Videos and Media
What can I expect when I do a home loan with the Physician Home Loan Team?
We've been very fortunate and been able to work with hundreds of physicians. Because of that, we've got a system down. How that will feel to you is that you are going to see from the very first phone call that we have this down.
We'll ask exactly the right questions to find out where you are in your transition from residency, into practice or into a new position. We're going to ask you specific questions about your student loan status, exactly what kind of contract you will have and what it's based on. We're going to talk to you about when is your timing for closing, when is your start date and when your relocation needs to occur. Because we've done this so many times with physicians in the past we understand the particular stresses or unique situations that you are in.
So from us, you are going to get a team that understands what you are going through, asks all the right questions the first time, and then clearly presents you with a solution. We're going to tell exactly what loan program we prescribe as the best type for you. We're going to then ask you for exactly the right documentation that our underwriters are going to need to review. We employ physician specific and physician trained underwriters right here in our office that pre-underwrite your file and will issue you an income and credit approval.
Once you've received your income and credit approval, it's like a blank check. You can go out, write offers and have 100% confidence that once you find a home, we have a loan for you based on your situation.
From there, we continue to roll out the service. We have Weekly Updates that come out to you each week throughout the transaction. We're going to guide you into the closing, we're going to assure you that everything is on track and you'll be receiving plenty of communication from our team. And if you ever have questions, we respond to emails, we answer our phones and we call you back.
So, that's what you can expect when you do business with us. It would be our pleasure to help you and questions on your next home loan. I invite you to reach out to me at your convenience.
What type of medical professional will qualify for a Physician Home Loan?
What type of medical professional will qualify for a Physician Home Loan?
Anytime you have a contract, and you have a 2, 3, 4 year contract in a specific medical field this will generally qualify you for our Physician's programs. Nurses generally won't count, but psychologists, dentists, all of those types of roles. If you have a guaranteed contract with the institution you are going to work for you'll generally qualify for the Physician Home Loan products. If you have any kind of niche profession and want to bounce ideas off me, feel free to email me (josh@joshmettle.com) your situation, where you're going to work, how long your employment contract is, what it's based on - if it's a set salary or it is based on incentives and I'm more than happy to give you an answer to this because it's one we get all the time.
Thanks so much for tuning in, it would be my pleasure to help you with your new home.
How will my student loans impact my getting a home mortgage?
How will my student loans impact my getting a home mortgage?
You probably know more than you want to know about student loans, but I'd like to tell you a little about conventional, FHA and how Physician Loans or doctor home loans look at those student loans that you might have. If you have student loans that are coming out of deferment or coming into repayment within the next twelve months, then your conventional and your FHA loans have to count those against you. If they're deferred out greater than 12 months from the date you close then we don't have to worry about it in conventional world.
A Physician Loan, so long as you're not in repayment will not count those at all. So, hypothetically you're coming out of a residency, you have $250,000 worth of student loans and those student loans aren't going to start into repayment until November. You're planning on buying a home in early June or early July. With a conventional or FHA loan, we would have to factor in those student loan payments, contact your student loan provider, get estimated payments, take a worst case scenario then factor that against your debt to income ratio. If you qualify, great, no problem. If you don't qualify, sorry, your loan would be declined.
With a Physician Loan or doctor home loan, so long as we close prior to the start date of those repayments, we don't count them against you at all. So, it's definitely an avenue you should look at if you are being told student loans could cause you a problem qualifying for your next home mortgage, we should definitely talk. I should look at your particular situation and then let you know how to proceed from there. thanks so much for tuning in, it would be my pleasure to help you and answer any questions you might have. I'd invite you to reach out to me at your convenience.
Do Physician Home Loans have higher rates and closing costs than conventional loans?
Do Physician Home Loans have higher rates and closing costs than conventional loans? The answer is sometimes. It really depends on your particular situation. Oftentimes the Physician Loan products that we offer don't have mortgage insurance, so if you're comparing a conventional loan with mortgage insurance to a Physician Loan without mortgage insurance, your rate is little bit higher, but once you factor in that there's no mortgage insurance oftentimes it's a better deal.
