mortgages

[djones]

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Could someone provide some guidance for me? What is the best way to find $ for renovations? We're thinking of buying a house at 83K but it would probably need 10K to finish the basement. But Bank of America says their policy is they won't give any more than the cost of the house for the physician loan. Should I just go to a random local bank and ask for a personal loan?

As many of you may know, you have two options here. One is to purchase the house then immediately take a home equity line of credit up to the appraised value. Alternatively, you can use the physician loan in conjunction with a construction to permanent loan to finance the renovations. In a CP, as they are called, the loan (at Suntrust) is based off of what will be the appraised value after the work is completed and not the purchase price. The construction funds and the purchase money is provided upfront in one closing. The construction funds are drawn to pay the contractor and, once completed, the loan automatically rolls into the permanent (Physician) mortgage that you have locked upfront. To find out more, I'd suggest an internet search on Construction to Permanent loans.

 

[tridoc13]

I am getting 2-3 residency relocastion loans, paying off all my credit cards, and investing thed rest. These are student loans, and will always be.

I didn't know I could get more than one residency relocation loan...! 🙂 Really? That could help a lot. I already got one through Access Group. Any suggestions for others??? Thanks for the info!

 

[miamidc]

I didn't know I could get more than one residency relocation loan...! 🙂 Really? That could help a lot. I already got one through Access Group. Any suggestions for others??? Thanks for the info!

Bank of America
Sally Mae
Do a search there are quite a few
I just got B of A, almost got sally mae - need to give them a letter saying waht I am going to use it for because they said they only lend to the school limit, but they said they would hook me up.
Access is in the proccess, will find out if i get it tom.

Good luck

 

[tridoc13]

Excellent! Thanks so much. I'll get on that today.

 

[tridoc13]

Just wanted to say thank you again. I applied for both the Citibank and Sallie Mae residency relocation loans and was approved for both. The money will be slapped down on those credit cards as soon as I get it. Thanks again for the advice. It was greatly appreciated!!!

 

[Stephanieukmed]

Just wanted to say thank you again. I applied for both the Citibank and Sallie Mae residency relocation loans and was approved for both. The money will be slapped down on those credit cards as soon as I get it. Thanks again for the advice. It was greatly appreciated!!!

Can somebody explain to me the difference between the MedEX loan from Sallie Mae (the one for residency interviews and relocation) and these other relocation loans. Where did you find the info on them? It would really help my ability to qualify for a better mortgage (my salary is the low end 38,000) so I can't get much of a mortgage anyway. Thanks.

 

[APACHE3]

I got the nellie mae residency interview loan...is that the same as residency relocation loan? 😕

 

[gutonc]

Bank of America
Sally Mae
Do a search there are quite a few
I just got B of A, almost got sally mae - need to give them a letter saying waht I am going to use it for because they said they only lend to the school limit, but they said they would hook me up.
Access is in the proccess, will find out if i get it tom.

Good luck

BoA has a bunch of weird loans I've never heard of and nothing I can find that's the same as the Sallie Mae Residency Relocation Loan. Which particular loan was it that you got from them?

Thanks,
BE

 

[mward04]

Ok, so I just bought using Suntrust Doctors loan. My int. rate is 6.25, but my APR is 9%! That seems high, but I guess since I'm not putting anything down, and I do have tons of student loans, maybe this is there way of making it up. My FICO is around 700. Doctor loan or no doctor loan, the bank WILL make money off you one way or another. This is my first house, so I'll chalk it up as a learning experience, and once out of residency, I hope things will improve for me. I'm too fatigued to shop around. I was trying to use BA (my own bank), but the guy just didn;t seem intrested in serving me,and I started to shop around online. BEWARE..if you shop rates..the different mortgage companies WILL run CREDIT CHECKS, this = FICO decrease!!! Anyway, I wont complain. the mortgage payment is the same as a 3 BR apartment (I have 2 kids), so maybe try a couple of places and just go with who you feel better with. SUntrust so far has been very nice. As for Indiana bank, I interviewed there and I think its Regions that does a doc loan as a resident told me. GL

Just to add a comment to this. Don't prequalify for every loan you see. Ask for a Good Faith Estimate from about 3-5 places and then apply for those you like. This will limit the number of times your credit is checked.

