mortgage for physician

[bigredmachine05]

I have a few questions about mortgages, specifically for physicians. I want to buy a place in Manhattan. Are there any banks that offer no money down loans for physicians. I know bank of america used to do that. Second, the type of mortgage I was interseted in was an interest only loan where you pay a fixed rate interest for 10 or 15 years and then the whole amount amortizes for the next 20 or 15 years depending on the length of the initial fixed rate interest payments. If I had a choice with morgages, I would want the lowest fixed rate possible and just pay into the interest for as long as possible. My feeling is that with teh low rates, it would be possible as inflation goes up to beat the interest rate on the mortgage loan.

What is the best web site to learn about all of these things. Also, where can I learn about the individual costs of each expense when obtaining a mortgage.

Lastly, where can I learn about places that have pilot programs for exemption from property tax for a set amount of years?

With the top income bracket going from 35 to 39.6 next year, I figure I may as well buy a place.

Currently I rent across the street from where I work.

Thanks.

[Penny Pincher]

Why would physicians be entitled to better deals or rates than say teachers or firefighters? Physicians typically make a lot more money.

[wincrasher]

ROFL!

Interest only loans are a footnote in history now. When they were available, they had a max 5 year reset anyways.

The below 5% available now is probably as low as you are ever going to see it. If you have a decent price on a place in Manhattan, I'd jump on that. At least you have job security on your side. All you need is 20% down. And wham-o, you are a financially responsible doctor almost overnite!

Good luck!

[disneysteve]

Why would physicians be entitled to better deals or rates than say teachers or firefighters? Physicians typically make a lot more money.

Physicians are generally considered better credit risks with lower odds of defaulting due to higher income and job security. When we applied for our mortgage, as soon as they heard I was a doctor, they were more generous in the amount they pre-approved us for even though I was just starting in practice and my income was relatively low at that point.

I get unsolicited mail every week offering me loans for physicians from various sources.

[Joan.of.the.Arch]

Contact the city for info on tax abatement. (Here in my Midwestern city there are abatements for two sorts of home properties: 1) new construction, and 2) any older house [usually a serious rehab] within certain targeted economically distressed areas. They are usually total abatements for ten years and in distressed areas one can often get an extension. )

[blankcheck]

Physicians are generally considered better credit risks with lower odds of defaulting due to higher income and job security. When we applied for our mortgage, as soon as they heard I was a doctor, they were more generous in the amount they pre-approved us for even though I was just starting in practice and my income was relatively low at that point.

I get unsolicited mail every week offering me loans for physicians from various sources.

Seconded. Even as a resident I get these kinds of offers. I'm glad we stuck to our pre-planned budget, though.

[markusk]

We bought in July 2008 in Northern California, which is a HCOL ara. If you recall, housing crisis was slowly progressing down the drain and banks were tightening credit; this was few months before Lehman Brothers went bankrupt. [If only we had waited a few months!!!]

No money down loans did not exist. Interest only loans did not exist. At minimum, you had to have OVER 20% down because the banks at the time (Wells Fargo, Citibank, WaMu, Bank of America) were expecting the housing market to decrease in value.

Even as a physician with good credit and income, all the major banks flat out turned us down. Only Bank of America worked with us, but even then, we had to put 20% down.

About NYC:
My sister is a Wall Street attorney and she was able to buy a co-op in Manhattan in the spring of 2007. In Manhattan, a lot of real estate are co-ops (different from condominiums) which have very strict rules about financing. In her case -- remember this was in 2007 -- she got a 7 year interest only loan with 30% down. The co-op would not allow anyone to buy with no money down and required at least 20% down. Furthermore, the co-op required that she have an additional 20% of the total loan amount in liquid assets. She had to prove this with bank account statements, etc

In short, buying in Manhattan is more complicated.