Now that I Matched -> Any advice on lenders for mortgages?

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MaxDesMer

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Calling out all 4th yrs and residents -> Does anyone have any advice on mortgages for residents, e.g these doctor's loans? Thanks!
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MaxDesMer said:
Calling out all 4th yrs and residents -> Does anyone have any advice on mortgages for residents, e.g these doctor's loans? Thanks!
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I am looking into this myself right now. Seems like the reins have tightened on the Doctor Loans. Bank of America has a strong product but unfortunately for me they don't offer it in Colorado.
 
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I went with the Bank of America Doctors Loan! We close this Friday:scared::scared::D
 
I'm using the BoA Doctor Loan. We're in contract right now, so I'll let you know how it goes when we close. I've heard nightmares about closing - extra fees, sudden problems, etc - so my fingers are crossed. There are definitely more restrictions on the doctor loans these days, and I wouldn't be doing it if we couldn't at least put a little money down. However, if you're a first time home buyer with nothing to sell it's actually a good time to buy...
 
If you are in a state where they are available, try Compass bank. MUCH better rates than BOA and the have a "doctor loan."
 
Bank of America has 2 doctor loans ("Doctor Loan" and "Medical Flex").

Both have $0 down payment, and the "Doctor Loan" has no PMI.

I just signed a contract on a house today and will be using the BOA "Doctor Loan."

I have been a loyal BOA customer my entire adult life, and have always been satisfied with their service.
 
WallowaWanderer said:
It seems like there could be no more perfect time to buy actually.
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I understand that housing prices are down, but is there enough time after a 3-4 year residency to accumulate equity?

We bought - not because we wanted to, but because there were no rentals that suited our needs - kids, large dog.

I guess that it's the best time to buy, but what about selling after residency?
 
I bought for residency using the BOA loan - worked just fine. And I'm closing on a house based on my attending salary in 2 weeks. Then our house goes on the (crappy) market. I'm again using BOA, and so far, so good.

I built up quite a bit of equity in residency, so it was worth it to me. That, and I have 4 large dogs. Apartment not an option. (I'm buying acreage in the country now)

Good luck.
I hear Suntrust has a physician loan as well.
Danielle
 
tkim said:
I understand that housing prices are down, but is there enough time after a 3-4 year residency to accumulate equity?

We bought - not because we wanted to, but because there were no rentals that suited our needs - kids, large dog.

I guess that it's the best time to buy, but what about selling after residency?
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I guess it depends on where you live. There are some areas that would still be tough to sell in 3 years. Fortunately, I am in an area that will always be in high demand.

Another item to think about is if you plan to remain in the area after residency. Obviously this question is not easily answered.
 
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dchristismi said:
I bought for residency using the BOA loan - worked just fine. And I'm closing on a house based on my attending salary in 2 weeks. Then our house goes on the (crappy) market. I'm again using BOA, and so far, so good.

I built up quite a bit of equity in residency, so it was worth it to me. That, and I have 4 large dogs. Apartment not an option. (I'm buying acreage in the country now)

Good luck.
I hear Suntrust has a physician loan as well.
Danielle
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I used Suntrust. They were pretty good.
 
We bought two years ago with a "Doctor Loan" from National City. Got a pretty good 5 year ARM. Of course things are lot different right now, but we are very happy with National City.
 
CorpusERdoc said:
I guess it depends on where you live. There are some areas that would still be tough to sell in 3 years. Fortunately, I am in an area that will always be in high demand.

Another item to think about is if you plan to remain in the area after residency. Obviously this question is not easily answered.
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I'm in Buffalo, not a very volatile housing market, but steady, which made it a little easier for us to buy. But even here things have taken a downturn, which is troubling. I might do a fellowship in the are just to gain further equity, although that would require a refi. Perhaps not worth it.
 
we're looking into maybe buying too- prices in PA are crazy low compared to so cal!

problem is we have nothing to put down and don't want to get caught up in anything that would put us over our heads financially. knowing next to nothing about home buying, we have no idea what we should be doing or looking for. can anyone point us to a good source for learning this $hit?
 
that dr. jack said:
we're looking into maybe buying too- prices in PA are crazy low compared to so cal!

problem is we have nothing to put down and don't want to get caught up in anything that would put us over our heads financially. knowing next to nothing about home buying, we have no idea what we should be doing or looking for. can anyone point us to a good source for learning this $hit?
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the doctor loans don't require any money down

the only tough year will be the intern year, but when you start moonlighting you'll be fine...
 
