"Doctor Loan/Physician Loan Programs"

[dragonfly99]

I was accepted for the FHA loan, after they saw my contract. They removed the stipulation about needing my first paycheck. All I had to do was ask nicely...it might be a gray area as nothing on my contract says it is "irrevocable".

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[DeaconMD04]

Has anyone with significant student loans been approved for an FHA loan. With the recent rule changes in student loan deferment options combined with the current FHA guidelines, it seems impossible for someone like myself to be approved.

FHA requires that student loans be in deferment status for at least 12 months after closing date in order to not count against your debt to income ratio.

You can no longer apply for economic hardship deferment as of July 1, 2009. However, if your loans have a 6 month deferment grace period you cannot waive this grace period in order to apply for the year of deferment.

Loans that have no grace period, which include consolidated loans and some private loans (you waive the grace period when you consolidate), you can apply for a year of deferment, which can begin at graduation.

Either way, it is impossible to have all of your loans deferred for at least 12 months after closing date.

They are also requiring a copy of my Illinois medical license (which won't be available until mid-june) since that is a stipulation of my employement contract.

Does ANYone have any advice or experience?

 

[drguy22]

Has anyone with significant student loans been approved for an FHA loan. With the recent rule changes in student loan deferment options combined with the current FHA guidelines, it seems impossible for someone like myself to be approved.

FHA requires that student loans be in deferment status for at least 12 months after closing date in order to not count against your debt to income ratio.

You can no longer apply for economic hardship deferment as of July 1, 2009. However, if your loans have a 6 month deferment grace period you cannot waive this grace period in order to apply for the year of deferment.

Loans that have no grace period, which include consolidated loans and some private loans (you waive the grace period when you consolidate), you can apply for a year of deferment, which can begin at graduation.

Either way, it is impossible to have all of your loans deferred for at least 12 months after closing date.

They are also requiring a copy of my Illinois medical license (which won't be available until mid-june) since that is a stipulation of my employement contract.

Does ANYone have any advice or experience?

I was approved...BUT then they decided that the secondary investors DEMANDED ONE paystub.....they wanted me to bring it with them to the closing. screw that..


i just got my commitment from suntrust today. im ready to close...once the house is done being built

 

[CarleneM]

I was initially pre-approved for FHA through Countrywide before finding out my particular condo was not FHA-eligible. They had to treat all the student loan debt as though it were in repayment. I'm not sure how that amounted to me still being able to qualify, but it did and I have the typical student loan debt from a private med school and no help from mom and dad. I had to argue with them about the paystub issue but when you quote them the FHA guidelines on fully executed (ie signed by both parties) they agreed. I have a co-signer with paystubs, but his income alone isn't enough to qualify us for the amount we want. My soon-to-be-co-resident got approved for FHA through Countrywide so I do think it is possible. You do have to be very careful if you are trying to get a condo or townhouse with an FHA loan as the guidelines are very stringent for these type of properties.

We ended up going with Compass and got the commitment earlier this week for 100% financing at 5.0%, which didn't seem like a bad deal all things considered. Suntrust wanted 10% down b/c it was a condo in what they considered to be a declining market and we could only do 5% down at best so that was a no-go. Compass did not consider it a declining market. I'm very pleased Compass has worked out and we will be closing next friday!

Has anyone with significant student loans been approved for an FHA loan. With the recent rule changes in student loan deferment options combined with the current FHA guidelines, it seems impossible for someone like myself to be approved.

FHA requires that student loans be in deferment status for at least 12 months after closing date in order to not count against your debt to income ratio.

You can no longer apply for economic hardship deferment as of July 1, 2009. However, if your loans have a 6 month deferment grace period you cannot waive this grace period in order to apply for the year of deferment.

Loans that have no grace period, which include consolidated loans and some private loans (you waive the grace period when you consolidate), you can apply for a year of deferment, which can begin at graduation.

Either way, it is impossible to have all of your loans deferred for at least 12 months after closing date.

They are also requiring a copy of my Illinois medical license (which won't be available until mid-june) since that is a stipulation of my employement contract.

Does ANYone have any advice or experience?

 

[NOLAdr]

I was able to get a letter from my student loan lender stating that I would be "eligible" for forebearance at the expiration of the grace in 6 months. This is working so far... supposed to close on Monday.

