mortgages

[Poety]

Hey all, I'm just looking into all these mortgages since I've always gone conventional. I have 100K equity in this house, and will be putting down 50-60K on my next house. Any advice on which loan is good for someone with a substantial down payment? Called about the doc loan, and he said it would be fine, but for some reason I don't see that big of a difference from conventional vs. doctor loan - interest only is the only one that seems to cut my payment to 688. (for 150K loan, meaning I can get a 210K house) However, people are saying the interest only sucks (including my dad) because I'll be in it too long (4+ years) and theres its like paying rent since I'm not building equity for so long.

Any thoughts on my situation?

btw, any advice is appreciated, this house is going on the market in 2 weeks! Taking out home equity now, this is so scary!

Poety

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[djones]

Actually, Equifax has me with 2 numbers of 784, 694 anf I think Transunion? has me at 690, so the mortgage company says they have to take the LOWEST number. Yeah, I'll throw some large payments at the cards to get the balance down, I did already use the resident loan from Nellie Mae, but stupid me did not MAX it out!!! oh well, live and learn. I am approved for 145K, so I guess I shouldn't complain, but it really doesn't get us what we thought. And the mortgage co. did split the loan so I don't have to pay PMI!! Still don't know how that works! I'm glad mortgage financing was not on Step 2, and I hope its not on Step 3!!!

Suntrust offers interest only Doctor Loans and is less rigid with it's credit score underwriting guidelines if there are strong compensating factors.

These are the same as our amortizing Doctor loans in that they are 100% with no PMI.

Glad to help. David Jones Suntrust 404-728-0985 [email protected]

 

[Poety]

Hey all, I just spoke with quicken loans - they're a direct lender, no origination fee (broker fee) and they have a killer deal - pay interest only fixed rate for 30 years, PLUS you can add on principal payments all you want without penalty - this was the best fit for me - so I'll most likely be taking this one.

Hope this helps some of you out!

 

[EctopicFetus]

Poety, good call for you. I think if you have a good credit score and money for a down payment going away from the doctor loans seems to make sense. FWIW I looked into the rates and they arent too great from BOA. Perhaps Ill contact djones as well just to see whats up. It is good my wife has a nice job

Lastly, I think the difference between interest only and renting is a simple one.. While it is true you arent building equity.. There are 2 HUGE benefits IMO. 1) You can write off the mortgage interest from your taxes (no luck with renting), and 2) You capture the upside.

So if you take a 150K loan (like you mentioned) on your 210K home and it appreciates to 250K by the end of residency you made 40K which isnt too shabby for "renting".

All that being said I think we will do a 5/1 or 7/1 ARM depending on the difference in rates between them and a 30 yr. I figure s/p residency and a few years paying debts as an attending ill be ready to "move on up" Jeffersons style maid and all!

 

[Finally M3]

Poety, good call for you. I think if you have a good credit score and money for a down payment going away from the doctor loans seems to make sense. FWIW I looked into the rates and they arent too great from BOA. Perhaps Ill contact djones as well just to see whats up. It is good my wife has a nice job

Lastly, I think the difference between interest only and renting is a simple one.. While it is true you arent building equity.. There are 2 HUGE benefits IMO. 1) You can write off the mortgage interest from your taxes (no luck with renting), and 2) You capture the upside.

So if you take a 150K loan (like you mentioned) on your 210K home and it appreciates to 250K by the end of residency you made 40K which isnt too shabby for "renting".

All that being said I think we will do a 5/1 or 7/1 ARM depending on the difference in rates between them and a 30 yr. I figure s/p residency and a few years paying debts as an attending ill be ready to "move on up" Jeffersons style maid and all!

Or you eat the downside if there is no 'soft landing' in the real estate market

Honestly, when I was looking between a 5/1 ARM v. a 30 yr, there was like a 0.75% difference, with a $240K loan that comes out to like $80 a month difference. I would imagine there is even less of a diff. with a 7/1. If you're planning on staying in the are where you do residency long-term, just going for the 30 yr may not be a bad move.

