- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Physician house loan
Posted on 1/20/20 at 2:30 pm
Posted on 1/20/20 at 2:30 pm
(no message)
This post was edited on 7/15/21 at 7:59 am
14
Posted on 1/20/20 at 2:35 pm to blackoutdore
To buy a house, you will have to put 20% down unless you qualify for a VA loan. Do you have that saved? Sounds like you do not.
Call a lender and ask them what you would qualify for. then divide by 2 and that's the price house you need to buy right now, assuming you can come up with the cash down.
Call a lender and ask them what you would qualify for. then divide by 2 and that's the price house you need to buy right now, assuming you can come up with the cash down.
Posted on 1/20/20 at 2:37 pm to blackoutdore
south state bank. call them and find out who to talk to. they can run through all scenarios for you and your wife. they are "local" and service most of these types of loans themselves for the life of the loan. better than going through wells fargo based on our experience.
Posted on 1/20/20 at 2:41 pm to Motorboat
quote:What? You don’t need to put that much down on any loan. Of course there is the extra cost of PMI but that doesn’t mean they can’t take out a loan.
To buy a house, you will have to put 20% down unless you qualify for a VA loan.
This post was edited on 1/20/20 at 2:43 pm
Posted on 1/20/20 at 2:44 pm to Motorboat
most physician loans will allow up to 750K w/ nothing down. no PMI.
Posted on 1/20/20 at 2:45 pm to blackoutdore
You want to buy a house that you only expect to live in for one year, then sell it?
That doesn't make a lot of sense to me.
That doesn't make a lot of sense to me.
Posted on 1/20/20 at 2:46 pm to blackoutdore
You're right that it's hard to come out ahead over renting from now through 2022 once you factor in the costs associated with buying, selling, and moving.
I wouldn't buy something you wouldn't be comfortable with for at least the next 5 years if not 7.
And if you suspect you may be looking to sell within 5 years absolutely do not buy something in a bad school district.
I wouldn't buy something you wouldn't be comfortable with for at least the next 5 years if not 7.
And if you suspect you may be looking to sell within 5 years absolutely do not buy something in a bad school district.
Posted on 1/20/20 at 2:48 pm to blackoutdore
Would need to plan on staying there long enough to cover realtor, closing, etc. Realtor and Closing could be $18K when you decide to sale.
Maybe buy something that would be easy to rent via a property manager when you guys left town.
Maybe buy something that would be easy to rent via a property manager when you guys left town.
Posted on 1/20/20 at 3:03 pm to lsu13lsu
Go to Whitecoat Investor's website and search their list of suggested mortgage lenders that specialize in physician mortgages. I personally do not think buying a house for one year makes sense.
Thread steal: Is Peninsula Grill the tits? I just booked it for Feb. 27th.
Thread steal: Is Peninsula Grill the tits? I just booked it for Feb. 27th.
Posted on 1/20/20 at 3:32 pm to blackoutdore
quote:
blackoutdore
it doesn't seem like buying makes much sense for you. On a $300k house, with a standard mortgage, you're probably looking at about $400/mo in "equity" payments. (don't @ me with calculation - this $ is solely for illustration). You also acquire a bunch of other expenses you don't currently pay as a renter (insurance, property tax being the biggest). For a short term purchase, your property likely isn't going to appreciate enough to cover the expenses associated with buying & selling. Also, if you need to make a quick move, you could be stuck "gaining equity" on a second house.
Wait until you know where you are going to live for at least the next 3 or 4 years. The longer term the better. Anything less than that, renting is going to be more sensible for you.
Posted on 1/20/20 at 3:51 pm to PerceivedReality
quote:
most physician loans will allow up to 750K w/ nothing down. no PMI.
Looked into this because my wife is in medicine...you basically pay a higher interest rate to offset no PMI. We decided it wasn't for us and went with a traditional mortgage.