 

[drguy22]

I was initially pre-approved for FHA through Countrywide before finding out my particular condo was not FHA-eligible. They had to treat all the student loan debt as though it were in repayment. I'm not sure how that amounted to me still being able to qualify, but it did and I have the typical student loan debt from a private med school and no help from mom and dad. I had to argue with them about the paystub issue but when you quote them the FHA guidelines on fully executed (ie signed by both parties) they agreed. I have a co-signer with paystubs, but his income alone isn't enough to qualify us for the amount we want. My soon-to-be-co-resident got approved for FHA through Countrywide so I do think it is possible. You do have to be very careful if you are trying to get a condo or townhouse with an FHA loan as the guidelines are very stringent for these type of properties.

We ended up going with Compass and got the commitment earlier this week for 100% financing at 5.0%, which didn't seem like a bad deal all things considered. Suntrust wanted 10% down b/c it was a condo in what they considered to be a declining market and we could only do 5% down at best so that was a no-go. Compass did not consider it a declining market. I'm very pleased Compass has worked out and we will be closing next friday!

5/1 ARM or 30 yr fixed? any pnts?

heh...im wondering if I got a good deal...4.625% 1 pnt 5/1 ARM

 

[CarleneM]

5/1 ARM or 30 yr fixed? any pnts?

heh...im wondering if I got a good deal...4.625% 1 pnt 5/1 ARM

It is a 5/1 ARM with a 1% origination fee (which the seller is paying as part of the closing costs). The 30 year fixed rates were way too high at Compass and we are only planning to be there 5-6 years. You got a good deal. Was that with Suntrust? That was the rate they quoted me but required 10% down based on the declining market and it being a condo. The FHA rates I was quoted were around that on 30 yr fixed.

 

[drguy22]

It is a 5/1 ARM with a 1% origination fee (which the seller is paying as part of the closing costs). The 30 year fixed rates were way too high at Compass and we are only planning to be there 5-6 years. You got a good deal. Was that with Suntrust? That was the rate they quoted me but required 10% down based on the declining market and it being a condo. The FHA rates I was quoted were around that on 30 yr fixed.

ya suntrust...

 

[dragonfly99]

I just spoke with someone from Suntrust, and she indicated that they may be doing away with the doctor loan soon...for states where they don't normally do business. The credit situation is currently just really bleak...it's amazing if you compare with a few years ago, where anyone with a pulse could get a mortgage. Not that I think THAT was good, but one would think that a current resident w/income and a great credit score would be considered a good prospect for a loan...I haven't found that to be true.

 

[drguy22]

I just spoke with someone from Suntrust, and she indicated that they may be doing away with the doctor loan soon...for states where they don't normally do business. The credit situation is currently just really bleak...it's amazing if you compare with a few years ago, where anyone with a pulse could get a mortgage. Not that I think THAT was good, but one would think that a current resident w/income and a great credit score would be considered a good prospect for a loan...I haven't found that to be true.

i hope they cant cancel the loan commitment I already have from them that would be disaster

 

[John Deere Gree]

Has anyone with significant student loans been approved for an FHA loan. With the recent rule changes in student loan deferment options combined with the current FHA guidelines, it seems impossible for someone like myself to be approved.

FHA requires that student loans be in deferment status for at least 12 months after closing date in order to not count against your debt to income ratio.

You can no longer apply for economic hardship deferment as of July 1, 2009. However, if your loans have a 6 month deferment grace period you cannot waive this grace period in order to apply for the year of deferment.

Loans that have no grace period, which include consolidated loans and some private loans (you waive the grace period when you consolidate), you can apply for a year of deferment, which can begin at graduation.

Either way, it is impossible to have all of your loans deferred for at least 12 months after closing date.

They are also requiring a copy of my Illinois medical license (which won't be available until mid-june) since that is a stipulation of my employement contract.

Does ANYone have any advice or experience?

I've had no problem getting my FHA loan.

Like any loan I had to give all my personal information, my wife's previous paystubs (even though she is no longer working), an unofficial transcript to prove I am a student, bank statements from the past two months, and anything that states I will not need to pay my student loans for the next 12 months.

I got a letter from my financial aid advisor stating that all my loans are in deferment or in a grace period. Those loans that are in a grace period for 6-9 months will go into forbearance once the grace period is over. So, even though the end of economic hardship deferment as we know is coming soon, that's how you can satisfy that rule.

For employment contract, I sent them my residency contract.