 

[Poety]

Hi Finally,

I actually am gonig with Quicken loans for thhe 30 yr fixed interest only, principal option every month. costs 1 point, but I'll be in it for more than 3 years so its worth buying down the percetage now (5.87 locked over 30 yrs) Its on a no doc loan however and requires excellent credit - that way the student loans don't get tied into the debt ratio. My LTV is also 72% so I have a substantial downpayment

BofA even wanted me to throw this out there for any of you that might qualify for this since he said its unbeatable. Hopefully this will help someone out!

Thanks for all your help EF - and good luck!

 

[Finally M3]

Hi Finally,

I actually am gonig with Quicken loans for thhe 30 yr fixed interest only, principal option every month. costs 1 point, but I'll be in it for more than 3 years so its worth buying down the percetage now (5.87 locked over 30 yrs) Its on a no doc loan however and requires excellent credit - that way the student loans don't get tied into the debt ratio. My LTV is also 72% so I have a substantial downpayment

BofA even wanted me to throw this out there for any of you that might qualify for this since he said its unbeatable. Hopefully this will help someone out!

Thanks for all your help EF - and good luck!

Remember you can deduct the discount point as well. Although I'm not sure if that's from capital gains or from income

 

[EctopicFetus]

From income..

 

[Amygdali-lama]

Hi,

I am very new to this mortgage stuff and have always rented while in medical school and undergrad. I was thinking about possible buying a house, condo, or loft while in residency. I am sick of moving and want to settle in a place since I will be most likely doing my fellowship in the same place also.

Now, I am in $230k in debt from medical school. I have contacted a few real estate agencies and have been browsing some of the houses, which are generally running in the $200k area. I (obviously) do not have any "collateral" or other things that are of value. My parents will help me out with the down payment if needed.

My quesition to you is whether or not I can get a mortgage? Do places that provide you with mortgages look at how much debt you have? Do they want some collateral as a safety measure? Finally, do you think it's even a good idea to buy something considering I have all this debt!?!

Thanks.


PS...if this info is somewhere else on this website, could you please let me know if I am repeating the same questions.

 

[Poety]

Hi,

I am very new to this mortgage stuff and have always rented while in medical school and undergrad. I was thinking about possible buying a house, condo, or loft while in residency. I am sick of moving and want to settle in a place since I will be most likely doing my fellowship in the same place also.

Now, I am in $230k in debt from medical school. I have contacted a few real estate agencies and have been browsing some of the houses, which are generally running in the $200k area. I (obviously) do not have any "collateral" or other things that are of value. My parents will help me out with the down payment if needed.

My quesition to you is whether or not I can get a mortgage? Do places that provide you with mortgages look at how much debt you have? Do they want some collateral as a safety measure? Finally, do you think it's even a good idea to buy something considering I have all this debt!?!

Thanks.


PS...if this info is somewhere else on this website, could you please let me know if I am repeating the same questions.

You're the perfect candidate for a doctors loan. I recommend bank of america, david benson heres his number: 336-721-4144

btw I dont work for this guy nor have I gotten my loan from him

 

[CameronFrye]

You're the perfect candidate for a doctors loan. I recommend bank of america, david benson heres his number: 336-721-4144

btw I dont work for this guy nor have I gotten my loan from him

How much money can you generally borrow using one of these doctor's loans? (Let's say you have very good credit and <100,000 in med school loans).

 

[TommyGunn04]

How much money can you generally borrow using one of these doctor's loans? (Let's say you have very good credit and <100,000 in med school loans).

I believe it's similar to any mortgage, except that with the "doctor loans" you get two major benefits: 1) you aren't penalized for putting little or no money down (regular mortgages would require you to pay PMI, which is an extra monthly insurance cost in case you default on the loan and take off), and 2) the large amount of med school debt you may or may not have is not considered in the application.

So with a "doctor loan" the amount you can borrow has nothing to do with your amount of student loan debt, if I understand it correctly. Otherwise though it's the same as with any other mortgage; your total borrowing power is capped at a certain percentage of your monthly income, and is adversely affected by other debt, such as credit card debt or car loans. This means it will vary depending on what your salary will actually be (which can range from ~$38,000 to $48,000 depending on where you're doing your residency). The actual percentage may vary from lender to lender (I'm not sure of this), but they all basically won't allow you to borrow so much that your mortgage payment + homeowners insurance + property taxes will end up eating too large a chunk of your paycheck. A number of mortgage sites have "how much can I afford" calculators that can help you estimate this.

