Physician Mortgage Loan

[Jus]

I don't if there are any other Doctor's here besides myself, but I was wondering if anyone has any insight about Physician or Doctor's Mortgage loan. I am due to finish my fellowship and move to Reno, NV for a job and thinking about buying a home in teh 500-600k range. My wife is also a physician and throughout our residency and my fellowship we were able to save 95% of her pay and live off mine so we do have quite a bit saved, but would prefer not to put any down payment to maximize tax write off as I'm expecting to be in 33% tax bracket easily with the pay bump I will get plus my wife's salary. I had a Physician loan for my home in residency and it was pretty good but there was only one lender at that time that did it in my area so I didn't shop around. My question is if anyone has gone this route or done it, is it advisable to try to call multiple banks that offer it and get rates or just go with one because in the end they will all say the same. I'm leaning towards SunTrust as they seem to have an option of no downpayment which is what I'm looking for. BBVA is another one but I think they may need 3.5-5% down which is doable if I have no choice. I'm trying to save my credit from having unnecessary pulls if I don't need thus I'm asking for some help.

Thanks in advance

 

[Free-quent Flyer]

Fascinating. Is a Physician loan just a loan that's specially underwritten for high-income, low-risk people?

 

[Matt]

Fascinating. Is a Physician loan just a loan that's specially underwritten for high-income, low-risk people?

There are several banking options akin to this. Another is that you can fast track into Citi Private Bank as a Lawyer, despite not meeting the asset requirement. Statistically, a Physician will have the income source desired, and will have insurance lined up (disability, life, etc) that makes them a safer bet than your average travel hacker. Higher quality tranche meaning that better features can be offered, such as 100% financing (without PMI) etc.

 

[Jus]

Fascinating. Is a Physician loan just a loan that's specially underwritten for high-income, low-risk people?

Yea pretty much, income is essentially guaranteed as long as I don't go off the hinges so safer risk. Also they will look past my student loans and will not include that in there calculations for my interest rate. Most banks will also have different rules depending on how long you have been a physician. So for example someone in my shoes who is either a resident or a fellow and has not practiced on my own making the "big bucks" they will allow the zero down, no PMI, etc at some institutions, however, if I had been in practice and out of training for >10 years then they will likely make it a 5% down and if the value of the home is >450k require a PMI because they know you have the money to be screwed over for. SunTrust is one such example, upto 650k I can get it right now for zero down and no PMI, but if I go above they will want 5% down. Also that rule will not apply to me if I had been in practice for > 10 years.

There are several banking options akin to this. Another is that you can fast track into Citi Private Bank as a Lawyer, despite not meeting the asset requirement. Statistically, a Physician will have the income source desired, and will have insurance lined up (disability, life, etc) that makes them a safer bet than your average travel hacker. Higher quality tranche meaning that better features can be offered, such as 100% financing (without PMI) etc.

You nailed it spot on, my first home during residency was without PMI no down payment, but because I had no saved up money as I was just out of medical school (likely not as good of a credit score, didn't know the things I know now), I had to settle for a 7 ARM at that time instead of 30 year fixed.

 

[PWMTrav]

however, if I had been in practice and out of training for >10 years then they will likely make it a 5% down and if the value of the home is >450k require a PMI because they know you have the money to be screwed over for. SunTrust is one such example, upto 650k I can get it right now for zero down and no PMI, but if I go above they will want 5% down. Also that rule will not apply to me if I had been in practice for > 10 years.

They don't do 5% and PMI in that instance because they know you have the money. They do it because in that 10+ years, you've somehow not accumulated enough savings for a large down payment despite having a high income, so you're more of a risk. Hookers and blow and all that.

 

[Free-quent Flyer]

They don't do 5% and PMI in that instance because they know you have the money. They do it because in that 10+ years, you've somehow not accumulated enough savings for a large down payment despite having a high income, so you're more of a risk. Hookers and blow and all that.

Stupid question but I've been wondering this for a long time: do the hookers arrive WITH the blow or is that two separate calls? Do you tip on both orders?

 

[PWMTrav]

Stupid question but I've been wondering this for a long time: do the hookers arrive WITH the blow or is that two separate calls? Do you tip on both orders?

I wish I knew, but I'm no doctor! I'd imagine the kind of money that you'd have to squander to disqualify yourself from favorable mortgage terms would be able to procure hookers who bring the blow, though.

 

[Matt]

As a mnemonic 'hookers hook you up'.

Clearly, it would be insane for them to always carry blow as they would be such an easy target for Narcs.

So I heard.

 

[Jus]

As a mnemonic 'hookers hook you up'.

Clearly, it would be insane for them to always carry blow as they would be such an easy target for Narcs.

So I heard.

Narcs hit us up either way, so not sure which is better at this point