Financing in Los Angeles>Question Details

Pandanini, Home Buyer in Los Angeles, CA

We're in the middle of escrow in Los Angeles & can't get loan due to student debt in forbearance. Any rec for physician loan programs?

Asked by Pandanini, Los Angeles, CA Thu Jan 5, 2012

other than BofA? Our agent isn't familiar with buyers in our situation. Husband is finishing residency in just over 6 months, but starting fellowship right away. His loan forbearance expires during that transition when we'd reapply for another 3 years of forbearance, but all the banks we've looked into see that as debt we need to repay since it's up in less than 12 months. Anyone know of programs that will not count those student loans into our debt to income ratio? Thanks!

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Rob Weber’s answer
The seller purchasing and flipping the home means nothing. The only way it'd be relevant is if the property was new construction and had never received it's certificate of occupancy (CO) and then a rehabber purchased and flipped the home and the one-year mark since the first/original CO was issued hasn't occured yet. Most rehabbers purchase bank foreclosures or dilapidated homes and rehab them to flip (the home I purchased was this type of flip and I used a 203k on it to do additional work on top of the cheap rehab they did).

If your agent needs a litte educating, I'll be happy to have a conversation with them as it sounds like the loan officers they work with are inexperienced in government financing... Just saying. :)
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1 vote Thank Flag Link Fri Jan 6, 2012
A bit of education may help you see more clearly...

Conventional loans require you to count your deferred loans whereas government financing doesn't as long as it's deferred twelve months past when you close. In his profession it's common for loans to be deferred until he's done with his schooling and/or including his fellowship. This should be a slam dunk to any lender who properly submits a correct loan package with the appropriate documentation to support it.

It sounds like you're trying to do a conventional loan with your current lender. You should be able to qualify for a FHA loan without any problem. If your current lender is turning you down despite doing a FHA loan, you need to seek a new lender ASAP.

On the other hand, if you're not interested in the property any longer because of a new property you've spotted, that's an entirely different matter and the thirty days is irrelevent. It would be best to decide what you really want before making any rash decisions. The current escrow not wanting to wait the thirty days may be the 'out' you're secretly hoping for.

Best of luck! Feel free to contact me if you have additional questions.
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1 vote Thank Flag Link Fri Jan 6, 2012
US Bank and Kinetic Credit Union has great options for you..
0 votes Thank Flag Link Thu Jan 12, 2012
Thank you everyone for your helpful responses... unfortunately (or fortunately.. I waver) we canceled this week and I have feelings of regret here and there. Partly, but not completely because of the loan... the seller (and agent) were less than amiable, refused to pay for any repairs (fair enough), but ultimately because my husband finally saw the short sale and liked it much better, although I'm not sure that I do. So we wait on the short short sale which happens to be through B of A.. wish us luck b/c (with as with anything with BofA) b/c I think we'll need it.
0 votes Thank Flag Link Wed Jan 11, 2012
Pandanini- After thought - From others on this thread in sort of seems you just would like a "box" loan. Also, you mentioned FHA. The firm I represent American Capital Corporation is a correspondent lender for the following: Affiliated • BOI (Bank of Internet) • Chase • Flagstar • Franklin American • GMAC • Penny Mac • PHH • Sun Trust • U.S. Bank • Wells Fargo.

A correspondent lender has authority to underwrite and fund loans for their correspondents. You have everything we should need from the information you forwarded to BAC. I would perform at my very best to have you file "Rushed" through our Operations Department.

We typically surprise even the most demanding type of "REA" on our purchase transactions. Either portfolio or correspondent , we will serve you well. ... Happy funding- Rudi

PS- All the above is based on non-conforming loan amounts.
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0 votes Thank Flag Link Tue Jan 10, 2012
Pandanini- BAC is a huge bank. Although I was not aware they were still offering this product. I thought someone on a post as this mentioned BAC terminated their Physician Programs."

Typically banks as BAC sell their loans as a RMBS. Portfolio lenders keep the loans they fund in their portfolio. Not the rules for Securitization. Should you wish to discuss. I will be very pleased to take your call.- Best- Happy funding- Rudi
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0 votes Thank Flag Link Tue Jan 10, 2012
Pandanini, I can do an FHA loan loan for you even if it is considered a even though it has been owned for less than 6 months, we close very fast.
0 votes Thank Flag Link Tue Jan 10, 2012
No problem - I just confirmed that BBVA / Tom Callahan can allow for not counting the student loan debt. BBVA can certainly obtain a loan for Physicians with No Down Payment, NO MI, No prepay penalty, very attractive rates. And he can close the loan in less than 30 days.

