Physicians Loans

[radwife]

I tried to search this in the archives since I'm assuming it's been discussed before, but I was having troubles.

Has anyone used this service for a home loan? http://www.physicianloans.com/ Would you recommend this over a regular bank loan?

We're barely dipping our toes in the home search pool. I'm mostly just fact gathering. We've got the low to no down payment issue with tons of debt and am wondering if its even feasible.

[oceanchild]

We used SunTrust. I kind of hate them, but we did get a loan.

[moonlight]

I think we did talk about all that last... March? I think a couple people were looking into it. Color_Me_Sulky and/or Vanquisher might have more info on them.

Good luck!!

[migirl]

Posting on the fly here ... We looked into doing a physician loan but decided against it primarily because they could only offer us an ARM. DH wasn't comfortable doing that, so we ended up going with a conventional loan with a fixed-rate. The only reason we could do that, though, was because we managed to scrape together enough for a down payment.

[Ravenclaw]

radwife - We were considering an FHA loan (I have the name of a broker over there if you want his info). I had asked about it on here too so you can do a search for it. (Some pple on here had heard some bad experiences with it). It's 3% down. I don't have much more info on it though since we didn't end up doing it.

We are currently trying to close with Physician Loans/Tower Mortgage. Let me tell you, it has been a really emotional rollercoaster. We are one week from closing and underwriting has taken an obnoxious time to get back to us. It took them 10 days to tell us that all of a sudden we needed six months of funds to cover our current mortgage and future mortgage. What the *(@#)... You do the math - it's a ton of money, cash, they want at the very last minute. We bent over backwards to get the funds so quickly. Now we are waiting to hear back from underwriting if they will accept our funds, so we can close. If underwriting wants more paper work, etc, we may have to close late. Problem is, we have asked our seller to extend our contract for loan commitment FOUR TIMES, due to underwriting delays. If the next time they get back to us and should underwriting as for more paperwork, our seller is going to go ape****. There is more to all this, but at this time I really can't go into it. Basically, that golden egg we were all talking about, didn't pan out for us. What we were told by our lender, is that underwriting is asking for more due to the crack down on all loans. But what end up happening, is that we are getting a loan, we never intended to commit for... We may lose this house, and if we do, God help me, - I won't be quiet and I will document the entire process publically.

[Michele]

Re: Physicians Loans

I think we got our home loan through CountryWide. I can check with Russ. It was a physician loan (no down payment and no PMI with a low fixed interest rate). We even did interest only for the first 5 years (we are selling before that time). I think we are gonna lose a little money since the recession but not too bad.

We just got a regular (?) loan from Sun Trust as a physician loan so that we can live next year in Dallas without my salary and it was really easy to get.


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I wanted to add, the lender has been very communative, weekends, late - LATE at night, up to 11:00 pm, called me personally with updates. But I get the understanding that underwriting is 100% out of his hands and that he doesn't even know who my underwriter is. He can't push things through faster, but in my opinion, the effectiveness of his job will be proven by the closing of our house. If it doesn't close, I'm going to scrutinize our entire communications a lot harsher. They are nice guys, really, but I don't need a friend, I need a lender who can do their job so I don't lose my sanity, earnest money, money I spent on flying to purchase a home, the time I used when I should have been with my family during the weekend of my grandma's memorial service but went to look at homes because I was in town, the time I've taken of our real estate agent, my family's support to help us get this loan pushed through, etc. Am I getting a tad bitter - you bet ya.

If we lose the house, we could lose more than $6000 in earnest money, plane tickets, inspection fees, etc.......... And you know what $6000+ means to a resident's family...

[MarissaNicole]

We are currently trying to close with Physician Loans/Tower Mortgage. Let me tell you, it has been a really emotional rollercoaster. We are one week from closing and underwriting has taken an obnoxious time to get back to us. It took them 10 days to tell us that all of a sudden we needed six months of funds to cover our current mortgage and future mortgage. What the *(@#)... You do the math - it's a ton of money, cash, they want at the very last minute. We bent over backwards to get the funds so quickly. Now we are waiting to hear back from underwriting if they will accept our funds, so we can close. If underwriting wants more paper work, etc, we may have to close late. Problem is, we have asked our seller to extend our contract for loan commitment FOUR TIMES, due to underwriting delays. If the next time they get back to us and should underwriting as for more paperwork, our seller is going to go ape****. There is more to all this, but at this time I really can't go into it. Basically, that golden egg we were all talking about, didn't pan out for us. What we were told by our lender, is that underwriting is asking for more due to the crack down on all loans. But what end up happening, is that we are getting a loan, we never intended to commit for... We may lose this house, and if we do, God help me, - I won't be quiet and I will document the entire process publically.

