No Down Payment, Physician Loan

[Linnybubbles]

Has anyone else been in this situation? My husband is a cardiology fellow (after residency, specialty training) and there are special loans for people like him. We have no $ for a down payment, but since he has a great earning potential in a couple of years, he can get a loan with no PMI needed. I do not know too much about it, and was wondering if anyone else does. Thanks!

[cynder]

Linnybubbles My DH is a fellow and we did the doctor mortgage deal, with no $$ down (but we did have to cover closing costs), adjustable rate 3 yr rate and no PMI. We are planning on selling before the the 3 years otherwise we would have done a fixed rate. We live near 2 major teaching hospitals so they are pretty popular here and many residents and fellows go this route. They are legit because lenders anticipate future earnings plus take into account student loan debt and low salary earnings while training. It is a great way to avoid PMI without having to put 20%.

It's been awhile since I did all my research on all this so PM me if you have specifics. The best piece of advice is to take with other fellows in the program. You can find out which lenders or brokers in the area are good.

Good luck!

[TazLuv]

My DH is also a resident and while we didn't use them Bank of America has a physician in training loan. Its been three years since I looked into it but what you mentioned was the main jist at the time. Congrats on being done with residency!

[dnagirl]

We were interested in the Bank of America loan, but when we talked to the contact person there, there were only certain types of loans that were available to physicians without PMI and they weren't very attractive or didn't fit our needs (sorry, I cannot remember the specifics). Like someone mentioned, ask around to the other residents since they probably know the scoop. Good luck!

[carrie9142]

Praise God for this loan!!

My DH just started residency and he researched mortgages TO DEATH. The two best were from Regions (I think it is called the 'emerging professionals' loan) and Compass Bank. Regions had no PMI, no down payment, no pre-payment penalty, and (I think) maybe a 0.25-0.5 percentage point higher for a 30 year fixed. Compass Bank (I am not sure if this is just locally or not, but you don't have to have an account there) had the same thing but you could do a 5 yr ARM for about a half point lower than market. We ended up with the ARM since his residency is 5 years (unless he does a fellowship here which I am just not ready to hear about yet!).

There were a couple others, but they wanted us to do creative financing to get approved for the amount we needed. I think the Regions loan assumes your income to be $150k (based on projected income, certainly not resident's salaries!!!) and does require a credit score of over 700. I don't remember any restrictions on it and we didn't have a problem getting qualified for the amount we needed.

[tlew12778]

God. I wish they had these in Italy.

Anyway there are entire threads dedicated to this on SDN. I am sure there are similar threads on iMSN as well. Not to say you can't get the info here, but there are lots more dr-families over there.

[BTB]

We looking into the Bank of American loan as well, because it's the most well-known of these programs. Frankly, it's a crappy deal. Both my home institution and my home hospital (not the same corporation) have arrangements with different banks for no down payment, no PMI, and low interest rate loans for housestaff. We compared the two packages, and picked the lower rate. It was easy, we had an awesome originator, and have gotten great service.

[Linnybubbles]

Thanks everyone! I think we are not going to go with BOA, there are some options we are looking at right now. Def not as difficult as I had thought, but still pretty confusing! Now, if my husband decides to add another year to his fellowship (cardiology, he is a second year), I will kill him!