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Physician loan post short sale

Home Mortgages and Home Buying Physician loan post short sale

  • Avatar BrokeiDoc 
    Participant
    Status: Physician
    Posts: 1
    Joined: 12/28/2018

    Hello WCI,

    I am a long time reader but first time poster. I am looking for advice on purchasing a home. Here is my situation.

    My wife and I are both physicians. Currently my wife is working part time and I will become a partner in my practice in 1 year. About 5 years ago when we had to move for residency we had to take a short sale on our home. This excludes us from many of the traditional loans for another 2 years. We have minimal to no savings for a significant down payment. We have found a physician loan that includes 100% financing and no PMI but is a 15/1 ARM. We are currently renting and would really like to be in a home now.

    The question: would you consider this loan given our situation and the potential of significant income increase over the next 5 years? OR, would you wait it out renting for another 2 years and go for a traditional 30 year fixed loan?

    Of course the other unknown is what interest rates will do over the next two years. My guess is continue to steadily climb.

    Thanks for the input!

    #176871 Reply
    Avatar ZZZ 
    Participant
    Status: Spouse
    Posts: 697
    Joined: 06/18/2018

    So, you lost your butt in a house 5you couldn’t afford 5 years ago…and now you want to ‘buy’ another home you can’t afford with a 100% LTV loan and you have minimal to no savings? Really?

    Guess you didn’t learn your lesson last time.

    If traditional lenders won’t lend to you, take that as a sign that you have no business taking on a mortgage right now. If I were you, I’d worry less about what interest rates might do in the next two years and spend the energy getting your financial house in order.

    #176943 Reply
    Liked by MPMD, Tim, DCdoc, jz, ENT Doc
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4405
    Joined: 01/08/2016

    So you messed up buying a home before and you wanna buy something with 0 down now….

    #176944 Reply
    Liked by Tim, DCdoc, ENT Doc
    Avatar DCdoc 
    Participant
    Status: Physician
    Posts: 553
    Joined: 06/14/2016

    Keep renting until you can put down 20%. That’s a no-Brainer. If it takes you 2 years, all the better. Then you can do a normal loan. But the buffer question is, why are you broke? (That’s literally your screen name). You’re in a 2 physician family and have no savings? Use this as a chance to improve your overall financial health. Post details and get help here if needed. But in no situation should you be doing a 100% LTV mortgage.

    #176946 Reply
    Liked by DCdoc, Tim
    White.Beard.Doc White.Beard.Doc 
    Participant
    Status: Physician
    Posts: 936
    Joined: 02/06/2016

    You aren’t a partner yet.  Unless partnership is 100% guaranteed, why is now a good time to buy a house?

    And on another note, how much are you currently saving each month towards a downpayment?  Are you maxing all retirement accounts?  Any debts that need to be paid?  All of these issues could factor into the home buying decision.

    #176962 Reply
    Liked by jz
    Avatar Bmac 
    Participant
    Status: Physician
    Posts: 312
    Joined: 10/21/2017

    I agree with all of the above. Better to wait until you can change your username to RichiDoc. Or at least PostiveNetworthiDoc.

    #176969 Reply
    Liked by jz

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