Incidentally, don't forget you can negotiate on closing costs i.e. documentation fees etc. Once you've shopped around, go back to these guys (that are reading this) and tell them what you've got. If they want your business, they'll lower their fees.

 

[hermione]

let me know what you find out. be wary though...I applied for several and was approved for all of them, I was ready to take two but once I printed the promisary notes, thst was where it said you agreed not to take any other loan for the same purpose. ie a second res/rel. loan. now I don't know how they would find out if you did, but it wasn't worth the risk to me. i'm interested to see if you can find out...

 

[k's mom]

I've spoken with 4 banks that offer the same kind of deal, so b of a clearly isn't the only one. SunTrust Mortgage is one that sent me something just today. 2 others were local banks, but I'm sure that there are local banks in other areas that do the same.

With BOA, (which I have always despised, but will most likely use because they have been so wonderful with this process), they truly DO NOT USE your student loans in the calculations. We are getting a 100% purchase price 7/1 ARM (NOT IO) with no pmi, origination fees or points, although we do have very good credit. I can't say for certain with other banks, but my understanding is they give you a NO DOC (meaning "document", not "doctor" 😛 ) loan which is different and has a higher interest rate. Sure enough, the two other banks we looked at (Compass and ????) never said it was a NO DOC loan, but gave us pre-approval without asking for any documentation, of course the interest rates were much higher. Make sure to specify with your lender.

 

[EM Junkie]

With BOA, (which I have always despised, but will most likely use because they have been so wonderful with this process), they truly DO NOT USE your student loans in the calculations. We are getting a 100% purchase price 7/1 ARM (NOT IO) with no pmi, origination fees or points, although we do have very good credit. I can't say for certain with other banks, but my understanding is they give you a NO DOC (meaning "document", not "doctor" 😛 ) loan which is different and has a higher interest rate. Sure enough, the two other banks we looked at (Compass and ????) never said it was a NO DOC loan, but gave us pre-approval without asking for any documentation, of course the interest rates were much higher. Make sure to specify with your lender.

Do you mind sharing the interest rate you got and the state the property is located in?

 

[k's mom]

Do you mind sharing the interest rate you got and the state the property is located in?

6.0, PA

 

[Poety]

If anyof that private debt you have are private student loans, they still count as student loans, and will not affect your credit score or your mortgage rate. If however it is all credit cards, or other debt like car, etc, you really need to pay off as much of that as possible if not you won't pull a mortgage for more than $80,000. I have $25,000 in credit cards, and they were telling me I could get $130,000 in mortgage. I am getting 2-3 residency relocastion loans, paying off all my credit cards, and investing thed rest. These are student loans, and will always be. I would strongly consider doing this, if you can't get a check from pops. If not that sh_t will eat you up. Good Luck.

Hi miami,

Try Quicken Loans - they're closing me in a weeks notice, no doc - total closing costs 8K (but I BOUGTH POINTS that cost me 5K total to get 6% on an IO arm with the option to pay more each month, but fixed for 30 yr) I also put down a chunk of change - 45K - but this loan is called hte "quick and easy" if you're interested. BTW, on a no doc, they look at your loans, but they put down that you're making like 12K a month and since its not verified and based on your credit score, they don't care how much you say you make

 

[tennik]

I have seen a number of posts here with concerns about the number of times your credit is checked while you shop for a loan. My understanding is that you can have you credit run as many times as you want in a fourteen day period and it will count no more than one time. You are not penalized for shopping around as long as you do it within fourteen days.

 

[Mumpu]

Can I assume that the same doctor loan channels can be used for a much smaller amount, like a new car loan? (say $15k)

 

[tennik]

I have also read that pre-approval checks don't harm your credit no matter when they are done. Can anyone verify?

 

[mward04]

I have seen a number of posts here with concerns about the number of times your credit is checked while you shop for a loan. My understanding is that you can have you credit run as many times as you want in a fourteen day period and it will count no more than one time. You are not penalized for shopping around as long as you do it within fourteen days.

