"Doctor Loan/Physician Loan Programs"

[DOCTOR LOAN PRO]

I mean we talked to him afterwards about it and he didn't say it was a typo....can you link me this law please?? Btw we ditched him obviously and are now going with FHA 3.5% down payment.

It is state specific, but if you search "high cost loan", and enter the state you are buying in, im sure you will find a ton of information. As for the FHA loan, I would recommend you try to get into another Doctor Program if possible. FHA fee's are high (1% funding fee to the Govt., and the PMI payment is increasing on 4/18.) FHA MI payments are less with a 15 year term. The below is based on a $100,000 sales price with 3.5% down, 30 year term.

.0090 x Base Mortgage/12-current​

.01150 x Base Mortgage/12 -starts 4/18/11​

Current MI payment on a $100, 000 home = $72.38​

MI payment starting on 4/18/11=$ 92.48​

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[Guile]

They do still exist! The elusive physician loan still exists, and I just spoke with someone today! Google searches work real well, and I spoke with someone from physicianloans.com

They exist, I just got one.

Did you go through physicianloans.com? Can you vouch for them? Did they give you any trouble with the mortgage or closing?

 

[tnt924]

I have been in practice now for 2 years and renting a house here in Oklahoma. I want to buy land to build or put a house on if possible. Are there loans for that? A loan for 350,000 would be ideal and I can put 5 or 10% down.

Also, I have a house in Texas that I lease to someone and making profit that I want to keep if possible.

My credit is not very good maybe 630 but my income/debt ratio was under .30

Is there anything out there for this?

 

[Guile]

I have been in practice now for 2 years and renting a house here in Oklahoma. I want to buy land to build or put a house on if possible. Are there loans for that? A loan for 350,000 would be ideal and I can put 5 or 10% down.

Also, I have a house in Texas that I lease to someone and making profit that I want to keep if possible.

My credit is not very good maybe 630 but my income/debt ratio was under .30

Is there anything out there for this?

Most banks are not excited about loaning money for new construction because the difference in new house and existing house price is at a historic high. I think you pay about a 45% premium for new construction (i.e. you could buy an existing home with same specs for 45% less).

Check out www.physicianloans.com They can even do 0% down (but would gladly take your down payment). I would also recommend working on your credit score. Any reason it is a bit low? The credit reports will tell you what factors bring down your score.

Good choice renting for the first few years. Now you know exactly where to build/buy and that you want to be there for some time. Good luck.

 

[bitterswtmocha]

It is state specific, but if you search "high cost loan", and enter the state you are buying in, im sure you will find a ton of information. As for the FHA loan, I would recommend you try to get into another Doctor Program if possible. FHA fee's are high (1% funding fee to the Govt., and the PMI payment is increasing on 4/18.) FHA MI payments are less with a 15 year term. The below is based on a $100,000 sales price with 3.5% down, 30 year term.

.0090 x Base Mortgage/12-current​

.01150 x Base Mortgage/12 -starts 4/18/11​

Current MI payment on a $100, 000 home = $72.38​

MI payment starting on 4/18/11=$ 92.48​

DoctorLoanPro, can you elaborate? I was under the impression that FHA loans are the way to go bc Doctor loans have higher closing costs and APR/interest rate (outweighing the benefit of no PMI on doctorloans). Thanks.

 

[DOCTOR LOAN PRO]

Hello,

I typically do not recommend the FHA program to my clients unless for some reason they cannot qualify for our doctor loan. Here are the major draw backs of the FHA loan:

· The Federal Housing Administration (FHA) charges a "funding fee" of 1% of the mortgage. The fee is added into your loan, and of course you pay interest on this fee. Do not confuse the FHA funding fee with a lender's 1% origination fee. This would be in addition to any lender/bank fees.
· FHA loan come with a hefty monthly mortgage insurance premium that is paid monthly. As you can see above, on 4/18 this fee is going up substantially.
· Aside from the obvious financial drawbacks, the FHA loan is VERY paper intensive, and can take 30-60 days for closing. The process will most certainly feel like a part time job for you!
· FHA requires that you pay the mortgage insurance for a minimum of 5 years even if you have more than 20% equity in the future.

