"Doctor Loan/Physician Loan Programs"

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We used BBVA Compass physician loan recently and had no significant issues. Everything went smoothly both during the paperwork phase and on closing day.
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bjackrian said:
We used BBVA Compass physician loan recently and had no significant issues. Everything went smoothly both during the paperwork phase and on closing day.
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What kind of rates did you get?

Origination costs?
 
Quick question. With physician loan lenders who don't count fed student loans, does it mean that the student loans have to be deferred or in forbearance? If I refinance my student loans with a private lender (DBR or SoFi), then will that student loans be counted?

Thanks.
 
bjackrian said:
Rates were 4.125-4.5% depending on points paid. Origination was 1% for us, though I think there were ways to get that credited back.
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Thank you very much. I am getting quotes here for 3.6-3.875. Appreciate the help
 
I hope someone can help me with this problem !!
I am a dentist in New York, started as associate from December 2015. Applied for physicians mortgage from BOA with 5% down and currently under contract for a 610k house.
My application before it reached the underwriter was checked and double checked for any potential cause for denial and was found good. Just few days after commitment became due the underwriter demanded that my loan should be either in forbearance or in deferment for at least one year after closing.
This is exactly contradictory to what the loan officer wanted me to do. In fact I had 0$ repayment till October 2016 and based on my 2015 return it would be 70$ for another year. But he made me change my IBR to a dollar amount as he said I must show at least one year repayment after closing, which I have right now.
Now, after this demand by underwriter to revert back my student loan to forbearance or get denied I am in pretty bad situation. The bank staff themselves are scratching their heads trying to find out why this went bad or if they can convince the underwriters in reconsidering positively.
Now is there any chance that underwriters change their decision?
If they don't is there anybody in New York who would get me approved with only one year of payment calculated on my IBR? What are my options?
Thanks
 
I am self-employed and exploring the beginning of the mortgage process, probably apply in a year or 2.

Anyways, I have read nightmare after nightmare about self-employed applicants getting denied, even if they have strong down payments and excellent credit scores. Banks are scared to lend money to self employed doctors, even the special "physician loan" programs.

Has anybody successfully used a physician mortgage as self-employed?

One method I want to try is to get underwriter approval BEFORE making an offer on a house. One problem I have researched with self employed applicants is that the loan officer makes all kinds of BS promises that he can't deliver on, assuming that the underwriter will approve it, when in reality the UWs view of the mortgage application is 180 degrees opposite from the optimistic loan officer evaluation.

It's pretty much impossible for the borrower to speak directly to the underwriter, so I want to choose a loan program that will allow the UW to evaluate everything in advance. I want to avoid at all costs, the scenario where the loan officer tells me I'm "approved" only to find out the day before closing that the UW denied the application.
 
Socrates25 said:
I am self-employed and exploring the beginning of the mortgage process, probably apply in a year or 2.

Anyways, I have read nightmare after nightmare about self-employed applicants getting denied, even if they have strong down payments and excellent credit scores. Banks are scared to lend money to self employed doctors, even the special "physician loan" programs.

Has anybody successfully used a physician mortgage as self-employed?

One method I want to try is to get underwriter approval BEFORE making an offer on a house. One problem I have researched with self employed applicants is that the loan officer makes all kinds of BS promises that he can't deliver on, assuming that the underwriter will approve it, when in reality the UWs view of the mortgage application is 180 degrees opposite from the optimistic loan officer evaluation.

It's pretty much impossible for the borrower to speak directly to the underwriter, so I want to choose a loan program that will allow the UW to evaluate everything in advance. I want to avoid at all costs, the scenario where the loan officer tells me I'm "approved" only to find out the day before closing that the UW denied the application.
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Having just gone through the process of a physician's loan and being given the final clear to close, I think the key to a streamlined experience like you're describing is being very up-front with your expectations and relentless with verifying everything you ask the loan officer as being 100% what underwriting approves. Your 1-2 year timeframe is good since they will want two years of tax documentation and that will lend credence to your stable income from self-employment.

Verifying how and under what conditions they will consider your student loans, if you have any, is definitely important. I made sure to get written confirmation of everything that I verified (which was key since our loan officer changed companies and I had to finish with a different one). As long as you pretty much disclose and verify everything to begin with before pre-approval (and tell them you want 0% chance of failure or you won't pursue the loan at all), I think it will be fine and your pre-approval will be the accurate reflection of your approval status.

One of the best things to do is to make your finances as simple as possible before submitting for pre-approval (make sure all funds are properly seasoned to avoid extra documentation, e.g., no large deposits within 60 days / two bank statements of submitting pre-approval info unless part of your paycheck, preferably no or very limited cash transactions, etc.). The underwriter at the company I used had layers of human shields - no way I could ever contact the guy about anything. As an attending, I imagine it will probably be quite a bit easier for the whole process given you're a more favorable borrower.

