Home Loans: Actually Getting Them

[beriberi]

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I realize there is a quite long thread running right now about loans, but it mainly sems to be involved in the technicalities of closing costs and points.

I would like some advice on how to get one. I think that my situation is similar enough to others' that this is useful for everyone. I am moving to a state where Bank of American does not offer a doctor loan (New York). After realizing they were not able to offer that, they were most unhelpful. I applied on Lendingtree.com, but found that most lenders do not take my student loans seriously. (They just keep telling me that I will need to document that my loans are deferred for at least a year and I keep telling that is not going to happen and then they are not so helpful.)

My specifics: I am buying in an area where renting is no cheaper than buying (upstate). I am looking for 85K (95%). I will have $700/mo in student loan payment (a complicated mixture of private plus interest on staffords). This makes my debt service too high (about 45% of my gross income). I will not be able to document what my loan payments till fall (I won't consolidate until then because I will still be in Grace). Also, my private loans are at a high interest rate and when they go out of Grace, I will have my parents buy them with their home equity line, which I will make payments on. Anyway, none of this is documented or documentable.

My question is: are there similar people out there who have gotten loans? Who did you do it through and how? Are there places that will ignore student debt without further documentation? Are there no documentation loans (my credit is very good) that require only 5% down and have a reasonable interest rate that are available in New York?

Thanks for your help with this!

 

[avendesora]

Without being an expert in this, it would seem like they are interested in your debt vs income as an indicator of your ability to pay your loan back. With a D:I of 45%, you would on the surface seem like a bad risk.

Remember, 95% of the general population does not even know the steps to becoming a physician, let alone the financial burdens involved. If you go to a regular bank or mortgage site, you look no different than Joe-factory worker.

Couple suggestions:
If your parents are going to "buy out" your loans with their HELOC, why not do it now? Yes, you lose a little grace, but it would make you look MUCH better on paper for a loan app. If I understand you right, you would be making the payments on their HELOC. That would NOT have to be reported when you list your debts, as it would now be in their name.

Also, I have seen http://physicianlender.com tossed around as well. You might check them out.

 

[chef]

what's your credit score?

 

[mediocre]

I also ended up in a state where B of A didn't offer it's physician loan (Minnesota). But I ended up with a physician loan from another bank (Home Federal) although the interest rate was slightly higher.

Ulimately the way I got it was from 1st contacting residents in my program. One of the residents gave us her realtor who then introduced me to a lender who had worked with residents in the past.

I think your best bet is to get advice from someone in your program who has worked with lenders in your area...

 

[beriberi]

My credit score is "above 720"--B of A spent a lot of time qualifying me for the doctor's loan before discovering that they couldn't offer it in New York.

Avendesora: you are right that it wouldn't hurt to lose a few months of interest, but my parents are in the process of selling one house and buying another--I don't expect the paperwork to be settled until Sept--when my private loans leave grace.

Thanks for the help, so far...

 

[smilingdawg]

Hey,
My hubby and I are in the same boat; we qualified through a conventional loan known as NINA, no income no assets. This loan does not count your student loans. It was the only way we were able to buy our house, we are set to close at the end of the month. If you have any specific questions, post them here or PM me.

 

[frog4brooke]

I had a similar problem in PA and went with Suntrust.

Good luck!
f4b

 

[ttusom04]

I had a very similar problem with BOA except I did not meet the credit score requirements. I had to do a lot of digging before I found a lender that could help me out. My criteria were 1) minimum down 2) no pmi 3) must not count student loans against me 4) good rate.
USAA was able to do an 80/15/5 with only the 5% down, no pmi, and no student loan problems. I lock last Thursday at 4.375% on a 5 year ARM. They also required a letter/document stating that my student loans were deferred. You can't defer until after graduation and I want to close before graduation. I spoke with my financial aid officer and they wrote the bank a letter stating that all of my student loans were federal loans and therefore under federal law were eligible for deferment during the entire length of my residency. This satisfied the bank and I close May 6th on my new house. $120,000 home, $8700.00 down, escrow, and C.C., payments of 820.00/ month, and no pmi.

 

[chef]

4.375% on a 5 year ARM.>>>



ttusom, that's a great rate. congrats & enjoy ur new home!

 

[dochubert]

I do not mean to sound ignorant, but what is the Doctor Loan that was refered to in one of the earlier messages under this posting? I would like to get some more info about this as me and my wife plan to buy a house when I start Residency in about 18 months.

Thanks.