Physician Home Loans

[RuralEDDoc]

Anyone have experience with these?
Good, bad, ugly?
Despite a very solid income, I'm getting denied for jumbo loans (I live in California, in an area where a decent home starts at 600k), as I'm an independent contractor and don't earn a W2.
(Note: For those new to mortgages, in most parts of the country, any loan over $417k is considered a jumbo loan and is significantly more difficult than obtaining a loan that is under that limit. For independent contractors, you need two years of 1099 income before any of it can be counted for a mortgage)
Anyone have experience with Bank of America?
Thanks in advance!

P.S. We can skip the "Move to Texas!" comments; not happening! 🙂

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[emergentmd]

Move to Texas. Had a friend who did from SF. He will never go back.

Live in a Condo check to check vs having 2 Million dollar homes?

 

[Daiphon]

Have you looked at Bank of America? Evil, yes, but have a physician loan that ignores student loan debt in the D:I ratio, and terms are good - namely jumbo loan at normal loan rates, no PMI, etc...

 

[brk81144]

I used 5/3 bank and the process was easy, good rates, no pmi and they were able to close on homes just about anywhere in the country

 

[The White Coat Investor]

I used a conventional but I do keep a list of folks offering doctor loans:

http://whitecoatinvestor.com/personal-finance/the-doctor-mortgage-loan/

 

[VA Hopeful Dr]

I have used SunTrust twice, very pleased both times.

 

[RustedFox]

I used 5/3 bank and the process was easy, good rates, no pmi and they were able to close on homes just about anywhere in the country

I just got an offer from these folks as well. Would love to have more data. Sound off, WCI.

 

[JMC2010]

I also used Suntrust for a physician loan. I've had a good experience as well.

 

[dchristismi]

I did the BoA physician loan once, not bad at all. Interest rates are so low, it's a good time to buy.

If you already have a banking relationship with one of the big ones, it never hurts to ask.

 

[la gringa]

interesting, someone from B of A (i was so irate i didn't get a name) told me that i couldn't get a mortgage with them, no way no how, w/o 2 years 1099 income. pretty sure i referenced my profession.... am currently working with Suntrust and will check 5/3rd as my sister works for them.

 

[The White Coat Investor]

I just got an offer from these folks as well. Would love to have more data. Sound off, WCI.

Not sure what you're looking for. La Gringa- email me and I'll get you a BOA guy who can actually help.

The truth is most people are only choosing between 2-4 options for doctors loans because every company doesn't offer them in every state.

 

[RuralEDDoc]

Lagringa, I have had the same problem. Denied three times over the last year (by SoFi, Utah Physician Home Loans, and Chase) because I didn't have two years on the same 1099.
I am hoping BoA can help. Otherwise I will have to wait another 18 months for the chance to enter the market. I love my current rental, but hey, cmon already. I went to school, paid my dues, worked myself to the bone, have a solid and steady income, and it's still not enough?

 

[future_dr_house]

I was able to get my loan as a conventional mortgage through bank of tx. They had me submit a p&l sheet after a year and a month or two out of residency. Got me qualified without an issue. Maybe you could do the same. Doctor mortgages via bbba were a full percent higher.


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[GeneralVeers]

I just got a very large construction loan. The bank wanted P&L for the last year, as well as copies of my independent contractor agreements. They wanted projected income for the next 6 months as well. It's completely doable as IC as long as you can demonstrate consistent income.

 

[shoal]

Difference for me on a 30 yr mortgage between doc loan and private was 0.30 interest. Given pmi and dealing with reassessment costs, doc loan was in fact cheaper until about 10yrs of ownership, which I doubt I'll hit.

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[Hair Police]

The only benefits for going to a BoA MD loan was that they'd drop the mortgage insurance with nothing down, but that was dropped anyways under the conventional loan at 20% down. Got a better rate with a conventional loan (great rate really), mortgage is the same as previous rent payment, probably won't ever refinance.

 

[Birdstrike]

I've gotten "doctor loans" several times with no problem at all. Albeit the first, before I actually started as an attending, was pre-banking crash, when they'd loan $600,000 to a dead tree stump on a lick and a promise.

Each time with BB&T. I've had no problems getting money from them.

 

[EM Junkie]

Used Drew Daniels twice with no problems. He's with Compss Bank and yes, this was in the Great state of Texas where I have a 5300 square foot house and a 2 BR beachfront condo for that price!

 

[RuralEDDoc]

Update: I was just approved for a physician home loan from BoA! Huge thanks to White Coat for the referral. The process has been easy (since all my documents were already in order due to prior attempts at obtaining a loan). At my last two attempts, my status as an independent contractor was a stumbling block, but was not in this case.

 

[deuist]

I used BoA's doctor loan this summer. It was relatively painless. They did want 5% down, but the interest rate was reasonable. I think that the availability and terms of doctor loans vary from state to state. 6 years ago SunTrust was offering zero down. I'm not sure if they still do. I went with BoA since I've been a customer for ~15 years.

 

[NinerNiner999]

Talk to your accountant and increase your W-2 payroll for this year. You may pay more in taxes this year, but it will allow you to generate a 1040 for 2015 showing a much higher income. That will save you the two-year wait.

 

[VA Hopeful Dr]

I used BoA's doctor loan this summer. It was relatively painless. They did want 5% down, but the interest rate was reasonable. I think that the availability and terms of doctor loans vary from state to state. 6 years ago SunTrust was offering zero down. I'm not sure if they still do. I went with BoA since I've been a customer for ~15 years.

Suntrust still does 0% down (I did that last year). It cost me I think 0.25% in interest to go that route though.