Physicians Loans

I just want to thank all of you that are willing to share your experiences. It is very useful to hear it, but also very depressing!
We always thought that in a year or two when we are done training we would be able to FINALLY buy our first home but have pretty much accepted that we'll be renting for x years to save up a downpayment. We have no savings/high student loan debt and housing costs are high pretty much anywhere on the west coast that we would want to live.

[diggitydot]

Holy crap. We bought our house in the spring of 2008. I didn't realize how things had tightened up since then. Yikes!

We went through Drew Daniels with Compass Bank and he was beyond amazing. That man got us a ridiculously low interest rate (even for an ARM) and returned calls on weekends on holidays. I think there are even love-fest threads about him over at SDN.

http://ddaniels-compassbanklo.mortga...ult.asp?bhcp=1

[migirl]

That's funny, I had some initial contact with Drew Daniels and I felt like his office was less than responsive so we ended up going with our local bank instead.

[Tenacious_D]

FWIW, we talked to a couple of residents and attendings in the area who have also been told that BOA is bringing back a physician loan (maybe not as good as the old days) in August. For those of you looking who have a couple of months, you may want to look into it. We are hoping that they open the doors again soon. I need out of apartment living ASAP!!

Physicians Loans

My aid was posted and I ended up having to go in...online said everything was turned in but when I called they were still waiting on Child Support Verification, noone told me I needed that so I turned it in and everything was posted the next day...I dont understand about the loan all that is listed is pell grants and when I called back they said loans were not posted yet...how do they determine the amount of the loan?

WE CLOSED!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!! It took until yesterday late afternoon to get loan approval, but by golly we got it AND I don't know how it happened, Physician Loans kept our original closing date. Holy crap, I was begining to think their confidence was all fluff, but they did it. I can sleep well now, and rest in ease. We move in 2 1/2 weeks and I'm beyond grateful not to have to find an apartment at the last minute. *insert DEEP SIGH OF RELIEF!!!*

[medpedspouse]

Yay!!!

[scrub-jay]

Congrats!

[ladymoreta]

Congratulations!!!

[alison]

Great! I'm glad it all worked out, Julie.

One way you can keep your up front costs down is making an offer wherein the seller covers the closing costs. We went this route, and it's sort of a win-win situation (knock on wood), because this particular seller has other properties that are similar to the one we bought, and to potential buyers of the other properties, it makes it look like the home was purchased for more than it actually was.

[alison]

Either that, or it makes it look like we're complete suckers!

I just got off the phone with Bank of America on their brand-new "doctor" loan.

- You now have to have 5% down. (A few years ago, you could get 0% down.)
- The guy I talked to tried to tell me that you DON'T have to have 4-6 mos pmts in the bank, but he's going to call me back to confirm, because he wasn't sure. This web site makes me think he's wrong: http://physicianlending.blogspot.com...ew-doctor.html
- There is no PMI, even with 5% down. This is the only advantage I see over a regular loan that another bank is offering us. Normally, you have to put 20% down to avoid the hefty monthly PMI payments. The other bank is trying to split it into two loans to get around the PMI. The second loan would cover the additional 15% that would make up our 20% down payment. This smaller loan would have a higher interest rate. I assume we could pay this one off more quickly and be done with that higher interest rate.

Basically, unless the guy is right about not needing several payments in reserve, the new Bank of America doctor loan doesn't seem much better than the one this other bank is offering us. BOA doesn't count deferred student loans into the debt-income ratio, but that doesn't affect us because we're not trying to buy a house that's anywhere near the top of our approved amount. (I don't think most people do.)

Keeping my fingers crossed on not needing the 4-6 mos of pmts... That could be the deciding factor in whether I have to stay here another few weeks until DH gets his first paycheck or two.

I was telling DH today that I'm glad now that we started looking so far in advance. I felt kind of sheepish about it at first (still do, a little). But it's amazing to find out how much we're going to need to save this year - especially when we saw how much of that signing bonus will be eaten up by taxes!

[TigerLily]

We did a low down payment regular mortgage loan through Regions. But, I do know that they started offering a NO down payment physicians only home loan shortly after we got ours. Several of our friends got these loans and didn't seem to have any problems

I just got the detailed outline of BOA's "doctor" loan.

It includes this line: "Monthly Tax Advantage Mortgage Insurance (monthly TAMI), also known as Lender Paid MI (LPMI), is required for loans with LTV greater than 80%." Translated - this loan DOES appear to require PMI payments with a down payment less than 20%. For loans of $625K or less, 4 months reserve is required. Above $625K, they require you to have 6 months of house payments saved.

I can get as good or better through my other bank.

Thanks for the tip on Regions, Zoe. It doesn't look like they're in my state, but the east half of the US could try it!

[OrionGrad]

BOA doesn't count deferred student loans into the debt-income ratio, but that doesn't affect us because we're not trying to buy a house that's anywhere near the top of our approved amount.

Does anyone know how entering IBR impacts your ability to get a mortgage? We're doing that rather than deferment, and I'm hoping that's not going to hurt us when it comes time to start looking for a home in a few months.