Yes, the 30 year fixed rate for FHA loans may be lower than the 30 year fixed rate doctor loan. When comparing the two you NEED to take the monthly mortgage insurance payment into the mix, and not just the rate. Most of the time, the Doctor Loan payment will be substantially less. The FHA mortgage can be a very good fit for someone with limited down payment, and less than perfect credit. Again, the FHA loan will come with higher monthly payments, and higher fees.

I hope this helps!

 

[Yo GabbaPentin]

For the loan officers from Suntrust, BoA, Compass, etc, etc who are lurking on this forum... please feel free to PM me. I'm finishing up residency/fellowship in the next year or so and I will be looking. Thanks.

 

[CompassMBO]

Hello,

I typically do not recommend the FHA program to my clients unless for some reason they cannot qualify for our doctor loan. Here are the major draw backs of the FHA loan:

· The Federal Housing Administration (FHA) charges a “funding fee” of 1% of the mortgage. The fee is added into your loan, and of course you pay interest on this fee. Do not confuse the FHA funding fee with a lender’s 1% origination fee. This would be in addition to any lender/bank fees.
· FHA loan come with a hefty monthly mortgage insurance premium that is paid monthly. As you can see above, on 4/18 this fee is going up substantially.
· Aside from the obvious financial drawbacks, the FHA loan is VERY paper intensive, and can take 30-60 days for closing. The process will most certainly feel like a part time job for you!
· FHA requires that you pay the mortgage insurance for a minimum of 5 years even if you have more than 20% equity in the future.

Yes, the 30 year fixed rate for FHA loans may be lower than the 30 year fixed rate doctor loan. When comparing the two you NEED to take the monthly mortgage insurance payment into the mix, and not just the rate. Most of the time, the Doctor Loan payment will be substantially less. The FHA mortgage can be a very good fit for someone with limited down payment, and less than perfect credit. Again, the FHA loan will come with higher monthly payments, and higher fees.

I hope this helps!

As evidenced by a post I made in the other Physician's Loan thread and even though we work for competing banks, I agree with you 100%. Good post.

 

[SassyCat]

Can you have a co-borrower for a physician loan that is a non-physician?

 

[DOCTOR LOAN PRO]

Can you have a co-borrower for a physician loan that is a non-physician?

Good Question. Yes, you may have a co-borrower that is not a physician, but they will need to also be living in the home. It's usually a good idea to use a co-borrower if they will have income that can be used for qualifying. It may not be a good idea if the co-borrower has some credit issues.

 

[pablowest]

I'm still searching for Physician Loan. Hope to see it and I will tell it immediately.

 

[RoboCaptain]

Anybody know of any physician loan programs in Vermont?

 

[Buddhi]

I have tried to call physicianloans three times and left messages with no response. Are they real?

Most banks are not excited about loaning money for new construction because the difference in new house and existing house price is at a historic high. I think you pay about a 45% premium for new construction (i.e. you could buy an existing home with same specs for 45% less).

Check out www.physicianloans.com They can even do 0% down (but would gladly take your down payment). I would also recommend working on your credit score. Any reason it is a bit low? The credit reports will tell you what factors bring down your score.

Good choice renting for the first few years. Now you know exactly where to build/buy and that you want to be there for some time. Good luck.

 

[Keg]

Any of the loan officers posting here underwriting in MO? Starting my second year of residency June 24 and looking to possibly purchase... please send a PM if you're able to help out!

 

[Guile]

I have tried to call physicianloans three times and left messages with no response. Are they real?

Yeah they are for real. You can submit your contact info online and request to be contacted. I received a call within a few hours.

 

[Guile]

Any of the loan officers posting here underwriting in MO? Starting my second year of residency June 24 and looking to possibly purchase... please send a PM if you're able to help out!

Aren't you doing medicine? That wouldn't be too much time to come out ahead versus renting...