The agents in my offices have had recent success with a Senior Mortgage Officer:
Tom R. Callahan /

Good luck to you - TJ
0 votes Thank Flag Link Sat Jan 7, 2012
Rob, you're right. We're trying to get a conventional loan... we'd asked about the FHA loans and our agent mentioned something about our seller owning the home for less than 6 months. The seller is a contractor who bought and flipped the home and has only owned it for 4 months. Also, the reason our loans aren't deferred past 12 months on paper, is that he'll be transitioning from residency straight into fellowship. We can't get deferment for an additional 3 years until he begins that fellowship program.. and with the loan agency we're currently working with, they don't care if we get it in writing that he is indeed going to be starting his fellowship and that we WILL be deferring for an additional 3 years... bottom line is that they're not used to working with doctors in training. If we really DO love this house, we'll have to figure out a way to pay off some of those loans or find a new lender who is familiar with our situation who would be able to help us out.

Thanks for your thoughts... definitely some things for us to consider, especially regarding having longer for the loan to go through if we decide on the short sale. In the end, we have to decide which home (and location ) we like better and whether or not the extra $30K or so is worth paying for the one that is standard sale.
0 votes Thank Flag Link Fri Jan 6, 2012

What I can tell you is that we can close your deal within ten days if you are pressed for time. I am sure BofA will take more than 30 days. I suggest you call me and discuss the possibility as it seems time is ticking by. We are a full service lender in California and I know the LA County very well. Let me know if I can help.
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0 votes Thank Flag Link Fri Jan 6, 2012
Okay, so I finally got the facts straightened out. We are currently in forbearance until this summer, and once my husband starts his fellowship, we'll begin a 3 year deferment. The Bank of America loan will take at least 30 days, which is too long for us to try to extend the escrow we're currently in. Coincidentally, a short sale that we'd been waiting on just counter offered.. so even more to think about now.
0 votes Thank Flag Link Fri Jan 6, 2012
Thanks everyone! You're right.. we're in deferment, not forbearance. Dot, I may contact you later today since you're also near the area we're buying. Co-signing with someone also crossed our minds but both our moms are retired/unemployed right now so that doesn't help us. We'll probably have to try to get an extension asap.
0 votes Thank Flag Link Fri Jan 6, 2012
Contact the closest BBVA branch. Try this link:
0 votes Thank Flag Link Fri Jan 6, 2012

You have some excellent answers below. I hope that it is "deferred as my colleague below mentioned. You may contact me below for referrals to two different loan officers that may be able to help you.

All my best,
Dot Chance, Realtor®
Certified Distressed Property Expert – CDPE®
DRE License #01494182
Keller Williams Realty World Media Center

WHEN YOU THINK OF REAL ESTATE...Think! My business thrives from your referrals!
0 votes Thank Flag Link Fri Jan 6, 2012
Wow...good luck with that one! Hopefully you will find someone who can do the loan for you. Or maybe you can find the funds to pay if off. If your in forbearance, you applied for some sort of unemployment, disability, or other.

Good luck!

All the best,

0 votes Thank Flag Link Fri Jan 6, 2012
Are the loans in "forbearance" or are the "differed." Yes if they are in forbearance you have a problem, my guess is they are differed and we do loans on those all of the time. Give me a call I will close your loan.

(657) 269-5720
0 votes Thank Flag Link Fri Jan 6, 2012
Suntrust has a program for physicians so give them a call.
0 votes Thank Flag Link Fri Jan 6, 2012
Well BofA is known to be more tight with their debt ratios. If it makes sense to our company, we can go up to 55%. If you'd like we can review the numbers for you.
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0 votes Thank Flag Link Fri Jan 6, 2012
Can some one co-sign on the loan? I know that is not what you want to do, but it is an option.
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0 votes Thank Flag Link Fri Jan 6, 2012
It is my understanding that all banks will count your student loans debt into your debt to income ratio. It affects your income, and they want to make sure you will be able to pay the mortgage. A rep from Wells Fargo explained it to me this way. Good luck.

San Fernando Real Estate Guy
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0 votes Thank Flag Link Fri Jan 6, 2012
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