Dec 15, 2010
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Any suggestions for physician only home loans in NH? I am looking in the 350000 range with an excellent credit score, but little to nothing for a down payment. I have used Bank of America in the past and would be quite open to using another lender this time around.
 
Sep 5, 2009
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Non-Student
If this is your first home loan, try local banks, smaller often better, because they want your deposit accounts and can make you a loan for down payment and a second loan for mortgage, which they can keep "in house" not sell to outside investors in packages like mortgage industry. They may also loan you down payment money on a personal guarantee, especially because you won't need that much, especially if you shop well, which you should certainly be able to do in this real estate market. You make money in investments (home not necessarily an investment, but..) when you BUY, so buying equity , ie appraised value higher than price, gives bank and you comfort. They usually say they will lend on lower of appraised value or price, but you can bargain, since lots of banks want you. Ask realtors, politely ask bankers which ones have the most local doctors as clients. Bank may prefer you get a conventional mortgage, and conventional mortgages don't want you to borrow the down payment but if you don't have other debt, and may have other collateral or spouse with employment opportunities, that can make a big difference. Who is lending changes all the time, depending on their deposit accounts and current loan portfolios. Best comparison site for mortgages, can search by zip code, is bankrate.com. I have known new doctors to get advances for down payments on salary (signing bonus, with committment to hospital, loan forgiveness if you stay a while). If academic go to your dept chair and get him to introduce you to his/her personal banker, same with group member who has been there longest. Big influencer at bank. Some groups will loan to new docs outright, doesn't hurt to ask, most of them were in your spot and remember it rather vividly. BOA is monstrous and overwhelmed with Countrywide foreclosures, so may be looking for new good loans to good credit, but shop around a lot--tip, don't let them pull your credit, just make that very clear until you get a near commitment. Ask local realtors who has money to lend, lenders talk to them regularly and consider them a source of business. Do NOT underestimate your value to the bank and the community, hospital recruiter should have some local inside info on this too. Consider slightly smaller banks nearby, not quite in town, who want to expand into main market. They can be more eager for your business and may find creative ways to help. Dont' hesitate to go up the ladder to bank president, and board members, or hospital admins or chiefs of staff. All will be looking to help you, if not your direct competitors. Do you have 403(b) from residnecy? Can convert to IRA. You have 60 days to take money from IRA, change your mind and put it back with no tax consequences, so consider that as down payment money, get a second line of credit lined up to pay it back to your ira after you have gotten your main mortgage. Your spouse doesn't need to keep a job, just get one, to help out...with no withholding, all this can go to down payment temporarily. There are 40 year mortgages these days, some banks will like a ballon payment in a short time, hoping rates will go up. you can refinance right away if you plan to stay in home. Withdraw cash max from credit cards, pay it back after you get loan and HELOC after to cover. Make deal with owner of house for down payment, prearrange with bank to get HELOC to pay owner back right after deal. With good short term interest, where is owner going to get that kind of return? And he/she can keep second mortgage, release to bank for HELOC. Getting the idea? Get creative. Best of luck. One more piece of advice. I'm tax attorney married to neurorad, long time. Happiest days were in our first tiny house, cross my heart. Closer to each other, closer to kids, the big house can be a burden pushed on docs by realtors, relatives, colleagues, doesn't represent happiness, we went smaller, nice furniture, some money left to eat out, weekend vacations, small is the new big...I know you've deferred gratification a long time, I know you are around a medical culture that prizes the accomplishment exemplified in the $350,000 house, but square feet aren't joyful family, more to keep up, NOT FUN spending, therefore not enough money for fun spending, more to clean, its not really the American dream, make sure it is your dream before you do this. The joy of retiring to the practice of medicine when you are younger, practicing because you love it, not because you have to to support your material world, has a lot going for it. Just food for thought. Hope this helps some. Of course you have earned it, but is it what you truly want...Look at treehouse books, some staggeringly romantic ones out there, and books of houses by Susan Susanka. I have a friend who lives in the most gorgeous expansive barn with fine old floors and a gorgeous bowling alley in his living room (4 boys), an airplane and band set up in his office, cool family, happy family, not expensive, expansive, shop, shop, shop for YOUR dream, not your realtors vision of the perfect doctor house. They are persuasive, stroke your ego, bruised by years of neglect, pressure and sleep deprivation, beware.