Everything was approved, I'm set to close on my house in mid-June with a 4.5% APR 30-yr fixed. (7.5% APR?!?!? You cannot be serious)

I did this all through a local bank, and didn't pay an thing for a mortgage broker or any other junk like that. That doesn't mean a small bank is better than a big bank, but that smaller banks are willing to work with you (I commonly see on these threads people believing that only the big monster banks can do something like this). I was recommended my lender by my Realtor who knows several other residents that have gone before me through this process and have been successfully approved.

 

[dragonfly99]

JohnDeere,
I am glad you had such a good experience with getting a loan. I managed to get approved for an FHA loan, but it wasn't that easy, I have to say. Also I have been turned down by multiple other banks and mortgage brokers for a loan (non-FHA) despite having great credit and having some money to put down (only 5% or so) and having a job (soon to be fellow, not graduating med student). I think some of this depends on things like do you have a working spouse, and do you have a lot of money for a down payment, and do you want to buy a house in a declining market? Also, some banks just won't lend to you without current pay stubs from a job you already have in the city where you want to buy...this doesn't work if you are moving from one city to another for residency or fellowship. A lot of lenders also seemed freaked out by the way I'm being paid (research stipend/$ with no W-2 forms given out).

My family works in a real-estate related industry and I can tell you that credit is really tight right now...banks are still lending but they are only lending to certain people. They are letting people refinance, but only certain people. They basically want to take only the "sure bet" type of customers now. Comparing my experience to friends who were residents a couple years ago trying to get a loan, it's been 500% harder for me to get one.

But I agree that according to the FHA rules, one should likely be able to get an FHA loan based on a signed residency contract. I had to do some negotiating to get mine, but the credit union did finally cave in. I agree local banks and credit unions can be easier to work with, for whatever reason. At the big banks you call and get some person who has no relationship with you and perhaps won't personally make any money off this deal, and is likely not familiar with the hospital where you'll be working. I think the poster above should be able to get an FHA loan...at least he's not prohibited from getting one...if one bank won't deal with you, try to go to another. One thing to consider is that the FHA loans take a long time to close, though...have to go through underwriting twice (gov't is the 2nd party) and can take up to 45 days to close. Not good

 

[Sol Rosenberg]

One thing to consider is that the FHA loans take a long time to close, though...have to go through underwriting twice (gov't is the 2nd party) and can take up to 45 days to close. Not good

Haha. You'll be lucky to get 45 days. I'm currently selling one of my houses to someone with a VA loan (same situation as FHA with respect to underwriting,) and it is 75 days and counting. The underwriters have gone completely insane and won't approve anything that's even slightly "unusual." Unusual is defined very loosely by them. The loan was approved and the bank was ready to release the $$$ a LONG time ago (maybe a month, IIRC)

 

[treasurefull2]

Does anybody know who is offering the physician's loan in Philadelphia (or Pennsylvania)?

Thanks alot...

 

[Miami_med]

I don't know about Philly specifically, but I can tell you that FHA loans that are not labeled physician loans (and come with much better interest rates) for incoming residents are alive and well in the NE. You pretty much have to have a down payment. I just closed yesterday at 5%.

 

[treasurefull2]

I don't know about Philly specifically, but I can tell you that FHA loans that are not labeled physician loans (and come with much better interest rates) for incoming residents are alive and well in the NE. You pretty much have to have a down payment. I just closed yesterday at 5%.

Ok, yes FHA loans give you a slightly better interest rate than Physician Loans, but if it's not a huge difference on my monthly mortgage, with the physician loan I can pocket the money I have used for the downpayment and use it to pay my mortgage.

Point being I'd rather keep the money than use it for a downpayment.

So my question again, if anybody can help, which bank in pennsylvania or anywhere else might offer a physician loan?

I've only heard of compass and suntrust, that's it... any other banks???

 

[gbwillner]

With Bank of America

In November I went to BoA to get a physician loan. I was pre-approved for $225,000 in 1 HOUR. I started shopping. I found a house, but it didn't work out, and never closed.

I decided it was time to try again. I am now married. I went back to BoA for pre-approval on Monday. I was looking at a house at about $250K. The bank told me I should get the pre-approval letter Tuesday morning. I put an offer on the house Tuesday and told the agent I was not yet pre-approved, but it shouldn't be a big deal since I was just pre-approved a few months before, and now I had more income, and they told me it would come any minute now. I waited.... and waited. By Tuesday evening... nothing. Wednesday.... Nothing. Thursday, I walked in and spent 3 hrs trying to figure out what the problem was. Apparently, my pre-approval was expedited, but due to incompetence, it was never processed. It was promised to me by the end of the day. They apologized many times. It did not come. I went back today (Friday) morning (lucky thing I am on vacation this week). Still nothing. I talked to the vice president and regional manager. Lots of apologies, but no letter.