Here's the eloan.com calculator: http://www.eloan.com/s/affordability/calc_afford?sid=Ar6S0r7EWUOTFUyesBOt34b9iHE&user=&mcode=

This calculator is somewhat limited in its utility as you can only choose from a 15-yr or 30-yr mortgage and assumes that you'll be penalized for putting less than 20% down (which is true for a standard mortgage, but NOT for a "doctor loan"), but it helps give you a basic idea. Use something like 6 or 6.5% for the interest rate.

(if the link doesn't work just go to www.eloan.com and click "tools and calculators," then select "home affordability calculator" from the pull-down menu and click "go")

Here's another calculator: http://home.ingdirect.com/products/products.asp
(click the "solutions calculator" link; note that this automatically subtracts 20% from the property value, assuming you'd be making a 20% down payment to avoid PMI, which again isn't necessarily the case with a "doctor loan")

By the way, I don't believe that a good credit score significantly affects the total amount of loan you'd qualify for. Rather, it may help you get a better interest rate, so you'd pay less in the long run.

On a salary of around $40,000, I think you can reasonably expect to borrow $160,000, maybe $180,000 if you're lucky. But perhaps the doctor loans programs allow you to borrow more...does anyone know???

 

[Poety]

You can borrow more if you are putting money down at a higher percentage. Example: If you want a house that costs 250K and you put down 50K, excellent credit, blah blah, you will most likely be approved as long as your debt to income ratio is less than 37%.

 

[djones]

I believe it's similar to any mortgage, except that with the "doctor loans" you get two major benefits: 1) you aren't penalized for putting little or no money down (regular mortgages would require you to pay PMI, which is an extra monthly insurance cost in case you default on the loan and take off), and 2) the large amount of med school debt you may or may not have is not considered in the application.

So with a "doctor loan" the amount you can borrow has nothing to do with your amount of student loan debt, if I understand it correctly. Otherwise though it's the same as with any other mortgage; your total borrowing power is capped at a certain percentage of your monthly income, and is adversely affected by other debt, such as credit card debt or car loans. This means it will vary depending on what your salary will actually be (which can range from ~$38,000 to $48,000 depending on where you're doing your residency). The actual percentage may vary from lender to lender (I'm not sure of this), but they all basically won't allow you to borrow so much that your mortgage payment + homeowners insurance + property taxes will end up eating too large a chunk of your paycheck. A number of mortgage sites have "how much can I afford" calculators that can help you estimate this.

Here's the eloan.com calculator: http://www.eloan.com/s/affordability/calc_afford?sid=Ar6S0r7EWUOTFUyesBOt34b9iHE&user=&mcode=

This calculator is somewhat limited in its utility as you can only choose from a 15-yr or 30-yr mortgage and assumes that you'll be penalized for putting less than 20% down (which is true for a standard mortgage, but NOT for a "doctor loan"), but it helps give you a basic idea. Use something like 6 or 6.5% for the interest rate.

(if the link doesn't work just go to www.eloan.com and click "tools and calculators," then select "home affordability calculator" from the pull-down menu and click "go")

Here's another calculator: http://home.ingdirect.com/products/products.asp
(click the "solutions calculator" link; note that this automatically subtracts 20% from the property value, assuming you'd be making a 20% down payment to avoid PMI, which again isn't necessarily the case with a "doctor loan")

By the way, I don't believe that a good credit score significantly affects the total amount of loan you'd qualify for. Rather, it may help you get a better interest rate, so you'd pay less in the long run.

On a salary of around $40,000, I think you can reasonably expect to borrow $160,000, maybe $180,000 if you're lucky. But perhaps the doctor loans programs allow you to borrow more...does anyone know???

This is good information. The amount will depend on your other debt (excluding student loans), property taxes and hazard insurance (will vary by area), the rate and term that you choose (3,5,7 and 10 year fixed periods are typically available) and whether the loan is amortizing (princ. and int.) or interest only.

