Financing in Boston>Question Details

Joel, Home Buyer in Madison, WI

What good loan options exist for new resident physicians in Boston?

Asked by Joel, Madison, WI Tue Feb 16, 2010

I'm a soon-to-be graduating medical student, considering moving to Boston for residency. My wife and I would be there for some time, so we're exploring purchasing our home.

The problem is this: while my employment would start in late June with a fixed-income contract, I've had trouble finding lenders in Boston who are willing to close until I have at least one pay stub. Since we'd both be changing employment (me to residency, wife to school), there's no income history. We have enough saved to make a good down payment with good credit histories, so I'm not in search of special loan terms.

Clearly, this causes a bit of a problem - we'd need temporary housing and then have to move again... not to mention missing the tax credit because we couldn't close until July.

Any suggestions or other thoughts? I've spoken with somebody in St. Louis who said that it would be no problem to do this, but potential lenders in Boston seem to have trouble. Thanks!

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Hi Joel

Congratulations on landing a medical residency in Boston! I used to be involved in medical research and it's a great area for residents. I'm familiar with the issues of relocating fresh out of medical school.

I have lenders who would have no problem as long as you have an employment contract or letter. Your years of medical education count toward your employment experience.

I live in Watertown (borders Boston) and have a mortgage office in Natick - I would be happy to chat or meet with you to further discuss your needs.

Let's keep in touch!

Tom
0 votes Thank Flag Link Mon Feb 22, 2010
Joel, I work with a local bank that would consider your situation. The property would have to be within their "footprint" of their lending area. They like to look as compensation factors to make the loan. It looks like you've got a set of solid circumstances on your side. Worth looking into.
Web Reference: http://jeffchinloans.com
0 votes Thank Flag Link Wed Feb 17, 2010
Eliott,

getting a highly qualified individual a loan to 95% is not all that difficult...Doing it prior to them starting their employment is a little different.
0 votes Thank Flag Link Wed Feb 17, 2010
Good morning Doctor;

I am a practicng attorney in Boston, and i do a lot of purchases for physicians in your position. Contact me at etopkins@topbev.com or 781-849-5906 and I can let you know about some viable Boston options. I just closed a 95% loan to value laon for a physicain and her husband using one of my sources.

Elliott Topkins
http://www.topkinsandbevans.com
0 votes Thank Flag Link Wed Feb 17, 2010
Joel:

When I come up with all the perfect scenerios of buyers who would fit a "rent to own" situation, the main one I come up with is a situation like yours. It creates a situation where many sellers are not familiar with it, so it may be too limiting of homes that fall into this category.

Here is how it works:

You rent a home with a prenegotiated purchase price for 6 months or some other future date. The contract comes with a non-refundable deposit also. Do inspections, negotiations, etc as you normally would. Sometimes part of your rent would be used as your down payment, but in your case you don't sound like you have a lack of down payment funds.

After you start work, go get yourself a mortgage and close on the property.


Hopefully this unique purchase will not have to be used and a mortgage company can get the job done, but lenders are tighter than ever, and it may be tough.
Web Reference: http://www.MAhome.com
0 votes Thank Flag Link Tue Feb 16, 2010
It would be an exception to standard underwriting guidelines, so you would need a portfolio lender. With good credit and a 20% down payment I would be suprised if I could not get an exception to the pay stub under my portfolio 5/1 ARM. The loan would be fixed for the next 5 years and then would become a 1 year adjustable.

I could also apply for an exception directly from fannie mae to offer a 30 year fixed rate productr but I would not be as confident that the exception would be granted.
0 votes Thank Flag Link Tue Feb 16, 2010
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