Physician home loan & financial stuff

[whateverforever]

Has anyone used this program to purchase a home? I've seen some info about physicians who've used it and I see that it's available to vets but I can't really find too much info. If you have, what was the process like?

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[JaynaAli]

I used a traditional mortgage for my home, I did briefly look into it. It seemed like the biggest hurdle was finding a lender who would consider vets eligible, because many lenders will not give physicians mortgages to vets. I remember seeing a couple lenders who did allow vets to do it listed in the vet specific Facebook groups but can’t remember them off hand. But the process seemed similar to a normal mortgage just with added job offer letter and whatnot. You will have to be fully graduated to use them though. I personally had some money for a down payment so I chose to go the traditional mortgage route for lower interest rates.

 

[whateverforever]

@JaynaAli thanks for the reply! Could you possibly direct me to these facebook groups so I can sleuth a little?

I'm planning to use pretty much all of the money I was saving for a house down payment to pay my tuition but I'm trying to figure out if it makes more sense to keep some of it and take out loans for maybe my last year or two of school. If you can remember, were the interest rates a lot higher than a normal mortgage? Spending all our money stresses me out so much, it took us so long to get here. I'm hoping making a long term plan will make me feel better about it lol.

 

[SkiOtter]

I know that Huntington was one that vets qualified and so was Premier Bank (yourpremierbank is the URL, since there are some other places online that are different but have similar names). Depends on what state you’re moving to which banks provide mortgages to though. I didn’t end up doing the physicians loan personally because it ended up being better to not do it in my personal case. I googled physician loans for DVMs and got some websites that listed what lenders allowed vets to do physician loans, but they weren’t 100% accurate. It was a good place to start though so it was at least a narrower pool to sift through.
I think Huntington’s preapproval was for a traditional 30 year mortgage and Premier’s I know was for an ARM mortgage (but I don’t remember the years before your rate would start changing)

 

[JaynaAli]

@JaynaAli thanks for the reply! Could you possibly direct me to these facebook groups so I can sleuth a little?

I'm planning to use pretty much all of the money I was saving for a house down payment money to pay my tuition but I'm trying to figure out if it makes more sense to keep some of it and take out loans for maybe my last year or two of school. If you can remember, were the interest rates a lot higher than a normal mortgage? Spending all our money stresses me out so much, it took us so long to get here. I'm hoping making a long term plan will make me feel better about it lol.

If you’re not a graduated vet, they won’t let you in. So message me when you graduate and I can add you to them if your classmates don’t. It comes up in groups like Not One More Vet, the Debt Free vets group, and a few other open-topic groups.

I couldn’t tell you what the interest rate differences were but I was buying when rates were at all time lows, fwiw, and my traditional mortgage rate is like 2.75%. With as volatile as loan rates have been lately I would hesitate to predict anything. Plus your credit score and all that plays in. But in general they were adjustable or higher fixed rates that I saw.

 

[SkiOtter]

Debt Free vets group

This one does allow students
Here’s a link to that one, OP.

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[whateverforever]

@SkiOtter thank you! guess my decade without Facebook ends today haha.

 

[SnowJ]

I used Huntington Bank's physician mortgage to purchase our home last year (in MN), feel free to PM me if you have questions!
As for the process, we went in person to get connected with a mortgage officer to help navigate it. They have an online portal to start applications through but I was worried it would be hard to communicate that I was looking for a physician mortgage through it. I also hadn't graduated yet and we were purchasing from family, so it would be slightly more complicated.

The officer we worked with did a great job and was very helpful. There were only a few hiccups on the bank's end that caused delays.

I can't speak to the interest rate comparison since it was fluctuating so much at the time. We also didn't have any real down payment, so regular mortgages weren't a real option for us anyway

I would recommend keeping some of what you have saved if you can, even if only to cover closing costs. This will also let you have options if the vet eligibility for physician mortgages changes or if there is a dramatic difference in interest

 

[Caiter92]

Fairway is another lender that lets vets use physician’s loans. I ended up going with a conventional mortgage cause I had a better rate/monthly payment even with the PMI from my low down payment (I ended up putting down 5%). The physician's loan had a lot higher interest rate. I waited a year after graduating to buy a house to rebuild my savings and have enough for a small down payment.

 

[whateverforever]

@SnowJ thanks for taking the time to reply! I'm really hoping sign on bonuses are still a thing 4 years from now but obviously not counting on that. But we should be able to come up with some money for closing costs, even if I have to pull it from my pension (that I sadly won't vest in now anyway) or, I can work more than I planned to during school. I am going to talk to an actual financial advisor but I'm trying to gather some info about this specific part so we can make a medium term plan. I'll definitely check into Huntington bank!

And @Caiter92 thank you I will check into Fairway too!