 

[CameronFrye]

Thanks everyone. That's about what I was figuring.

 

[Bobblehead]

Interesting blog on the bubbliness of the housing market. The blog writer is based out of California but the content is applicable anywhere the market is frothy. The auto-censoring won't allow the actual url to be posted but if you replace the **** with the F word you'll get there.

http://another****edborrower.blogspot.com/

 

[k's mom]

Anyone use physicians relocation services? (www.physiciansreloservices.com)

I found them a year ago, and have planned on contacting them the moment we return from the Match party, but I would like to hear any feedback SDN users may have. It sounds like a fabulous idea (contact point for three national doctor-loan programs and listing of "resident-friendly" real estate agents around the country), plus I am always eager to support medical spouse entrepreneurs, so what do people think? ? ?

 

[eilros]

VCU has two different options:

http://www.medschool.vcu.edu/gme/documents/BankofAmericaDoctorLoanFlyer_001.pdf

http://www.medschool.vcu.edu/gme/documents/Wachoviamedresflyer.pdf


http://www.medschool.vcu.edu/gme/housing.html

 

[DrGucciGal]

I just found out what my credit score is....I am so scared!!!! My score is lower than any mentioned in prior posts. I was thinking about buying a house as I start my PGY2 (currently PGY1), but now I don't think it is possible. Is there any hope for me? Does anyone know of people with really, really bad credit that still were able to qualify for loans and by a house?

 

[raf023]

Hey all,
Great thread. I've been reading this and still not sure which one would be better interest only or regular (PI) mortgage for 5/1 or 3/1 ARM???
I see the argument on both sides, but it really comes down to taking the risk and having the couple hundred bcks every month now or paying off your mortgage so in 3 or 5 years part of it is paid off. However, if you get lucky and market is decent than you may sell your house/condo for a profit and have a "double win" situation...1) you would make a little money on your property and 2) you weren't paying about$200 more each month for the past 3 years so end up saving the $7600 over 3 years too (that's why "double win") Am I correct on this or just confused?
I know the opposite of it would mean losing money on your property and still having to pay that $7600 you were not paying each month, unless you put the $200 in your bank account and save it so you have the sum at the end of 3 years in case you need it due to bad selling market.
Any thoughts???
Thanks

 

[4424]

Hey all,
Great thread. I've been reading this and still not sure which one would be better interest only or regular (PI) mortgage for 5/1 or 3/1 ARM???
I see the argument on both sides, but it really comes down to taking the risk and having the couple hundred bcks every month now or paying off your mortgage so in 3 or 5 years part of it is paid off. However, if you get lucky and market is decent than you may sell your house/condo for a profit and have a "double win" situation...1) you would make a little money on your property and 2) you weren't paying about$200 more each month for the past 3 years so end up saving the $7600 over 3 years too (that's why "double win") Am I correct on this or just confused?
I know the opposite of it would mean losing money on your property and still having to pay that $7600 you were not paying each month, unless you put the $200 in your bank account and save it so you have the sum at the end of 3 years in case you need it due to bad selling market.
Any thoughts???
Thanks

Far from an expert BUT I would compare the armorization schedule for the interest only and regular 5 year arm. I think if you are financially able to do it than go with a regular 5 year arm. If there is some question than interest only may not be a bad option BUT you should really try and pay the principal most months out of the year or you will end up owing quite a bit at the end. While it is true that in the first 5yrs of a regular ARM you are mainly paying interest, there is a difference in the armorization schedule. Like I said, interest only is fine if you intend to pay the principal most months, I would not recommend only paying the interest. Just my .02 and I am certainly not an expert.

 

[penguins]

So what is considered a good credit score? Obviously the higher the better but what is a ballpark where you won't get penalized for it getting a loan?
Do banks care/consider if you already had a mortgage/home and are a second time buyer? Does it help?

 

[eilros]

Does anyone know of any banks that do physician loans in Indiana? I haven't found any that are licensed to do business there.