Finally, on Friday afternoon, I get a call telling me I was NOT pre-approved. The reasoning was that my debt-income ratio was too high, given my student loans and my wife's student loans. I told the woman who called me that both mine and my wife's loans are in DEFERMENT and should count against me- I provided evidence of this and letters from our programs. It was obvious this woman had no clue what was going on, and she told me it did not matter and that it was still debt. I told her I wanted this stupidity in WRITING and she refused to do so. Needless to say, my contract with the seller is gone since I could not get pre-approval in the specified time. Good god they wasted so much of my time I am furious.

GRRRRRRR

 

[JHuffOU]

Has anyone else had a similar experience as NOLA? I am trying to get my FHA loan approved and the only thing we can come up with a letter from sallie mae stating that I will be eligible for forbearance at the end of the grace period. Has this worked for anyone else? Just really nervous at this point since we are supposed to be closing next week...if we can get this figured out.

Thanks!

 

[MBK2003]

Just so that people can have some numbers to compare - we closed yesterday with a Physician Loan from BofA (locked in several days before they suspended the program) - $440K financed, 8% down, 1 discount point, 6.375% APR for 30 year fixed. This was a short sale, so we had to do a 120 day lock (hence the higher interest rate). We've owned two other homes and this was the lowest amount of closing costs we've ever paid (close to 2% of mortgage).

 

[John Deere Gree]

Has anyone else had a similar experience as NOLA? I am trying to get my FHA loan approved and the only thing we can come up with a letter from sallie mae stating that I will be eligible for forbearance at the end of the grace period. Has this worked for anyone else? Just really nervous at this point since we are supposed to be closing next week...if we can get this figured out.

Thanks!

Yes, it worked for me as well. My lender just wanted proof that I would not have to make a payment on my loans for 12 months from the time of closing. My loans will be in deferment/forbearance throughout residency.

I asked my financial aid adviser to write a letter stating this was the case.

We close on our house in a couple of weeks. I submitted the final info my lender needs and she said we are good to go.

No need to worry. I just hope you locked in your interest rate last month, as they have jumped anywhere from 0.5-1.0% during that time.

 

[JHuffOU]

Yeah...we locked in at 5% so we did pretty good there. Actually our lender had told us a couple weeks ago that everything was fine and we had all the documentation we needed and then two days ago sprung all this on us. Its been hectic but I think it will work out. I'll let you know how the underwriting process goes on Monday. We'll find out for sure then.

 

[endodoc]

Has anyone had any luck with getting a mortgage in FL? Were looking for zero or 5% down. I talked with BofA prior and it was a non issue, now they are no longer offering mortgages.

The best would be 0 down, no PMI. FL as like most places in the country is considered a declining market, so its tougher to find the right lender.

Any advice would be great. Our price of the home is near 600k. I am finished with fellowship and will be a associate in a practice.

Thank you

 

[drusier]

a 600K home with 0-5% down? Are you sure you need to be in that kind of debt right out of school? How much were you approved for? Try Compass Bank

 

[dragonfly99]

drusier
he's not right out of school
the person said graduating fellowship...that means 6-10 years out of school...but I agree that 600k is not really a starter home...unless you are in San Francisco or NYC.

 

[endodoc]

drusier
he's not right out of school
the person said graduating fellowship...that means 6-10 years out of school...but I agree that 600k is not really a starter home...unless you are in San Francisco or NYC.

You are correct, not right out of school. PGY5 and less then a month until I'm done with fellowship. We have been living cheap, saving. We have kids and my husband also has a decent paying job. We will be in Miami, so 600k home there now was 1.4m a couple years ago. There is no question the market will raise, so for us with kids its a decent investment.
In Fl there are no zero down, I called most of the banks who deal with physicians. I got 5% down at 5.8 jumbo 30 year fixed; although I am still shopping for rates.

If anyone hears of a zero program please let me know.

Best

 

[JHuffOU]

With Bank of America

In November I went to BoA to get a physician loan. I was pre-approved for $225,000 in 1 HOUR. I started shopping. I found a house, but it didn't work out, and never closed.

