re: Physician house loan

I did a physician loan in Charleston from 2015-2019 on 7/1 ARM. It was a starter home for 246 in a great location that we sold for 312 and made a good profit even after some updates and a new roof.

What I did ended up being a good decision. Doing it for one year is dumb.

I have some other friends in Charleston whose homes have been on the market for 6 months + because the market is really cooling down there. Ours sold in October and was placed on market in May as things slowed down unexpectedly.

Good luck finding something in a non-shite location even remotely close to downtown for 300k anymore.

Thanks for the reply. We're staying at The Dewberry. I was thinking about hitting 167 Raw or Cru Cafe for lunch that day. Someone mentioned to go to Market Pavillion for a drink, but I think our hotel has a badass 8th floor/rooftop bar.

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most physician loans will allow up to 750K w/ nothing down. no PMI.

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im a bit confused by this..
"physician loan"

are we talking about practice loans?

..or are guidelines/whatever concerning mortgages different for physicians i assume bc of income potential?

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guidelines/whatever concerning mortgages different for physicians i assume bc of income potential?

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Some lenders specialize in mortgages for physicians. They use their contract/future earning potential as a sort of guarantee that they should be good for the mortgage. Plus, physicians generally have horrible debt to income.

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I am considering if we should buy something cheapish (300kish) to build equity instead of wasting this much on rent. If we did I would target something new that would have minimum maintenance needs and I feel like we could sell easily.

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You're building next to nothing in equity in only a year. That early on, very little of your monthly payment will actually be lowering the principal balance. My mortgage is $2100 and in the first year still. Only about $480 of my last payment actually went to principal. The remaining $1620 went to interest and escrow for property taxes and insurance.

If you sell in a year, assuming housing values stay stable, you'll lose money. You'll build a few grand in equity but then you're going to be have realtor commission taken out your sale price plus whatever closing cost concessions you agree to with the buyer. And that's not including any maintenance/repair costs over the time you own it. If you're only planning to stay in the house for a year before selling, just rent instead

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im a bit confused by this..
"physician loan"

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I've heard of it from a doctor buddy when he was finishing up residency. Basically its a special loan program available only to physicians where its 100% financing, no PMI, and qualify you based on future earning potential instead of only basing off your current income like a traditional loan. Also he mentioned that the monthly payment starts off lower while they're still making resident money, then increases once they're making bigger bucks.