All Forum Posts by: Eric Veronica

Congratulations on the graduation this spring!  Physician loan programs can swing wildly from lender-to-lender because most physician loans are portfolio programs which allow each bank to make their own decision on guidelines.

Many of the programs will allow you close within 30-60 days of your start date as an attending physician.   Others are more flexible.  We will allow you to use a new employment contract as qualifying income 6-12 months prior to your start date.  

If you are graduating from Medical school and starting a residency, typically you will match in March and get your contract in April/May.  Most residents will start looking in March and then close as early as May.  

Much of that depends on your loan size.  If your loan amount if 700k then a rate decrase of .50% - .625% often times makes sense.  

If you are looking at a loan amount of 100k then I wouldn't recommend refinancing unless you are shaving at LEAST a full percent off the loan and likely that wouldnt even be enough.  

Another big factor is which state the property is located.  Refinancing a home in Florida will typically cost 2x-4x more in fees than a property in Indiana.  

Depends what kinds of financing you are looking for.  If you are looking for conventional financing then you may find a bank loan officer who can lend in all 50 states. Loan officers employed by depository banks typically get a federal license.   Normally non-bank lenders must be individually licensed in each state so they are less likely to be able to lend in more than a couple states

HI Sarah, 

Most grants and first time homebuyer incentive programs are limited to buyers who intend to occupy the home as a primary residence.  As investors, you might not fit the criteria.  

If you are looking at lower price points you may find lenders who offer more competitive rates and fees for investment properties with smaller loan amounts.  We happen to be one of those lenders that normally offer more competitive pricing for loan amounts under 250k.  

For example,  Lets say you are purchasing a single family investment property with 25% down and a 780 credit score.  Below are two different scenarios based on todays pricing

 - $500,000 purchase price with $125,000 down payment and a loan amount of $375,000 currently offers a 30 year fixed interest rate of 6.875% (with no points and a lender origination fee of $950)

 - $200,000 purchase price with $50,000 down payment and a loan amount of $150,000 currently offers a 30 year fixed interest rate of 6.375% (with no points and a lender origination fee of $950)

As a disclaimer, please use these rate comparisons for illustrative purposes of showing the interest rate discrepancy when comparing different loan amounts)  Every customer and credit situation is different.  

You can find conventional lenders that will smaller loan amounts.  If you are willing and able to qualify for conventional lending you will likely get better terms that comparable non-qm products.  

HI Calvin, 

If your credit is in good shape you might want to consider a Conventional loan. First time homebuyers can qualify with a 3% down payment. There also can be some advantages with PMI when going conventional over FHA.

There is nothing wrong with FHA, but most real estate pros would agree that if you are trying to get a seller to accept an offer when there are other competing offers, a conventional loan offer is going to usually be more favorable than an FHA offer at the same price.

HI Ryan, 

Assuming no change in points or fees the rate difference between 20% vs 25% down is typically .50% -.625%.  

If you are comparing the same exact interest rates then 20% will cost 1.625 -1.75 points more than a 25% down payment.  There are a lot of different factors that can impact the rate differences so your scenario might be a bit different.  

Feel free to reach out with any questions. 

HI Troy,

If you are purchasing the new home as a primary residence then you will not need to put 20% down.  Standard down payment for a new primary mortgage typically range between 3%-5%

If you need the rental income from the home you are departing you typically will need a fully executed lease and proof of 1st payment and security deposit

Other option would be her doing a cash out refinance on her home and using that money to purchase with cash.