CorpusERdoc said:
the doctor loans don't require any money down

the only tough year will be the intern year, but when you start moonlighting you'll be fine...
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well that would help. we'll also be having a friend renting a room and he hubby expects to do ok with his mad IT skillz, so it seems that we could do it. i guess its another reason why picking a 4 year program was good for me.
 
tkim said:
I guess that it's the best time to buy, but what about selling after residency?
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Why do you have to sell after residency? If the climate isn't right, then just hold onto the place and try to rent it.

No one knows what the economy will be doing in 4 years. Buying a house is always a risk, no matter how well the economy is doing. It's not really any less of a risk when the economy is doing well. It's actually a lot less of a risk now than it was 5 years ago. If we are even deeper in recession in four years than we are now then I will a) stay where I am (I like Denver anyway), or b) keep the place and rent it. Also, real estate is very local - there are a lot of relatively stable markets out there even now.
 
Did some more searching today. Bank of America is the best mortgage I've found, but they don't do Colorado. Compass's rate on a doctor's loan today is 7.0, which seems pretty bad. Merrill Lynch and Tower say that they servece Colorado . . . we'll see.
 
WallowaWanderer said:
Why do you have to sell after residency? If the climate isn't right, then just hold onto the place and try to rent it.

No one knows what the economy will be doing in 4 years. Buying a house is always a risk, no matter how well the economy is doing. It's not really any less of a risk when the economy is doing well. It's actually a lot less of a risk now than it was 5 years ago. If we are even deeper in recession in four years than we are now then I will a) stay where I am (I like Denver anyway), or b) keep the place and rent it. Also, real estate is very local - there are a lot of relatively stable markets out there even now.
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I know even less about being an out-of-state landlord than being a homeowner, but it sounds like a royal PITA.
 
WallowaWanderer said:
Did some more searching today. Bank of America is the best mortgage I've found, but they don't do Colorado. Compass's rate on a doctor's loan today is 7.0, which seems pretty bad. Merrill Lynch and Tower say that they servece Colorado . . . we'll see.
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Try Elly Gray:

http://www.suntrustmortgage.com/loanofficer.asp?egray

She handled my stuff and she was pretty good. I got a flyer from EMRA which directed me to Suntrust, I contacted them and was handed off to Elly. Handled everything well. Based in GA but I bought in NY.

I tried Compass and they got flaky in the end and blew me off.
 
WallowaWanderer said:
Did some more searching today. Bank of America is the best mortgage I've found, but they don't do Colorado. Compass's rate on a doctor's loan today is 7.0, which seems pretty bad. Merrill Lynch and Tower say that they servece Colorado . . . we'll see.
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BOA's rate is 6.25
 
You don't have to only look at getting a "doctor loan." These loans are nothing more than a low-no doc mortgage with a fancy marketing title. I bought a house during my second year of medical school with a similar type deal: 0 down, etc, etc. The reason the interest rates are high, and 6.25% is even high at this time, is because they are higher risk loans. Since I already own a home with an interest rate at that level, my lender has actually offered to lower my rate on my new home (will be buying in a few weeks) to a more market friendly 5.5% with the same stipulations.

I do have a question though. Are all of the loans you guys are looking at 80/20 combination loans? That is the only way I can reason they are waiving the PMI, because PMI is usually (?always) required when a buyer puts less than 20% down. However it can be waived if you opt for an 80/20 in which the 20 loan takes the place of your down payment at a higher rate of course.

So my advice is to not necessarily limit the scope of your search to these so called doctor loans. Look around for lenders that offer 80/20 "no-doc" loans and you may find a slightly better rate although 6.25-8% sounds about right.
 
Thanks everyone for their comments so far.

