Physician Loans

[DocDiva]

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Has anyone bought a house using the Doctor Loan program...more specifically Citizens Bank? We are attempting to buy something in NYC/NJ and no one will overlook my hefty student loans for a conventional mortgage .

I'm not looking for advice whether I SHOULD purchase- just the experiences of the special mortgage program.
Thanks!

 

[Shikima]

I've done it in the past. They're reasonable to work with, especially if you can show a good amount of W2 income.

 

[wolfvgang22]

I'm not sure that one necessarily has to work with just with lenders that advertise that they loan to physicians. I got a 30 year fixed with good interest rate from Wells Fargo when I was PGY2, despite hefty student loans, via a mortgage broker. I've since sold that house, because I moved.

 

[NickNaylor]

I'd also be interested in others' experiences. My wife and I are looking at buying a home in a year or so, and specific information on "doctor's loans" programs from banks seems to be somewhat lacking.

 

[deleted480308]

I'd also be interested in others' experiences. My wife and I are looking at buying a home in a year or so, and specific information on "doctor's loans" programs from banks seems to be somewhat lacking.

whitecoatinvestor has a few posts on his blog

 

[NickNaylor]

whitecoatinvestor has a few posts on his blog

Yeah I've read his posts and tried to follow them up with specific information from banks but didn't find much.

 

[Shikima]

Some banks offer, just need to shop around and look for it. No extra costs and no down payment. Just need to show a reasonable income.

 

[metalgirl14]

Most residents should be able to get a traditional mortgage despite the student loans. My husband and I just purchased our first home. We originally applied for a physician loan, but we had a bad experience and later found out that we didn't need to use a physician loan company...we qualified for a local 7/1ARM with a much better interest rate. Also, the home buying process was much easier having a local lender. Just ask if your local lender has previously approved people with large amounts of debt.

 

[F0nzie]

Compass Bank offers a doctor loan. I was recently preapproved for up to 1M at 4.25% for a 30 year mortgage. I am 2 years out of residency btw. I ended up doing a 15 year mortgage because I was able to get the interest under 3%.

 

[deleted314290]

Compass Bank offers a doctor loan. I was recently preapproved for up to 1M at 4.25% for a 30 year mortgage. I am 2 years out of residency btw. I ended up doing a 15 year mortgage because I was able to get the interest under 3%.

This. They will allow you to do 5% down as well.

 

[postbacpremed87]

Compass Bank offers a doctor loan. I was recently preapproved for up to 1M at 4.25% for a 30 year mortgage. I am 2 years out of residency btw. I ended up doing a 15 year mortgage because I was able to get the interest under 3%.

Is always the way to go

 

[Psychotic]

Is always the way to go

Not always.

Another school of thought is to take out a 30 year loan and double up your monthly payments, paying down your principal in half the time - you end up in pretty much the same place as a 15 year loan, but you preserve the option of just making the normal 30 year payment during any stretches where money is tight, etc. Gives you some flexibility.

 

[postbacpremed87]

Not always.

Another school of thought is to take out a 30 year loan and double up your monthly payments, paying down your principal in half the time - you end up in pretty much the same place as a 15 year loan, but you preserve the option of just making the normal 30 year payment during any stretches where money is tight, etc. Gives you some flexibility.

Yes yours is the more flexible, but more expensive option.

 

[Ped Rules!]

Any recommendations for a bank that will approve a doctor mortgage with a credit score less than 700?

 

[WingedOx]

This. They will allow you to do 5% down as well.

That the same bank as BBVA nowadays?

I'm pretty sure BoA has them too if you ask.

 

[daru1]

There's a huge thread on this as well at:

http://forums.studentdoctor.net/threads/doctor-loan-physician-loan-programs.385616/

 

[thoffen]

I dunno. You can always use that extra money that would have been for the 15 year mortgage to invest, easily getting over 4.25 % over 15 years. Then deduct that extra mortgage cost from taxes. Seems like a profitable win win to go long

Depends on taxes and fees and risk, but yeah it's a trivial difference considering the cost of a home. For that matter, if there were no taxes/fees and you could invest at a higher return reliably than your home loan, you would just keep pulling equity out from the house and reinvesting elsewhere to make financial sense.