Interesting, I hope that's true! Can anyone verify?

Any use ING for their mortgage and were there any catches I'm not aware of? I'm thinking about going with them.

Mike

 

[steroid]

I have seen a number of posts here with concerns about the number of times your credit is checked while you shop for a loan. My understanding is that you can have you credit run as many times as you want in a fourteen day period and it will count no more than one time. You are not penalized for shopping around as long as you do it within fourteen days.

According to myFICO.com, this time period can be 14 or 45 days depending on the credit reporting agency. See their answer on this site:
http://www.myfico.com/CreditEducation/CreditInquiries.aspx

 

[EctopicFetus]

Im also considering using ING but I have been warned by my realtor that sometimes the internet guys arent as prompt with paperwork as others.

 

[EctopicFetus]

I have also read that pre-approval checks don't harm your credit no matter when they are done. Can anyone verify?

The pre-approval checks do impact your credit score. Bottom line is that you should get pre-approved and then wait to get a final mortgage once you find a property.

Also for the poster above, pre-approval doesnt always mean too much. My wife got "pre-approved" after she finished law school (a few yrs ago) we found a house and then the lender was like yeah so we arent going to approve you for that much unless it is at this higher rate. Bottom line is beware and shop around.

 

[tennik]

Ectopic, Mortgages for Dummies says, "The score doesn't count requests a lender has made for your credit report or score in order to make you a preapproved credit offer, or to review your account with them, even though you may see these inquiries on your credit report." This book is definitely gospel though. Do you know any way to get to the bottom of this? I am pre-approved, but when I go to shop around I want to know whether to allow 4 or 12 places to run my credit.

Thanks.

 

[EM Junkie]

Can I assume that the same doctor loan channels can be used for a much smaller amount, like a new car loan? (say $15k)

I doubt it. Mortgage loans and car loans are totally different beasts. While a home holds its value or appreciates, a car always depreciates. I doubt you would have much trouble getting a $0 down car loan though, especially as a graduating medical student! We were able to get a car loan 1 month after getting married, neither of us with any verifiable income, and no cosigner!

 

[davidmjh]

hello im going to penn next year and am looking at buyin a house around the area, the only problem is that im not exactly well up on buying a house, especially in the usa. im from the UK. anybody got any advice for me? looking to buy something with no more that 2 bedrooms at the moment

 

[mward04]

tennik,
I spoke to my mortgage lender, Jennifer Whitley with BOA and she advised that as long as they are MORTGAGE companies and they are within a 45 day period of each other, they will not affect your credit score. I am sure if anyone needs clarification, she would glad to advise. toll free number is 800-685-9398, option 2. thanks

mine said 14 days so this clearly must depend upon where you are getting the reports.

 

[DrRoy]

mine said 14 days so this clearly must depend upon where you are getting the reports.

I checked on this further with Jennifer Whitley of BOA and she advised that there was a policy change in late 2005 where the three major credit bureau companies: Trans Union, Equifax, and Experian all stated that now you can have a credit bureau report pulled by mortgage companies within a 45 day period and it will not have a negative effect on your credit score.

 

[Plastikos]

The pre-approval checks do impact your credit score. Bottom line is that you should get pre-approved and then wait to get a final mortgage once you find a property.

Also for the poster above, pre-approval doesnt always mean too much. My wife got "pre-approved" after she finished law school (a few yrs ago) we found a house and then the lender was like yeah so we arent going to approve you for that much unless it is at this higher rate. Bottom line is beware and shop around.

In the book i read they said pre-approved means nothing, you want to be "pre-qualified".

Any suggestions for good lenders in Texas, specifically Temple (near Austin).

Thanks

 

[EM Junkie]

In the book i read they said pre-approved means nothing, you want to be "pre-qualified".

Any suggestions for good lenders in Texas, specifically Temple (near Austin).