 

[DOCTOR LOAN PRO]

Any of the loan officers posting here underwriting in MO? Starting my second year of residency June 24 and looking to possibly purchase... please send a PM if you're able to help out!

Hi SDN!

Regions Bank and myself are sponsors of this thread, and I wanted to let you all know what states we are located in since that is a frequent question. We have bank branches in the following states and are able to offer our Doctor Loan anywhere within these states:

AL, AR, FL, GA, IA, IL, IN, KY, LA, MS, MO, NC, SC, TN, TX, and VA

 

[JerzDoc]

Hello,


A little about me, I'm a resident about to finish up PGY-1 year in June, and living in NJ. What physician loan programs are available to us right now? Can somebody who has good knowledge about the programs available right now shed some light on this? Thanks a lot!

 

[prr7]

Im a recent graduate from residency and want to buy a new home. I need help finding a doctor's loan. I would like it to be a new construction loan. I have a credit score of over 750 and am looking for a loan over 500k. Please help.

 

[Guile]

Im a recent graduate from residency and want to buy a new home. I need help finding a doctor's loan. I would like it to be a new construction loan. I have a credit score of over 750 and am looking for a loan over 500k. Please help.

www.physicianloans.com would be a good place to start. They beat everything I have seen so far. Regions and Suntrust also do physician loans so you can check their rates too. You might have a hard time getting a new construction loan these days with the housing market the way it is. The premium on a new construction home vs. existing is at a historic high. My best advice is to shop around with a few lenders and find a good rate. There is a lot of variability. Good luck.

 

[RIYM]

I am a newly graduated resident and will be taking my new job in Boston. I'm having a hard time finding someone to offer the doctor loan at 100% in this state. I've found that BOA offers 95%, but Tower MTG and Suntrust do not originate in MA. Does anyone know a lender that I should try or someone that I should speak with?

 

[takotsubo]

Looking to buy a house in CA. Anyone got any resources for lenders? I'm awaiting physicianloans.com to get back to me.

 

[branlove]

Does anyone know of "physician home loans" in Louisiana? It seems like all the ones I have looked into do not include Louisiana.
Thanks!

 

[DOCTOR LOAN PRO]

Hi SDN!

Regions Bank and myself are sponsors of this thread, and I wanted to let you all know what states we are located in since that is a frequent question. We have bank branches in the following states and are able to offer our Doctor Loan anywhere within these states:

AL, AR, FL, GA, IA, IL, IN, KY, LA, MS, MO, NC, SC, TN, TX, and VA

Hi Branlove,

Regions Bank does offer the "doctor loan" in Louisiana. Our program offers up 100% financing for loan amounts $650,000 and less, and 95% financing from $651,000 - $750,000. There are a few parishes (counties) that we consider to be "soft" markets, and would require a 5% down payment. Feel free to PM me or call with any questions. The banner at the top of this forum will lead directly to our website. Also, check out the link below if you are not familiar with Regions.

http://www.regions.com/promotion/why_regions.rf

 

[The White Coat Investor]

Im a recent graduate from residency and want to buy a new home. I need help finding a doctor's loan. I would like it to be a new construction loan. I have a credit score of over 750 and am looking for a loan over 500k. Please help.

Be sure you don't make yourself house poor. I'm a big fan of living like a resident for a few years after residency to save up some money and/or pay down some debt. A loan> $500K is huge, especially with the relatively poor rate you'd get on a doctor's or other non-conventional loan.

 

[The White Coat Investor]

I've put an article on my website about physician loans.

http://whitecoatinvestor.com/personal-finance/the-doctor-mortgage-loan/

 

[grlant1221]

Is anyone aware of any physician loan programs available in the state of Oregon?

 

[kdburton]

I just started working with Huntington Bank out of Columbus, OH to try to get a Doctor Loan given that the last lender I was working with couldn't get my mortgage approved due to some documentation issues with my student loans (can't get something that says what payments will be for 12 months if the majority of my loans are in grace period until Dec 2011). Has anyone else worked with Huntington or know others who have? They're offering me 100% financing with no PMI payment at 4.75% fixed rate on a 30-year mortgage with a 15 year balloon.