 

[napoleanna]

Anyone use physicians relocation services? (www.physiciansreloservices.com)

I found them a year ago, and have planned on contacting them the moment we return from the Match party, but I would like to hear any feedback SDN users may have. It sounds like a fabulous idea (contact point for three national doctor-loan programs and listing of "resident-friendly" real estate agents around the country), plus I am always eager to support medical spouse entrepreneurs, so what do people think? ? ?

I too am curious. I keep getting postcards from this group... Sounds like a good idea but I have never bought a home and am not sure what I should be skeptical of.

Has anyone used physicians relocation services?

 

[Diane L. Evans]

OK guys if this was said I apologize but I can't read 10 pages.
WHOA
STOP
EVERYTHING
If you don't do this you are NUTS...

There is a doctors loan......lends 500,000 and does not use your student loans against your worth...

Call Bank of America or Compass Bank and inquire about a doctors loan. These are the only 2 banks that offer them.

$500K NO money down on closing (yes for being a resident!!!)

My loan officer is Drew Daniels in Austin Texas. Compass Bank # 800-570-2173 (ask to be connected).

I did the same thing about inquires as you are..

why so few know about this is beyond me but we've bought our second house this way and were able to afford new second time around ( 3000sq ft 3 car gar)

Good luck Diane

PS I am not affiliated with either bank nor do I have family members that work there. This is not an advertisement.

 

[djones]

OK guys if this was said I apologize but I can't read 10 pages.
WHOA
STOP
EVERYTHING
If you don't do this you are NUTS...

There is a doctors loan......lends 500,000 and does not use your student loans against your worth...

Call Bank of America or Compass Bank and inquire about a doctors loan. These are the only 2 banks that offer them.

$500K NO money down on closing (yes for being a resident!!!)

My loan officer is Drew Daniels in Austin Texas. Compass Bank # 800-570-2173 (ask to be connected).

I did the same thing about inquires as you are..

why so few know about this is beyond me but we've bought our second house this way and were able to afford new second time around ( 3000sq ft 3 car gar)

Good luck Diane

PS I am not affiliated with either bank nor do I have family members that work there. This is not an advertisement.

She's right, these are great. Don't forget about the SunTrust program that has these same features but also offers the 3 year and an interest only option with credit score requirements that are less stringent in some cases. It's important to compare by way of the Good Faith Estimate. Have them emailed to you.

 

[samwise]

anybody have experience using upfront mortgage brokers? from what i have read this seems like the best way to get a broker who actually cares about your rate and the only way to be sure of what you are paying him (the broker) for his services (as opposed to getting zapped at the end just as you are ready to close).

any input? experiences? pros and cons?

 

[APACHE3]

Ok, so I just bought using Suntrust Doctors loan. My int. rate is 6.25, but my APR is 9%! That seems high, but I guess since I'm not putting anything down, and I do have tons of student loans, maybe this is there way of making it up. My FICO is around 700. Doctor loan or no doctor loan, the bank WILL make money off you one way or another. This is my first house, so I'll chalk it up as a learning experience, and once out of residency, I hope things will improve for me. I'm too fatigued to shop around. I was trying to use BA (my own bank), but the guy just didn;t seem intrested in serving me,and I started to shop around online. BEWARE..if you shop rates..the different mortgage companies WILL run CREDIT CHECKS, this = FICO decrease!!! Anyway, I wont complain. the mortgage payment is the same as a 3 BR apartment (I have 2 kids), so maybe try a couple of places and just go with who you feel better with. SUntrust so far has been very nice. As for Indiana bank, I interviewed there and I think its Regions that does a doc loan as a resident told me. GL

 

[monkey7247]

Ok, so I just bought using Suntrust Doctors loan. My int. rate is 6.25, but my APR is 9%! That seems high, but I guess since I'm not putting anything down, and I do have tons of student loans, maybe this is there way of making it up. My FICO is around 700. Doctor loan or no doctor loan, the bank WILL make money off you one way or another. This is my first house, so I'll chalk it up as a learning experience, and once out of residency, I hope things will improve for me. I'm too fatigued to shop around. I was trying to use BA (my own bank), but the guy just didn;t seem intrested in serving me,and I started to shop around online. BEWARE..if you shop rates..the different mortgage companies WILL run CREDIT CHECKS, this = FICO decrease!!! Anyway, I wont complain. the mortgage payment is the same as a 3 BR apartment (I have 2 kids), so maybe try a couple of places and just go with who you feel better with. SUntrust so far has been very nice. As for Indiana bank, I interviewed there and I think its Regions that does a doc loan as a resident told me. GL

9%?!? Did you pay points and closing costs out your azz? My mortgage right now has 5.625% rate and APR is 6. That's a huge swing for you.

