Advice on obtaining a mortgage loan based on contract/letter of future employment for physician

Asked by Sandra, Chicago, IL Mon Nov 9, 2009

My husband and I are looking to buy a first-time home in 2010 in the Chicago suburbs. I am a physician finishing my training and our incomes have been meager the last year. We have good credit and a strong downpayment, but will be home searching (and hopefully closing) before my job has actually started. Does anyone have advice on how to obtain a loan with a contract/letter of future employment?

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, ,
Tue Nov 10, 2009
You'll have to go FHA. Per FHA guidelines, paragraph 203.18 version 2004, projected income (I'll paraphrase): If you are getting a non-revocable contract for employment that will begin within 60 after closing, the income is acceptable for qualifying purposes. The lender will also need to verify that you have the funds available to make the payments during the 60 days. This condition applies to teachers whose contracts begin with the new school year and physicians whose residency will begin after the closing date. However, if the job start date is more than 60 days from the close date, you cannot use the income. At that point, you would have to produce a paystub etc. You'll need to check with the county you're in to find out the fha maximum loan limits, however, if you find a house that costs more than the limit, you can pay the difference. The minimum on fha is 3.5% unless you buy a HUD foreclosure which is $100 down with bank repairing up to $5000. I'm not licensed in IL, but you're welcome to contact me with any other questions.
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mdrealtor01, , Chicago, IL
Sat Apr 26, 2014

When it comes to Doctor financing, I always endorse Robert Curtis at Fifth Third Bank.

As a Realtor that focuses on medical professionals, I always recommend Robert to my physician clients and colleagues. He makes himself available 7 days a week, has great rates and outstanding follow-through!

It's my understanding that his program is available for existing Doctors, Residents and Fellows. He also has the ability to lend in nearly every state.

Here's his info:

Robert Curtis

Best of luck to you!

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Robert Curtis, , Chicago, IL
Tue Dec 3, 2013
Hello Doctor,

My name is Robert Curtis with Fifth Third Bank; I specialize in our National Physician Loan program.

As the industry leader we offer Residents, Fellows, new and established doctors
(MD, DO or DPM) a wide range of fixed and Adjustable rate loans to meet all home financing needs.

Here are a few of the program highlights:

1) No Private Mortgage Insurance Required!

2) Loan Amounts up to $1.5 Million!

3) Available for both a new purchase and refinance of an existing property!

4) Targeted Benefits with Simple solutions all at low interest rates!

I’m more than happy to answer any questions you may have, feel free to reach me 24/7
at 773-732-9444 or

Robert Curtis

Fifth Third Bank
National Physicians Loan Specialist
Senior Loan Officer
0 votes
, ,
Fri Dec 18, 2009
Sandra, I welcome an opportunity to determine how I can help you, if you have not committed to working with a direct lender.
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, ,
Wed Nov 11, 2009

Thanks for all that information. It's good to see so many people caring for others especially in this industry. A few things to think about from a Doctor's standpoint. The average income of a Doctor coming out of residency triples and many Doctors haven't prepared for that kind of income hike. If they didn't invest in IRA that allow them to have tax write offs, they better have a plan B or be prepared to pay Uncle Sam a boat load of money. Therefore, the house becomes more a tool for tax purposes than an investment vehicle. I work a lot with high profile Attorneys and with Doctors in FL and they call to refinance into another adjustable rate mortgage, interest only. Why? For tax purposes only. They have the liquid assets to pay the house in full at any time, but they don't. With regard to unemployment, the contract the Doctor receives has to be irrevocable (cannot be cancelled) otherwise he/she will have to be paid the contract value for the amount of years they negotiated. I honestly believe that a person should buy a house because they want to, not because the value is going to go up or down. We'll leave that up to the investors. The other thing I learned was that it's better to live in a house that's yours than to rent a place that's not yours, where you can be evicted for the landlord not paying the mortgage (the foreclosure rate you reported), or having a higher crime incident and having to worry about your kids' safety when working a 36 hour shift. Again, thank you for your response. It is much appreciated and I will read your liinks.
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Dan Chase, Home Buyer, Texas City, TX
Tue Nov 10, 2009
I realize that doctors are in high demand. I have heard of to many times when someone has moved to a new job and when they arrive the job has magically disappeared. Others found it went away within a few months or even weeks.