It also depend on where your price point is, or where your loan amount is. You see, your conventional loan limits are $417,000. But our Physician Loan products will go much higher. So if you're doing a loan at $400,000 you may be better off in a conventional program and just the specialized way that our Physician trained underwriters write your file. If you're at a $500,000 loan amount then you may be better off with a Physician Loan. So, so much depends on your credit score, what loan to value, what are you're in - different counties have different loan limits, which could make a Physician Loan better than a conventional loan.
So really, my job is to take a look at your overall situation and then credit scores, down payment, location, loan amount, all of these different factors. And then I will tell you, I am prescribing a Physician Loan vs. a conventional loan and here's why and here's both proposals. So in some case you can expect to pay a little bit more for a Physician Loan, but oftentimes they'll do things that conventional loans won't. So again, it depends on your situation, but I'd love to give you a personalized plan, a personalized comparison between the two so you can see which is right for you and your family. Thanks so much for tuning in. It would be my pleasure to help you with the purchase of your new home or any questions that you have about Physician Loans.
Can I really close on my home 30 days before receiving my first paycheck and how do I prove IBR?
Today I want to answer a question that was just asked by a client yesterday. He was originally told by another mortgage lender that he could close on the purchase of his new home with a doctor home loan up to 30 days prior to receiving his first pay stub. As he got closer to closing and the file made it's way to an underwriter the story changed. So he called and he said, "Can you really accomplish that?" And the answer is Yes! Our specifically trained or specially trained Physician underwriters will approve and will allow you to close on the purchase of your new home up to 30 days before you start your new job.
Oftentimes we will ask to get a paycheck stub after you received your 30 days, you've closed, you're in your new home, everything's taken care of with your loan. Then we will ask you to send your next couple of paycheck stubs. But absolutely will allow you to close up to 30 days before you start your new job. That will take a ton of stress off.
The next question that I hear is so often is what to I need to prove the payments on my new IBR? Often when you are coming out of residency and you are going into practice in Nevada, you've got that deferment period of about 6 months. And during that period of time, you're not going to get anything from your student lender that says you are in IBR and what your payments are, because they haven't rolled you into your IBR, you're in that deferment period. Of course, you do not want to forgo that. We have a solution for that. This is another problem that our client ran into at the last minute. So if this is something that you're struggling with, or you have questions about, it would be my pleasure to answer those questions for you. I'd invite you to reach out to me at your convenience.
Do my student loans need to be in forbearance for a year from the date that I close on my home?
I know that is something that you hear a lot from a lot of lenders out there, and that is because that is a very traditional Fannie Mae, Freddie Mac and FHA guideline. And so when you are dealing with someone who is not very experienced in dealing with physicians, Income Based Repayment Plans, different types of forbearance and deferment, that's going to be the first response that comes out of a loan officer's mouth is, "Well, you are coming into a new contract, how long are your student loans deferred for?"
If you hear that, you are probably dealing with someone who isn't specialized in Physician Loans, first of all. There are many ways to qualify, even with conventional and FHA loans you can qualify with your IBR payment, your Income Based Repayment Plan.
So, that's one of the questions I get all the time. I'm sure you may have more about Income Based Repayment Plans, when should I consolidate my loans, before or after we go in and get our mortgage loan and how long do the need to be deferred for? Again, that will probably differ, depending on your particular situation - your down payment and what loan we put you in. But we do have solutions for those types of situations and I'd be more than happy to answer your direct questions. I invite you to reach out to me, it certainly would be my pleasure to help you with your next home.
What criteria should I use when choosing a mortgage lender?
The first thing that comes to mind for most people is, let's compare prices. That's definitely important when you're looking for any service or product. But I think there's more than that. When you're getting a mortgage loan, what you're getting is actually an experience and actually a service. Oftentimes the person who will give you the lowest price point or the lowest bid is many times the least experienced, the least able to provide that service and whose services are least in demand.