 

[djones]

Ok, so I just bought using Suntrust Doctors loan. My int. rate is 6.25, but my APR is 9%! That seems high, but I guess since I'm not putting anything down, and I do have tons of student loans, maybe this is there way of making it up. My FICO is around 700. Doctor loan or no doctor loan, the bank WILL make money off you one way or another. This is my first house, so I'll chalk it up as a learning experience, and once out of residency, I hope things will improve for me. I'm too fatigued to shop around. I was trying to use BA (my own bank), but the guy just didn;t seem intrested in serving me,and I started to shop around online. BEWARE..if you shop rates..the different mortgage companies WILL run CREDIT CHECKS, this = FICO decrease!!! Anyway, I wont complain. the mortgage payment is the same as a 3 BR apartment (I have 2 kids), so maybe try a couple of places and just go with who you feel better with. SUntrust so far has been very nice. As for Indiana bank, I interviewed there and I think its Regions that does a doc loan as a resident told me. GL

yes sounds like someone made a mistake. you'll want to confirm that apr with your loan officer.

 

[APACHE3]

hey, I've been a BA customer for 6 years, and overall very satisfied with BA banking services. However, when trying to get a good faith estimate on my property he was way behind the other lenders, so i just gave up. I think it was an isolated case, and it seems from this forum anyway, that the BA reps do a good job with the mortgage customers.

 

[Poety]

I am LIVID - I"m never going to get to closing on this house to get my next mortgage for the move. I made the mistake of getting involved with the worst buyers I've ever encountered in my 10 years of real estate experience. What a dote I am!!!

IF THERE IS A MORTGAGE GUY/GAL OUT THERE THAT CAN HELP ME BRIDGE - PLEASE CONTACT ME IMMEDIATELY!!!!!

 

[deleted65604]

Sorry if this has already been brought up (I just browsed the other 10 pages).

BOA was not in the state where we were living last year or the one we were moving to for residency. So, we explored other options. We ended up using:

physicianlender.com, a mortgage broker company based in Michigan that specializes in physician loans.

So, last year we got a 103% loan (financed our closing costs), 0 PMI, 0 points, 6.25% interest on a 5 year ARM with $0 down. They just asked for a copy of our signed contract to prove work. We asked repeatedly for a fully amortized loan, only to find out later that it was interest only (so we pay extra every month, which is fine because there is no prepayment penalty). I don't know what happens to loan after 5 years, since we plan on selling the house after our 3 year residency.

One warning if using this company... after match day, it was extremely difficult to get ahold of our mortgage broker. He was swamped, and as a result, we had to fax/email the same things repeatedly. He was bad about returning phone calls, which is not so good when you are working with them long distance and can't just drop into their office. Also, underwriting messed up our papers the day before closing. (We had opted to have our interest rate increase .25% instead of paying the 1 point origination fee upfront, but the papers had included both the interest hike and the fee). Then, as I mentioned before, they still messed up on the kind of loan we had agreed to earlier.

So, would I recommend this company after all this? Yes, but with reservations. I would use them again only if we were buying a house at an "off" time of year... sometime other than March-June.

If anyone wants to know more, feel free to PM me.

 

[jem04]

This may have been said before...
I would recommend calling smaller banks wherever you will be moving (esp. if you are finishing residency). I was able to find a 30 year fixed mortgage with no money down, no PMI, and no unusual closing fees (0.5% origination fee). This bank offered the same 30 year fixed rate as their 20% down loan (but to physicians only). This was much better than any other place I called (including BOA, Wachovia, mortgage brokers, etc.). They do it to attract physician clients. Sometimes smaller banks can work with you more than the big boys...

