Physician Relocation Specialists

Second Home Financing for Physicians

2011-08-26T01:22:00.000-07:00

Are you in the market for a second home? If so, congratulations! Not only can you look forward to having a place to relax, you also can garner some tax benefits that will help you build wealth.

If you had enough money to pay off your mortgage right now, would you? Many people would. In fact, the ‘American Dream’ is to own your own home, and to own it outright, with no mortgage. If the American Dream is so wonderful, how can we explain the fact that thousands of financially successful people, who have more than enough money to pay off their mortgage, refuse to do so.

Let’s be clear, buying a second home can be a great investment. However, wealthy physicians should buy second homes with as little of their own money as possible, leaving the majority of their cash in other investments where it’s liquid, safe, and earning a rate of return. One of the biggest misconceptions homeowners have is that their home is the best investment they ever made. Yet, a rate of return is always greater when physicians maximize the power of leverage.

If you are a practicing physician, have done a solid job managing your credit and have been successful in your saving efforts - buying a second home could be advantageous in today’s market, especially since home prices have declined and interest rates are near bottom.

If you would like to purchase a second home with as little as 10% down, please let us know how Physician Relocation Specialists can help you.

Physicians Relocating to Portland, OR

2011-05-09T16:06:00.000-07:00

At Physician Relocation Specialists, we're proud of where we choose to live and work.

For physicians evaluating doing residency or fellowship in Portland, OR this YouTube video from Travel Portland provides a quick 4 minute overview of what you can expect.

If you need assistance in choosing an excellent REALTOR® or finding 100% financing using a doctor loan, let us know how we can be of assistance. We'd be happy to help you get settled into the best city in the USA.

The production company for the video, Sockeye, is local to Portland as well. Nice work!

REALTOR® Representation is Critical to Physicians

2011-04-14T14:28:00.000-07:00

Physicians have common reasons why representation is important to them:

Access to entire marketplace of available properties.
Market and general community information.
Property Selection and Verification of Value.
Offer Preparation and Negotiation.
Financing Assistance and Direction.
Property Condition Evaluation.
Verification of Miscellaneous Property Considerations.
Closing Process Coordination.

Jumbo Doctor Loans - Get Pre-Approved

2011-04-04T16:31:00.000-07:00

All too often we receive calls from physicians who have found the perfect home yet their financing strategy has not been vetted. Putting the cart before the horse happens to many of us mostly because we do not understand the process. Don't worry, Physician Relocation Specialists can still help you.

Case in point: two physicians contacted us today to help find financing after they had written offers for new homes, one for a $2,000,000 purchase in CT and the other purchasing a $700,000 home in IL. These clients will be put in touch with a banker who can help them meet their goals - free of charge.

We have worked with many physicians (and their spouses) who become emotionally tied to a new home either they cannot find financing for or cannot afford. In hundreds of cases, we have helped doctors find the financing solution they need. Occasionally though, we run across clients who's expectations need to be reset - but that's the exception.

The following is the process we recommend when purchasing a new home:

Contact a REALTOR® through Physician Relocation Specialists

A relocation coordinator at Physician Relocation Specialists will introduce you to a full time, professional REALTOR® who can help you through the entire process of buying a home, starting with the mortgage and continuing right through closing – and beyond. He or she can help you shop for the best interest rate and terms and, if you wish, suggest mortgage lenders.

Get Preapproved for a Loan

The higher your FICO score, more loan programs become available to you like the doctor loan. The REALTORS® recommended by Physician Relocation Specialists are able to help you understand the benefits of the different loan programs available. The lenders we recommend will give you the best deal.

Determine Your Price Range and Area(s) in Which You're Interested

By now you should have a good idea of how much home you can afford. This helps you narrow down your home search. You should also begin researching the neighborhoods in which you might want to live. Your recommended REALTOR® can help.

Decide Which Amenities and Features You Must Have – and Which Ones Would Be Nice but not Necessary

How many bedrooms and bathrooms do you want? Would you prefer a newer home or an older one with established landscaping? Are hardwood floors a must? Is an updated kitchen important to you? Walk-in closets? Which features would you be willing to give up if you find the otherwise-perfect home?