 

[DOCTOR LOAN PRO]

kdburton, I hear good things about Huntlington Bank. Just make sure you are fully aware of how a balloon mortgage works.

-CR

 

[mi2k]

Can someone please give me a general sense of fixed term doctor loan refinancing rates for an $800K loan (80% equity)?

 

[phage9999]

I'm finishing fellowship in a few weeks and am looking to close on a house in NY in July. The house that I've signed a contract for is $565k. I am looking to put down $65k and finance $500k with a 15 year fixed mortgage. I am currently awaiting numbers from Bank of America and Well Fargo. I am closing 2 months before I start work as an attending and have several months of cash reserves for a mortgage before I start work. Unfortunately, I would not qualify for this mortgage currently at my lowly fellow salary.

Anyone have any suggestions of other resources?

 

[UTPhysicianLoan]

Looking to buy a house in CA. Anyone got any resources for lenders? I'm awaiting physicianloans.com to get back to me.

You've probably already found a great source through Physicianloans.com but let me know if you need any other help or advice on what you're being offered. I specialize in Physician loans in Utah but would be happy to answer your questions.

 

[UTPhysicianLoan]

Can someone please give me a general sense of fixed term doctor loan refinancing rates for an $800K loan (80% equity)?

Depends on where you are buying, I do Physician Loans in Utah and we have several high balance loan areas around Salt Lake City. If you are in a high balance loan limit area you can get conventional rates (4.50% or less) up to a $729,700 loan amount. If you do not live in a high balance area then you are going to be looking at Jumbo rates, which are just under 5%, maybe 4.75% or 4.875% depending on what day you lock in your rate. Let me know if you have any more questions, I’m happy to give you some advice.

 

[kdburton]

I'm finishing fellowship in a few weeks and am looking to close on a house in NY in July. The house that I've signed a contract for is $565k. I am looking to put down $65k and finance $500k with a 15 year fixed mortgage. I am currently awaiting numbers from Bank of America and Well Fargo. I am closing 2 months before I start work as an attending and have several months of cash reserves for a mortgage before I start work. Unfortunately, I would not qualify for this mortgage currently at my lowly fellow salary.

Anyone have any suggestions of other resources?

Some lenders will accept a contract rather than needing to see pay stubs or tax returns. For instance Chase Home Lending was willing to accept my contract that wasn't active for >1mo, however they were unable to get me a loan because of some student loan documentation problems. Huntington Bank who I'm currently in the process of getting a mortgage from (through a Doctors Loan program) also accepted my contract even though I haven't started. You probably just have to call around to lenders you're interested in and just cut straight to that question.

 

[cpants]

I just started working with Huntington Bank out of Columbus, OH to try to get a Doctor Loan given that the last lender I was working with couldn't get my mortgage approved due to some documentation issues with my student loans (can't get something that says what payments will be for 12 months if the majority of my loans are in grace period until Dec 2011). Has anyone else worked with Huntington or know others who have? They're offering me 100% financing with no PMI payment at 4.75% fixed rate on a 30-year mortgage with a 15 year balloon.

I used them. Relatively painless to deal with aside from some issues with the appraisal. Check out their 5-1 and 7-1 ARM's as well. You can enjoy some lower interest rates if you are planning to be out of the house for an upgrade or relocation in 5-7 years.

 

[Guile]

I just started working with Huntington Bank out of Columbus, OH to try to get a Doctor Loan given that the last lender I was working with couldn't get my mortgage approved due to some documentation issues with my student loans (can't get something that says what payments will be for 12 months if the majority of my loans are in grace period until Dec 2011). Has anyone else worked with Huntington or know others who have? They're offering me 100% financing with no PMI payment at 4.75% fixed rate on a 30-year mortgage with a 15 year balloon.

Is this the same group as Tower Mortgage/Physicianloans.com?

