Doctor/Residency Home Loan

[OhIowa07]

I was wondering if anyone has heard of or has received a doctor/residency home loan? I was speaking with a mortgage lender regarding my debt to income ration given school loans, and he told me I may qualify for a doctor/residency loan which does not take into account your school debt, up to 0% down, etc. If anyone has any comments, I would greatly appreciate it! Thank you!

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[KillerDiller]

I don't have any experience with this type of loan, but it seems strange. The salary and employment picture is very different for psychology grad students than it is for medical students. Are you sure the person you spoke with understood that you are unlikely to be making a doctor's salary? Either way, I just can't see how putting 0% down on a property in this economy is a good idea. You'd almost certainly have to get primary mortgage insurance, and would likely need to make PMI payments for several years before the monthly bill goes down to "just" your mortgage.

 

[wigflip]

I don't have any experience with this type of loan, but it seems strange. The salary and employment picture is very different for psychology grad students than it is for medical students. Are you sure the person you spoke with understood that you are unlikely to be making a doctor's salary? Either way, I just can't see how putting 0% down on a property in this economy is a good idea. You'd almost certainly have to get primary mortgage insurance, and would likely need to make PMI payments for several years before the monthly bill goes down to "just" your mortgage.

Good point about PMI. You can't write it off on your taxes like you can your interest payments. Best to avoid having to pay PMI at any cost--that could be extra money you put towards your principal every month. You still may be able to structure your loan such that you avoid PMI (say with a first and second mortgage--two separate loans of different amounts that you pay down simultaneously), but you'll still need a downpayment.

 

[Random Person]

I am interested in this also.

I am calling lenders now and will report back here.

I just applied for a 25k practice loan from suntrust and they said I qualify, but I will find out for sure in the next 72hours. Lets hope!

 

[NHPilot]

This is from BOA and others I have looked at seem to be about the same....So I would say most likely a PhD or PsyD wouldnt be eligible.....not to mention the fact that the income potential is MUCH less them a MD, DO etc.....I'm glad I am eligible for a VA loan...!!!!!....

Those eligible to apply include medical residents, existing or newly licensed Medical Doctors (M.D.), Doctors of Dental Science (D.D.S.), Doctors of Dental Medicine (D.M.D.), Dental Surgeons specializing in oral and maxillofacial surgery (D.M.D.), Doctors of Optometry (O.D.), Doctors of Ophthalmology (M.D.), Doctors or Podiatric Medicine (D.P.M.) and Doctors of Osteopathy (D.O.).
In addition, applicants must:
Be U.S. citizens, permanent-resident aliens or trustees of living trusts
Have a confirmed employment or residency start date within 60 days of loan closing
Have a minimum credit score of 720
Have a checking or savings account with Bank of America**
Be able to make at least a five percent down payment on the property from their own funds