Begin Testing the Market

Your recommended REALTOR® will provide you with listings that meet your criteria as well as neighborhood data. Identify properties that seem to be fits for you, take an afternoon and go on a driving tour. See what's available in your price range and explore neighborhoods.

With Your Agent, Begin Seriously Looking at Homes

Your agent can add to the list of homes you've already identified – including ones that have just come on the market. Look at homes with a critical eye – does the floor plan work for you, is the property in good condition, would it be right for your lifestyle? In short, can you imagine yourself and your family living there?

Take notes at each home you visit. What do you like and not like? Narrow down your choices; re-visit homes in which you're interested. See them at different times of the day.

Make an Offer

When you've identified the home you want to buy, be prepared to help your agent prepare a written offer quickly. Your agent will be familiar with market values and will help you arrive at a price that gives your offer the best chance of being accepted.

At this stage, try not to become emotionally attached to a home. Your offer may not be accepted for any number of reasons. Have backup homes in mind. Be prepared to negotiate through your agent with the sellers.

Once Your Offer Is Accepted:

You'll be asked to submit an earnest money deposit that usually isn't refundable.
Begin making moving arrangements (select a mover, obtain change-of-address cards, inform friends and relatives).
Have the property professionally inspected.
If necessary, request repairs.
Obtain homeowner's insurance.
Contact utilities (phone, water, power, etc.).
A few days before closing, stage a walk-through.
Obtain a cashier's check for the down payment and closing costs.

At Closing:

Make sure the terms and conditions of the loan statement are correct.
Carefully read everything before you sign.

ENJOY YOUR NEW HOME!

Complimentary Service to Med Students, Residents and Attending Physicians

2011-03-22T15:55:00.000-07:00

I'm always amazed when I receive a call from a physician who tells me they know all of the banks that have doctor loans and they are already working with a Realtor. Really? Then why have you reached out to us?

Doctor, we're here to save you your most important resource - time. That's why we make it our priority to provide you with prompt, knowledgable service. Read our testimonials. Physician Relocation Specialists services are free of charge to all physicians (residents, fellows, attendings).

Other services claim they have access to "exclusive physician loans". There's nothing exclusive about the loans. Elusive, maybe. But not exclusive. When any company attempts to extort you for an introduction to a lender, just give us a call at (877) 387-5734. We have the broadest network of bankers who specialize in their respective banks doctor loan program. We're happy to put you in touch with them, all free of charge.

Hard work pays off. Congratulations!

2011-03-18T09:17:00.000-07:00

Congratulations to the class of 2011! Your hard work has paid off and now you know where you are headed for residency. Though we can’t actually pack your boxes and label them for you, we can save you a tremendous amount of time, energy and most importantly money when you purchase a home.

Our goal is to put you in touch with the resources you need to purchase a home. Buying a home can be stressful enough and trying to find a mortgage lender and Realtor® that can help you can make it that much more difficult. We pride ourselves on finding both the lender and Realtor that can help you and your unique situation.

The mortgage banks we work with have programs designed for new MDs and depending on where you are moving, we can take the guess work out of which bank would best fit your needs. Each bank has a unique set of guidelines that can make it almost impossible to sort through. We know each bank’s guidelines inside and out and can match your unique needs to the right bank. We also know these loans are not "exclusive" as some companies might lead you to believe. You should never pay a fee for the name of a lender. If anyone tries to extort you to be introduced to a lender, we suggest you seek alternatives. Seems like a scam to make a quick buck, agree? We can put you in touch with a banker at nine (9) different institutions that have a doctor loan program.

Secondly, we want to make sure you are introduced to a Realtor who is active, educated and experienced in today’s market. Now is a great time to purchase a home but having an agent that can navigate through what can sometimes be a challenging process is key. We have a very unique strategy called “Seller Buy Down” that our agents utilize when working with our clients and it can literally save you hundreds of dollars off your mortgage payment and provide a substantial tax benefit.

Reach out and let us know where you are headed. We'll do our best to put you in touch with the best resources - all free of charge to you. Congratulations again and best of luck!

