Law School Discussion

100% Financing for Attorneys

100% Financing for Attorneys
« on: March 01, 2011, 01:45:22 PM »
Hey dudes.

So, if I pass the bar this summer, I'm going to be an attorney.  I have a job lined up (not one of those super-fancy biglaw ones, but one I am very excited about), and I would like to buy a house ASAP.  Some of you will probably be all like, "omg you can't buy a house because you need to save up a ton, you could lose your job, etc."  Some concerns might be valid, but I think they are outweighed by the fact that (a) home prices are expected by most analysts to start rising about 3.5%+ starting mid-2012, (b) owning a home means mortgage interest deductions, which means about 1/4 of the monthly payment is given back, (c) about 1/10 of the payment is saved in principal, and most importantly, (d) most analysts expect interest rates to start rising pretty significantly.  A 2% rise in interest rates is a big difference in monthly payments. 
Now, some of you folks might be all like, "analysts are stupid!!  they were wrong recently!!"  Well, yes, but if you just assume everything is totally random and equally likely and just ignore what the experts think because they've been wrong in the past, then I think your strategy is bad.

So, anyway, the point of this is to post nice banks that offer predatory loans with 100% financing, preferably specifically for Attorneys so that they offer better rates.  So far, I have found one:
RBC Centura.  No PMI payments, 100% financing to Professionals (doctors, lawyers, etc.)

Does anyone else know of any banks that offer 100% financing mortgages to entry-level attorneys?


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Re: 100% Financing for Attorneys
« Reply #1 on: March 02, 2011, 08:07:07 AM »
Can you tell me the population of the city or town you want to live in?  If you are in a designated "rural" area (a suburb may qualify) you should look into a USDA loan.  They offer 100% financing and it's guaranteed so lenders love them.

Here's some information
Sorry if this doesn't apply to you.

Also, it looks like you've done your homework, but there's no way to tell how much you know about mortgages, so I'm sorry if you already know everything I'm about to say.   Depending on your credit, you might be able to use an equity down payment.  Many homes are actually being sold for lower than the appraisal amount. (I get that this is ridiculous because appraisals are really based on sale prices, but whatever).  I would recommend that you go into a local credit union and ask if they do mortgage loans. Talk to their mortgage guy and he will give you a pretty honest run down of the options.  Most credit unions with mortgage departments offer a huge variety of products and they are usually less "predatory" than a large lender.

Next, make sure that rental prices in your market aren't a lot better than a monthly payment would be.  In my city, that's not the case.  It's actually way cheaper right now to pay a mortgage payment because everyone is renting homes and apartments out for old market rates.  While you can buy a 2000 sqft home for 1100 a month, renting the same home would cost 1400-1500. 

If you have the option to rent for a cheap price, you can save the money you don't spend on rent and use it for a down payment.  That might actually get you a better program or interest rate when you buy a home in six months or a year.