 

[kdburton]

I used them. Relatively painless to deal with aside from some issues with the appraisal. Check out their 5-1 and 7-1 ARM's as well. You can enjoy some lower interest rates if you are planning to be out of the house for an upgrade or relocation in 5-7 years.

Luckily I had an appraisal through Chase Home Lending that they were willing to use so I didn't have to get one re-ordered through them. I'm hoping that shaves 1-2 weeks off the entire process haha. I didn't look into the ARMs, but I guess they didn't give me that as an option when I said I wanted to apply through the Doctors Only program...

 

[kdburton]

Is this the same group as Tower Mortgage/Physicianloans.com?

No it is different. I looked into Tower Mortgage/Physicianloans.com and it sounds like a great deal (have good ratings on BBB too), but I'm buying in MI outside of Detroit, so the house I'm buying is <$100k and the loan officer I spoke with said they wouldn't do financing for a place unless it was at least $100k

 

[Guile]

I didn't look into the ARMs, but I guess they didn't give me that as an option when I said I wanted to apply through the Doctors Only program...

Call them back. I went with an ARM and it is saving me about $300/month vs. a 30 year fixed. I'm going to sell it when I leave so there's no need for that long of a loan term. Seriously, it's really worth looking into.

I'm buying in MI outside of Detroit.

"This home insured by Smith & Wesson"?

 

[kdburton]

Call them back. I went with an ARM and it is saving me about $300/month vs. a 30 year fixed. I'm going to sell it when I leave so there's no need for that long of a loan term. Seriously, it's really worth looking into.


"This home insured by Smith & Wesson"?

What kind of interest rate do you have with the ARM? and for how long?

I found two signs online that I'm deciding between:
" This home is protected by 2nd amendment security " and has a pic of a pistol on it

" Nothing inside is worth dying for " and has a picture of a target in the shape of a human

 

[DOCTOR LOAN PRO]

Hi SDN,

Here is what happened in the mortgage backed securities market today. Basically, when MBS trade higher rates move lower, and vice versa... Let me know if you find this information helpful or at least interesting.

Tue, Jun 21 - 4:55 PM ET
CLOSING TECHNICAL SIGNAL: No clear technical signal. The confidence vote and Fed statement will be the catalysts behind any moves tomorrow.
MARKET WRAP: Mortgage Bonds finished slightly higher today ahead of the confidence vote this evening and tomorrow's FOMC policy statement. The 4% coupon settled at 100.69 up 12bp. Stock markets closed higher as investors felt that the confidence vote would prevent a default. The Dow gained 109.63 to 12,190.01, the S&P 500 closed at 1,295.52 while the Nasdaq jumped 57.60 to 2,687.26. Oil prices finished near unchanged at $93.40/barrel. There are no economic reports set for release tomorrow. The Fed statement will be released at 12:30pm ET with Chairman Bernanke to hold a news conference at 2:15pm.

 

[CompassMBO]

BBVA Compass changed their guidelines for the Professional Program (physicians, dentists, lawyers, CPA's) last week. A 5% Down Payment is now required for all loans up to $1 Million, and middle credit score has been raised from 660 to 700. It still does not require PMI. The No Down Payment feature is no longer available. This was something that was required by the Federal Government as it was determined that they felt that our portfolio of loans on our books were out-of-balance with too many of them being "high risk" (no down payment) loans, even though our Professional loans were out-performing other loans. And this was done even though Compass did not take any bailout money from the government as did many other banks.

Sometimes it just makes me want to scratch my head and say, "What is going on?"

 

[WorkaholicsAnon]

Hi SDN,

Here is what happened in the mortgage backed securities market today. Basically, when MBS trade higher rates move lower, and vice versa... Let me know if you find this information helpful or at least interesting.