Thanks

It's actually the other way around. Pre-qualified just means the lender has given you a preliminary "thumbs up". Pre-approved means they have required further documentation of your financial situation and will offer you a mortgage (conditional on what you told them being accurate and you financial situation not changing by closing). See the following link for a good description of pre-qualified, pre-approval, and loan commitment:

http://homebuying.about.com/cs/mortgagearticles/a/loanterms.htm

As far as a lender in the Temple/Austin area, I can recommend an EXCELLENT one! I posted earlier in this forum about him, but I will repost here. His name is Drew Daniels, Compass Bank; he is in Belton, TX - right in between Temple and Austin!

Old post pasted below:

For anyone interested, we are working with Drew Daniels, Compass Bank. He is based in Austin but I believe can work in other states outside of Texas. Similar to other doctor's loans, 100% financing, no PMI, 6.125% interest on a 5/1 ARM. We are getting a $219K townhome for $1330 a month. There is a 0.25% origination fee (compared to the 1% that BOA charges). They are also less strict on credit score and debt/income ratios than BOA is. Despite the 0.25% origination fee, we will be getting money back at closing thanks to seller paying closing costs for us (this is seller dependant and not mortgage banker dependant).

Also, for the REFUNDABLE price of 1/2 point (0.5% of the selling price) he will cap the rate at 6.125%, and give me the lower rate if rates fall between now and closing (also called a "float down"). The fee will be refunded at closing, and forfeited if we do not buy the property or go with another lender.

Give him a call if you are looking for a mortgage! And tell him Scott from UT-Houston sent you. His phone number is 512-419-3435, email is [email protected]. Feel free to PM me for specific questions. I also recommend "Buying a Home for Dummies" - it is a very good resource to become familiar with the whole process.

Good luck!

 

[Goose...Fraba]

I just got my good faith estimate and it is as follows:

7/1 Arm
$200,000 dollar loan
0% down
P&I payments $1200
$4000 for closing costs

what do you guys think?

does this seem reasonable?

thanks,

Goose

 

[TysonCook]

Any other thoughts on ING? do they even offer 0% down w/no PMI and don't include student loans? I looked at their site and it states that you need 20% down?

 

[4424]

Any other thoughts on ING? do they even offer 0% down w/no PMI and don't include student loans? I looked at their site and it states that you need 20% down?

i can't speak for everyone who has tried using ING but when i was doing a mortgage, they approved me but for a fraction of the total amount that i needed. i have a credit score of 730 so i dont think that had to do with it. i would recommend trying to get approved for the full amount though, you wont find closing costs any better than them.

 

[DrRoy]

Any other thoughts on ING? do they even offer 0% down w/no PMI and don't include student loans? I looked at their site and it states that you need 20% down?

Not sure about ING either. Most Doctor Loan programs are 0% down. might want to call 1-800-685-9398 ext 2 for specfic details on those loans. You should not have to put a down payment. Good luck.

 

[tridoc13]

Hey, folks. I've heard that BOA doesn't do the physician loan in CO. Can anyone verify that? Also, is there anyone who has had good luck with Physician Loans? Any input would be appreciated. Thanks, and I can't WAIT until all this house stuff is over and done with and I'm relaxing by the fireplace in my new home with a nice glass of wine!!!

 

[DrRoy]

Hey, folks. I've heard that BOA doesn't do the physician loan in CO. Can anyone verify that? Also, is there anyone who has had good luck with Physician Loans? Any input would be appreciated. Thanks, and I can't WAIT until all this house stuff is over and done with and I'm relaxing by the fireplace in my new home with a nice glass of wine!!!

nope - no go in CO for BOA.

 

[Plastikos]

It's actually the other way around. Pre-qualified just means the lender has given you a preliminary "thumbs up". Pre-approved means they have required further documentation of your financial situation and will offer you a mortgage (conditional on what you told them being accurate and you financial situation not changing by closing). See the following link for a good description of pre-qualified, pre-approval, and loan commitment:

http://homebuying.about.com/cs/mortgagearticles/a/loanterms.htm

As far as a lender in the Temple/Austin area, I can recommend an EXCELLENT one! I posted earlier in this forum about him, but I will repost here. His name is Drew Daniels, Compass Bank; he is in Belton, TX - right in between Temple and Austin!

