I remember seeing some posts about good loan officers before. Do you have any recommendations? Someone that can understand business owners, physicians etc. Need a fairly decent sized loan.
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We used to have a lot of threads where loan officers sought business. What happened to those thread?
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They’re still lurking on the sidelines…
As for finding a lending specialists with unique Self-Employed and/or Physician loans five short points to consider.
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Almost every quality rate QM loan provider has the identical guidelines for Self-Employment as everyone else. There just isn’t an undiscovered way to view the Self-Employed borrowers income. As well, if the OP’s ask for a lender recommendation is derived from a rate issue, the kinds of loans discussed here are not rate, but ability driven. One should not expect market terms for a non-market applicant.
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Physician Loans are primarily low down payment loans. The few that really, really offer them (other than those who say they do - and there are plenty like that) are listed here: The 7 Best Physician Mortgage Loans of 2021
Please note that some programs are not structured for every kind of Doctor - a Teaching, Research, or non-practicing Medical Doctor might be excluded from some Doctor programs.
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There are Sub-$1m low down payment loan options that are not targeted to those in the medical practice, but have open minded approaches to the Self-Employed. For example, I’m working with a 10% down, sub $1m loan amount borrower with 1 month 2019 self employment, 12 months in 2020, and SE through April 2021. Most companies will average 2019/2020 and “forget” 2021 income. That’s often a deal killer. We’ve been able to use 2020 1040’s averaged over 12 months as qualifying Self Employment. The reasons why this works - 10% down, sub $1m, and key - filed 2020 tax returns, not extended.
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Given the market price velocity in the Bay Area, there are Owner Occupied Non-QM lending solutions with minimum down payments with loans above $1m but rarely above $2m. Some have rates in the 4’s with less than 20% down and fewer than 24 months self employment. A rate in the 4’s when the market is in the 3’s can be a rough thing to accept, but it is sometimes the only way to buy. Once 2021 returns are filed, there could be a chance to refi - not a certainty - but a chance. Once you get 12 or so payments made refi options will multiply.
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The Self-Employed have a business bank relationship. Most business banks will work with customers on a portfolio loan - even thought the lending solution is not framed as a “Doctor’s loan”. First Republic comes to mind here. (I don’t work at FR, but they are a high net worth focused bank with portfolio lending options)
There’s plenty more that can be discussed on this subject, but each borrower has their own quirks and circumstances unique to their long term goals. Anyone who has had success lately in their endeavors as a Self Employed borrower should comment when possible. Information is power…
Thanks for reading,
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@LbJW how are the rates for cash out refinance on primary these days ?
For Loan size of approximately 1.2-1.4M
Thanks for the shout out.
So many factors go into a deliverable (key word) rate quote - loan to value, how much cash is needed, property type, occupancy, employment, FICO, loan type - that it’s really not possible to give even a broad answer of substance here.
In some cases lender won’t give cash out refis to the self employed, to those who had a forbearance, to those who only have 401k’s for cash reserves, etc, ad nauseam, ad infinitum. In some circumstances a Home Equity Line Of Credit or an Interest Only 10/1 ARM would be a better way forward,
PM me some of the details and I can get a better idea for you.
LoansByJW