Posted on 1/20/20 at 4:46 pm to blackoutdore
Haven't read other posts but my wife is MD as well. I read a book, Why physicians home loans fail, and it has so much information I can't start to unravel it all. The biggest take away for us is that you can utilize this loan once. We are waiting until we have a few more kids to take advantage of this loan program.
ETA: reason being is the cap on the mortgage. Houses in New Orleans that would meet our needs just in size & location can easily eclipse $750k for 100% financing, for every 5% in down payment they add $250k to your total debt.
I highly recommend you read the book because it will explain, in both MD practice and financial terms, why they fail in the long run because of both continued practice (burn out) and financial (financial missteps are commonplace for MDs) strain specifically from a MD perspective.
ETA: reason being is the cap on the mortgage. Houses in New Orleans that would meet our needs just in size & location can easily eclipse $750k for 100% financing, for every 5% in down payment they add $250k to your total debt.
I highly recommend you read the book because it will explain, in both MD practice and financial terms, why they fail in the long run because of both continued practice (burn out) and financial (financial missteps are commonplace for MDs) strain specifically from a MD perspective.
This post was edited on 1/20/20 at 4:56 pm
Posted on 1/20/20 at 7:10 pm to blackoutdore
Dude pays $33k a year in rent and everyone wants him to keep renting. That’s a ton of money for no return or equity. Y’all need to get your 5 year plan figured out before your lease runs out, and either get a house for at least 5 years or work towards moving
Posted on 1/20/20 at 7:33 pm to Upperdecker
The general rule of thumb assuming around 2% appreciation is 4-5 years to break even.
If you are looking at just a year, I’d wait. If 2-3 maybe consider it.
Your life changes a shite ton the next 5 years op. Women spend a lot of money on new homes especially ones they own. I’d include a significant budget for items like new furniture.
If you are content where you live outside of the cost of the rent, I’d probably stand still.
I’d like to say you guys will be frugal and make out fine, but I’m not sure frugal people would be paying $2800/ month rent to begin with.
If you are looking at just a year, I’d wait. If 2-3 maybe consider it.
Your life changes a shite ton the next 5 years op. Women spend a lot of money on new homes especially ones they own. I’d include a significant budget for items like new furniture.
If you are content where you live outside of the cost of the rent, I’d probably stand still.
I’d like to say you guys will be frugal and make out fine, but I’m not sure frugal people would be paying $2800/ month rent to begin with.
Posted on 1/20/20 at 7:58 pm to Upperdecker
quote:
Dude pays $33k a year in rent and everyone wants him to keep renting.
I would probably buy a house, but maybe not a $300K house if I think I might just live there for a year or two. Something cheaper till you know.
Posted on 1/20/20 at 7:59 pm to blackoutdore
quote:
Anyone have familiarity with this process?
Yes. I did it as a resident and preparing to do it again.
quote:
will probably be here another year at least
Ooof. You need to figure out your long term plan.
The advantage of a physician loan is the ability to borrow with 0-5% down payment and avoid PMI. Albeit usually at a slightly higher interest rate on a fixed 15/30 term or lower on a 5/1-7/1ARM.
If you want to buy and potentially sell in 1 year,
a) you're gonna lose money on closing costs both ways wiping out whatever minimal equity you built up. I was in my house for 5 years and only broke even/made some money because my house appreciated a good bit over that time.
B) if the housing market crashes, you have little no equity built up and are gonna end up owing more than what the house is worth.and won't be able to get rid of the property.
quote:
little to no savings as we both just left school and our paying off some higher interest debt
Little to no savings also means that whatever you borrow for the house, also plan to borrow and pay interest on closing costs on the buy.
Posted on 1/20/20 at 11:56 pm to blackoutdore
Your scenario doesn't sound like it's a slam dunk move to buy. It's highlighted in several posts above, but even just recovering your equity when you account for the cost to close needs to be in your equation- it is unlikely that you will do so in 1 year's time on something with 95-100% financing.
Wife and I graduated residency together and bought a house in a town we plan to stay long term. I came across an article about these loans around the time I was looking on Doximity, and one guy claimed that you didn't need to go through the special "doctor loan" program if you went and called up most banks to see what they could do for you.
