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Physicians only loan - Trying to get it

Posted on: 26th Feb, 2013 07:18 pm
Hi there,

The story is super long, but i will try to make it shorter. My wife and I are trying to buy our first home in PA. She is a medical doctor (entering her last year of residency) and I am a wireless consultant. The house we are trying to buy is a foreclosure from HomePath - price 176k
We are working with 53bank - and it has been nothing but a nightmare. We have been denied once for the loan, so they made us reapply last minute. Our closing day was feb 28th. They first ran my wife's credit around December 20th. So it has been a long time... They are not using my income only my wife's. We chose the Physicians only loan because it offers 0 down, no mortgage insurance and "apparently" they dont look at my wife's medical school debt, which is right now almost 286k. She has about 2k in credit card debt - no other issues whatsoever with her credit - Eq - 719 and TU - 780
Our main and only problem is to provide them with the documents they want. The medical school debt is owned by the Government. Have you tried calling any type of public office to ask for info? Yes, it simply does not work and you waste you time.
We are currently enrolled in something called Income Based Repayments - That means my wife pays back her student loans based on her salary. Last years the payment was $28 monthly. This years because of her new W2 the payments will go up to $302 monthly, which is not much. Here comes the big issue. The bank wants proof, proof, proof and more proof that the payments will be this amount... not only that they want to know how the government calculates the payments. We have TRIED some many times to get this info from Direct Loans, but they simply dont have and IT CANNOT BE PRODUCED!!! Our underwriter CANNOT understand that!!! We already gave the underwriter lots of documentation indicating that the payments will be only $302, but he wants more more, and more.
We simply cannot get any other papers... no way! No one helps us, they sent us in a goose chase and we git nowhere. Our closing now is up in the air, we waited for more than 2 months now and it seems we are back to square one again. Why not try other banks? As far as we know there are only a few bank that offer this type of loan. 53, Suntrust, (which we cannot use bc our house is considered a condo), huntington bank - I called and got no answers...
We are about to lose our apt, because someone else singed the lease and e have absolutely no idea what to do... This has been the most stressful time of our lifetimes...
Any idea, any help, any words of encouragement?
Thank you ahead for your time and attention.
Hi viarech,

Well, you're in a tough situation. What I can suggest you is that this community has large number of lenders. You can seek a no obligation free mortgage quote from them and check out if they will be able to help you in this regard.

Thanks
Posted on: 26th Feb, 2013 10:54 pm
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