I decided it was time to try again. I am now married. I went back to BoA for pre-approval on Monday. I was looking at a house at about $250K. The bank told me I should get the pre-approval letter Tuesday morning. I put an offer on the house Tuesday and told the agent I was not yet pre-approved, but it shouldn't be a big deal since I was just pre-approved a few months before, and now I had more income, and they told me it would come any minute now. I waited.... and waited. By Tuesday evening... nothing. Wednesday.... Nothing. Thursday, I walked in and spent 3 hrs trying to figure out what the problem was. Apparently, my pre-approval was expedited, but due to incompetence, it was never processed. It was promised to me by the end of the day. They apologized many times. It did not come. I went back today (Friday) morning (lucky thing I am on vacation this week). Still nothing. I talked to the vice president and regional manager. Lots of apologies, but no letter.

Finally, on Friday afternoon, I get a call telling me I was NOT pre-approved. The reasoning was that my debt-income ratio was too high, given my student loans and my wife's student loans. I told the woman who called me that both mine and my wife's loans are in DEFERMENT and should count against me- I provided evidence of this and letters from our programs. It was obvious this woman had no clue what was going on, and she told me it did not matter and that it was still debt. I told her I wanted this stupidity in WRITING and she refused to do so. Needless to say, my contract with the seller is gone since I could not get pre-approval in the specified time. Good god they wasted so much of my time I am furious.

GRRRRRRR

I could not agree more! We have had a contract on a house for a month and half and were preapproved before making the offer. Since then I have spent countless hours running around getting all this random documentation to provide to the processor and underwriters to show that my loans would be in deferment/forbearance (good thing I was an MS4 with nothing going on...can't imagine if I was a resident or attending!). However given that there's a six month grace period on all federal loans, there's no way to PROVE that my loans will not be in repayment for 1 year. I can tell them my options and my plans until I'm blue in the face but I can't PROVE it. So Bank of America failed to mention that they wouldn't give us a loan until TWO DAYS AFTER we were originally suppossed to close. So not only do we have to wait to move a state away another week (I start residency in 3 weeks) but I am now frantically trying to find other financing for this home that we have practically been making all the decisions about for a month and half (new construction so we've picked carpet/tile/wood floors).

Come to find out the loan officers at BoA don't even interact with the underwriters, they just place calls to a call center and submit the information to the call center. Whereas the new lender who thinks he may be able to get us financed arranged a conference call with his underwriter, himself and me only an hour after talking to me for the first time. I would NEVER use Bank of America for any type of home loan given the inefficient, bordering on dishonest, impersonal, and ultimately failure of a process that we have endured.

I hope you all have better experiences than we did.

 

[endodoc]

I could not agree more! We have had a contract on a house for a month and half and were preapproved before making the offer. Since then I have spent countless hours running around getting all this random documentation to provide to the processor and underwriters to show that my loans would be in deferment/forbearance (good thing I was an MS4 with nothing going on...can't imagine if I was a resident or attending!). However given that there's a six month grace period on all federal loans, there's no way to PROVE that my loans will not be in repayment for 1 year. I can tell them my options and my plans until I'm blue in the face but I can't PROVE it. So Bank of America failed to mention that they wouldn't give us a loan until TWO DAYS AFTER we were originally suppossed to close. So not only do we have to wait to move a state away another week (I start residency in 3 weeks) but I am now frantically trying to find other financing for this home that we have practically been making all the decisions about for a month and half (new construction so we've picked carpet/tile/wood floors).

Come to find out the loan officers at BoA don't even interact with the underwriters, they just place calls to a call center and submit the information to the call center. Whereas the new lender who thinks he may be able to get us financed arranged a conference call with his underwriter, himself and me only an hour after talking to me for the first time. I would NEVER us Bank of America for any type of home loan given the inefficient, bordering on dishonest, impersonal, and ultimately failure of a process that we have endured.

I hope you all have better experiences than we did.

BofA does not do the physician loan anymore... They claim it was due restructuring... I have heard bad stories about the process of bofA, and that they have pulled many fast ones at closing and crazy fees.

Maybe they will come back in the future with a better product!

 

[rxg16]

600K out of training is far from unreasonable if you are bringing in over $200K, as most specialists (certainly most endocrinologists) do. The concept of "starter home" need not apply to most physicians out of training, considering the high job security and income. In many areas of the northeast and west coast, not just NY or SF, a 4 BR home in a good school district doesn't cost any less than that.

