal expenses,gas, car expenses etc. However if I also had a physician's loan, I could make my medical school experience more pleasant which could in turn make sure I perform better academically in medical school and do better on the board exams. So I could use the physician's loan to buy a new car (as opposed to a used car), rent a luxury furnished apartment, spend more on personal expenses etc. Is this feasible? Should I contact Bank of America or Suntrust?
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Skip the reason why a resident or attending would need a physician loan to purchase a home could be several, limited savings for down payment, closing costs and reserves, etc. just like anyone else wanting to purchase a home. Also they may want to keep any savings they have and invest those funds instead of putting them in the home as rates are still at historic lows. The difference is there is a specialized product for them that takes into account the stability of their position and income and therefore provides a higher loan to value to them than many others because that information provides a comfort level for lenders to offer such a loan product.
As for your question I believe you are requesting information more for a line of credit or loan based on the fact you will be come a physician. I am not aware of any such program at this time. Now that said I do know SunTrust has an unsecured loan/ line of credit for residents, fellows and attendings once you finished medical school that could assist you but not anything while you are actually in school. You must remember you must have income to qualify for these loans and if are a full time student not working that can become difficult to qualify for a loan. However that said you should look into it just in case they have some sort of program that perhaps is not advertised. I hope this helps. Good luck with medical school!
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On an exception basis my bank has decided to extend its Doctor Loan outside of its footprint to states like California and Washington. Please PM me if you'd like and I'd be happy to share the details. Good luck!
Hi I am looking to refinance my loan. I got a 7 ARM with 3.65% last year. Still pay PMI on it because I downed 15% and it is a regular conventional loan. My house value has gone up and the loan amount now should be about or less than 80%, so I should have 20% equity in it now.
What I am looking for is to eliminate the PMI, no closing cost OR minimal closing cost and lower interest rate OR at least the same
Thank you
What I am looking for is to eliminate the PMI, no closing cost OR minimal closing cost and lower interest rate OR at least the same
Thank you
I have a general knowledge of how Doctor's Loans work, however, I'm curious if one can use them for home renovation as well? For example, if I feel that my upper limit of spending on a home is 250k, and I find a home for 170k, can I get a Doctor's Loan for 250k and spend 80k on renovations? Thanks.
QofQuimica
Seriously, dude, I think you're overreacting....
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No. You don't need any of that s*** as a med student, and you can't afford it. If you want to live large like you're making a six figure income, you might want to have a job that pays you a six figure income first. So either get used to delaying your gratification if you're going to go to med school, or pick a different career that will let you make money faster.
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Great question! That is really going to depend on the bank. We have remodel loans up to $417k, with as little as 5% down (without any mortgage insurance). Let us know if we can help.
I sent you guys an email about getting a loan in Texas, but I haven't heard any response yet.
