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Physician Loan underwriting if contract is RVU based

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  • Physician Loan underwriting if contract is RVU based

    I've been lurking on WCI for a few months, lots of great advice! I've searched all over for our specific scenario though, and haven't found much in my research.

    Husband is in his final year of EM residency. He has a signed contract in a major metro in TX, there's no non-compete clause in his contract (aka if he hates this first job, we still plan to live there and find new work; it's also close to an airport if he wants to do Locums). So, we expect to permanently set up shop there as our home, instead of renting for a year.

    We are planning to purchase a house. I am pretty sure we won't qualify for a conventional mortgage since we don't plan on using my current income in underwriting (I'll be SAHM once we move) and he's been making a resident's salary. We basically don't plan on moving, ideally ever (lol), so we want this to be our "forever home." I'm thinking a Physician Loan is the way to go to get us where we want to be when we want to do it, unless our loan officer/underwriter gets a lot of policy exceptions waived. Unique to our situation: zero student loans, zero other debt, good credit, between 15-25% possible down payment based on trust fund gift.

    I'm just wondering how an underwriter is going to approve the loan based on his contract. The contract is RVU-based, with no base level dollar-per-hour. However we did have them write in a minimum $/hr for the first 3 months of employment (well, they'll pay him either that or the prevailing RVU rate if he generates > the $/hr listed rate). They list how many hours approximately he'll be working per month in the contract.

    I'm thinking that the underwriter will probably just use the guaranteed $/hr for the first 3 months of the contract x the low end expected # hours/month to estimate future income for DTI calculation, and justify approval based on the rest of our financial situation, but...

    Has anyone had any experience getting a home loan approved with an RVU based contract? Any hiccups? How long do we need to be talking with a lender/getting approvals/etc if the plan is to move ~10 months from now?

  • #2
    Yes, you can do this without too much hassle. The only question is whether you should. It sounds like you've read what I've written on the subject and decided you still think buying right away is the right move, so here's the people who can help you:

     

    https://www.whitecoatinvestor.com/websites-2/physician-mortgage-loans/
    Helping those who wear the white coat get a fair shake on Wall Street since 2011

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    • #3
      Thanks. Just wanted an idea of how flexible underwriters are on approving loans based on physician contract language.

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