I do think it is important to be extremely competitive - we have to be able to offer you a good deal to stay in business. As important or possibly more important is our ability to offer you service and our experience.
So, the answer to the question is what would I look for in a mortgage lender? Number one, I would want to know if that person knows what they are talking about. I think you can figure that out pretty quickly by having a couple of conversations and asking them some pointed questions. I'd want to make sure they have a good number of testimonials from physicians or other clients. I'd want to make sure that service is important to them, and probably lastly, once I've narrowed it down to those points, I'd want to see that their fees are competitive.
Are there Physician Home Loans available with less than 20% down and without mortgage insurance?
Are there Physician Home Loans available with less than 20% down, and with less than 20% down?
The answer is yes. Mortgage insurance is typical in any transaction where you put less than 20% down. The only transactions I am aware of that don't fit that rule are some specific physician programs we have available which are available with as little as 10% down.
Now some other advantages with that program in addition to having less than 20% down, no mortgage insurance - they'll actually allow you to go to higher loan to values, what's called Jumbo price ranges, and the underwriting guidelines are conditioned or are suited just for the unique situations for physicians. Which can be coming into a new contract, not having a two year established job history, all kinds of additional benefits and underwriting latitude that they will allow for a physician that they won't allow for an everyday Joe off the street.
If you have questions about Physician Loans or loans with mortgage insurance, it would certainly be my pleasure to answer those for you, I'd invite you to reach out to me at any time.
How does your employment contract effect qualifying for a Physician Loan?
This is one of those issues that comes up all the time, when someone's either relocating or coming out of a residency and into practice for the very first time.
It really varies depending on the loan program that you're going into. It will depend on your credit score, your down payment, a myriad of factors that come together that lead me to a loan program that is best for you. Then those loan programs will look at your employment contracts a little bit differently.
But generally speaking, it's best if we have an employment contract that is greater than one year, so two years or longer. And generally speaking it is better if you have an employment contract that has a guaranteed salary minimum, and then it can be incentivized above and beyond that. But if you're going into just a purely incentivized or purely private practice situation, then we have to really direct you more to towards a physician specific loan. And of course we have solutions for that as well.
If you want to qualify for the easiest and most broad type of loan, then you want an employment contract that is greater than one year in length. Hope that helps.
How does IBR or Income Based Repayment affect qualifying for a Physician Loan?
It's a question that I get all the time, so many of my clients that are moving into residencies, or into internships have IBR. That Income Based Repayment can really be a foreign thing to most underwriters and most originators and something that they just don't duplicate or wrap their arms around.
The Income Based Repayment plan and how it affects your loan really depends on what type of loan we put you in. So, there's a different set of guidelines and different loan programs look at IBR differently. FHA, conventional and our Physician Loans will all look at that just a bit differently.
I'll go back to one of the key points and one of the things we really bring value to our physicians, is that we offer solutions. So the first thing that we're going to do is have a consultation, often over the phone. I'm going to ask some key questions, and once I have the answers to those questions I'll be able to tell you exactly how we'll calculate IBR.
There are some programs that don't count any payments when you're in IBR, theres' soime programs that just count the IBR payment and then there's some that want to count the full blown payment. But after our initial assessment I'll be able to tell you how it exactly will work with your particular situation.
What Makes Us Different - Solutions and Service
Today I want to talk about a question we get all the time and that is what makes us different?
There are a lot of things that make us different, there are a lot of loan products, but really I'd boil it down to two key points.
The first one is solutions. The unique thing about what we offer is that we have specially trained underwriters, processors and originators who are underwriting to the exact specifications of the different issues and challenges that physicians have when getting a home mortgage. So, when other places say that you don't fit the guidelines for a conventional or an FHA loan, they're looking at it from a perspective that doesn't have the same kind of experience that we do with physicians and those unique situations. So, solutions through our physician loan products and even our conventional and FHA products is something we bring to the table that is unique to us.
