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Old 01-24-2012, 07:28 PM
 
9 posts, read 14,150 times
Reputation: 10

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Hello,

Howdy all. Just got married. My wife and I are in NY State paying quite a TON of money in rent (2500), and are exploring buying. I had not tried to apply for mortgages prior to renting as I heard it was very difficult to qualify (esp. having worked only a couple of years).

I'm 30 and married with no children (which we are planning on having in the future). My last year of income was 56k and this tax season when when I file, it will be about 102k (both salaries non-adjusted gross). Wife is currently not employed (teacher). I am a healthcare provider, so I, (but the lenders may not care) consider my income to be somewhat stable. I'm a partner in a practice, but do not have a fixed salary. My student loans have been paid. Wife has 12k in student loans. Both of us have excellent credit. No debt/defaults/bankruptcy. 470$ car payment. 110k in savings.

I have no idea what to think of home prices in NY (I do not reside in the city/westchester/long island), some say they are stabilizing, some say theres more plummeting to go. I'm paying a lot of money in rent (rents seem very high near me, and we paid dearly for the convenience of having a two-car garage), and realize this could be a mortgage payment.

Any idea if I'd be approved by a traditional lender? Anyone have any idea on these physician loans? I can only show two years of income. Also, if you think i could get approved, could someone take a swing and guess on how much home I'd get approved for assuming I put, say 85-90k down? Homes in lower NY State (Putnam county) appear to be pretty expensive still.

Thanks

Last edited by nutjob; 01-24-2012 at 08:02 PM.. Reason: Grammer/Content
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Old 01-25-2012, 03:23 PM
 
Location: Southern New Hampshire
6,719 posts, read 11,739,154 times
Reputation: 19354
I don't know about houses in NY (i.e. prices etc.) since I am in New Hampshire, but I just applied for a mortgage (which I hadn't done in 9 years) and approval was based mostly on my credit score (excellent) and my debt-to-income ratios (housing/all debt). I asked if I would get "brownie points" for having a "secure job" because I have tenure (college prof.) and my loan officer told me no, they would just ask the usual question about the "likelihood of this job continuing" when they verify employment.

For my lender (and for others that I checked with), the maximum debt as a percentage of (gross) income was 41%. Say income = $8,000/month so maximum debt (PITI [principal, interest, property taxes, insurance] plus student loans, car payments, etc.) = $8,000 x .41 = $3,280. Subtract your regular monthly debts BESIDES housing, and you're left with the maximum that your PITI can be (including PMI if applicable -- but if your down payment is 20% or more, you won't have PMI).

The possible glitch I see in your situation is if your income will fluctuate a lot (because you said you don't have a regular salary). Lenders, I think, want at least 2 years of income to base their numbers on (I know they do that with overtime, summer pay, etc.).

I don't know about physician loans, although I know others have asked that so you may do a search of these forums using those words.

Good luck!
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Old 01-25-2012, 03:52 PM
 
Location: Long Island
9,038 posts, read 18,355,935 times
Reputation: 4745
Quote:
Originally Posted by nutjob View Post
Hello,

Howdy all. Just got married. My wife and I are in NY State paying quite a TON of money in rent (2500), and are exploring buying. I had not tried to apply for mortgages prior to renting as I heard it was very difficult to qualify (esp. having worked only a couple of years).

I'm 30 and married with no children (which we are planning on having in the future). My last year of income was 56k and this tax season when when I file, it will be about 102k (both salaries non-adjusted gross). Wife is currently not employed (teacher). I am a healthcare provider, so I, (but the lenders may not care) consider my income to be somewhat stable. I'm a partner in a practice, but do not have a fixed salary. My student loans have been paid. Wife has 12k in student loans. Both of us have excellent credit. No debt/defaults/bankruptcy. 470$ car payment. 110k in savings.

I have no idea what to think of home prices in NY (I do not reside in the city/westchester/long island), some say they are stabilizing, some say theres more plummeting to go. I'm paying a lot of money in rent (rents seem very high near me, and we paid dearly for the convenience of having a two-car garage), and realize this could be a mortgage payment.

Any idea if I'd be approved by a traditional lender? Anyone have any idea on these physician loans? I can only show two years of income. Also, if you think i could get approved, could someone take a swing and guess on how much home I'd get approved for assuming I put, say 85-90k down? Homes in lower NY State (Putnam county) appear to be pretty expensive still.

Thanks
Not long ago I had a buyer client who qualified for the physician loan. Two years of income should suffice and a downpayment of less than 20% is common for "newer" physicians; you might even consider applying by yourself only. But that's best discussed with a good loan officer who will ask a lot more specific questions than you would want to answer on a public forum

If you like, I can refer the loan officer my client used (who by the way was extremely happy with the entire process).

Good luck!

Elke
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Old 01-26-2012, 06:22 PM
 
9 posts, read 14,150 times
Reputation: 10
Hi guys - thanks for the replies! Very good info Karen and Elke.

For my two years of income, would they average the 2 years of income, or take the last year of income to determine what my monthly PITI would be? I'm hoping the latter.

Elke, would you mind providing me the name of the loan officer associated with physician loans?

Thanks!
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Old 01-27-2012, 10:27 AM
 
Location: Southern New Hampshire
6,719 posts, read 11,739,154 times
Reputation: 19354
I think with things like overtime they (a) get confirmation (from your employer) that it's "likely" to continue, then (b) average it out over a stated period, say the last 2 years. But since every situation is different, you might just call up a local bank and ask to speak with a mortgage loan rep -- they should be able to give you info on documentation of income, what your ratios will be, etc.

I don't know if you would be considered "self-employed" if you are a partner in a medical practice? Another question to ask them. (I know that banks these days would tend to ask for more documentation for self-employed people -- before the crash there used to be "no-doc" or "stated income" loans available in some markets in which you basically just stated your income. Yep, as in, "Oh, I make $125,000 a year." No checks, nothing. I think they usually required a larger down payment and/or good credit etc., but it is a bit mind-boggling to me that those kinds of loans were made.)

Good luck!! :-)
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