I received a recommendation off of SDN for "Physician loans". Does anyone have any experience with them?
Thanks!
 
that dr. jack said:
we're looking into maybe buying too- prices in PA are crazy low compared to so cal!

problem is we have nothing to put down and don't want to get caught up in anything that would put us over our heads financially. knowing next to nothing about home buying, we have no idea what we should be doing or looking for. can anyone point us to a good source for learning this $hit?
Click to expand...

I acutally bought and used a first time home buyers and mortgages for dummies book... swore I would never buy one... but it came in handy... answered all my questions!

We just bought in the Lehigh Valley area... looked at a lot of homes! Make sure you find a good realtor! What area of PA are you moving too?
 
Shodddy18 said:
I acutally bought and used a first time home buyers and mortgages for dummies book... swore I would never buy one... but it came in handy... answered all my questions!

We just bought in the Lehigh Valley area... looked at a lot of homes! Make sure you find a good realtor! What area of PA are you moving too?
Click to expand...
Try Compass Bank out of Austin Texas. Great deal for residents. 5.5% rate and no PMI. I was going to use FNB out of Danville, PA but one of our incoming residents told me about Compass - far better deal.


RC

PGY-III U Wyo Casper Family Med
and-soon-to-be PGY-II Geisinger Emergency Med
 
dirtridndoc said:
Try Compass Bank out of Austin Texas. Great deal for residents. 5.5% rate and no PMI. I was going to use FNB out of Danville, PA but one of our incoming residents told me about Compass - far better deal.


RC

PGY-III U Wyo Casper Family Med
and-soon-to-be PGY-II Geisinger Emergency Med
Click to expand...

I used Compass Bank too. Good deal, rate under 6% last year (the laywer and agent asked how I got such a good deal then). I had to call them a LOT to make sure they got everything on their end done quickly, though. It still came down to the wire, but it worked out in the end.
 
shawred said:
You don't have to only look at getting a "doctor loan." These loans are nothing more than a low-no doc mortgage with a fancy marketing title. I bought a house during my second year of medical school with a similar type deal: 0 down, etc, etc. The reason the interest rates are high, and 6.25% is even high at this time, is because they are higher risk loans. Since I already own a home with an interest rate at that level, my lender has actually offered to lower my rate on my new home (will be buying in a few weeks) to a more market friendly 5.5% with the same stipulations.

I do have a question though. Are all of the loans you guys are looking at 80/20 combination loans? That is the only way I can reason they are waiving the PMI, because PMI is usually (?always) required when a buyer puts less than 20% down. However it can be waived if you opt for an 80/20 in which the 20 loan takes the place of your down payment at a higher rate of course.

So my advice is to not necessarily limit the scope of your search to these so called doctor loans. Look around for lenders that offer 80/20 "no-doc" loans and you may find a slightly better rate although 6.25-8% sounds about right.
Click to expand...

The doctor loan is automatically no PMI. That is part of the luxury of it being a doctor loan.
 
EM_Rebuilder said:
The biggest key I will tell everyone is to STAY AWAY FROM REALTORS!!

Remember, they are out there for their 6%, that is all. They are 'salesmen' and most have all that comes with that title.

Everyone on here should be educated and should be able to utilize technology and contacts at your program. Your residency coordinator, current residents, etc should all be able to provide you with the 'popular' areas and the areas to steer clear of.

Once you have that narrowed down, browse the newspaper classfied online ads, CraigsList, and some places have 'FSBO/For Sale By Owner' booklets everyweek. By far the best thing to do is to show up in town for a few weeks and rack up the miles driving around.... look at stuff for sale by owner. Now, I would certainly utilize some realtor books and online sites, but try to focus on them as guides only. If you do see a house by realtor you just love, just call and setup a viewing with the seller agent. Dont bring your own buyers agent. If you want to submit an offer on the home, suggest they knock their percentage to 4% instead of 6%... it might get the deal done if your numbers are close.

If you find a FSBO home and have made an offer and came up with things, chicken scratch a contract. All you need is the selling price, closing costs cut down the middle (is the easiest... or make them pay all), and the earnest money (usually $500-$1000). Place that the deal and return of ernest money is contigent on a.)approval of your lender to grant the loan and b.)home inspection without major flaws. The next day, if it makes you and the seller more comfortable, find a local lawyer to type up a more official contract (although its not really needed) and set up a lawyer to do your closing. Make a phone call to a title company. Give all the info to your lender and your good to go......