Old post pasted below:

For anyone interested, we are working with Drew Daniels, Compass Bank. He is based in Austin but I believe can work in other states outside of Texas. Similar to other doctor's loans, 100% financing, no PMI, 6.125% interest on a 5/1 ARM. We are getting a $219K townhome for $1330 a month. There is a 0.25% origination fee (compared to the 1% that BOA charges). They are also less strict on credit score and debt/income ratios than BOA is. Despite the 0.25% origination fee, we will be getting money back at closing thanks to seller paying closing costs for us (this is seller dependant and not mortgage banker dependant).

Also, for the REFUNDABLE price of 1/2 point (0.5% of the selling price) he will cap the rate at 6.125%, and give me the lower rate if rates fall between now and closing (also called a "float down"). The fee will be refunded at closing, and forfeited if we do not buy the property or go with another lender.

Give him a call if you are looking for a mortgage! And tell him Scott from UT-Houston sent you. His phone number is 512-419-3435, email is [email protected]. Feel free to PM me for specific questions. I also recommend "Buying a Home for Dummies" - it is a very good resource to become familiar with the whole process.

Good luck!

Sorry bout the mixup, and thanks for the information.

 

[EctopicFetus]

i can't speak for everyone who has tried using ING but when i was doing a mortgage, they approved me but for a fraction of the total amount that i needed. i have a credit score of 730 so i dont think that had to do with it. i would recommend trying to get approved for the full amount though, you wont find closing costs any better than them.

I called ING and the bottom line is you need to have a paystub and a letter isnt/wasnt gonna be enough. Im over it though. I have a few other decent offers. Still waiting.

 

[DrRoy]

I called ING and the bottom line is you need to have a paystub and a letter isnt/wasnt gonna be enough. Im over it though. I have a few other decent offers. Still waiting.

May I suggest you contact BOA. They only needed a letter stating when my Residency started and the salary amount. No paystub was needed. I am having good results and they get in touch with me asap. My pre-approval was done the same day, no waiting. No having to wait days for a reply. My lender is Jennifer Whitley... [email protected]
I am going to Texas and several of my other friends are going to PA and FL. All were helped by her and she was good about getting back to us quickly.
Hope you have the same great results too. I am so wanting this to be done and June to get here quickly!

 

[mward04]

So I spoke with BOA today and they said they now do Dr. Loans in Ohio which is a recent change for them. However, they told me the APR is something like 7.6 or 7.7%! Is this what all MD loans are going for?

 

[mward04]

I called ING and the bottom line is you need to have a paystub and a letter isnt/wasnt gonna be enough. Im over it though. I have a few other decent offers. Still waiting.

Might I suggest Bank of SelfPromotion? I've heard there is the most wonderful, kind-hearted, generous, non-self promoting, and might I add attractive mortgage lender named Ima Lender and I, I mean he will get you the best 5% rate (10% with fees) loan for $900K. All you have to do is email [email protected] or call him at 800-382-5633 ext. 29975647888 (Trust me, I only know this by heart because I'm a, uh, he's a great guy). Did I mention I would trust my first born to him?

 

[toughlife]

This may have been said before...
I would recommend calling smaller banks wherever you will be moving (esp. if you are finishing residency). I was able to find a 30 year fixed mortgage with no money down, no PMI, and no unusual closing fees (0.5% origination fee). This bank offered the same 30 year fixed rate as their 20% down loan (but to physicians only). This was much better than any other place I called (including BOA, Wachovia, mortgage brokers, etc.). They do it to attract physician clients. Sometimes smaller banks can work with you more than the big boys...

Which bank?

 

[elkchaser]

Hey, folks. I've heard that BOA doesn't do the physician loan in CO. Can anyone verify that? Also, is there anyone who has had good luck with Physician Loans? Any input would be appreciated. Thanks, and I can't WAIT until all this house stuff is over and done with and I'm relaxing by the fireplace in my new home with a nice glass of wine!!!

I'm currently working with Compass Bank in Denver (Lori Mellor) regarding a no down payment resident physician mortgage. She was very eager to help and also provided a list of recommended real estate agents.

