"Doctor Mortgage" in Colorado?

[robotech]

Hey all,

I'm sure that many of you, like myself, received a postcard from Bank of America advertising their "no money down blah blah blah" Doctor Mortgage. Trouble is, they only service specific states (approx 30) and Colorado is not one of them. Anyone have experience with a bank that offers a similar loan in CO? Any help would be great!

Congrats to all in the match!

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[Mumpu]

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[Allygator89]

Hey all,

I'm sure that many of you, like myself, received a postcard from Bank of America advertising their "no money down blah blah blah" Doctor Mortgage. Trouble is, they only service specific states (approx 30) and Colorado is not one of them. Anyone have experience with a bank that offers a similar loan in CO? Any help would be great!

Congrats to all in the match!

For all others out there that are interested in the Doctor's mortgage.. if you have money to put down as a down payment and decent credit, you can usually get more money from B of A through a 30 year fixed or an 80/15/5 loan with better rates. For us, it came out a bit less, even having PMI included. So make sure you look at all options before you lock yourself into the doctor's loan.

 

[cchoukal]

I found the doctor mortgage pretty unhelpful. Basically, they offered no down payment without mortgage insurance, and that was about it. It wasn't like they were willing to approve me for a larger amount or anything. For me, they would approve about 150K, which, in chicago, doesn't buy squat. I'd check it out; you never know, but I wouldn't look at it like some amazing deal that you can't live without if they don't offer it in your state.

 

[Mumpu]

The beauty of MD loans is that you can get a good deal as a brand-new grad with mininal money in the bank and no PMI which can be a significant additional cost. "Some savings" is not enough -- in order to not pay mortgage insurance you have to make a 20% downpayment. Unless medicine is your second career or you have rich parents, no way will you have a $20000+ down payment.

30-year fixed is a waste of money since a 5-year ARM will have a better rate and you will very likely move to a bigger and more expensive house after the residency.

You can do a "no documentation" loan that will lend you as much as you would want to get yourself into financial trouble. The safeguards of mortgage limits are there for a reason. To use your example, I would not be able to comfortably afford a 160K mortgage. Another advantage of the MD loan is that you actually build equity (albeit slower than you would if you had a down payment). This is way better than the cheapest loan option -- the foolish "interest-only" (why not just save on closing fees and rent instead?).

 

[f_w]

The beauty of MD loans is that you can get a good deal as a brand-new grad with mininal money in the bank and no PMI which can be a significant additional cost. "Some savings" is not enough -- in order to not pay mortgage insurance you have to make a 20% downpayment.

Or you can do a 80/20. A conventional 20% down mortgage with the 20% financed as a HELOC. The HELOC will have a market based interest rate, typically higher than the primary mortgage. But if you live a bit more frugal for the first year or two, you can pay it off and reduce your payment to the primary mortgage. This can be cheaper than doing a 100% with PMI.

Unless medicine is your second career or you have rich parents, no way will you have a $20000+ down payment.

I have seen enough residents driving 35k cars. It takes some planning, but it is certainly not impossible.

30-year fixed is a waste of money since a 5-year ARM will have a better rate and you will very likely move to a bigger and more expensive house after the residency.

Or you will get crushed by runaway interest rates and a crumbling local real estate market.
The market for the kind of starter homes or condos residents typically buy is dependent on the vitality of the local manufacturing economy. A defense contract going to a competitor and your 140k house is suddenly only sellable at 120k with a new car thrown in for the buyer.

 

[Doc Oc]

Anyone moving to Detroit and the suburbs - you probably don't want to buy a house if you're worried about selling in three years, the market here is awful - even with incentives people are taking over a year to sell their homes. Just drive around the suburbs and nearly every street has more than one house for sale.

You can apply for the B of A doc mortgage and use it as a bargaining chip. We got a local bank to give us a 100% mortgage without PMI with a better rate than B of A was offering.

Maybe, if the banks in Colo. don't know much about the doctor loan, you can call and describe it to them and say you were thinking of using them if they have a competitive program similar to it. They probably don't know that you can't get that loan anyway.

 

[bjackrian]

bump for the OP's question on doctor loans in Colorado in the current economy.

 

[yaah]

Moving this to the finance forum - you may also be able to find answers there already.

 

[t33sg1rl]

Anyone have any info on doctor's loans (in Co or any other state) post financial mess? Are these still available? I'm planning on applying for a mortgage in March as soon as Match results are in. I already know where I'll be for residency and my absolute dream house just went on the market. I won't have any trouble making the monthly payment-debt/income ratios will be just fine, even if student loan payments are included-but realistically, after we pay closing costs and moving expenses, we'll only be able to put a 5% or so down payment. Are banks still making low/no down payment loans to docs?

 

[2ez]

Anyone have any info on doctor's loans (in Co or any other state) post financial mess? Are these still available? I'm planning on applying for a mortgage in March as soon as Match results are in. I already know where I'll be for residency and my absolute dream house just went on the market. I won't have any trouble making the monthly payment-debt/income ratios will be just fine, even if student loan payments are included-but realistically, after we pay closing costs and moving expenses, we'll only be able to put a 5% or so down payment. Are banks still making low/no down payment loans to docs?

Consider FHA and if you really want a home bad and don't mind giving back....consider NACA: https://www.naca.com/index_main.jsp

 

[doctorloans]

Hey guys,

It's been a while since I've been on the boards! Things have been moving along, that's good to see.

The Doctor Loan is alive and well, and still stands as a 0% down, no PMI loan. In addition, the doctor loan is available in Colorado, please PM me for futher details, I'll be glad to help.

Good luck to everyone this year with Match Day!