 

[andrea]

Could someone provide some guidance for me? What is the best way to find $ for renovations? We're thinking of buying a house at 83K but it would probably need 10K to finish the basement. But Bank of America says their policy is they won't give any more than the cost of the house for the physician loan. Should I just go to a random local bank and ask for a personal loan?

 

[Plastikos]

Could someone provide some guidance for me? What is the best way to find $ for renovations? We're thinking of buying a house at 83K but it would probably need 10K to finish the basement. But Bank of America says their policy is they won't give any more than the cost of the house for the physician loan. Should I just go to a random local bank and ask for a personal loan?

Id be very careful about buying a fixer upper. As i plan to buy for my new location i have been hitting the real estate books. Make sure your problem is PURELY cosmetic, many seemingly simple things lead to serious problems that might be incredibly expensive. Also, if your in residency you have to be honest about how much time you want to spend working on the house.


For the person with a 700 credit rating, it doesnt sound like you got a good deal at all, with your rating you should have been able to get a standard fixed loan with perks b/c your a physician.

 

[QuietSylph]

Could someone provide some guidance for me? What is the best way to find $ for renovations? We're thinking of buying a house at 83K but it would probably need 10K to finish the basement. But Bank of America says their policy is they won't give any more than the cost of the house for the physician loan. Should I just go to a random local bank and ask for a personal loan?

If you got a personal loan, the interest rate would be high and the payments would most likely be spread over 10 years, not 30 years. It's probably not the best way to go.

What about purchasing the house for 93K and getting 10K back from the sellers at closing? I've seen arrangements like this done before so that you can finance a remodeling at normal mortgage rates. Part of it will depend on what the house appraises at, of course.

I personally had a much, much better experience in dealing with Compass Bank on getting a doctors loan than I did with B of A. Compass was a lot more flexible and accommodating and offered excellent terms. Last year we ended up with a 5 year ARM (interest and principle) at 4.75% with 103% financing and no PMI, student loans ignored. We worked with a loan officer named Kary Keasler, who I highly recommend. I will dig up his contact information if anyone wants it - just PM me.

Good luck!

 

[miamidc]

I am looking for a mortgage for 350,000, for a 1 bedroom condo in Miami Beach. I have a credit score of @700 and would prefer an interest only or doctor loan. Am I dreaming, and is this even possible for less than $2000 a month in payments?? Who would be willing to give me this. Also this is an area and a complex that will most likely bring me at least 50% returns on my investment in 3-4 years, so not worried about losing money on depreciation

 

[monkey7247]

I am looking for a mortgage for 350,000, for a 1 bedroom condo in Miami Beach. I have a credit score of @700 and would prefer an interest only or doctor loan. Am I dreaming, and is this even possible for less than $2000 a month in payments?? Who would be willing to give me this. Also this is an area and a complex that will most likely bring me at least 50% returns on my investment in 3-4 years, so not worried about losing money on depreciation

You're crazy.

 

[EM Junkie]

I am looking for a mortgage for 350,000, for a 1 bedroom condo in Miami Beach. I have a credit score of @700 and would prefer an interest only or doctor loan. Am I dreaming, and is this even possible for less than $2000 a month in payments?? Who would be willing to give me this. Also this is an area and a complex that will most likely bring me at least 50% returns on my investment in 3-4 years, so not worried about losing money on depreciation

Don't forget that you're going to have to pay property taxes (likely quite high), and your condo's "Association fees", which can be hundreds of dollars per month! Don't assume that some "mortgage calculator" on the internet is giving you the full story.

Ex: We are looking at a $219K townhome in Houston, payments $1330 per month. Property taxes? $440 per month. Association fees? $200 per month. Total monthly payment = $1970 per month, and thats with a credit score a lot higher than 700.

So, unless your SO has a very good job and you are willing to pay well over $2000 per month, I would look elsewhere....

