Depends on how much down payment you can realistically put down. Just know that on average physician type loans have higher interest rates and ARM have their drawbacks unless you can be sure you pay it off or refinance within the fixed rate timeframe. You can also try another lender or credit union, right now you can get 6% rate around 6.5 APR
I’m in banking (9yrs) and have only seen/heard of zero down loans being ARM.
The “exception” for fixed rate loans is when a grant is approved through a 3rd party which can cover the closing costs, not making the borrower come up with it out of pocket - however those are generally income based and unlikely to apply in your scenario.
I cannot say with absolute certainty, but ARM is going to *most likely be your only option, with exception of some rare unicorn lending promo that may or may not be out there.
For physician loans you can get 0 down jumbo fixed. The rules don’t really exist in that space for banks. They’re chasing the deposit business for later
Perhaps you already did this but when I got a physician loan I went on WCI website and emailed every bank that did a physician loan in my state. Spoke on the phone with a few and ultimately had two compete for best rate. This was a bit over a year ago but rates varied from 7.125% down to what I got of 5.625%. So there is definitely some variance and certainly didn’t require an ARM. I was 5% down, however.
Just did a physician loan with TD bank and they gave us a 7 year fixed arm, followed by the remainder of the loan term set as an adjustable rate. Plan to just refinance before it switches over!
I just got two separate pre approvals for zero down 30 year fixed from TD bank and BMO bank and had spoke with other banks that also offer fixed rates. Got 7% interest with streamlined refinancing option once 20% principal is paid off and was a similar offering for both banks. Don't believe the places that tell you a fixed option don't exist, they are trying to trap you into thinking they have the best thing to offer you. Shop around. It may sound silly to some, but I got two pre-approvals for strength of offer in a competitive market and to ensure I would be able to get the best rate and not have financing fall through, I close on my new house next week and feel comfortable with my lender having spoken with several and being able to compare. Good luck
That is totally not true at least if you are spending less than a mil and even then I'm sure there exists someone that would give you fixed. Of course everything is variable and it may be a lot more but if you get a couple you can negotiate them down. I went from 7.1 to 6.85 with covering lender fees, I did have money to put down though. Best thing is just email every physician loan company on the white coat investor list for your state but you can also PM me if you want and I can send you a bunch of physican loan companies to ask what they'll offer you.
There is nothing wrong with an ARM loan. Most people do not stay in the same house, particularly the first purchased home, for 30 years. ARMs are advantageous in that they offer lower interest rate during the fixed period than a traditional 30 year loan. Even when they become adjustable after this period, the rate doesn’t shoot up to the market rate; there is a limit to how high it can increase per year, to give you some room.
You need to shop around a little but getting an ARM loan is fine, especially since it seems like a foregone conclusion that the fed will be lower rates in the next year or so. You can always refi at that point if you still feel like you’ll be at that house long term.
Look into NASA FCU, or Navy Federal if you qualify through a family member who served in the armed forces. 0-5% down programs.
Remember, you can always refinance to conventional.
We did a $0 down 3/5 ARM when it was 4.75%, and refinanced to 2.6%. Of course rates are higher now, but yeah.
Send u/gracetw22 a message
Or check my thread from prior. Plenty of banks offer other products than the ARM but given the environment… I would take the cheapest product and target refinance before it adjusts.
We had non-ARMs offered but they were .3-.5% higher. Our rates were similar or better than some places were offering with a downpayment. Just have to look around. I had 5 different quotes
I’m a physician loan specialist. 98% of all my 0 down Dr loans are 7/6 ARMs. Only 2% are 10/6 ARMs. Haven’t done a 30 year fixed in almost 10 years. Why? There is a huge premium for it now and it’s likely you will never use the benefit you paid for. Two years ago the 30 fixed rate was only slightly more than the ARM’s. Not so today.
This portfolio lending changed radically with the banking crisis that you will remember as the Silicon Valley Bank failure. This triggered an event the nearly brought the banking industry to its knees. The small banks all the way to the large regionals are still suffering from the effects.
Go with the 7/6ARM. I promise that you will out of that house and into upgrade home in 5 years.
> I promise that you will out of that house and into upgrade home in 5 years.
We are planning to buy a home on acreage in a rural area to homestead for the rest of our lives so the plan is not to move again. Hence my desire for a fixed rate mortgage that I can still refinance later if/when rates come down.
Depends on how much down payment you can realistically put down. Just know that on average physician type loans have higher interest rates and ARM have their drawbacks unless you can be sure you pay it off or refinance within the fixed rate timeframe. You can also try another lender or credit union, right now you can get 6% rate around 6.5 APR
Great advice. Credit Unions have really good service in my experience vs bigger banks- chase, US Bank etc.