 

[DrGonzo]

Just talked to Compass yesterday. They will approve us for up to 1 million with 5% down in Arizona. They have 3/1, 5/1, 7/1 arms and 30 and 15 year fixed. We're looking at spending $550,000 and the rates were around 6.5%. They charge a $704 fee and then a 1% origination fee. Is that normal?

 

[dragonfly99]

the 1% "origination fee" is really a "point" that you are paying to them, right? So you are paying a point, and still getting 6.5% interest. I don't think that is very good. However, you might not get another bank to loan you that amount of money (and with no PMI?) so it's a trade-off...you are paying higher interest in order to get the loan amount that you want.

I am getting a FHA loan in California, and without points it will be high 5's (5.75-5.85%) or if I pay one point it will be 5.35% I think. The interest rates change all the time, though. My loan is much smaller (about 160k).

The $700 fee doesn't sound that bad.

 

[hyperbaric]

You can try her. She deals specifically with physician mortgages:

[email protected]

Deborah Wilson
Chairman's Club Mortgage Loan Officer
4131 NW 122nd OKC OK 73120
405-230-3181 Fax 405-936-9426
Pager 800-745-5864 Cell 405-514-9165

You do NOT want to deal with Deborah Wilson. PM me for details if you need to know something STAT, but rest-assured that I will be following up to this post.

 

[hyperbaric]

I could not agree more! We have had a contract on a house for a month and half and were preapproved before making the offer. Since then I have spent countless hours running around getting all this random documentation to provide to the processor and underwriters to show that my loans would be in deferment/forbearance (good thing I was an MS4 with nothing going on...can't imagine if I was a resident or attending!). However given that there's a six month grace period on all federal loans, there's no way to PROVE that my loans will not be in repayment for 1 year. I can tell them my options and my plans until I'm blue in the face but I can't PROVE it. So Bank of America failed to mention that they wouldn't give us a loan until TWO DAYS AFTER we were originally suppossed to close. So not only do we have to wait to move a state away another week (I start residency in 3 weeks) but I am now frantically trying to find other financing for this home that we have practically been making all the decisions about for a month and half (new construction so we've picked carpet/tile/wood floors).

Come to find out the loan officers at BoA don't even interact with the underwriters, they just place calls to a call center and submit the information to the call center. Whereas the new lender who thinks he may be able to get us financed arranged a conference call with his underwriter, himself and me only an hour after talking to me for the first time. I would NEVER use Bank of America for any type of home loan given the inefficient, bordering on dishonest, impersonal, and ultimately failure of a process that we have endured.

I hope you all have better experiences than we did.

This is basically the situation I am currently in...

Pre-approved, signed a contract on a house April 18th for a sale price of $165,000 and they were unable to close a FHA loan yesterday (June 10th). My credit score was 793, I have about $35,000 cash for a down payment/closing costs from the closing settlement on my last place, <$500 credit card debt and about $160,000 in student loans.

I fear this deal is going to fail and I'm going to spend my last week before residency scrambling for housing and moving AGAIN -I am currently living in the house I am supposed to be buying. Even the sellers are getting screwed - they have a contract to buy a new home contingent upon the sale of this one.

During much of this process, I have been unable to get anyone to return my calls - Deborah Wilson or her assistant Shawna Wilson. Finally I called a random 1-800 number for BoA and they put me in touch with her manager. Luckily I was able to forward numberous emails to her manager where I was asking Deborah Wilson why my calls and emails were not being returned, what was happening with my application, etc.

Bottom line - stay away from BoA and if you find yourself in a situation where you have to deal with them - find a loan officer other than Deborah Wilson, preferably one with a local office.

 

[peerie]

Uh-oh, not BofA?

Cr@p.

I have been talking to different lenders about a simple FHA loan for about 100K. So far, the interest rates have ranged from 4.87 to 6.125 % which is ridiculous to me.

It is really a buyer beware process out there and lo! there are sharks in the water.

I just spoke to a local BofA person this morning and she sounded pretty decent and had the best 15 year rate (4.87) but now after logging in here and reading these comments I am dismayed. Actually, it was the local bank that I thought was awful, slooooow to respond, diffident and rude and then had the nerve to say their rates for both 15/30 were over 6%. Ack!

Peeps, are you sure that B of A is the pitts? say it ain't so because now I am looking at starting all over again. There is no reason for the % to go between 4.87 and 6.125 on the same damn loan (and a 15 year one at that).