Julie, I am so sorry, that is unacceptable! I think our loan officer asked us to see that we had 3-6 months of payments in the bank before we even got our prequalification letter. And I imagine you had a prequalification letter when you made your offer, so you had a reasonable expectation that it would be safe to put your earnest money down. I think your lender should have known to ask you for that up front. I'll be hoping everything goes through quickly for you, I cannot even imagine how fuming I'd be if I were you. Please keep us posted!

[MarissaNicole]

Radwife - does DH's program/hospital have a credit union? The med grads I know that got physicians loans got them through the hospital credit unions.

With all the new financing laws they have passed, it is a pain in the a$$ for regular people to get mortgages, there are a LOT of hoops to jump through. I was faxing something just about every other day to our loan counselor!

[migirl]

What we were told by our lender, is that underwriting is asking for more due to the crack down on all loans.

I'm sorry, Julie. This is exactly what happened to us with our local bank. There were some regulations that were changed literally weeks ago that we had to jump through multiple hoops to get to closing (which is in ... 2 hours!!). We were scrambling to get everything in place as late as last week, it's been a crazy process with the crackdown on loans.

[Chrisada]

We got an FHA loan right out of medical school with neither one of us working. Closing next week. We chose to go through a mortgage broker since our bank pretty much laughed at DH when he met with them. Their issue was DH not working until July. Our mortgage broker got us a loan with no problem. We have had to show them a ton of stuff about DH's loans. Breaking everything down very explicitly. Letters from the school, etc. We also had to show them that we had enough money in the bank to pay our mortgage until DH starts working. My mother is giving us the money for the 3.5 % down payment. And... DH did not have the greatest credit score, but luckily mine was. So we had absolutely no problem securing a loan with our $100,000 worth of debt and a resident's salary. Good luck!

We got an FHA loan right out of medical school with neither one of us working. Closing next week. We chose to go through a mortgage broker since our bank pretty much laughed at DH when he met with them. Their issue was DH not working until July. Our mortgage broker got us a loan with no problem. We have had to show them a ton of stuff about DH's loans. Breaking everything down very explicitly. Letters from the school, etc. We also had to show them that we had enough money in the bank to pay our mortgage until DH starts working. My mother is giving us the money for the 3.5 % down payment. And... DH did not have the greatest credit score, but luckily mine was. So we had absolutely no problem securing a loan with our $100,000 worth of debt and a resident's salary. Good luck!

Problem is FHA loans have a cap out limit, in Missouri it's around $270,000. We have excellent credit. The loan is in DH's name right now, but we had both our credit scores pulled. They were from 770-805. Income level is excellent. I talked to OVER ten lenders/mortgage brokers, including an IN HOUSE lender at a local bank who was referred to me. What I was told was, man wish this was last year or so, and the golden gates would have opened for you... The only problem is we don't have a lot of cash. YET, DH has moonlighted since last summer, has the paychecks to prove it, so in many many ways we are better off than many other resident families. However, the whole process has been unbelievable frustrating. We did get prequalified/preapproved, and all seemed fine. Listen, we are paying out of the wazoo to close this loan using this lender. It's estimated at $13,500. We are paying almost $9K of that, seller contributing $5K, should it go through. So this idea that we aren't putting any money down now is not true. I throw that out there for those who are reading this and wondering what they may have to shell out... And since our home is still on the market in our current city, that is why underwriting demanded more reserves. We did everything we could, and it still may not be enough...

[radwife]

Thanks everyone for your thoughts and advice. I'm really afraid of the house buying commitment to begin with because of the uncertainties of potentially moving after residency. Based on your comments it’s confirming my thoughts that it’s definitely not something we want to take lightly. Who knows if it’s even possible for us. Low to no down payment, no time or skill for a fixer-upper, questionable savings if we had to actually repair something significant. For us, in our current situation, there are far more cons than pros. Sigh…

The whole “delayed gratification” thing sucks. Especially when you’re not really certain that day will come. Never ending loans, uncertain future for the medical profession, etc. Can you tell I’m having a blah day?

Julie, I’m so sorry about all the hoops you’re having to jump through! I really hope it all works out for you.

[MarissaNicole]

Piggybacking on what Julie said, our closing costs were at least $5,000. That hit us HARD, especially since we had already put the majority of our savings down for our down payment. Buying a house for us made sense because residency is seven years. Otherwise I don't know if it would have been worth it to pay those closing costs because essentially they are sunk costs that we'll never get back.

Good luck, Julie, I'm sorry the new laws are making it so difficult for hard working people like you and your DH to get a loan!