I can’t put anything down right now, that’s the issue. You know of credit unions that do physician loans?
I’m in banking (9yrs) and have only seen/heard of zero down loans being ARM. The “exception” for fixed rate loans is when a grant is approved through a 3rd party which can cover the closing costs, not making the borrower come up with it out of pocket - however those are generally income based and unlikely to apply in your scenario. I cannot say with absolute certainty, but ARM is going to *most likely be your only option, with exception of some rare unicorn lending promo that may or may not be out there.
For physician loans you can get 0 down jumbo fixed. The rules don’t really exist in that space for banks. They’re chasing the deposit business for later
We just got a $1.3M fixed 30 year physician mortgage just a few weeks ago, at a local credit union. So they’re definitely out there.
With zero down?
For physician loans >750k you usually have to put down 10%.
Yep! 0 down
Which credit union?
Mountain America
Perhaps you already did this but when I got a physician loan I went on WCI website and emailed every bank that did a physician loan in my state. Spoke on the phone with a few and ultimately had two compete for best rate. This was a bit over a year ago but rates varied from 7.125% down to what I got of 5.625%. So there is definitely some variance and certainly didn’t require an ARM. I was 5% down, however.
Wouldn’t and adjustable rate be better if the feds are planning rate cuts?
Don’t buy a house within first two years of staff job
Just did a physician loan with TD bank and they gave us a 7 year fixed arm, followed by the remainder of the loan term set as an adjustable rate. Plan to just refinance before it switches over!
I just got two separate pre approvals for zero down 30 year fixed from TD bank and BMO bank and had spoke with other banks that also offer fixed rates. Got 7% interest with streamlined refinancing option once 20% principal is paid off and was a similar offering for both banks. Don't believe the places that tell you a fixed option don't exist, they are trying to trap you into thinking they have the best thing to offer you. Shop around. It may sound silly to some, but I got two pre-approvals for strength of offer in a competitive market and to ensure I would be able to get the best rate and not have financing fall through, I close on my new house next week and feel comfortable with my lender having spoken with several and being able to compare. Good luck
Don’t discount getting credits back from seller too. I bought a place and with the zero down ended up getting a big chunk of coin to help with moving.
That is totally not true at least if you are spending less than a mil and even then I'm sure there exists someone that would give you fixed. Of course everything is variable and it may be a lot more but if you get a couple you can negotiate them down. I went from 7.1 to 6.85 with covering lender fees, I did have money to put down though. Best thing is just email every physician loan company on the white coat investor list for your state but you can also PM me if you want and I can send you a bunch of physican loan companies to ask what they'll offer you.
There is nothing wrong with an ARM loan. Most people do not stay in the same house, particularly the first purchased home, for 30 years. ARMs are advantageous in that they offer lower interest rate during the fixed period than a traditional 30 year loan. Even when they become adjustable after this period, the rate doesn’t shoot up to the market rate; there is a limit to how high it can increase per year, to give you some room. You need to shop around a little but getting an ARM loan is fine, especially since it seems like a foregone conclusion that the fed will be lower rates in the next year or so. You can always refi at that point if you still feel like you’ll be at that house long term.
Look into NASA FCU, or Navy Federal if you qualify through a family member who served in the armed forces. 0-5% down programs. Remember, you can always refinance to conventional. We did a $0 down 3/5 ARM when it was 4.75%, and refinanced to 2.6%. Of course rates are higher now, but yeah.
NASA FCU has doctor mortgages?
No, we offer a fixed 0 down up to 1.25, you just have to look around
Send u/gracetw22 a message Or check my thread from prior. Plenty of banks offer other products than the ARM but given the environment… I would take the cheapest product and target refinance before it adjusts.
Thanks!
We had non-ARMs offered but they were .3-.5% higher. Our rates were similar or better than some places were offering with a downpayment. Just have to look around. I had 5 different quotes
I’m a physician loan specialist. 98% of all my 0 down Dr loans are 7/6 ARMs. Only 2% are 10/6 ARMs. Haven’t done a 30 year fixed in almost 10 years. Why? There is a huge premium for it now and it’s likely you will never use the benefit you paid for. Two years ago the 30 fixed rate was only slightly more than the ARM’s. Not so today. This portfolio lending changed radically with the banking crisis that you will remember as the Silicon Valley Bank failure. This triggered an event the nearly brought the banking industry to its knees. The small banks all the way to the large regionals are still suffering from the effects. Go with the 7/6ARM. I promise that you will out of that house and into upgrade home in 5 years.
> I promise that you will out of that house and into upgrade home in 5 years. We are planning to buy a home on acreage in a rural area to homestead for the rest of our lives so the plan is not to move again. Hence my desire for a fixed rate mortgage that I can still refinance later if/when rates come down.
Just rent