Sorry if that information is all old news for you.
 
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begottedBDS said:
I hope someone can help me with this problem !!
I am a dentist in New York, started as associate from December 2015. Applied for physicians mortgage from BOA with 5% down and currently under contract for a 610k house.
My application before it reached the underwriter was checked and double checked for any potential cause for denial and was found good. Just few days after commitment became due the underwriter demanded that my loan should be either in forbearance or in deferment for at least one year after closing.
This is exactly contradictory to what the loan officer wanted me to do. In fact I had 0$ repayment till October 2016 and based on my 2015 return it would be 70$ for another year. But he made me change my IBR to a dollar amount as he said I must show at least one year repayment after closing, which I have right now.
Now, after this demand by underwriter to revert back my student loan to forbearance or get denied I am in pretty bad situation. The bank staff themselves are scratching their heads trying to find out why this went bad or if they can convince the underwriters in reconsidering positively.
Now is there any chance that underwriters change their decision?
If they don't is there anybody in New York who would get me approved with only one year of payment calculated on my IBR? What are my options?
Thanks
Click to expand...
If you have a period of forebearance or deferment available and can document this, you can likely salvage the loan. Your best bet would likely be having the loan servicer draft a custom document for you verifying $0 monthly payments until October 2016 and then stating that at that time you may then enter a period of forebearance, of which you have XX months available. If you can convince them that your decision must be delayed and that you are at no increased financial obligation due to loans until that time, it might work. If no forebearance/deferment is even available, it very possibly might not pan out.
 
blue0rchid said:
Quick question. With physician loan lenders who don't count fed student loans, does it mean that the student loans have to be deferred or in forbearance? If I refinance my student loans with a private lender (DBR or SoFi), then will that student loans be counted?

Thanks.
Click to expand...
If you don't want them considered they do "have to" be in forebearance or deferment. You cannot enter forebearance or deferment until 90 days before the end of your six-month grace period, however. The moral of the story is that the best time to get a physician's loan is with a closing date before or within two months or so of your graduation. If you want to obtain one of these loans, do not refinance until after you have closed on the home. Federal loans have standard six month post-graduate grace periods (which count as "deferment" to underwriters, but are interrupted if you do any refinancing, private or government) and have generous, easily documentable forebearance/deferment time periods (which are terrible deals to actually utilize).
 
What are the standard upper limits of physician-loan mortgages for PGY1 loans with 750+ credit score and $0 down? I'm looking to buy and my ideal starter house is listed at $260k +/-$5k. I would probably stay there 5-7 years max, and move to a nicer house once student loans ($220-230k) are paid down.
 
Anybody want to post recent 30 year fixed jumbo physician loan rates (<20% down) ?

I obtained a $900k loan with 10% down in 2014 for 4.275. I refinanced to 3.875 in 2015. No luck getting any lower recently.

Friends with at least 20% down have been getting below 3.5.
 
Anyone have any experience with 0-down loans recently? My wife just started IM residency, she's MD/Phd so we have no student loans. Combined income is $150k and our only debt is one car payment (for an appreciating-in-value car), DTI is around 6%, credit scores hover around 790-800. Don't have money for a down payment as we're pursuing IVF and don't want to touch retirement accounts for a down payment.
 
HusbandOfMdPhd said:
Anyone have any experience with 0-down loans recently? My wife just started IM residency, she's MD/Phd so we have no student loans. Combined income is $150k and our only debt is one car payment (for an appreciating-in-value car), DTI is around 6%. Don't have money for a down payment as we're pursuing IVF and don't want to touch retirement accounts for a down payment.
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have you considered renting for a year and then putting ~20k down?
 
sb247 said:
have you considered renting for a year and then putting ~20k down?
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$20k is an IVF cycle though, and given the reasons for IVF we don't want to delay that. We stayed in the same city for residency and are planning on settling here long term as well. A nice house in the area we want runs 400-600k
 
HusbandOfMdPhd said:
$20k is an IVF cycle though, and given the reasons for IVF we don't want to delay that. We stayed in the same city for residency and are planning on settling here long term as well. A nice house in the area we want runs 400-600k
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sorry, I tend to think rural southeast where a nice house is $200
 
HusbandOfMdPhd said:
Anyone have any experience with 0-down loans recently? My wife just started IM residency, she's MD/Phd so we have no student loans. Combined income is $150k and our only debt is one car payment (for an appreciating-in-value car), DTI is around 6%, credit scores hover around 790-800. Don't have money for a down payment as we're pursuing IVF and don't want to touch retirement accounts for a down payment.
Click to expand...
We're 2 years into a $390k loan, $0 down, interest rate of 3.999. My credit score at the time was only like 740-750 I think, so you might be able to do a little better. This is our second loan with SunTrust and have been very pleased both times.