So I tried this. There were basically no hoops. They took a contract as future income and let me close 90 days prior to my start date. They offered me 80% at 0.5% APY above the national average for jumbo mortgages on a 30-year fixed and the other 20% of the loan at 1% worse than the national average on a 15-year fixed. PMI worked out to less money per month if the loans were marched out like the amortization table planned. Aggressive paydown on the higher interest made that option a bit more attractive.
We also checked out a physician loan through Regions. I forget the terms, but it was only attractive on a 3-year ARM, and this was in Spring of 2018 and rates were rising, so we passed on that one not foreseeing their short-term rapid fall a year later- we have already refinanced but through a different bank entirely
If you're wanting option a) buy house to build equity instead of paying rent or b) stay where we are at, just remember there is always c) move to a cheaper place and rent for another year while paying down the debt and saving for a down payment. Your wife's position indicates to a mortgage company that she's a low risk to default, but it's going to cost her (in either interest or PMI) for not having a down payment, regardless of the risk.
Wife and I graduated residency together and bought a house in a town we plan to stay long term. I came across an article about these loans around the time I was looking on Doximity, and one guy claimed that you didn't need to go through the special "doctor loan" program if you went and called up most banks to see what they could do for you.
So I tried this. There were basically no hoops. They took a contract as future income and let me close 90 days prior to my start date. They offered me 80% at 0.5% APY above the national average for jumbo mortgages on a 30-year fixed and the other 20% of the loan at 1% worse than the national average on a 15-year fixed. PMI worked out to less money per month if the loans were marched out like the amortization table planned. Aggressive paydown on the higher interest made that option a bit more attractive.
We also checked out a physician loan through Regions. I forget the terms, but it was only attractive on a 3-year ARM, and this was in Spring of 2018 and rates were rising, so we passed on that one not foreseeing their short-term rapid fall a year later- we have already refinanced but through a different bank entirely
quote:
Our all in comp is about $300k and have little to no savings as we both just left school and our paying off some higher interest debt. Thoughts?
If you're wanting option a) buy house to build equity instead of paying rent or b) stay where we are at, just remember there is always c) move to a cheaper place and rent for another year while paying down the debt and saving for a down payment. Your wife's position indicates to a mortgage company that she's a low risk to default, but it's going to cost her (in either interest or PMI) for not having a down payment, regardless of the risk.
Posted on 1/21/20 at 9:47 am to PerceivedReality
quote:
most physician loans will allow up to 750K w/ nothing down. no PMI.
I stand corrected. was not aware of a physician's loan. Must be nice to be one, even if she is a dentist.
Posted on 1/21/20 at 10:23 am to blackoutdore
quote:
Currently paying a ton in rent ($2800) for a nice place is a prime location in Charleston. We are not positive Charleston will be a long term home, but will probably be here another year at least. Current lease ends in June. I am considering if we should buy something cheapish (300kish) to build equity instead of wasting this much on rent.
If you are paying 2800 in rent, then i doubt you will be able to find a house to buy in the same location for 300k. Will you buy a house somewhere else? If so just rent a cheaper place if you want to save money and are unsure if you will stay.
Posted on 1/21/20 at 11:53 am to barry
quote:
If you are paying 2800 in rent, then i doubt you will be able to find a house to buy in the same location for 300k. Will you buy a house somewhere else? If so just rent a cheaper place if you want to save money and are unsure if you will stay.
This is the correct advice.
My wife and I tried something similar, OP. We even had a built in advantage by buying a condo from a friend avoiding all closing fees and getting a good price. Our mortgage was with Hancock/Whitney where we put 0% down, w/ a 7/1 arm. I paid extra to principal each month so we had more flexibility to sell. We ended up staying in the condo 2.5 years (baby forced our move) before we sold. I would say we barely came out ahead after paying sellers fees. It would have taken another 1.5-2 years if we had fees on the purchase.
Don't buy until you're locked in at least 4-5 years.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News