The second thing is service. We've had the privilege of working with hundreds of physicians and what I've come to understand is that you have a very heavy workload, stress load - oftentimes relocating, moving between jobs or between residency and jobs. It's a lot of stress that if you pack a complicated mortgage process on top of it, can become too much to handle. So we get good at asking the right questions up front, getting the correct documentation up front, and making the process as easy and stress free as possible.
So the two things that make us different - the first is solutions, and the second service. It would certainly be our pleasure to help you with your next home.
The Agent Success Program - what makes us different from other lenders
A Realtor friend asked what do you think it is that makes your group or your process different than other lenders offering doctor home loans?
What makes us different is our group, it's our team and the different positions that we have here within the group.
The first position I'd like to tell you about is our originators. We're one of the top 1% originating teams in the entire country. So we have a lot of experience, we deal with a very high volume of transactions and there's not much that we haven't seen. We've seen the newest things and what's changing in our environment every day, not in theory but from practice because of the amount of loans that we close.
The second thing I think that makes us different is out underwriters. We have two designated underwriters - one that pre-underwrites every file and then one that does the final underwrtiting and approval. And those underwriters see every single file that we turn in. We have a very close relationship with our underwriters. If we ever have a question, I simply open the door next to me and ask the underwriter the question. very different than if you're living in brokerland and you're firing off and email to someone who's never met you before. We have access to the answers immediately.
We also have a team lead. The team lead is really our concierge. Their job is to send weekly updates, answer all the questions, schedule the closings, send the wire instructions. Take care of all the little details that make a big difference between just getting a mortgage and having a service that you can remember.
Lastly, we offer marketing help. We have a remote marketing campaign person who works on different campaigns, joint campaigns between us and the agents we serve.
That's a little about the Agent Success Program. We invite you to fin out more. It certainly would be our pleasure to help you and your clients with your next transaction.
Josh Mettle and Shan Lassig were on Good Morning Utah on ABC 4 to talk about Utah Real Estate.
Josh and Shan talk about the differences between short sales and foreclosures, the need for a real estate agent, and what your credit score needs to be in order to buy a home.
Utah Physician Home Loans Interviewed By whitecoatinvestor.com
How did you get started doing this?
My first day of work as a loan officer was September 11, 2001. It wasn’t a great day for business. In fact, as you’ll recall, no one was really sure whether they should do any business at all for about a week after that. I worked for a number of years primarily for Citywide Home Loans. After a while, I realized that more and more physicians were coming to me and we really hit it off. They were great clients to work for and we found if we really treated them well, they’d treat us well by referring their friends and colleagues to us. So I did a lot of research into all the various loan programs out there specifically for doctors and started Utah Physician Home Loans on the side and began marketing specifically to doctors.
So, are you a broker or a lender?
We are actually a correspondent mortgage lender. We end up funding about 90% of the loans we do and basically serve as a broker on the other 10%.
Why just Utah?
Actually, we also offer doctor’s loans in Arizona, California, and Colorado. Most of the options I can offer are available in all those states, but all of them are available in Utah. Plus I live in Utah so it is easier to focus there.
Do you do conventional loans too? Or just “doctor’s loans?”
More than anything, we’re a problem solver. We just have more tools in our belt than most. The doctors who tend to find us through our online marketing generally do so because they’ve run into road blocks elsewhere. No one will lend to them because they have a lot of student loans. Or they don’t have a down payment. Maybe they want a loan that is above the conforming loan limit ($417,000 in many counties.) Or they haven’t actually started work yet. Sometimes they have no equity because they’re just coming out of residency, or they took a bath on their last home and are relocating.
I basically look at their situation and then recommend an appropriate loan product for them. Sometimes that product is a 20% down conventional mortgage and not a doctor’s loan at all. I do a lot of those, especially for doctors referred to me by other doctors. They don’t have any specific problems that require a special loan to overcome, they just want to be treated right. Occasionally, I don’t have a loan that overcomes that particular doctor’s issue, such as a doctor who wants a 0% down loan. In those cases I refer her out to some other lenders for their specialized products. But most of the time, I’ve got something that overcomes their issue. For example, I have one loan that I can close on a month before they start their job and they won’t owe a payment until they’ve been on the job for two months. That’s a great option for a relocating doc.