All I am trying to say is be absolutely positive you have the job before you get a house. I would hate to see a doctor with massive student loans already get into a house and then not be able to pay for it. The other possible problem is you do not know the area you are looking at. Would you be better off renting for awhile and then getting to know the area choose what you want based on personal experience?

Also consider that unemployment is up, 10.2% now. Interest rates will go up and that will bring house prices down.
We have 2.7 million foreclosures now. It it projected to increase to 7 million starting from 2010 to 2013.…

When you have had the job as a doctor for a year or 2 and you feel very safe in your position you are more likely to be able to buy a house even cheaper. And you will be able to find the ebst neighborhood with time to look. <--- look lots of charts and info for you to think about.

I know to become a doctor takes a lot of committment. It takes a lot of drive and determination. You did not get there by not knoing what you were doing. Please look at the economy and what the real estate market is likely to do based on things like alt-a mortgages, subprime, arms resetting and so on. Learn what you are looking at. Then make a choice. Personally I expect prices to drop much more over the next 2-4 years. and it ticks me off. I have been trying to buy for far to long. I simply refuse to buy today only to see prices drop in the next couple of year. If I could buy a place and lose $5k it would be ok. But to lose $30k or more would hurt far to much.… <-- look at this thread. It was posted a year ago. Still active. You will see a lot of things said. Some right, some wrong. Look at some of my posts. I show some interesting links. Plus I asked made on point not very long ago. The question was asked a year and a half ago. Had they bought then they would have lost over 20%. Prices dropped that much.

Some of what I said may seem off topic. But please consider them. I only typed this out hoping to get you to think. You make your own decisions, but do it in at least as smart a manner as you did getting through school.

How much more will they drop and how much do you wish to risk losing? That is the real question you need to ask yourself.
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Chris Richter, , Chicago, IL
Tue Nov 10, 2009
Hi Sandra, we just had this situation come up. This might be a dumb question on my end, but have you run through an actual prequalification yet?

I had a married pair of physicians finishing residency, they asked the exact same question. Like many people with great credit and down payment, they were financially conservative (understatement). It turned out that we were able to qualify them since rates are so low now.

We were able to qualify them on the basis of today's incomes and they got the best of all worlds--4.75% 30 Year rate and they got a good deal on the home in a school district that "never" had good deals.

That WILL end when the Fed is no longer subsidizing mortgage rates with their purchase plan. That sunset is the end of the first quarter 2010. Hope that helps!
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Philip Sencer, Agent, Chicago, IL
Mon Nov 9, 2009
A few years ago you could get a loan with that set of criteria, but the world has changed since then. My web site has lender references. You will need to contact a few of them to see how, if all, they might be able to help. What's your rush to buy? This marekt is not about to change very much in the next 2 years or so. I have been in the business over 20 years and work many of the burbs, mostly North & Northwest. My web site has more information if you might like some help.

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Steve Smither, , Palatine, IL
Mon Nov 9, 2009
Most lenders want atleast one pay stub from your new employer before the close if not your first payment. One thing you can look into is the possibility of a co-signer. A parent could cosign for you and we can use their incomes to help you qualify. I think there may be a possibility for another idea as well. Feel free to contact me to look into getting this done in advance of your purchase. Also remember if you are first time home buyers you can qualify for the first time home buyer tax credit if you get a contract by the end of April 2010. I look forward to hearing from you.

Steve Smither
Senior Loan Originator
Ardain Mortgage Corp.
847-942-5151 Cell
847-963-1000 Office
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