We also did IVF (took 2 rounds but ended up with now 9 month old twin girls). If I might make a suggestion: if you can afford it, go to the best place you can. IVF is extremely operator-dependent so its often worth a few extra thousand to travel to a really good place. Feel free to PM me about that if you'd like.
 
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Recently offered a 3.65% , 5% down , up to 640k physician loan.


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I got jacked In a 5/1 arm loan 0down( grateful for the $) rate of 3.2, But the house was appraised 10 k over the loan amount and I'm paying 500 extra to it a month, hopefully to refinance in 3-5 y to a traditional one.
Is 500 too little for that goal?


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I have to say we just finished with BBVA and although it worked out...it was a pain in the ass.

You have to defer your loans (or show proof for at least one year past your closing date). The underwriter kept having us submit documents (fellowship contract offer, signed contract, etc., except DNA testing), which is to be expected but it was a PITA. My wife and I both have credit scores >800.
 
Hey all, was hoping to be able to rent for my second two years of residency, but the location has mainly options for college students, and most of the properties have no garage, and won't take a dog, and the management companies won't even ask the landlord about a physician renting the home being a possible reason to consider a pet. That means my husband and I are probably looking to buy something...

According to the link above, my three options are BOA, BBVA, and Citywide. Anyone have thoughts about the three companies? Anyone have thoughts about just attempting a regular lender first? Likely I'll rent the property once I leave it, because I have two other rental properties already...

Thoughts?
 
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Hey guys. I'll be purchasing a home this summer and have been looking into the doctor loan mortgage programs on LeverageRx. Has anyone used these and are there any drawbacks to them??
 
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Have any of you used any of the mortgage lenders from the WCI site? Thoughts vs local?
 
fahimaz7 said:
Have any of you used any of the mortgage lenders from the WCI site? Thoughts vs local?
Click to expand...

I tried. Here are my thoughts.

https://forums.studentdoctor.net/threads/doctor-loan-mortgage-programs.1245847/#post-18720260

Several of them actually turned out not to offer doctor loans in my area because they were in a different part of my state. One of them told me that they didn't offer doctor mortgages at all. I emailed WCI about this, but they're still on the site. Shrug.
 
I've been looking into a few and actually got preapproved for $190k. The only thing was my interest rate was high (I think due to the prime rate increasing in recent months) around 4.5-4.6% for a 7 year ARM. Assuming I find a house I like, I still think I will pull the trigger. This is due to in part that I matched in an area I want to stay after as an attending, but it sucks knowing we missed the good deals by a year.
 
Louisiana incoming intern. Not many banks offer physician loan program in Louisiana. I went through the list of lenders on WCI website and was frustrated with loan officers contradicting themselves. My advice is to contact who have knowledge and specialize in physician mortgage loans. I was looking for a townhouse ~150K. Middle credit score is 764. Here is what I got:

SunTrust – Great customer service, did not offer the program in Louisiana, but provided me with conventional loan information. 30 years fix Interest rate 4.0 plus 4k closing cost + 5% down

BofA – 30 years fix rate 4.125 closing 4.5k closing plus 14k down payment

Fairway Independent Mortgage Corp (local lender) – Program is new to them. Took 1 or 2 days to response but at the end. 30 years fix Rate 4.25 closing 6K plus 14k down payment

Region Bank (local lender) – Ran my credit report, but will not provide me with figure until I provide her with a forbearance or deferment letter of student loan. Or wait till I am in residency. Communication back and fore. Finally, I give up.

BancorpSouth Bank (local lender) – I am fortunate to contact a Loan Officer who have extensive knowledge on physician mortgage loan. Went very smoothly so far. 30 years fix rate 4.0, closing cost 4k, no down payment.
I choose a 5/1 ARM rate 3.15, no down payment, no admin fee (save 1.5K), closing cost 2.5K. Close 60 days before start of residency – May 3rd. Contact info: Chris Holden (318-564-2706), physician loans in Louisiana, Dallas, Oklahoma, New Mexico, and Mississippi.
 
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These posts with concrete interest rates are awesome. The best I have got is 3.49 7/1 ARM with Suntrust.

Some of my loans say "in school" while others say deferment. Do they all need to say "deferment"?
 
I actually went with another lendor and just recently signed a purchase agreement for a condo. My interest rate is from 3.45%-3.65% on a 5 and 7 ARM respectively.
 
I'm working on an attending level one ATM. Should be interesting...
 
Very useful stuff thanks all. What's your experinces with early payoff penalties?
 
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