Match Day 2011 - Physician Relocation Specialists

2011-03-10T22:30:00.000-08:00

Match Day 2011 is less than 1 week away. Let us make your move easier.

We realize that while starting a new phase in your medical career, moving and buying a new home are all exciting endeavors, they can also be stressful. Our mission is to provide you with relocation resources that make this exciting time a little less hectic. We are a full service relocation company for physicians and our services are completely free to you. Other services claim exclusivity and charge doctors and their families a fee for services and connections we provide at no cost to you.

Physician Relocation Specialists connects graduating med students with mortgage bankers who can provide a physician home loan program with up to 100% financing and no PMI. Today, we work with nine different banks that all offer a doctor loan. Depending on where you are moving and your circumstances, you may be introduced to one or up to four of our banking partners.

We will also connect you with a pre-screened, active, and highly qualified (educated, experienced and full time) Realtor®. Choosing the right Realtor in today's market is just as important as choosing the right home. Luckily, we’ve done the work for you. We can match you with the perfect Realtor for your unique situation.

Our clients all tell us their goal after Match Day is to get comfortable and situated as quickly and easily as possible. We can help you do just that. By starting your home search early, we can help you get settled in your new home up to 60 days prior to starting your residency.

We look forward to meeting you and your colleagues at this exciting time in your personal and professional lives. We welcome referrals.

Bank of America Launches its New Doctor Loan Program

2010-08-09T14:38:00.000-07:00

The Bank of America Doctor Loan is the most widely referenced and recognized loan program of its kind. When Bank of America canceled their program in March of 2009, many physicians were challenged to find alternate home loan solutions that would provide them with perks like no money down and no PMI.

We are pleased to announce that Bank of America has launched their Doctor Loan Program in all 50 states as of August 9, 2010. Below are the features of the Bank of America physician loan:

Who is eligible?
- Medical residents
- Existing or new licensed Medical Doctors (MD)
- Doctors of Dental Science (DDS)
- Doctors of Dental Medicine (DMD)
- Dental Surgeons specializing in oral and maillofacial surgery (DMD)
- Doctors of Optometry (OD)
- Doctors of Opthalmology (MD)
- Doctors of Podiatric Medicine (DPM)
- Doctors of Osteopathy (DO)

How much can I borrow, and how much do I have to put down?
- Loan amounts up to $850,000
- 95% LTV (5% down required)

While most physicians will be able to secure 95% financing through Bank of America, certain housing situations will require more money down. Factors like housing type, geography and declining markets may cause down payment amounts to go up. For example, physicians looking to buy an attached home (condos, townhomes, PUDs) in Florida will be required to put 20% down due to the state’s challenged real estate market.

What kind of loan products are available?
- 30YR Fixed
- 15YR Fixed
- 7/1 LIBOR ARM
- 10/1 LIBOR ARM

What are the reserve requirements?
Reserve requirements for loan amounts less than or equal to $625,500 require four (4) months principal, interest, taxes insurance and assessments (PITIA); loan amounts greater than $625,500 require six (6) months PITIA

Some other important things to note:
- Deferred student loans don’t apply to debt-to-income ratio
- You can use future income, as long as your employment start date is within 60 days of closing.
- Using future employment to qualify also requires additional reserves.
- The minimum 5% down required must be from your own funds. You can use gifts, however, for closing costs and reserves.
- The minimum credit score for all applicants is 720. If you and your spouse both apply, you both need a mid-FICO of 720.

Depending on your unique situation, certain restrictions to the above guidelines may apply. If you are interested in a physician loan, contact Physician Relocation Specialists. We can put you in touch with a mortgage banker who specializes in the physician loan at Bank of America.

Your Credit Score and the Physician Home Loan

2010-06-11T11:34:00.000-07:00

Whether you are interested in a physician home loan, an FHA loan or a conventional mortgage, determining your credit worthiness (called a FICO Score), is a necessary first step. If you wish to qualify for a physician loan, it’s important to understand what a FICO score is and how it’s calculated.

