Financing in Edmond>Question Details

Robert Glade, Home Buyer in Edmond, OK

Do physician loans still exist wtih little down/No PMI.?

Asked by Robert Glade, Edmond, OK Mon Mar 16, 2009

I am just finishing my medical training and will be purchasing my first home this fall. I will have little to put down (~15,000), but a salary of >250,000. I had planned renting a small apartment and saving a larger down payment, but I may never be able to get a better deal on a home/mortgage if I wait. Are physician loans still available that allow little down/no PMI and how much do they affect your interest rate compared to conventional loans?

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11
Call Arvest Bank and ask for
Sharon Foxhoven
Arvest Bank
VP, Mortgage Lending
NMLS#562243
4301 W. Memorial Rd
Okc, Ok 73134
405 419-3822 Direct
405 308-6561 Cell
405 419-3814 Fax
http://www.arvest.com/sfoxhoven
0 votes Thank Flag Link Thu Feb 26, 2015
Absolutely; I remember my parents going through the same dilemma when my dad graduted from medical school.
I have 3 different ways to get this done for you depending on your needs and your situation. Please call me to discuss your scenario. I'll give you a personalized report outlining your options and how much each one will cost/benefit you, and will let you choose which is best for you.

Thanks!

Wilhelm Koenig
405.249.5993
0 votes Thank Flag Link Tue Apr 2, 2013
BBVA Compass offers "special" financing for Physicians in Florida, Alabama, Texas, Arizona, New Mexico, Colorado, and as recently as February 1, 2010; California.

We offer competitve rates and terms; particularly on the 30 year jumbo product. with no mortgage insurance.

For Residents; BBVA Compass has a new product offering that allows financing in any State if you are graduating from a participating college in one of the States referenced above.

Call me anytime to discuss rates, terms and scenarios.

Jennie Blue, MBA, MSF
Vice President
Mortgage Banking Officer
Mobile: (904) 343-2088
E-mail: jennie.blue@bbvacompass.com
0 votes Thank Flag Link Thu Aug 5, 2010
Good News! WHile many banks have discontinued the "Doctor's Loans" program, there is a great company called Physician Loans (physicianloans.com) which still offers special mortgage condition to physicians. THis allows medical students and residents to obtain a home loan even though their debt/income ratio is horrible. The loans have no Private Mortgage Insurance requirement, which saved us about $60-$80 a month. Also we opted for the Zero Down loan since the home loan was such a great rate and my med school loans are fixed at 6.8%. Super friendly and fast service from a family owned business was fantastic after working with big banks who strung as along until after we had made an offer on a home. Please check out physician loans and spread the good news. I was somewhat doubtful at first, but this company is also a member of the Better Business Bureau with a great rating. YOu won't be disappointed. We would not have a home during residency if it was not for physicianloans. And we'll keep using them even after residency.
Web Reference: http://physicianloans.com
0 votes Thank Flag Link Wed Feb 3, 2010
I wanted to forward you contact information for Chris Duncan a Mortgage Lender at First Commercial Bank We recently spoke about this type of situation. Chris's office number is 405.330.9631 and e-mail chris.duncan@okfcb.com. You could probably e-mail him and get an answer. Good Luck!
0 votes Thank Flag Link Wed Apr 22, 2009
Suntrust Mortgage has one. My husband is finishing his fellowship and we just got a 4.375 loan fwith them on a 325K house with 5% down. We also had our home during residency with Suntrust for 5.25% with 0 down for a 159K house. Good luck.
0 votes Thank Flag Link Thu Apr 16, 2009
The Doctor Next Door program is still available.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX
MSmith@PrecisionFundingUSA.com
http://www.PrecisionFundingUSA.com
0 votes Thank Flag Link Tue Mar 17, 2009
Hi Robert.

First, congratulations on coming to the end of long journey. Next, you will notice a continual theme throughout my answer, which is; in consideration of our current banking debacle, any and all loan products and/or underwriting requirements can change without notice. Thus, please keep in mind that what is applicable today may not be in the fall.

The quick and easy answer to your question is, 'yes at this time the physician’s loan is still available.’ Some of your bigger banks such as Bank of America are ceasing with these physician loan programs as we speak, this month. However, there are smaller banks/lenders, especially local ones that might still take this loan and as Gwen said, keep them 'in house.'

The no PMI part is true for now. I personally would not let PMI keep me from buying a house if all other factors were in my favor. PMI, in certain situations is still tax deductable through 2010. You need to talk to your CPA about this aspect to see if it is applicable to you. PMI rates are not that high depending on the credit worthiness of the borrower and loan amount. Also, in a lot of cases, if you buy smart and build equity quick you might be able to drop PMI after 3 years. Again, depends on your situation and this can be addressed very easily in analyzing your situation if PMI becomes applicable to your loan. My suggestion is don't dismiss buying because of PMI; just look at how it will affect you in the overall scheme of buying and the loan.

In my experience these physician loans are typically about three quarters of a point higher in interest. Although, physicians are preferred borrowers, this loan is still a 100% loan and investors shriek at the thought of this so I wouldn’t be surprised if this product becomes less and less available. As more national banks no longer offer this loan I’d expect interest rates to be 1 to 2 points higher than a traditional FHA/Conventional loan. The reason why is simply supply and demand of this loan product but a local lender might be more generous in terms of rates.

You're right; it doesn't get any better to buy than now. Contrary to what the news says, especially here in OK where our local real estate market is one of the best in the nation. Definitely check out Ryan’s blog in regards to what is happening with OK and Edmond real estate. It will help you stay on top of the market while preparing to buy.

http://blog.edmondoklahomesforsale.com/

Lastly, if you have to go FHA all is not bad. With 15k down (assuming good credit/income) you are looking somewhere in the ballpark of $300k to $400k and phenomenal interest rates.

Best of luck!
Susan Walker
Web Reference: http://www.youropenhouse.us
0 votes Thank Flag Link Tue Mar 17, 2009
Max loan amount is $271k...idiot
Flag Tue Apr 16, 2013
Robert,

A few years ago they offered DR and Teacher an Police loans with very little closing costs and a very low fixed rate. With the shake up going on these have been put on hold. You will still qualify with you stats above but not the program you were thinking about. Good Luck!
0 votes Thank Flag Link Tue Mar 17, 2009
No sure, will do some checking. I do know of a local Oklahoma Bank that has preferential lending for physicians. I understand that they will "work with you" and hold loans in house--allowing them more liberal terms. Please email me if you are interested in that info. gwen@gwenholmes.com
0 votes Thank Flag Link Mon Mar 16, 2009
Absolutely. I have several quality lenders who specialize in specific financing needs for situations such as yours. Your situation isn't as unique as it may seem, and if you fit the other guidelines for these programs, you shouldn't have any problem obtaining financing.
0 votes Thank Flag Link Mon Mar 16, 2009
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