 

[APACHE3]

trying to get extra money over the loan is tricky. I tried with my bank, but they will ony do what the appraisal value is, so even if you can convince the seller to pay back to you $10,000, if the house does not appraise at that value...bank wont go for it...my sellers are paying most of my closing cost leaves me a little extra cash to fix a few things, add alarm, etc. So there are different ways to fine tune the mortgage..by the way, just do a little remodeling each year. GL

 

[InGasWeTrust]

Miami DC

Im in miami, bought a condo in the gables for 410k.

Our payment with a 100% financing 6% Interest only loan plus property taxes, condo fees is $3200.00/mo.

So unless you are putting alot of money down, cosigner/subsidy, married I think you are going to find it extremely difficut to get into a 350k loan.

Dont forget you will need a chubk of cash to close, our closing was 18k cash, with a "0" down loan!


If you want a reference for a great direct lender, shoot me a pm, this guy closed us in 10 days, and blew away the "doctor loan" people, BoA and suntrust as far as rates and service.

 

[Mumpu]

So can someone explain to me why (as a single intern-to-be) I should buy? I can rent a very nice apartment in a great location and buy a new car for around $1,000/mo (Denver is cheap). I can take the surplus and invest it, not worry about property devaluation, taxes, HOA, etc., and probably earn more in 3 years of safe investments. I can't imagine that tax benefits with a salary of 42,500 a year would be that mind-blowing.

 

[docCarter]

I went with Tower Mortgage. They have a much higher closing cost verse any other primary lender. They add on a 1.25% origination fee My advise, shop around.

 

[Plastikos]

You're crazy.

Agree, if your single, whats the point?


As for some of the other ppls posts, isnt anybody getting 103% financing?

 

[miamidc]

Agree, if your single, whats the point?


As for some of the other ppls posts, isnt anybody getting 103% financing?

Main reason I want to buy is because when you rent you never see that money ever again, it goes bye bye. Also, in Miami Beach right now, everything, and I do mean everything will DOUBLE in value in 4-5 years. So I can make some serious change by owning, and then when I sell I can aford something nice instead of paying double what I did 5 years ago for the same thing.

Anyways, does anybody know if any other lender not consider student loans in their debt assessment. B of A told me that they were the only bank that doesn't factor in student loans, but I think they are full of Sh_t.

 

[DrMom]

Anyways, does anybody know if any other lender not consider student loans in their debt assessment. B of A told me that they were the only bank that doesn't factor in student loans, but I think they are full of Sh_t.

I've spoken with 4 banks that offer the same kind of deal, so b of a clearly isn't the only one. SunTrust Mortgage is one that sent me something just today. 2 others were local banks, but I'm sure that there are local banks in other areas that do the same.

 

[Plastikos]

B of A told me that they were the only bank that doesn't factor in student loans, but I think they are full of Sh_t.

They are, most places will make special offers to land a credit risk like a doctor. They dont even have to have a "doctors loan", they will just draw up one with the same terms.

 

[tridoc13]

Hey, folks. I am currently looking for a lender but have some pretty significant debt coming out of school ($200K+ in student loans, $60K in private/credit card debt). Is anyone else out there in a similar position? If so, were you able to get a mortgage with your debt-to-income ratio being so high? Starting salary at my residency will be $43,200, which puts me well over 50%. Any info would be greatly appreciated. Thanks in advance!

 

[miamidc]

Hey, folks. I am currently looking for a lender but have some pretty significant debt coming out of school ($200K+ in student loans, $60K in private/credit card debt). Is anyone else out there in a similar position? If so, were you able to get a mortgage with your debt-to-income ratio being so high? Starting salary at my residency will be $43,200, which puts me well over 50%. Any info would be greatly appreciated. Thanks in advance!

If anyof that private debt you have are private student loans, they still count as student loans, and will not affect your credit score or your mortgage rate. If however it is all credit cards, or other debt like car, etc, you really need to pay off as much of that as possible if not you won't pull a mortgage for more than $80,000. I have $25,000 in credit cards, and they were telling me I could get $130,000 in mortgage. I am getting 2-3 residency relocastion loans, paying off all my credit cards, and investing thed rest. These are student loans, and will always be. I would strongly consider doing this, if you can't get a check from pops. If not that sh_t will eat you up. Good Luck.