There is often much confusion about how these scores are calculated. The data used in your credit report to calculate the score can be grouped into five different categories.

Category #1 Payment History (35% of your score)
It’s the number-one rule to having great credit: pay your bills on time. Payment history makes up 35% of your credit report, and breaks down into a few sub-categories:

• Account payment information on certain accounts such as credit cards, retail accounts, installment loans, medical school loans, mortgage, etc.
• Adverse public records such as bankruptcy, judgments, liens, wage attachments, collection items, and/or delinquency
• Length of the delinquencies
• Amount past due on delinquent accounts or collection items
• Recency of past due items, adverse public records, or collection items
• Number of past due items
• Number of accounts paid as agreed

Category #2 Amounts Owed (30% of your score)

Your existing debt also plays a large part in your credit report. However, with the physician loan, doctors are able to have all deferred student loans waived from their debt to income ratio. Other types of debts (mortgages, credits card debt, etc.) are still included in your amounts owed.

• Amount owing on accounts
• Amount owing on specific types of accounts
• Lack of a specific type of balance, in some cases
• Number of accounts with balances
• Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)
• Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)
Category #3 Length of Credit History (15% of your score)

This is pretty straightforward: how long has your credit been established?

• Time since accounts/loans opened
• Time since accounts/loans opened, by specific type of account
• Time since account activity

Category #4 New Credit (10% of your score)

Constantly opening new accounts can be damaging to your credit score. Managing your existing debt and avoiding opening new accounts can positively impact your credit score. The areas examined in this category are:

• Number of recently opened accounts, loans, and proportion of accounts that are recently opened, by type of account
• Number of recent credit inquiries
• Time since recent account opening(s), by type of account
• Time since credit inquiry(s)
• Re-establishment of positive credit history following past payment problems
Category #5 Types of Credit Used (10% of your score)
This category takes a look at what kind of accounts you’ve got. A mixture of accounts usually generates better scores than reports with only numerous revolving accounts (credit cards).
• Number of various types of accounts (credit cards, retail accounts, medical school loans, mortgages, etc.

A few other things to note:

• A FICO score takes into consideration all these categories of information, not just one or two.
• Many banks offering the physician loan require a minimum FICO of 680. While there are some exceptions, it is extremely important to be aware of your credit score and manage it accordingly.
• The importance of any factor depends on the overall information in your credit report.
• Your FICO score only looks at information in your credit report. However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting.
• Your score considers both positive and negative information in your credit report. Late payments will lower your score, but establishing or re-establishing a good track record of making payments on time will raise your FICO credit score.
• Most lenders offering the doctor loan will not count student loans from medical school against the physician to determine qualifying ratios.

To learn more about how your credit score can impact your ability to secure a physician home loan, contact us.

What is a Declining Market?

2010-06-02T14:47:00.000-07:00

So you've been told by a lender that the market you're buying in is a declining market—but what exactly is a declining market? And how will it affect your mortgage?

Declining markets - defined.

Surprisingly, there is no standard definition of a declining market. This means that while one lender may consider a city a declining market, another may not. In simple terms, an area is flagged as a declining market when the value of the housing market is reduced by conditions such as lower comparable sales and listings, short sales and foreclosures. Lenders deem these areas both risky and problematic because of their falling prices and higher rates of default.

Who decides what markets are declining?

In most cases, it is the job of the appraiser to define what constitutes a declining market. Then it is up to the lender to determine if the home's appraisal accurately reflects market conditions. The lender will then let the borrower know if the home they are looking to purchase is in a declining market.

What are the consequences of moving to a declining market?

The most immediate consequence of purchasing a home in a declining market is that you'll need an additional 5% down (on top of your existing down payment). So, if you're planning on putting 10% down, but are buying in a declining market, you will need to come with 15%.

To find out if the are you're moving to is considered a declining market—contact Physician Relo today.

Avoid Conflicts of Interest When Buying a Home

2010-05-22T09:01:00.000-07:00

If you are looking to buy a house, beware of simply using the real estate agent who is listing the house you’re interested in. The idea that you will get a better deal by not having your own agent to represent you in the transaction is simply false.