I have yet to understand WHY so many people continue to use Realtors. The biggest reasons I find is that people are a.)afraid of ending up in a 'bad part of town' (come on, we have this as a cinch. Your sr residents/residency coordinator can easily tell you where to stay away from!). b.) afraid they will somehow get screwed over since there is no realtor around (a lawyer pretty much MUST be involved to make up the deed and handle the transaction. A lawyer will charge 200-400 bucks tops to do a real transaction and its NO different than any other transaction through a realtor. If you are 'afraid' of the property, get an independent home inspector (usually around 200 bucks); oftentimes a realtor will suggest this anyhow. Lastly, a lender is going to require an apprasial, although those are usually a joke. Also, you will have to have a title gurentee if you have a lender (and even if you were paying cash it would be near ignorant not to get this) so that is no different either. Therefore, the only real difference is slight more leg work on your part in seaching for the homes, but in the end, you can certainly typically save many thousands of dollars....
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I disagree with the above. The Realtor does not get paid from the buyer. My Realtor is the "resident Realtor" who helps all of the new and current residents with homes. She is excellent and very honest about the pros and cons of certain sellers/builders and neighborhood areas. I think that she has been as asset to buying a home.

If you are buying a home for the first time, it would be a poor decision to go at it without an expert by your side.
 
MaxDesMer said:
Thanks everyone for their comments so far.

I received a recommendation off of SDN for "Physician loans". Does anyone have any experience with them?
Thanks!
Click to expand...

Yes, I'm using a Doctor Loan from Bank of America. It is $0 down with no PMI.
 
CorpusERdoc said:
I disagree with the above. The Realtor does not get paid from the buyer. My Realtor is the "resident Realtor" who helps all of the new and current residents with homes. She is excellent and very honest about the pros and cons of certain sellers/builders and neighborhood areas. I think that she has been as asset to buying a home.

If you are buying a home for the first time, it would be a poor decision to go at it without an expert by your side.
Click to expand...


I think EM_rebuilder was saying to not use a realtor and then use this as a bargining chip to reduce the seller's price. It can work in the right situation. I agree that a first time buyer is probably better off using a realtor.
 
EM_Rebuilder said:
The biggest key I will tell everyone is to STAY AWAY FROM REALTORS!!
Click to expand...

Could not agree more. I had a horrible realtor experience before med school. In the end, I did some research and took care of things myself. If you are worried about scribbling your own contract, then visit a local office supply store and buy a pack of generic contracts.

This would probably be much more difficult to do if you are moving across the country.
 
hyperbaric said:
Could not agree more. I had a horrible realtor experience before med school. In the end, I did some research and took care of things myself. If you are worried about scribbling your own contract, then visit a local office supply store and buy a pack of generic contracts.

This would probably be much more difficult to do if you are moving across the country.
Click to expand...

I think that what is more important is choosing the right Realtor.
 
Does anyone have good resources for finding homes at/near foreclosure. I would love to find a distressed property for a short sale or something bank owned in the hopes that I could get better pricing...
 
There was a great discussion about this 3 years ago. I think the information found on that thread is still useful:

http://forums.studentdoctor.net/showthread.php?t=176866

When I bought 3 years ago, BofA didn't offer loans in Nebraska, so I went with physicianlender.com. It's a broker and they got a us a great loan.
No downpayment, 0 PMI, 0 points, Financed closing costs
At closing, the title company said they had never seen such a good loan before. However, they were super busy post match, very difficult to get a hold of, had to resend things multiple times, and they messed up on our loan documents at closing, and then they got us a interest only 5/1 arm, when we wanted a fully amortizing loan. Although, I must admit, it's been really nice having an interest only loan. We pay a couple hundred extra toward the principle every month (with no prepayment penalty) and have payed down our principle faster than we would have with the regularly scheduled amortization. So, we haven't been hit as hard as some of the other residents in our program who are trying to sell their homes right now. Plus, during a couple months where money has been tight (ie: December where we spent the money on Christmas instead), it's been nice to have the ability to only pay the interest.

