Imprtant Home Loan Info

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Seaglass

Seaglass

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There has been some discussion about 100% physician loans not being available in all states.

IMPORTANT NEWS.

My lender (David Benson, (336) 721-4144) with BOA said he can make a 100% physician loan (no PMI, normal rates, loans don't count) in ANY STATE. He is based in Winston Salem, NC.

IF YOU CALL HIM, PLEASE MENTION ME (Casey Glass). I get some $$ off my closing costs for referrals.

He quoted me a rate of 4.125% on a 5/1 ARM today if that helps.

C, out
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Also, forgot to mention, that he can approve you NOW, PRE-MATCH, for a mortgage. I did not know this was possible. Approval takes 48 hours.
 
Originally posted by cg1155
Also, forgot to mention, that he can approve you NOW, PRE-MATCH, for a mortgage. I did not know this was possible. Approval takes 48 hours.
Click to expand...


Wow -- that would take some b@@ls to sign a mortgage before you match :wow:

I guess it could be early match people.

CG -- are you at Wake Forest? That's up there on my list. Seemed like a nice place.
 
Pre-approval is not signing for a mortgage. It allows you to be PRE-APPROVED, meaning you have already qualified for a mortgage when you find out where you are moving. It is actually a very smart idea and it doesn't take much B@lls to do that.
 
that's great news. what fico does this loan require?
 
Originally posted by NinerNiner999
Pre-approval is not signing for a mortgage. It allows you to be PRE-APPROVED, meaning you have already qualified for a mortgage when you find out where you are moving. It is actually a very smart idea and it doesn't take much B@lls to do that.
Click to expand...

Sorry -- read it too quick. I've obviously never owned a home :)
 
Yeah, what 99er said. FICO score req. is >700. I'm hoping to be at Wake but he can do a mortgage for anyone, anywhere.

C
 
cg1155,


That's a great rate. What did he say that the closing costs will be? I was quoted in AZ today 4.5% on a 5/1 arm with about $4,000.00 in closing costs. Thanks.
 
does he refinance with the same deal?
 
Yeah, a lot of folks will do the no money down mortgages for new docs. Trouble is with the PMI. The national org I'm on the Board of has put together a rather unique program with one of the biggest names in the financial industry that will do the nothing down loan like all the others, or....

1) they can work with you using your or parent investments as a "virtual down payment" to get around PMI, or ....

2) If you can put some down, will do limited-time interest only mortgages (you pick how long and that affects the interest rate, all still very low).

I don't want to put more on here, because it would likely violate TOS agreement about commercial speech. But if you want the contact info and the URL to check out the program & rates, just PM me.

By the way, I get no referral fees or anything. Just trying to spread the good news.... :hardy:
 
Thanks cg1155 - I've been pre-approved through Mr. Benson for the same mortgage! I guess you'll also be getting a reduction in your closing costs since I used you as a referral. Thanks alot.

Also, The FIGO cutoff for the Doctor's Loan through Mr. Benson is 700. He only uses the doctor-to-be's score and takes the average of the three reporting agencies.

This really saves a TON of money. With this plan, a $150,000 home will cost $975/month and you don't have to pay a cent for closing or down payment. PMI is waived, saving $200/month by itself. Huge.
 
You can avoid closing costs through the normal strategy of increasing your offer by the amount of the closing costs and having the buyer pay them (out of the extra money in your offer).

I was originally quoted a rate of 4.5% but the rate dropped by the time I applied. Mr. Benson gives you the option of locking your rate for 30 days and then, at closing, you take the better of your locked rate or the current rate.


C
 
how does he manage to do this? if you call the main boa number - they will tell you that they don't write these loans in some states. (mine)
 
Originally posted by cg1155
You can avoid closing costs through the normal strategy of increasing your offer by the amount of the closing costs and having the buyer pay them (out of the extra money in your offer).
Click to expand...

You have to be carefull with this, it is illegal in some states. Thankfully, it is legal in New York (I did it 3 years ago). I would recommend asking your broker/real estate agent. Don't organize this on your own.

Also, 4000 for closing costs is really high. I hope that includes everything (e.g. sellers attorneys fees et al.) I was quoted fees of less than 1000.

Ed
 
Indian Guide, I think he can do it because he is in a state that can make the loans. Why don't you give him a call and ask him. He seems like a nice enough guy to me.

C
 
Originally posted by edmadison
You have to be carefull with this, it is illegal in some states. Thankfully, it is legal in New York (I did it 3 years ago). I would recommend asking your broker/real estate agent. Don't organize this on your own.

Also, 4000 for closing costs is really high. I hope that includes everything (e.g. sellers attorneys fees et al.) I was quoted fees of less than 1000.

Ed
Click to expand...

you should see the closing costs in maryland. average is like 7-11k. :(
 
Also if you are using a broker, negotiate that he/she use some of the yield spread(i.e. profit) for closing costs.


BTW, has anyone had or know of someone who has used and had success with Mike Smela over at physcian lender.com?

If anyone has any info on how to obtain a 5/1 Interest only ARM with no down, NO PMI......let me know.