 

[rxg16]

I'm a fellow who starts my new (attending) job in 2 weeks. I'm working with SunTrust, looking to close in late July. Just got the committment letter from them. No origination points, no origination fees. Lending fees come out to about $800 total. I'm putting 5% down on a 620k home w/ no MI. This is in PA (philly suburbs). PM me to find out who I'm working with, as I don't believe in plugging or trashing people publicly.

 

[drguy22]

I'm a fellow who starts my new (attending) job in 2 weeks. I'm working with SunTrust, looking to close in late July. Just got the committment letter from them. No origination points, no origination fees. Lending fees come out to about $800 total. I'm putting 5% down on a 620k home w/ no MI. This is in PA (philly suburbs). PM me to find out who I'm working with, as I don't believe in plugging or trashing people publicly.

suntrust was a hassle..but they came through..i closed on my house last week. i used the doctor program. residency starts tommorow

5% down. 5/1 ARM 4.626% 5/8th origination fee.

Purchase price 221K.

 

[tkim]

PM me to find out who I'm working with, as I don't believe in plugging or trashing people publicly.

I do. I think word of mouth to plug or trash people is the best form of encouraging good business practices and making sure that businesses that suck get less business.

 

[mshheaddoc]

Are these 5% downs with PMI or no PMI (mortgage insurance?). Just curious. I'm going to be back in the market for a mortgage and since alot of the "emerging professional" (aka doctor loans) are disappearing I'm quite sad (and worried) about getting everything situated.

 

[drguy22]

Are these 5% downs with PMI or no PMI (mortgage insurance?). Just curious. I'm going to be back in the market for a mortgage and since alot of the "emerging professional" (aka doctor loans) are disappearing I'm quite sad (and worried) about getting everything situated.

i have a NO PMI loan

 

[rxg16]

Are these 5% downs with PMI or no PMI (mortgage insurance?). Just curious. I'm going to be back in the market for a mortgage and since alot of the "emerging professional" (aka doctor loans) are disappearing I'm quite sad (and worried) about getting everything situated.

No MI

 

[doctorloans]

I think one of the main points to remember is that the individual lending officer you are working with can have a HUGE impact on your experience. Get a bad one, and you are in trouble, no matter what bank they are with.

 

[dragonfly99]

The loan officer matters but so does the lender. Big time.
I can vouch for Suntrust as a bank - have banked with them. I've never used them for a mortgage but certainly would have if I'd had the chance...they have stopped lending in the area I was moving to.

I have heard multiple stories from people having trouble with B of A in regards to the "doctor loan" this spring, and they recently did away with it, apparently. If you are doing some other type of loan, B of A might be decent, but I'd approach with caution.

For FHA loan, 4.8% rate would be super good for right now. The 4.89-low 6's you are quoting sounds like what I've been hearing. What were the other charges (i.e. "points" plus other fees) on the loan that was supposedly 4.8%? I'm just a bit suspicious of that one, since mortgage rates have gone up in the past month or so. I would think you should be able to get something in the 5's, though...perhaps 5.25-5.75...I think it depends on the city/market you are in. I had the best luck with a local credit union for my FHA loan.

 

[ChiEyeDoc]

Can someone who recently closed with Compass using their 5/1 ARM please share some details before we dive into a loan with them? We had planned on going with Suntrust but they are requiring 5% down since Chicago is in a "declining market" and we would rather go with 100% financing which Compass still offers. I am wondering if there is a prepayment penalty on Compass' loans, I understand a penalty for prepayment up to 3 years can be standard to prevent immediate refinancing but would we be penalized for making extra payments in the first years of the mortgage? Also has anybody looked into what index the ARM resets to after the 5 year fixed rate?
On another note is anybody familiar with the mortgage industry and refinancing requirements? My wife has a 5 year residency, right at the end of our fixed rate if we go with a 5/1 ARM, with a probable extra year fellowship so we will be in the house for at lease 6 years. With 100% financing and extra payments we estimate we could have between 10-15% equity in 4 years, is this sufficient enough to refinance to another 5/1 or even a fixed rate mortgage? Any information or advice would be appreciated.

 

[dragonfly99]

I don't have specific info about Compass Bank ARM loan but you should be able to get the information about how high the loan can reset. If you can't get an answer from them in writing as to the max amount it can reset up to, or you can't understand what you're signing, then don't sign it. Show the paperwork to a friend or family member who has bought a house in the past or is involved in the banking or finance industry.

I'm not sure how much equity you usually need to be able to refinance...that's a great question, though.

