Physician Loan Mortgage/IBR

[PCPsRFutr]

Hi all,

I am a 4th year med student right now and would like to buy a home at the start of residency. In order to qualify for the Physician Loan I am looking at, I need a Debt/Income ratio <0.45%. In order for this to happen, I must get documentation of the monthly payment under Income Based Repayment option.

I feel pretty comfortable with all the specifics regarding IBR...Except the timeline as to when you actually sign up for the program and get written documentation from my lender saying my monthly payment is X amount of dollars.

Anyone who has already signed up for this program...when is the earliest you can sign up?

Does anyone have experience with the physician loan mortgage programs? If I do not sign up for IBR, my monthly loan payment will be approximately $2000 and with that number my debt/income ratio will be too high for me to qualify for the Physician Loan. But I need documentation that I am in the IBR program and have a low monthly payment in order to qualify as well.

I would like to buy a home at the beginning of residency but that would mean I need to register/sign up for IBR and have documentation of my payment amount in June/July. I have heard people usually don't sign up for IBR until January of their intern year, which if that is the case then I wouldn't be able to buy a home until January.

Any advice would be appreciated!

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[sazerac]

Why not try the "Doctor Loan/Physician Loan Programs" thread

http://forums.studentdoctor.net/showthread.php?t=385616

in the Finance / Investment forum? There are hundreds of questions and answers in there.

 

[LionMD]

They wouldn't let me sign up for IBR until my grace period ended. So i'm guessing its going to be tough to get an exact estimate in writing from a lender for what your payment will be.

 

[DJspreadsheet]

Hi all,

I am a 4th year med student right now and would like to buy a home at the start of residency. In order to qualify for the Physician Loan I am looking at, I need a Debt/Income ratio <0.45%. In order for this to happen, I must get documentation of the monthly payment under Income Based Repayment option.

I feel pretty comfortable with all the specifics regarding IBR...Except the timeline as to when you actually sign up for the program and get written documentation from my lender saying my monthly payment is X amount of dollars.

Anyone who has already signed up for this program...when is the earliest you can sign up?

Does anyone have experience with the physician loan mortgage programs? If I do not sign up for IBR, my monthly loan payment will be approximately $2000 and with that number my debt/income ratio will be too high for me to qualify for the Physician Loan. But I need documentation that I am in the IBR program and have a low monthly payment in order to qualify as well.

I would like to buy a home at the beginning of residency but that would mean I need to register/sign up for IBR and have documentation of my payment amount in June/July. I have heard people usually don't sign up for IBR until January of their intern year, which if that is the case then I wouldn't be able to buy a home until January.

Any advice would be appreciated!

I don't think you're wrong in citing this as a common practice, but it's financially stupid. You're just putting off IBR (and potentially PSLF) payments as a resident only to be paying them longer as an attending (ie: paying much more).

 

[DJspreadsheet]

They wouldn't let me sign up for IBR until my grace period ended. So i'm guessing its going to be tough to get an exact estimate in writing from a lender for what your payment will be.

If you consolidate your loans, the grace period immediately ends, then you can start IBR. I'm consolidating as soon as I graduate.

 

[PCPsRFutr]

If you consolidate your loans, the grace period immediately ends, then you can start IBR. I'm consolidating as soon as I graduate.

Thanks for replying...that is the issue I'm having. I want to start making IBR/PSLF payments during my first month of residency if possible. This would allow me to begin my 120 payments earlier than January and hopefully receive documentation as well in order to qualify for a loan.

Could you explain a bit on the grace period not being a factor if I consolidate my loans? I was aware that I cannot make IBR payments until my 6 month grace period has expired but I did not know the grace period is nullified if I consolidate my loans, which I am also planning on doing. It seems like If I consolidate my loans and begin making payments right away...then I may be able to get approved for a loan right away and make PSLF payments earlier.

 

[DJspreadsheet]

Thanks for replying...that is the issue I'm having. I want to start making IBR/PSLF payments during my first month of residency if possible. This would allow me to begin my 120 payments earlier than January and hopefully receive documentation as well in order to qualify for a loan.

Could you explain a bit on the grace period not being a factor if I consolidate my loans? I was aware that I cannot make IBR payments until my 6 month grace period has expired but I did not know the grace period is nullified if I consolidate my loans, which I am also planning on doing. It seems like If I consolidate my loans and begin making payments right away...then I may be able to get approved for a loan right away and make PSLF payments earlier.