The Merry Lynch thing wont work for me, because I am poor and my folks definetly are not putting up their assests to secure a home loan for me
 
Call David with BOA at the number above - 5/1 arm, standard or no-interest, 0 down, 0 PMI. All you need is credit score >700. I was looking at the interest only loan and it worked out to be slightly HIGHER than the doctor's loan.
 
i just got 200k loan, 4.25%, 0 pts.
 
did you get it from this david benson guy? what state are you in?
 
Are there any options out there for a person with a 650 score?

Also my score is what I got when I checked it with the 3 agencies. Will it be higher when they do it at the bank since they do not take into account the student loans?

Thank you in advance for any suggestions, help!
 
With the loans not counted, it should "should" be higher. Your score should wash out to at least a 660, which would qualify you for an 80/15 loan, which basically requires a 5% down payment on the house, and finances the remaining 95% with two loans, one for 80% and the other for 15%. Doing this allows you to save mortgage insurance (PMI) which cas add $$$$ to you monthly payment.
 
i misspoke earlier - dayum -

anyway, this is my situation - my credit scores are 770,781, 765 but my income is tiny. and i dont have any W2s or anything - all i have are stocks and cash.

this is what my broker offered me (not the one mentioned by OP): NINA loan, 5 yr ARM, 0 pts, 4.375%, no prepay penalty, 0 down, $1500 closing costs.


i bet if my income was ok, this would drop to 3.8%, $0 closing costs for a conventional loan, but alas....


+pissed+ +pissed+ +pissed+
 
Originally posted by chef
i misspoke earlier - dayum -

anyway, this is my situation - my credit scores are 770,781, 765 but my income is tiny. and i dont have any W2s or anything - all i have are stocks and cash.

this is what my broker offered me (not the one mentioned by OP): NINA loan, 5 yr ARM, 0 pts, 4.375%, no prepay penalty, 0 down, $1500 closing costs.


i bet if my income was ok, this would drop to 3.8%, $0 closing costs for a conventional loan, but alas....
Click to expand...

Sorry about the poor rate. Don't get excited if they offer you a "no prepay penalty loan" that is illegal in most states. Further the closing costs of $1500 are pretty good. I'd love to know how you'd plan on getting a loan with no closing costs, unless you had a really motivated seller.

Ed
 
ANybody have any info on getting a interest only loan, with no down, no PMI?

All help would be greatly appreciated
 
Originally posted by InGasWeTrust
ANybody have any info on getting a interest only loan, with no down, no PMI?

All help would be greatly appreciated
Click to expand...


I spoke to a broker recently and was told that it is very difficult to get an interest only loan without PMI. Good luck though.

Ed
 
My family members told me that getting an ARM is bad idea because your rate may be low now but can be very high later. They also said it is best to take advantage of the low interest rates by locking them in (30 year mortage).

I would love to know more about the different 1st time home buyer programs state's have for new physicians.




Cozy
 
The idea with the ARM is that you're almost certainly going to be moving after residency, so you don't really ever make payments under the adjusted rate. If you are going to be in the house long term then I agree, lock the rate.

C
 
Drcozy,

I would urge you to not listen to your family and listen to Al(MR. Greenspan)

He recently stated that people in general are paying too much for mortgages. We are in a mobile society, and I can assure you that you will move once you complete your residency. So why pay all the cost associated with a 30yr mortgage.

And even if the mortgage adjust, I am sure after you complete residency you will be able to handle it.

In fact if I were you I would be trying to get a interest only loan, granted in 4-5yrs you may not "make" money, but you got the use of a residence with all the great tax benefits of homeownership.

***Begin Rant****
I am hating the whole salary issue 38K that is it!!!!!!
The mortgage guy said based on my salary I can get up to 165k max!!!!! WTF! I just sold my house for 194K, which my wife purchased 2.5yrs ago for 163k!

Why cant we get paid a decent wage so we can afford a freaking decent house for our families?

My wife is just in tears at the amount we are going to be able to afford off my salary. I guess no kids, no trips, no charity giving in the forseeable future
*****END Rant****
 
Originally posted by drcozy
My family members told me that getting an ARM is bad idea because your rate may be low now but can be very high later. They also said it is best to take advantage of the low interest rates by locking them in (30 year mortage).

I would love to know more about the different 1st time home buyer programs state's have for new physicians.




Cozy
Click to expand...

this is true, however there is a cap that the rate can increase, and it can only increase at certain times.

but cg is right-- most of the time ARMs are used for when people plan on living in one place less than 5 years, ie residency.

also, i have seen physician home loan programs, and first time buyer programs, but haven't seen anything with both combined into one. our loan officer at BoA didn't have any combination type programs, either. so if you find something let us know :)
 
I am hating the whole salary issue 38K that is it!!!!!!
The mortgage guy said based on my salary I can get up to 165k max!!!!! WTF! I just sold my house for 194K, which my wife purchased 2.5yrs ago for 163k!

Why cant we get paid a decent wage so we can afford a freaking decent house for our families?

My wife is just in tears at the amount we are going to be able to afford off my salary. I guess no kids, no trips, no charity giving in the forseeable future
*****END Rant****
Click to expand...

