“As a new doctor, just coming out of residency I had a lot of student loans, and my debt to income ratio was high enough that when I talked to other companies they turned me down almost immediately.”
“We found Arizona Physician Home Loans online and I called them up to ask them if it would be a problem because of my high debt to income ratio and they said, ‘No problem. We deal with this all the time.’ And I was shocked at how easy the experience was. With Arizona Physician Home Loans it was simple. I sent it once and it was done and they told us when we were closing and took care of everything. It was really pretty easy.”
I’ve received a lot of questions from Utah physician clients regarding FHA financing. Few people really understand the differences between FHA and Conventional Mortgage Insurance, so I’ll do my best to explain. The first thing to understand is that FHA, in most cases, will be slightly more expensive once you take into consideration the Up-Front Mortgage Insurance Premium (UFMIP) and annual/monthly Mortgage Insurance (MI).
BUT don’t throw the baby out with the bath water! FHA is much more liberal and forgiving in its underwriting guidelines and even loan amounts, which can go as high as $729,750 (check your local county for specific loan limits). Simply stated, FHA can be the best (and only) loan on the planet for someone who:
- Has less than perfect credit
- Has gifted down payment of less than 20%
- Has student loans in deferment
- Has low credit scores
- Wants to finance high dollar amounts with as little as 3.5% down
So let’s start with the facts about FHA, shall we:
This is a question that I get all the time, so many of my clients that are moving into Utah residencies, or into internships have IBR. Income Based Repayment can really be a foreign thing to most underwriters and most originators and something that they just don’t duplicate or wrap their arms around when originating a Utah doctor home loan.
The Income Based Repayment plan and how it affects your loan really depends on what type of loan we put you in. So, there’s a different set of guidelines and different loan programs look at IBR differently. FHA, conventional and our Physician Loans will all look at that just a bit differently.
I’ll go back to one of the key points and one of the things we really bring value to our physicians, is that we offer solutions. So the first thing that we’re going to do is have a consultation, often over the phone. I’m going to ask some key questions, and once I have the answers to those questions I’ll be able to tell you exactly how we’ll calculate IBR.
There are some programs that don’t count any payments when you’re in IBR, there are some programs that just count the IBR payment and then there’s some that want to count the full blown payment. But after our initial assessment I’ll be able to tell you how it exactly will work with your particular situation.
Copyright© 2013 JLM Industries All Rights Reserved
There has never been a better time to buy a home as a resident physician in Utah. With rates near historic lows and rents up, the time is now.
The whitecoatinvestor.com has written another informative article that we wanted to share with resident physicians who are moving to Utah this summer. Welcome, we love it here and hope you will, too!
Residents are busy folks. Their time is consumed with clinical work, clinical learning, and sleep. What extra time they have should be spent with their loved ones and on other activities that keep them sane. But at some point, there are a few financial chores that it would be foolish for a resident to ignore.
1) Life Insurance
If someone depends on your income (AKA a spouse or children) you need life insurance, you need a lot of it, and you need it now. Read about how to do that here
Today’s post is written by Dr. Steve Sjuggerud of Daily Wealth and clearly explains why MARKET PRICE today is still a fantastic deal for physicians, dentists and PhDs moving to or buying a home in Utah.
Tuesday, April 9, 2013
“The last house I tried to buy had 65 offers on it and sold well above asking price.”
This guy was not alone…
Conference attendees from Florida to Phoenix told me similar stories. “The deals are gone,” they said. So they’re giving up.
But fear not, my friends! Market price – or even “above-market price” – on housing in America is still a fantastic deal today. Let me explain…
What’s happened in real estate is nothing short of extraordinary…
There are a lot of things that make us different, there are a lot of loan products, but really I’d boil it down to two key points.
The first one is solutions. The unique thing about what we offer is that we have specially trained underwriters, processors and originators who are underwriting to the exact specifications of the different issues and challenges that physicians have when getting a doctor home loan. So, when other places say that you don’t fit the guidelines for a conventional or an FHA loan, they’re looking at it from a perspective that doesn’t have the same kind of experience that we do with physicians and those unique situations. So, solutions through our physician loan products and even our conventional and FHA products is something we bring to the table that is unique to us.
The second thing is service. We’ve had the privilege of working with hundreds of physicians and what I’ve come to understand is that you have a very heavy workload, stress load – oftentimes relocating, moving between jobs or between residency and jobs. It’s a lot of stress that if you pack a complicated mortgage process on top of it, can become too much to handle. So we get good at asking the right questions up front, getting the correct documentation up front, and making the process as easy and stress free as possible.
So the two things that make us different – the first is solutions, and the second service. It would certainly be our pleasure to help you with your next home.
Copyright© 2013 JLM Industries All Rights Reserved
This is something we really believe and want to pass on to everyone we can.
This enlightening 1994 one-hour program features Steve Jobs in an unscripted interview with the Silicon Valley Historical Association in which Jobs gives advice to potential entrepreneurs. He discusses risk, failure, his own experiences, and learning the value of creating your own environment.
ActiveRain conducted a survey among its 330,000 members to understand confidence and market data in both national and local markets. Confidence in the US is high! Salt Lake City is number four on their list of 2013 top long term real estate markets. This is super news for physicians relocating into Salt Lake City or anywhere in Utah.
Thanks to KCM blog for this post.
Another first class article by our friend the White Coat Investor with invaluable guidelines for Utah physicians, residents and dentists who have student loan debt and want to manage their finances in the most beneficial way:
Ahhhhh….you’ve finally made it. 4 years in college, 4 years in medical school, 3-5 more in residency, and 1-3 more in fellowship and you’re finally making the big bucks. You’ve just started getting your first 5 figure paychecks and you feel like you have some money that you don’t need to spend on this month’s necessities. You’ve got a couple hundred thousand dollars worth of student loans hanging over your head, a big mortgage, and even a little bit of credit card debt. But you’re also looking at a huge tax bill, and besides, you don’t want to work forever, so you’ve been studying up on 401Ks and IRAs. How do you decide when to pay down loans and when to invest?
It turns out it can be a pretty personal decision, and there are a lot of factors that come into play, including loan interest rates, current interest rates and inflation, expected returns on your portfolio, current tax bracket, tax-sheltered accounts available to you, attitude about debt, and personal risk profile. But there are some general rules to follow, and some factors to think about. I’ll also give you my recommendations for common situations.