So how much more does it cost to get a doctor’s loan? How much higher are the rate and fees?
Usually it ends up being 0.5%-0.75% higher for a doctor’s loan compared to a conforming 20% down mortgage. The fees are higher as well, perhaps 1/4%. The cheapest money out there is from Fannie Mae or Freddie Mac (i.e. a conventional loan), but you have to fit into their little box to get money at that price. Many doctors, especially relocating doctors, just don’t fit into that box, but they still want to buy a home. I can help them do that.
Do you use doctor’s loans for refinances?
Usually not. It just ends up being so much cheaper to get a conforming loan. Usually by the time a doc is ready to refinance, he’s paid down the loan enough to get a regular mortgage.
What about second homes?
There isn’t much product out there for that. It’s mostly all conforming (20% down) loans.
Investment properties?
Same issue. You pretty much need 20-25% down so not much point in using a doctor’s loan.
I see you offer a relocation service. Is that a separate business in addition to the physician home loan business?
No. This is basically a perk of using us for your loan. There’s no cost to the doctor. We do it in conjunction with Utah Cribs, a realtor. Once we do the pre-approval for your loan, you fly out here and we pick you up at the airport in our 2010 Cadillac Escalade. We take you around and show you the nice neighborhoods and any homes you want to see, then drop you off at a nice downtown hotel and leave you the car for three days. We pay for the hotel, the car, and tickets (if available) to local sporting events or ski resorts. There’s no obligation to use us for your loan or Utah Cribs as your realtor, but obviously we’re hoping you do. It’s money well spent in my opinion since we plan to be here a long time and building these relationships pays off over time in additional business.
Thank you Josh Mettle for your time and your support of this site.
Jeff Thredgold Event Highlights
Utah Economic Outlook
Winter 2012
Written by Jeff Thredgold, President, Thredgold Economic Associates
Economic Consultant to Zions Bank
NO ONE HORSE TOWN
Utah economic fortunes continue to improve, with solid performance in a variety of employment sectors. The Utah economy currently ranks third of the 50 states as measured by the growth rate of employment during the past year, trailing only North Dakota and Oklahoma, each significant energy players.
The Utah economy added 32,000 net new jobs during the most recent 12-month period, a 2.6% growth pace. Recent data now suggests the Utah economy has regained roughly half of the jobs lost in late 2008 through early 2010 resulting from the nation’s and Utah’s most serious recessions since the Great Depression.
A favorable development within the Utah economy is the increasing diversification of employment. Five major employment sectors have added at least 5,000 net new jobs during the past 12 months manufacturing; trade, transportation & utilities; professional & business services; education & health services; and leisure & hospitality.
In addition, the Utah natural resources sector added 800 net new jobs, a growth pace of 7.3%. Such diversification bodes well for Utah in coming years to help absorb shocks to any one sector. The state will also benefit in 2012 and 2013 as additional employment activity is recorded in the residential home construction sector, an area where thousands of jobs were lost during the past four years.
JOBLESS DECLINE
The state’s unemployment rate declined to 7.0% in the latest month. Such a rate compares favorably to the 9.0% average U.S. unemployment rate of the past three years, as well as various months early in 2010 where Utah’s rate reached 8.0%. However, the current 7.0% rate pales versus the 2.8% average Utah rate during 2006 and 2007. We do anticipate measurable declines in the Utah unemployment rate during 2012 and 2013.
TOP RANKED BUSINESS
Utah continues to do very well when compared to the 49 other states as an attractive place to live, work, recreate, and raise a family. Forbes magazine ranked Utah #1 in the nation (for the second year in a row) as the best state in the U.S. for doing business and establishing a successful career. “No state can match the consistent performance of Utah,” noted the article.