Tue, Jun 21 - 4:55 PM ET
CLOSING TECHNICAL SIGNAL: No clear technical signal. The confidence vote and Fed statement will be the catalysts behind any moves tomorrow.
MARKET WRAP: Mortgage Bonds finished slightly higher today ahead of the confidence vote this evening and tomorrow's FOMC policy statement. The 4% coupon settled at 100.69 up 12bp. Stock markets closed higher as investors felt that the confidence vote would prevent a default. The Dow gained 109.63 to 12,190.01, the S&P 500 closed at 1,295.52 while the Nasdaq jumped 57.60 to 2,687.26. Oil prices finished near unchanged at $93.40/barrel. There are no economic reports set for release tomorrow. The Fed statement will be released at 12:30pm ET with Chairman Bernanke to hold a news conference at 2:15pm.

So what does this mean?

 

[DOCTOR LOAN PRO]

So what does this mean?

Mortgage bonds are trading higher this morning as the economy continues to weaken. Let’s say you were under contract and ready to lock on Tuesday 6/21. It would have been a good idea to see how the bond market reacting after the fed statement yesterday. Mortgage Backed Securities are up 35 basis points which means a lender’s pricing should be slightly lower today than yesterday. I would recommend a client to start the day of carefully “floating”, but to be on guard to lock as things can change quickly these days.

 

[The White Coat Investor]

Call them back. I went with an ARM and it is saving me about $300/month vs. a 30 year fixed. I'm going to sell it when I leave so there's no need for that long of a loan term. Seriously, it's really worth looking into.

I did the same thing 5 years ago. Now I can't sell the home at any reasonable price. If interest rates had gone up instead of down that ARM wouldn't have been such a good idea. It probably won't happen, just recognize that it could.

 

[Guile]

What kind of interest rate do you have with the ARM? and for how long?

I found two signs online that I'm deciding between:
" This home is protected by 2nd amendment security " and has a pic of a pistol on it

" Nothing inside is worth dying for " and has a picture of a target in the shape of a human

I got an interest rate of less than 3%. It worked out great. It's a 5-year ARM. Of course it could refinance up but even if it does we will still save money over the long run (we're not keeping this for more than 5 to 7 years).

Also found out that Huntington National Bank is the main investor for loans made through Physician Loans. As soon as you close with Physician Loans, Huntington buys most of their loans. They're just a broker. I'm really happy I went with them. Got a great deal. I haven't talked to anyone in person who has used them. Most at my program went with the med center's credit union and have an interest rate 3%+ more than me.

 

[trifecta]

Finishing up fellowship soon and looking to buy land and then build a home...$750-900,000 range for the total loan. In Wisconsin...anyone have ideas/suggestions? Can PM me.

 

[Guile]

Finishing up fellowship soon and looking to buy land and then build a home...$750-900,000 range for the total loan. In Wisconsin...anyone have ideas/suggestions? Can PM me.

I would say check out physicianloans.com. They have the best deal I've seen.

 

[53PhysicianLend]

I'm finishing fellowship in a few weeks and am looking to close on a house in NY in July. The house that I've signed a contract for is $565k. I am looking to put down $65k and finance $500k with a 15 year fixed mortgage. I am currently awaiting numbers from Bank of America and Well Fargo. I am closing 2 months before I start work as an attending and have several months of cash reserves for a mortgage before I start work. Unfortunately, I would not qualify for this mortgage currently at my lowly fellow salary.

Anyone have any suggestions of other resources?

Most Physician loan products will use future (contract) income to base debt to income ratios. There are a hand full of respectable banks that offer this feature. In addition, our Physician Mortgage requires No Down Payment if under 500K or 5% down up to 1MM. Doctors in their "Attending" position greater than 1 year can go up to 650K with no down payment or 10% down up to 1.5M. Both mortgages do not require Mortgage Insurance, Points, and have outstanding rates. Also, We will not reduce your loan amount if you are buying in a soft or declining market. As a super regional bank, we lend this product in the following states:

Alabama
Florida
Georgia
Illinois
Indiana
Kentucky
Michigan
Missouri
North Carolina
Ohio
Pennsylvania
South Carolina
Tennessee
Wisconsin
West Virginia

 

[stang]

Are there any 0% down physician loan programs offered in the state of New York.