Suntrust has a good reputation, in general. If you have the 5% to put down, it might be a good idea to do so. You could also perhaps go with an FHA loan...especially if your wife already started residency she can probably get one, and if you also have a salary then I think you two definitely could. These only require 3.5% down and a lot of local banks and credit unions will do FHA loans...I was grousing about mine a few weeks back but it seems that everything has worked out now and the advantage of FHA loans is that the gov't made rules so that the lenders cannot do a lot of super tricky things and add in totally ridiculous fees, etc., although there are still plenty of fees and other $ you have to come up with, like for the home inspection.

 

[Bounty]

Hi everyone

My husband and I would like to buy a condo in Southern California. We're both residents - I have two years left, he has three then fellowship. We don't have lots of cash but could probably scrounge up 3-5% for a down payment. 100% financing would be better but I dont know if this exists anymore in California. Anyone have suggestions for lenders in this area? People always talk about local banks but I just wouldn't know where to start...
Any help would be much appreciated!

 

[CompassMBO]

Can someone who recently closed with Compass using their 5/1 ARM please share some details before we dive into a loan with them? We had planned on going with Suntrust but they are requiring 5% down since Chicago is in a "declining market" and we would rather go with 100% financing which Compass still offers. I am wondering if there is a prepayment penalty on Compass' loans, I understand a penalty for prepayment up to 3 years can be standard to prevent immediate refinancing but would we be penalized for making extra payments in the first years of the mortgage? Also has anybody looked into what index the ARM resets to after the 5 year fixed rate?
On another note is anybody familiar with the mortgage industry and refinancing requirements? My wife has a 5 year residency, right at the end of our fixed rate if we go with a 5/1 ARM, with a probable extra year fellowship so we will be in the house for at lease 6 years. With 100% financing and extra payments we estimate we could have between 10-15% equity in 4 years, is this sufficient enough to refinance to another 5/1 or even a fixed rate mortgage? Any information or advice would be appreciated.

The most it can adjust to at the end of 5 years is 5%. It's a 5-2-5 ARM. After the first adjustment, the most it can go up or down after 12 months is 2%. It doesn't HAVE to go up the full 5%. It has a 5% cap on it. There is no pre-payment penalty. If you pay the balance down by approx. 30% over the first 5 years, if it goes up the full 5%, you shouldn't see any change in payment. You can refinance, if needed, into another 5/1 ARM as long as you have at least 5% equity in the property, still with no PMI.

There is a 7/1 ARM available, but the rate is not nearly as attractive, and the 5/1 works for most residents. There is no down payment and no PMI on either of them.

Technically, we may not lend in Chicago. We are limited on this loan to our "footprint" states, which are Florida, Alabama, Texas, New Mexico, Arizona, and Colorado. However, if you are currently living in one of these states and confirm with us that you will be moving back after the residency, then we will try and help you. To get the best rate, we will want you to have your monthly mtg. payment auto-debited from a Compass account. You get .50 off your rate by doing this. If the normal rate is 5.75%, with the auto-debit we would give you 5.25%. Well worth it to be a customer.

I hope this helps answer your questions. PM me if you have more.

 

[cliff]

Can anyone post names and phone numbers or links to brokers who they have had good experiences with.

I am looking to buy a home in Los Angeles.

thanks

 

[doctorloans]

Hi Bounty,

Please PM me, I have someone that should be able to help you out. However, you're right about the 5% down. Unfortunately, you're going to have to come up with at least %5 in that area.

Best of luck!

Hi everyone

My husband and I would like to buy a condo in Southern California. We're both residents - I have two years left, he has three then fellowship. We don't have lots of cash but could probably scrounge up 3-5% for a down payment. 100% financing would be better but I dont know if this exists anymore in California. Anyone have suggestions for lenders in this area? People always talk about local banks but I just wouldn't know where to start...
Any help would be much appreciated!

 

[Iharris]

Hello - I have a mid size practice and have a bunch of equipment--I have heard about a equipment leaseback where you receive up to 80% of the equipment value as far as a loan goes. Does anyone know of a direct lender that does this?? The purpose of the loan is for an expansion not a home purchase.

 

[drpa]

I am in need of a pre-approval for a mortgage in PA with no money down or 5%. Looking at houses in 750-1 million range. Will be starting a position in September that will definitly qualify me for this mortgage amount. Looking to settle July 1st and need a pre-approval quickly as I have a house I want to make an offer on. If someone has a definite lead please help me out!

 

[Mortgage Man]

what state are you buying in?