Mortgages

[optimus_prime]

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Anyone with recent experience applying for a mortgage immediately post-residency? I am planning on buying a place around 450-475K- which would be a "jumbo loan." I only talked to one mortgage broker so far, but she seemed to think I was going to have to come up with 20% down for an jumbo loan.

Is this typical? Does anyone know of any lenders more willing to take 5-10% down (i.e. a doctor loan)?

 

[LonghornJPS]

Call around.
They are much harder to find these days, but some banks still offer physician mortgages if you have a strong credit score. My buddy in WI got one from his local bank with only 5% down last summer. I was able to get one from my local bank last summer too, but I probably talked to 10-15 lenders before I found a bank that would.

 

[2ndyear]

I have heard that the 'doctor loans' requiring 5% down are pretty hard to come by these days. I don't mean to sound preachy, but strongly consider renting right now. The whole dynamics of home ownership are changing rapidly. Loans are harder to get. Houses are not easy to sell in most areas. Buying a house right out of residency ties you to that area. I would recommend renting, being able to stay mobile. If a job doesn't work out, screw it and move. The days of living in a house for a year or two and then having a long list of buyers lined up getting in bidding wars over your asking price are gone. Much more likely is you want to move and get stuck with an upside down mortgage. Buyer beware.

 

[Arch Guillotti]

agree w/above

 

[militarymd]

Anyone with recent experience applying for a mortgage immediately post-residency? I am planning on buying a place around 450-475K- which would be a "jumbo loan." I only talked to one mortgage broker so far, but she seemed to think I was going to have to come up with 20% down for an jumbo loan.

Is this typical? Does anyone know of any lenders more willing to take 5-10% down (i.e. a doctor loan)?

kind of a big and expensive house to be buying straight out of residency....don't you think?

I'm 10+ years out..and mine cost less than that.

 

[cfdavid]

I have heard that the 'doctor loans' requiring 5% down are pretty hard to come by these days. I don't mean to sound preachy, but strongly consider renting right now. The whole dynamics of home ownership are changing rapidly. Loans are harder to get. Houses are not easy to sell in most areas. Buying a house right out of residency ties you to that area. I would recommend renting, being able to stay mobile. If a job doesn't work out, screw it and move. The days of living in a house for a year or two and then having a long list of buyers lined up getting in bidding wars over your asking price are gone. Much more likely is you want to move and get stuck with an upside down mortgage. Buyer beware.

I think this is very sound advice. Besides, in a year or two, depending on the area, you can likely find an even better deal as hard as this is to imagine.

If you DO buy, lock in a 30 year mortgage at these rates. You'll be thanking yourself in 5 or 10 years.

 

[Arch Guillotti]

Anyone with recent experience applying for a mortgage immediately post-residency? I am planning on buying a place around 450-475K- which would be a "jumbo loan." I only talked to one mortgage broker so far, but she seemed to think I was going to have to come up with 20% down for an jumbo loan.

Is this typical? Does anyone know of any lenders more willing to take 5-10% down (i.e. a doctor loan)?

I don't know your situation, but this sounds like a "rookie mistake".

I would rent, save an emergency fund, start paying on loans, save for a down payment, etc.

 

[seinfeld]

Came out of fellowship last year right in the middle of banks pulling back on loans, the physician loans are gone, at least the reasonable ones. If you do them youll end up in an ARM with steep costs.

I got into a house but with 5% down and PMI, this was offered through the realtors mortgage company. Most all other banks wanted 3 months of pay stubs from my new job before considering a loan, the contract was not good enough. I would have been ok renting but my wife was very emotionally attached to getting a home. We did not spend nearly as much as you are thinking of spending.

I agree, if you dont need to by a house and can deal with an apt for another year do that. Sorry dude.

 

[IlDestriero]

.

 

[thegasman]

I don't know your geography, but if you can do a loan with suntrust they will do %100 physician financing up to 650K No PMI. The rate will be slighty higher than the going 30 yr fixed rate. (1% or so) Credit score requirement 720. 30 yr fixed (I recommend) or ARM options available. In the south, regionsbank will also do 100%, but only on ARM. My 2 cents is the best option straight from residency is to rent for 1-2 yrs. We were not planning on doing this - but we did and it has worked out great. There are some other 95% financing options out there I think, but I don't know any details.

 

[pgg]

I think FHA loans only require 3.5% down. Lots of banks offer them.

 

[2win]

Anyone with recent experience applying for a mortgage immediately post-residency? I am planning on buying a place around 450-475K- which would be a "jumbo loan." I only talked to one mortgage broker so far, but she seemed to think I was going to have to come up with 20% down for an jumbo loan.

Is this typical? Does anyone know of any lenders more willing to take 5-10% down (i.e. a doctor loan)?

I would say to just forget about "buying" immediately after residency en expensive house - if your income will be only from anesthesia. Give it some time, get used with the group and the area. There is no rush - IMO. Houses are still overpriced.

 

[urge]

kind of a big and expensive house to be buying straight out of residency....don't you think?

I'm 10+ years out..and mine cost less than that.

What's wrong with you? The new grads who have joined my place in the last few yrs have bought in the 600k neighborhood.

They all regret it though.

 

[Pilot Doc]

Talk to your new partners and find out who the local banker is who will work with physicians. You want someone who keeps mortgages in house and is not reselling them to be collateralized. That will free you from the rigid requirements on down payments and so forth.

As for a $450K house, just depends where you live. That can buy a mansion some places and a shack in others.

All said, the advice to rent for a few years is good.

 

[jwk]

Anyone with recent experience applying for a mortgage immediately post-residency? I am planning on buying a place around 450-475K- which would be a "jumbo loan." I only talked to one mortgage broker so far, but she seemed to think I was going to have to come up with 20% down for an jumbo loan.

Is this typical? Does anyone know of any lenders more willing to take 5-10% down (i.e. a doctor loan)?

Leaving aside whether you should or shouldn't...

A "jumbo loan" is based on the MORTGAGE amount, NOT the purchase price. The current amount for jumbo's is anything about a $417k mortgage - and that can be higher in some markets.

So - if you buy a house for $460k and put 10% down, you're down to $414k, which is under the jumbo trigger.

 

[omegaman]

Most new graduates only keep their first job for a year or two. If that happens to you. You will have a hard time selling a house that requires a jumbo loan.

Rent for a year or two, to learn if the job is stable and to learn the housing market in your area. Your best chance of not loosing money is to buy a house whose cost is equal or less than the median cost of houses in your community.