getting 100% financed loan w/Sun Trust

We have the money for a down payment, but the biggest hurdle that I was thinking we'd have is qualifying for a loan with so much student debt from medical school. Is that a problem, or are the banks willing to look past the student loan debt with the physician mortgages? Would we need to get deferment or forbearance set up before going starting with the mortgage process?

I'm clicking over to check out your mortgage interview questionnaire right now--thanks again!

There are no physican mortgages. They don't exist anymore - except for Suntrust. They will no longer look past your debt. They want to know exactly your repayment status: when to repay, how much per month. You also have to have a much higher credit score than previously for the best loans. We 1. have amazing credit scores 2. a great salary 3. good debt/income ratio for the home price range we are looking at. For us, having kids, we just don't have quite enough in savings for the down payment. Your credit is going to be a big deal. Oh also certain loans (jumbo) are being denied mortgage insurance, so the banks may not do them. Also the mortgage insurance is being denied on other loans too (I don't know exactly why) so not only do you need the above, but if you are denied insurance it's absolutely a no go. And again, most banks want 10-20% down on a house. We had to search for 5% - even with the above in our favor. Bank Of America flat out told me they wouldn't be competitive. We got an in on a lender who works with a credit union, and was able to work with some numbers for us. What I would tell you is this - the gov is taking away their support system this year, interest rates are 100% forcasted to go up (predictions are 6 to 6.5 by the end of the year), more foreclosures are being predicted - which will additionally tighten lending. So if I were you - I'd brace yourself. It's not easy for anyone. I had lender who does in house loans, took our info to the senior lender, and he said his hands were tied. It's all about the over all system right now. Oh - and lenders are increasing the downpayment amount depending on where you are wanting to move. If your zipcode comes up as a depreciating area (as everywhere is) then they want a higher downpayment. Do your homework so you aren't surprised. I know I was.

eta: For residents they are changing when you can get a loan to close. BOA told me they wouldn't close before you got the first (or second?) paycheck. Again - EVERYTHING IS DIFFERENT. FWIW I talked to 5 or more loan officers and 1 mortgage broker who was recommended to me.

[OrionGrad]

Color_Me_Sulky, MarissaNicole, & oceanchild: Thanks for all the advice and insight! I guess now we're just waiting to see where DH matches, since the location will largely determine whether housing prices are affordable enough to buy.

[MarissaNicole]

This may be a load of crap but just thought I'd post because it is somewhat relevant to the thread:


http://uncleharvey.com/index.php/for...ewthread/1864/

This may be a load of crap but just thought I'd post because it is somewhat relevant to the thread:


http://uncleharvey.com/index.php/for...ewthread/1864/

Suntrust won't even talk to you unless you have 12 months BANKING HISTORY with them, period. The Lender for Suntrust that we got through EMRA's pamplet told us this is absolutely manatory. There is NO EXCEPTION.

[poky]

Suntrust won't even talk to you unless you have 12 months BANKING HISTORY with them, period. The Lender for Suntrust that we got through EMRA's pamplet told us this is absolutely manatory. There is NO EXCEPTION.

The information at that link implies that that's not the case *for some states*, but that it is for others. What state were you in when you were told there were no exceptions?

The information at that link implies that that's not the case *for some states*, but that it is for others. What state were you in when you were told there were no exceptions?

He didn't ask me what state I was in - he said this was the regualtion by underwriting. He said he's been having to deny people left and right...

eta: Again - this is about the fact that all banking rules have changed. There are no pamplets or fliers with this info. All the info given to me was from the horses mouth. I think things are changing so much, they can't really market the qualifactions. So much is riding on what the government does, how much homes depreciate, and the strength of the banks.

Heres a recap of the current situation. The fact we are married to residents and physicians no longer means anything. There is no golden egg.

http://www.mortgagenewsdaily.com/con...es/131582.aspx

[OrionGrad]

I just emailed Matt Albert (the lender who wrote in on the Uncle Harvey site) and this is what he said:

On Thu, Jan 28, 2010 at 1:03 PM, Albert.Matthew <Matthew.Albert@suntrust.com> wrote:
Stephanie the 12 month rule is correct if you are purchasing in a state outside of our footprint. However if you are purchasing in our footprint no previous relationship is required. Please let me know where you will be purchasing and I can then better advise you of your options.

Thanks for your e-mail!

...for whatever it's worth.

Have you checked with the smaller, community banks in your new town? Some of our community banks are still doing either 0% or 5% down loans depending on your credit score and most offer "physician loans". The housing market has remained fairly stable here, though.

Have you checked with the smaller, community banks in your new town? Some of our community banks are still doing either 0% or 5% down loans depending on your credit score and most offer "physician loans". The housing market has remained fairly stable here, though.

We have. Some of the local banks wouldn't do anything less than 20%. Many of the credit unions stopped doing mortgages. Even BOA didn't think they could do 10%. But - we are moving back to St. Louis, so I'm sure that has something to do with it. But - almost all residents are moving to big cities for the teaching hospitals, so I would assume others would hit the same issue.

Wish I lived by you! FWIW - I emailed Matt my stats...

Suntrust is doing our loan in Florida. They would have gone 0% down but we were required to give our builder 10% in our contract, so they are finaincing the rest. We had no relationship with them prior to this. They have 2 programs. One for new physicians and one for physicians who have been practicing over 5 years.

That's a bummer about the loans, Julie. Maybe it will really be a blessing in disguise since it will give you extra time to find the perfect house. You curently own a house, right? I'll keep my fingers crossed that it sells quickly!

So I talked to the guy from Suntrust. He said the state listing is valid, but that they tightened their regulations sometime this past year. So I would still be wary that their program is an easy in, they can change their criteria at any point, as the above shows, and as the other banks have shown as well. For us, it looks like we'll just have to rent. In the end, that will probably be the best thing. But it's a pain to think of working so hard to sell this house, just to move to a possibly smaller apartment, then just to move a few months later. Oh well - it could be worse.

[Vanquisher]

www.physicianloans.com

We are trying this company.

[OrionGrad]

www.physicianloans.com

We are trying this company.

Please post what you find out. I've seen the website, and wondered whether anyone had personal experience (good or bad) with the company.

[moonlight]

I could talk about this issues on and on. Like I said before, it took us working with someone for 6 months and they never did get us financing. My MIL is an wonderful agent and knew a lot about financing. Due to our high amount of student loan debt we needed (what's called) a profile mortgage loan. Maybe someone here can explain more what that is. And like I said before the only bank in this area offering profile loans is RBC.

You are absolutely right. Being a doctor means absolutely nothing anymore to the lending people. It's all about numbers. We were told that over and over.

When you get to St. Louis I’d suggest looking for a very experienced agent that can help you on the finance side. We wouldn’t own this house today if it weren’t for my MIL. The agent here had NO CLUE how to help us. She only knew how to do “the easy ones.”

And I don't want to scare off any MS4's looking at buying next year, but with IBR it was a big pain to buy a home. The lending people don't know from year to year what our student loan payments were going to be. Truthfully we couldn't tell them what our payments will be in 2011, 2012, and on. Truthfully NO ONE can say what IBR will be in the future years because the rules do change. Too much uncertainty=no home loan.

The world of “Student Loans are GOOD debt” is a thing of the past in my book. Student loans do count and they do count against you when looking for financing these days.