Remember that the home owner pays the realtor fees—not the buyer. While often times the home owner’s agent may reduce their commission if the agent finds the buyer, this does not necessarily result in a lower purchase price for you. The agent listing the property has the twin fiduciary duties of loyalty and care to the home owner, not to you. Having your own representation far outweighs any perceived possibility for a reduction in purchase price.

Sure, the listing agent is technically allowed to represent both and the seller, but at what cost? The conflict of interest is unavoidable. The seller wants to achieve the highest purchase price and you want to pay the lowest possible price. How can one agent represent both interests? By using a top-notch realtor to represent you in purchasing a home, you know that you have someone working in your best interest and not the seller’s.

If you’re looking for a home, and are in need of a great Realtor, contact us. To learn more about what your should look for in an agent, visit our site.

Match Day 2010

2010-03-18T00:32:00.000-07:00

Well, it's official—Match Day 2010 is upon us. At this very moment, more than 15,000 medical students across the country are learning where they'll spend their post-graduate years. It's a life-changing moment for emerging physicians, one that will help shape both their professional and personal lives.

Many physicians are faced with the task of moving to another state to start their residency, presenting a whole slew of challenges. Questions like "should I rent an apartment, or buy a home?" and "what are the best school systems in my new hometown?" start cropping up left and right. Google searches shift from "best residency programs" to "doctor home loans" and "change of address how-to." It's easy to get overwhelmed.

A recent Physician Relo client remarked that "becoming a doctor is already stressful enough—and on top of it, I've got to deal with getting home financing? It's a nightmare!" Luckily, our website was her first stop, and we were able to help her secure 100% financing and set her up with an awesome Realtor® in Cincinatti. The only downside is that she'll probably be spending more time in the hospital than her new townhome.

This snippet from an NPR essay by Match Day author Brian Eule captures the essence of the journey new residents are about to embark upon:

"Just three months from Match Day, they fill the halls of hospitals, responsible for patients and learning the aspects of medicine that school could never teach them. Lives begin and end in front of their eyes. Days blend into one another, in 24-hour shifts and 80-hour workweeks. Spouses are left alone, sleep is disregarded, and healthy habits often abandoned. They enter one of the most taxing professions, one that will demand everything of them in these first years, and hopefully train them to be the caring, competent people the rest of us turn to for our well-being."

The entire Physician Relocation Specialists team is in awe of the undertaking doctors endure as they continue on their paths to successful careers in medicine. We are in your debt, and we are so happy to be able to help you along the way. Congratulations.

To learn more about the physician home loan or to get connected with a Realtor® in your destination city, contact us.

No More Bank of America No Money Down Doctor Loans

2009-03-06T11:24:00.000-08:00

While Bank of America’s decision to discontinue the Zero Down Doctor Loan is no surprise in today’s mortgage market, the bigger question: how are graduating med students, residents and fellows and established physicians going to purchase a home today?
New physicians looking to buy homes April-June and close between May-July are out of luck with Bank of America's announcement yesterday. Or so they’ll think. But there's too many reasons not to purchase today:

$8,000 tax credit from Uncle Sam (thanks Barack Obama!)
Low interest rates on ARMs and fixed rates
Supply of homes on the market
Buyer's market: seller to pay closing costs, price concessions

Physician Relocation Specialists (www.physicianrelo.com) has a partnership with niche investors who will continue to make 100% Mortgage Loans to physicians. They clearly realize the value of a long term relationship with physicians and are willing to step up and help now.

What will graduating residents do, who are only prepared to put down 5 or 10% down? If they aren't using 100% financing (who wouldn't with the tax advantages), will they be steered to go the FHA route and pay private mortgage insurance (PMI) monthly as well as the upfront mortgage insurance premium (MIP) fee of 1.75% on FHA loans? MIP is charged on all FHA loans, regardless if your LTV is 1% or 97%. What about physicians buying homes that require loans above FHA limits, and don’t have the 10, 15, or 20% down payment, depending on which market they are buying in?