The survey measured such components as business costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. Utah’s moderate overall cost of doing business, including much lower energy costs, contributed to the top ranking. In addition, the state continues to rank at or near the top as being the best managed state in the nation.
TOP RANKED SKIING
Deer Valley Resort was recently named North America’s top ski resort (for the fifth straight year) by readers of Ski magazine. Three other Utah resorts: Park City Mountain Resort, the Canyons, and Snowbird, ranked among the top 20 resorts. When considering the quality of snow, Utah resorts claimed six of the top 10 spots. In addition, Park City Mountain Resort ranked first as a “family vacation” destination.
OTHER STRENGTHS
The state’s oil and natural gas sector has performed well in recent years. For the first time there are more than 10,000 producing oil and gas wells in the state, according to the Utah Division of Oil, Gas and Mining. Utah currently ranks 11th in the nation in crude oil production and ninth in natural gas production.
The Wall Street Journal recently ran a cover story entitled “Where the Action Is.” It reviewed seven communities across the nation where industry hubs are drawing entrepreneurs and investors. The only community mentioned in the Western U.S. was Ogden, Utah. The article reviewed the growth of the outdoor sports gear industry, where “manufacturers are pouring into this small city, lured by easy access to Olympic facilities and pristine terrain for testing products.”
A recent story in The Salt Lake Tribune noted the significant growth that could soon occur in the state’s aerospace and high-tech manufacturing industry. Three companies already doing business in Utah could soon expand their investment and employment substantially to take advantage of solid demand for their products and a business-friendly Utah economy.
UTAH IN 2012
The state’s economy is expected to continue the rebuilding process in place for the past two years. Increasing diversification of Utah employers, combined with high regard for Utah as a place to do business, bodes well for Utah and its residents for years to come.
Government Shut Down Would Slow the Real Estate Market
Josh is on ABC 4 news talking about how a government shut down would slow the real estate market.
Recording of Citywide LO Marketing Meeting with Josh Mettle And Other Top Citywide Producers
The Citywide LO Marketing Meeting with Josh Mettle And Other Top Citywide Producers held on August 20, 2011 is available here. Please listen in to this awesome day of brainstorming and coaching! Here’s what we talked about:
- Best practices from Citywide’s top 5 LOs. What’s working now in 2011 to produce business in our local markets.
- Tips and techniques for time blocking (so you can actually implement what you’re going to learn).
- Easy to remember system to communicate better and build better relationships with your clients, REALTORS and referral partners.
- Live question and answer session with 2011’s top producing LOs.
Streaming Recording of Citywide LO Marketing Meeting, Part 1
Straming Recording of Citywide LO Marketing Meeting, Part 2
Dowload Recording of Citywide LO Marketing Meeting, Part 1
Download Recording of Citywide LO Marketing Meeting, Part 2
1st Mud Run MS Utah
I had a blast at the 1st Mud Run MS Utah and helped raise money for a great cause – the National MS Society:
“Mud Run MS is a 10k course with a series of boot camp style obstacles, most of which contain water and mud! 100% of the money raised by participants will benefit the National MS Society:
I was one of approximately 350 runners that rallied together to get dirty for a good cause and combined we raised$50,000 for multiple sclerosis research and local programs and services for people impacted by the disease. It was an fabulous time and reminded me what incredible power people have when united and focused on a goal.
Thanks to the great support I received from so many of you that supported me (you know who you are). What a great time and a great cause. Thank you so much!
How to Find the Best Real Estate Deals On the Market Today and How to Qualify for Zero Down Mortgages
Now you can download or listen to a seminar Josh presented in April on How to Find the Best Real Estate Deals On the Market Today and How to Qualify for Zero Down Mortgages.
Here's a little of what Josh talked about:
- Where to find the best deals on the real estate market today
- How to qualify for zero down mortgages
- The difference between Annual Percentage Rates and your Interest Rate
- What Mortgage Insurance is and how to avoid paying it
Streaming Recording of Seminar