Apply for a no doc loan not based on your salary. With you and your wife on the same loan, you should at least get 250k with no doc.
 
here are some things i have found out. david benson of NC said he cant do physician loans in MA or RI (where I am going to be of course).

I tried physicianlender.com and with my credit score of low 700's the interest rate on either a 5/1 ARM or an interest only loan is 6.25% and the rate on a 30 year fixed is 7.25%. this is INSANE. it is a total shakedown and a screwjob.

anyone else have any other lenders they have found that dont take student loans into consideration?
 
Did you tell them that you are buying a house, NOT a car? thanks for the update... My score is in the 650 range. I am going to try PhysicianLoans.com, I'll let you all know how this one turns out.
 
physicianloans not licensed in RI. damn! still trying to find a new doctor program in my state....will keep you updated.
 
Update

I talked to the BofA people and they said that with less than 705 score they can't do a Physician Loan, however they can still do a 100% FHA loan (only 30 year fixed) with a quote of 5.50%.

I'm going to try Suntrust and Compass aswell...
 
Greetings,

I am also currently dealing with the home mortgage fiasco and thought I'd tap your wisdom. First off, how does one research multiple potential lenders to get programs and rates without having credit checks done by each company? I made the mistake of talking to my local Wells Fargo mortgage guy early on in the process and before I knew it we ran a credit check and processed pre-approval of a $180000 loan based solely on my $42000 salary. However, he was working with assumption that I was going to put upward of $20,000 down which I don't think I want to do...I anticipate other expenses soon (baby) and want to save my cash on hand. So I have looked into the physician loan program which is basically an 80/20 with no down, no PMI, etc. Pretty good, but the rate of the 20% mortgage is 7.35%, quite high it seems to me and the monthly payments end up several hundred dollars more expensive. So I re-consulted the Wells Fargo guy and talked about doing an 80/15/5 with a home equity line of credit as the second mortgage from which I could draw needed cash. Any opinions about doing that? Now I am looking on the internet and seeing some of the great rates, much better than Wells Fargo is offering and wondering how I should proceed, especially since I don't want five credit checks done in the next week. Any ideas? Any thoughts on down payment vs no down payment when I have cash available, but also anticipate further expenses soon?

thanks for any input!

Oh, a 5/1 ARM would be optimal...i think.
 
I am in the Home buying process as well, again!

My opinion is that it is always better to SAVE your cash. Interest rates are relatively low, and with the potential tax benefits it is better to go bigger on the mortgage with little to no down. I rather have 10-20k in the bank with a 1400 note. Then broke with a 1200 Note. Plus when you buy a house you will want furniture, car, etc.... Trust me I know for personal experience
 
okay these physicianlenders, physicianloans etc seem a bit shady to me. much higher interest rates. this is one mans opinion tho.

if you can do the bank of america thing, go for it, you are a lucky dog.

just got off the phone with suntrust....they have the physician loan but offer them only in the southeast US. their number is 800-336-1197

more to come.....
 
oh and Oftalmologo, I got my FICO from myfico.com also so i knew what my score was then when i call banks, i say hey what kind of rates do you have for someone with a 710 FICO. then they dont have to check your credit.
 
If anyone is in the market for a home mortgage. I've found a great mortgage company that will beat most any bank rates and will work with medical students and future residents to obtain any type mortgage. They can do mortgages for Alabama and Florida.

Houchins Mortgage Co., Inc.
Gardendale, AL

Ask for Chris Pickens, his phone # is 205-608-2970
 
okay an update....i cant find any physician loan program in RI. I tried wells fargo, citizens bank, sovereign bank and more. they all take student loans into consideration and at wells fargo, they said they calculate a 1% monthly repayment right away (deferment is ignored) and so with my 200K+, basically my phantom 2K loan payment is my whole paycheck. so no loan thru wells fargo.

i called david benson back at BOA and they have a 3% down loan where they will not count my loans, with PMI at 5.5% for 30 year fixed (the only option). he said i can probably quailfy for ~225K. i did the math and this loan with PMI has lower monthly payments than physicianlender.com at 6.25% 5/1 ARM or 7.25% 30-year without PMI. So I am going with it. The rate isnt the best, but considering everyone else will take my loans into consideration, it seems like the best option.

Also I plan to stay put after residency so it works better for me.
 
has anyone talked with this Benson guy for specific FICO score for the physician lender program? Our BoA loan officer insists that we need a middle score of 720 to qualify, period. "It's Bank of America policy" If he's doing them for people over 700 we'd do it in a heartbeat, 'cause we've have around a 710 for our middle score. It sucks they won't lower their requirements at all. i guess that's what you get for dealing with a national bank, lol.
 
optho - what rates is the guy offering?
 
Rates change so depends when you call him but he can beat almost any bank offer and will work with you to meet your needs. He can only do mortgages in AL and FL though. Give him a call.
 
anybody have any idea on how to handle moving expenses--we're (probably) moving cross country--ideally would like to use a moving company , but no way do I want to pay that kind of jack. Is it possible to take out :rolleyes: another:rolleyes: loan for this?the residency I'll be at offers no moving assistance.
 
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