I definitely would recommend reading some kind of mortgage book... whether it's "The Complete Idiot's Guide to Buying and Selling a Home" or "106 Mortgage Secrets all Homebuyer's Must Learn" or one of the dummy books. I am getting ready to buy our second home and read these books. I learned a LOT from them and wished I had known more when I bought the first time around.

I'm also a little disheartened. With the turn in the economy and the housing market, lenders are starting to get rid of 80/20 loans and are tightening down on their standards. I called a lender in Wyoming and they said the best they could do was 97% and I'd need a 3% down payment. In order to get no PMI, I'd need at least a 5% down payment. So, I may be stuck going with physicianlender again.
 
The particular Realtor I am using comes recommended by every resident, faculty, and staff member at my program, because she is not "just out there for her commission." She gives information and makes deals that typical Realtors don't do.

If you are a first-time buyer, and you don't have a representative on your side, you will be taken advantage of by the seller. This is particularly true if you are buying a home that is still under construction (me.)

If you can wade through all of the documents on your own and set up your own escrow, that is fine. However, for someone who has lived in an apartment ever since they left the dorms of college---you need someone who has some clue about how to deal with builders.

The 3% or 6% change in the price of the home is not significant, since you will likely lose that elsewhere when dealing in areas that you have never dealt with before.

I am only discussing those buying a home for the first time, and nothing else. There are excellent Realtors out there, and not using them is a significant risk that should not be taken unless you have experience in this area. I think that you are giving out poor advice by trying to convince people to go at this on their own. It's basically like going pro se in court.
 
I have attached a direct comparison of the BOA Doctor Loan and BOA Medical Flex Loan. Both are $0 down. The only difference between the two is the PMI. You can see an actual difference in the price. The interest rates are the same....
 

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CorpusERdoc said:
This is actually not true. I have attached a direct comparison of the BOA Doctor Loan and BOA Medical Flex Loan. Both are $0 down. The only difference between the two is the PMI. You can see an actual difference in the price. The interest rates are the same....
Click to expand...

ActiveDutyMD said it the best in a previous post:

"A 100% loan is always more expensive than a comparable 80% loan, no matter what the loan guy says. How much more expensive varies. Remember that you have to look at rate, points, AND fees. What they give in points, they take back in fees. You can get a low rate, low points, a low downpayment and low fees, but you can't get them all!"
 
EM_Rebuilder said:
Show me a lender that is offering a >80% loan for the prevailing rate, NO pmi, and NO origination or forced points... and then I'd say I give up (and I would try to switch to them!).
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Done. The Doctor Loan at Bank of America - 5.875%, no orig fee, no discount points, no PMI. That's pretty close to the national 30 year fixed average of 5.72 today. There are still a few places that know physicians have a much lower default rate.
 
EM_Rebuilder said:
I will go ahead and delete all my recs (you will need to edit them out of your replies) since you feel its bad advice and certainly not 'mainstream'. I completely agree its not mainstream. What I am telling is probably what these infomercials about buying/selling are trying to sale you... and is not for everyone.
Click to expand...

It's too bad you deleted your posts- regardless of the fact that your advice may not be the most mainstream. It is still nice to see varied opinions/ideas.

On another note, I gave PhysicianLoans a call, but unfortunately they are not licensesd in DC. And neither am I.... (bad pun)
 
zinjanthropus said:
anybody know what credit score is required by the physicianlender.com doc loan and the BoA program? Also, any idea which credit reporting company they use?
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I'll tell you my numbers. It may vary based on your total loan amounts and/or the starting residency salary.

For a $149,900 house = 720

For a $159,900 house = 740

They use the middle score, and when they pull credit, it is reported by all 3.
 
In my preliminary calling around to banks/lenders it seems there is a variety of what I call "odd requirements" that lenders are asking for. One lender really wanted my residency contract (which I'm guessing I won't receive for several weeks, does anyone know????). Another had a rule that I could not close no closer than within 30 days of my official start day. Another needed definitive evidence that I could defer my loans for my entire residency (which is impossible given the ever-changing student loan regulations and the fact that economic deferment is an annual process). Have others run into similar mortgage requirements? How are you dealing with such issues?

Sorry, I'm new at this whole mortgage/home buying world
 
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