Physician Loans

[RedAnesthesia]

Does anybody know of any good websites or companies that provide physician loans (ie Home loans)? I just matched this year to my home program and now my wife and I are looking to buy our first home, but unfortunately we don't have any money saved for a down payment. I heard from one of my friends about certain companies providing loans for physicians as well as providing loans for the downpayment without the penalty that most places charge. Anybody have any advice or information

---

Members don't see this ad.

 

[Pilot Doc]

Anybody have any advice or information

1) rent
2) ask the residents at your home program.

 

[Southpaw]

Call around to local places to see what they're offering, if anything. I bought last year and had a really hard time finding a lender. Most physician loan programs have shut down, but I've heard rumors a few are still around (smaller local banks). It's a tough market out there, good luck.

 

[decormd]

Compass Bank, Drew Daniels, does physician loans in some states with 0% down if your credit score is >660 or so. I'd contact him through their website. It's BBVA Compass. They are one of the only ones providing this type of loan that I know of.....

 

[WholeLottaGame7]

SunTrust also has physician loans.

 

[Dirtball]

Advice = Rent and save up for downpayment. Much less stress.

 

[2ndyear]

Same advice: Rent! Later today your medical education just became worth a whole lot less when this health 'reform' bill passes. Rent the smallest place you can, pay off high interest debt, save for a downpayment and THEN get a house when you have the money down to do so. A house is like a time bomb. When your roof/heater/airconditioner/ dies you're looking at big bucks to fix it. You'll pay a ton of money in closing costs to buy it, and likely get stuck with closing costs when you go to sell it. For the time you're in residency it won't appreciate nearly enough for you to make up these costs. Fact is it may well depreciate. That's IF you can sell it. In most places where you can afford to buy a house on a residents salary they won't sell easily. You'll end up renting it and still being on the hook to fix the roof/heater/airconditioner, not to mention the chance that it gets turned into a meth lab.

 

[Jeep23Guy]

I'm in a similar position to you...I'm not staying where I'm in school, but I'm going back to my home town where my family still lives for residency. My wife and I are planning on buying a house (especially since we will have 2 kids and a dog).

I keep getting emails from EPL (which is Exclusive Physician Loans I guess). They say no money down in 50 states (5% required in declining markets). I don't know if I would use them...they probably have much higher rates than the current 5% you can get. My plan right now is to go talk to my Dad's mortgage guy and just see what he has to say. I know that they would give me a good rate, but I'm not sure about the 0 down and rates. If that doesn't work out, I'm interested in who gives good rates as well.

Anybody know?

 

[badgas]

Same advice: Rent! Later today your medical education just became worth a whole lot less when this health 'reform' bill passes. Rent the smallest place you can, pay off high interest debt, save for a downpayment and THEN get a house when you have the money down to do so. A house is like a time bomb. When your roof/heater/airconditioner/ dies you're looking at big bucks to fix it. You'll pay a ton of money in closing costs to buy it, and likely get stuck with closing costs when you go to sell it. For the time you're in residency it won't appreciate nearly enough for you to make up these costs. Fact is it may well depreciate. That's IF you can sell it. In most places where you can afford to buy a house on a residents salary they won't sell easily. You'll end up renting it and still being on the hook to fix the roof/heater/airconditioner, not to mention the chance that it gets turned into a meth lab.

This is the best advice that anyone could possibly give you. As a resident who looked into buying, I would HIGHLY recommend against it. I ended up renting a house and it was a great move. Unless you plan to live in an area for the long haul, do NOT buy!

 

[orangele]

Yes crunch some numbers, and dont forget to add in current and likely increasing property taxes as local governments try to make up for dropping revenues. My property taxes went up 30% this past year.

 

[Camel]

I agree that buying is not for everyone; however, there are situations where it makes more sense than others. Research the costs and benefits before making the jump.

EPL looks like it is ok, but if you don't use one of their realtors you must pay some fee to them (I haven't found out what that is yet). Drew Daniels was mentioned. In Ohio, Huntington Bank does it (at least they did last year). In Kentucky, Republic Bank is the place I was told to look.

 

[RedAnesthesia]

I should have given some background information on me before posting this thread. I buying a house because I am in for the long haul because my home program is also my home town. Not only will I have my salary as a resident which is 49 grand but I have my wife's salary which is low 60s, so we have a combined income of 110 grand. We have a child and a dog and definitely looking to buy a house given we have been renting for the past 4 years. My wife's father can possibly loan us a down payment amount for a house but I wanted to look at other possibilities before seeking his help. Do most of you still suggest renting especially given the passing of the healthcare bill today?

 

[Pilot Doc]

Do most of you still suggest renting?

Yes

Assuming
1) There are reasonable places to rent
2) Your wife isn't going to divorce you over it.

You think right now you're in for the long haul. Probably right. But you might change your mind, the job market in Omaha might suck in 2014, you might have more kids and/or special needs kids and your wife stops working. Any number of things. There just aren't many compelling reasons to buy over a 4 year time-frame.

 

[thedrjojo]

I agree that buying is not for everyone; however, there are situations where it makes more sense than others. Research the costs and benefits before making the jump.

EPL looks like it is ok, but if you don't use one of their realtors you must pay some fee to them (I haven't found out what that is yet). Drew Daniels was mentioned. In Ohio, Huntington Bank does it (at least they did last year). In Kentucky, Republic Bank is the place I was told to look.

Huntington Bank also operates in NJ and claims to do 0% loan still... just was contacted by them today about it via EPL (which, if I do end up using that lender, I must pay 1% referral fee to EPL... so between the 1% to them and the 1% the lender wants in leui of PMI you essentially give 2% down payment in these additional fees) They also claim no PMI, and offered as competitive rate as I have been getting for FHA loans for the 5/1 ARM (the 30yr Fixed rate was more than what I have been quoted, but basically they stated most residents move in 4 years so take advantage of the lower rate with ARM... I am looking to be there 7 years so those final 2 years are going to be a gamble if I take this offer). He also gives a 50% D to I ratio, close in June... it all seems too good be actually be true, so I have my reservations

Physicianloans.com referred me to a guy at JP Morgan who pre-approved me for an FHA loan with a 44% D to I ratio, but has been dragging his feet on letting me know if I can close before I begin working (in order to A) move before I start and B) qualify for the 8K tax credit you need to be under contract by April 30 and closed by June 30).

My realtor referred me to her in office loan specialist who also pre-approved me for an FHA loan with a 50% D to I, and has stated I can close in June... he seems to be the most reliable to date, and has the added advantage of working with my realtor which can make the process smoother

Lendingtree.com also connected me with another lender in NJ who pre-approved me for an FHA loan and said he can push the D to I up to 55%, close before I begin working... again, sounds great and wonderful, but if it sounds too good to be true...

I will be here for 7 years (GS 5 yrs + 2 yrs spent in the lab) so buying makes a bit more sense for me, but I still am not going to force it if I don't find what I am looking for. Going for a condo/townhouse does cover some of the hassle associated with owning a home, but takes away some of the freedoms of owning as well.

 

[Camel]

With any 5/1 ARM, just check what the lifetime cap is for the interest rate. If the rate in the US hits double digits (it certainly could), you will want a lower lifetime cap (mine is 5% above the starting, which keeps me under 9% at this point... certainly not great, but could be worse). Also, bear in mind that in 4-5 years or whenever you sell, if the interest rate is high it will be a double-whammy because potential buyers will be discouraged from taking such a large loan with that rate.

Best of luck to all.