 

[TysonCook]

I've contacted 4 companies regarding their loans (Wachovai, BOA, and 2 local ones in Charlotte). I'll post their comparable packages once I find a property. I think that the biggest factor is probably going to be closing fees etc, as many seem to have the loan amt, no PMI, 0 down, 5/1 arm, and rate, it's the fee's where it changes (and can change up until the date of closing).

Tricky SOB's.

 

[14022]

it's the fee's where it changes (and can change up until the date of closing).

Everybody on this thread says that fees can change up until closing date, but my attorney has assured me that any fees they charge at closing that were not previously disclosed in the good faith estimate cannot legally be charged. He said that if you threaten to go to the state's attorney's office, they will usually give in but even if they don't you can still go to the attorney's office and get everything worked out.

And it seems to me, and of course I may be wrong, that for these physician loan programs, most of the lenders will be pretty good about being honest and forthright with everything. I think a lot of their business is based on personal referral from posts on sites like these. Their ability to make money is based on the volume of loans they process (they don't make a ton of money on each application). Any shananigans they pull will most definately get around this online community and resultingly hurt their business.

 

[obgyn06]

Anyone have any tips for this situation...
I want to buy a house in Baltimore. Probably in the 250-315K range. I will be making 41500 and my husband will be making 45000. We have ~40K to put down. My credit scores are 707-787 (depending on the company). My husband's is around 700. With both of those incomes, we would be able to qualify for the mortgage. HOWEVER, it is unknown right now if my husband will have the actual job offer by the time we apply for the mortgage. Right now he just works part time (making ~18000/yr). Any thoughts on how we can get around this? I was thinking about a no-doc loan, but i don't know what kind of credit scores you need to get one. Thanks!!

 

[TysonCook]

This is BOA's offer for me, not sure if it is good or not as I just got the GFE:

$225k 30yr 5/1 ARM rate not locked at 6.125%
0% down
Origination fee of 1 point

Other random fee's I'm not sure about:
Tax service fee $75
Application Fee $200
Flood Determination fee $11
Commitment Fee $619
Attorney Fee $450
Title Insurance $450
Courier Fee $50
Recording Fee $100
(total fee's= $4,205)
Seems like a lot of fees to me, but i'm new to this game and have no idea if a "commitment fee" is really $619, or what exactly that even is?

Anyway, thought I'd put this up there so others have an idea.

 

[fishmonger69]

what is a 30 year 5/1 ARM? that makes no sense.

fees appear fairly standard. the 1 point you're paying is more than 50% of the closing costs. i think you're also forgetting cost of appraisal, which is at least $300.

 

[EM Junkie]

what is a 30 year 5/1 ARM? that makes no sense.

Makes complete sense. He did not say 30 year FIXED. The loan payments are originally scheduled out for 30 years, the 5/1 ARM speaks only to the interest rate changes in the future. The loan term is still 30 years.

 

[EctopicFetus]

May I suggest you contact BOA. They only needed a letter stating when my Residency started and the salary amount. No paystub was needed. I am having good results and they get in touch with me asap. My pre-approval was done the same day, no waiting. No having to wait days for a reply. My lender is Jennifer Whitley... [email protected]
I am going to Texas and several of my other friends are going to PA and FL. All were helped by her and she was good about getting back to us quickly.
Hope you have the same great results too. I am so wanting this to be done and June to get here quickly!

Thanks I did contact BofA and I think thats who me and my wife will go with. The person I used is actually a sister in law of an attending I will be working for.. I N T E R E S T I N G!!

 

[EctopicFetus]

So I spoke with BOA today and they said they now do Dr. Loans in Ohio which is a recent change for them. However, they told me the APR is something like 7.6 or 7.7%! Is this what all MD loans are going for?

mward.. well what they do i they buy down your rate.. we got a 40 yr mortgage at 6 3/8% if you want to know the amount for PM me. I dont really want to share that info on this site.

 

[TysonCook]

I emailed them and inquired about the "Commitment Fee", which they explained (very nicely), includes the appraisal, doc prep fee, and all processing costs.

Man this is a new adventure 🙂