Well, there is excellent news for all physicians, whether they are graduating med school, completing residency or fellowship, or have been working for 20 years. Physician Relocation Specialists has partnered with an investor that offers a true zero down doctor loan, in all 50 states, with NO PMI and fantastic rates. Yes, zero down loans up to $1M and beyond.
When physicians apply for relocation services, they’ll be connected to one of our niche investors. They will then apply for a zero down, 100% financing, exclusive physician mortgage. Even if physicians have already chosen a real estate agent, they can still utilize Physician Relocation Specialists' services. All they need to do is provide their real estate agent's contact information so that they may become part of Physician Relocation Specialist’s Preferred Agent Network. Learn more here.

Many of physicians who initially think they’re hung out to dry by Bank of America’s news can apply with Physician Relocation Specialists. And, most should be able to leverage the $8000 tax credit - in addition to writing off mortgage interest and property taxes (always consult with your CPA).

With Match Day 2009 fast approaching, how will med students qualify with all their student debt? Again, Physician Relocation Specialists has the answer: a key relationship with an investor who does NOT count student debt against the new resident as long as it is deferred (and we all know it is, except for the people at Fannie Mae, Freddie Mac, and FHA). So graduating med students should visit www.physicianrelo.com and put themselves in a position to take advantage of zero down physician loan in addition to the tax credit of $8000 (Thanks Mr. President).

Refinancing Your Doctor Mortgage

2009-01-07T06:00:00.000-08:00

Many physicians have reached out to us recently, as they've heard mortgage rates are declining. And it is true. Sort of.

It's too challenging to explain the entire mortgage market in this space. Remember this: borrowing 100% was, and still is, a privilege. And only a select few these days know how to achieve borrowing 100% and who to accomplish it with.

Suffice it to say, sending an email or making a call to a well informed network of physician loan specialists could be very well worth your time.

If you worked with one of the largest lenders in the nation to secure your no money down doctor loan and are being told you cannot refinance your mortgage because their guidelines have recently changed, restricting a refinance of your loan with a loan-to-value of 80% - send me an email. I'd be happy to give you a call. We have the network that may be able to help you refinance your 100% loan with another 100% loan.

I look forward to your email: cmgrubb@physicianlending.com

$1,500,000 Home Loan for MD's (Physicians)

2007-03-20T11:25:00.000-07:00

Great news! Our network of Physician Loan Specialists offer physicians a single home loan for $1,500,000!

Yes, you read that correctly: 100% finanancing, using only one (1) loan for up to $1,500,000. The program is exclusive to MD's and requires a mid-FICO score of 660. Get this: the program even allows you to use your future income!

The company I founded is focused on creating value to you: our client. Our philosophy is to work with the highest and best qualified professionals who are constantly thinking outside the box, being innovative, and demonstrating they value your relationship.

You can find out more about additional benefits to you at: Physician Relocation Specialists

No Money Down Doctor Loan Program

2007-03-18T18:42:00.000-07:00

Merriam-Webster defines a Specialist as: one who specializes in a particular occupation, practice, or branch of learning. My team specializes in providing access to the highest qualified network of real estate professionals as well as Physician Loan Specialists.

We focus exclusively and specialize in helping physicians and their families with their relocation. Whether you are completing your residency / fellowship training and are moving cross country to start a new job, completing medical school and starting your residency, or are an attending making the move a larger home to accommodate your growing family - we are here to help you.

Our network of real estate professionals are the highest and best qualified in your area. They are trained and have years of experience to help you find your next home and write a competitive offer. They represent you and have your interests in mind.

Our network of Physician Loan Specialists will find the best / lowest cost loan options available to meet your financial goals and secure a mortgage to meet your cash flow and tax strategies. They demonstrate and show you how integrating a mortgage decision into your financial plan can create more net wealth - which is one of the primary reasons that people purchase real estate.

Our network of Physician Loan Specialists have access to an exclusive program for physicians: it allows up to 100% loan-to-value financing to existing or newly licensed medical doctors who are actively practicing or medical residents currently in residency or will begin their residency soon.

Our network has plenty of competition who choose not to specialize; rather they choose to be a jack-of-all-trades to all people. Who would you rather work with?