"Borrowers who consolidate loans that are in grace may receive a lower interest rate on their Direct Consolidation Loans if they are consolidating variable rate loans. However, once grace status loans are consolidated borrowers lose any remaining grace period. Borrowers receive their first bills within 60 days after the new Direct Consolidation Loan is made."

http://loanconsolidation.ed.gov/help/faq.html#grace

 

[survivordo]

I got a physicians loan through a company before having made any payments, consolidations etc. Still not really sure how I got away with it, but it is possible. Might want to hunt around for a few different mortgage companies.

Survivor DO

 

[DJspreadsheet]

I got a physicians loan through a company before having made any payments, consolidations etc. Still not really sure how I got away with it, but it is possible. Might want to hunt around for a few different mortgage companies.

Survivor DO

What was the turn-around time? Is it possible to get it all done so you have your place waiting for you when you move for residency?

 

[PCPsRFutr]

I got a physicians loan through a company before having made any payments, consolidations etc. Still not really sure how I got away with it, but it is possible. Might want to hunt around for a few different mortgage companies.

Survivor DO

What was the company you used? I found some local banks that offer it with fixed rate options. I've also looked into physicianloans.com but I don't like the ARM options they offer.

 

[survivordo]

I went through physiciansloans.com. I ended up going with a 7/1 ARM. I am general surgery, so theoretically my financial situation will be significantly improved after 7 years. Mrs. Survivor DO is in a three year residency so I will have a sugar momma by then too. The interest rate was significantly better with the ARM, those percentage points can really add up! Turn aound time was quick when you push them, you could certainly have a home waiting for you by the time residency begins if you are starting now, I took a little over two months but it was also a short sale so this was actually an amazingly quick turn around and was slowed down by the seller's bank not by my mortgage company.

Survivor DO

 

[UTPhysicianLoan]

Hi all,

I am a 4th year med student right now and would like to buy a home at the start of residency. In order to qualify for the Physician Loan I am looking at, I need a Debt/Income ratio <0.45%. In order for this to happen, I must get documentation of the monthly payment under Income Based Repayment option.

I feel pretty comfortable with all the specifics regarding IBR...Except the timeline as to when you actually sign up for the program and get written documentation from my lender saying my monthly payment is X amount of dollars.

Anyone who has already signed up for this program...when is the earliest you can sign up?

Does anyone have experience with the physician loan mortgage programs? If I do not sign up for IBR, my monthly loan payment will be approximately $2000 and with that number my debt/income ratio will be too high for me to qualify for the Physician Loan. But I need documentation that I am in the IBR program and have a low monthly payment in order to qualify as well.

I would like to buy a home at the beginning of residency but that would mean I need to register/sign up for IBR and have documentation of my payment amount in June/July. I have heard people usually don't sign up for IBR until January of their intern year, which if that is the case then I wouldn't be able to buy a home until January.

Any advice would be appreciated!

This will ultimately depend on how your mortgage underwriter views this issue. We require 3 things before closing from our med students going into residency.
1. Copy of their application for IBR,
2. Copy of their IBR calculator based on their next year’s income
3. Confirmation from the student loan lender that they have RECEIVED the application.

With those we can use the IBR payment and close on your home loan prior to you actually starting to make payment. In most cases clients want to buy in June but their IBR payment doesn't start until Oct or Nov.

Ask your mortgage lender to check with his/her underwriter to see if they would accept that as documentation. Since IBR is a guaranteed program, there is no reason they should not be able to think through that and approve your loan.

If you are buying in CA, NV, AZ, OR, ID, UT or CO please let us know and we’d be happy to help.

 

[PCPsRFutr]

This will ultimately depend on how your mortgage underwriter views this issue. We require 3 things before closing from our med students going into residency.
1. Copy of their application for IBR,
2. Copy of their IBR calculator based on their next year’s income
3. Confirmation from the student loan lender that they have RECEIVED the application.

With those we can use the IBR payment and close on your home loan prior to you actually starting to make payment. In most cases clients want to buy in June but their IBR payment doesn't start until Oct or Nov.

Ask your mortgage lender to check with his/her underwriter to see if they would accept that as documentation. Since IBR is a guaranteed program, there is no reason they should not be able to think through that and approve your loan.

If you are buying in CA, NV, AZ, OR, ID, UT or CO please let us know and we’d be happy to help.

Thanks so much, that's very helpful. All I have been told so far is that I need documentation so if they accept an IBR application and copy of the calculator that would be awesome. Unfortunately I'm not applying in any of those states but if you start something in Indiana let me know!

 

[firozdear]

Did you try BBVA. You can contact David Hager he is VP and very professional and can get the work done ASAP. He did really help me my loan.
[email protected]
good luck.

 

[IJL]

What kind of rates are people getting nowadays on consolidated loans? Is it worth it?