Physicians Loans -- selling/buying and crossing state lines

[Joshua Matthews]

I have a broke MD friend who is finishing residency in Indianapolis, but is transferring to Buffalo for his next phase of training. 

He owns a house here that is worth maybe $50-60k more than he bought 4 years ago, in a neighborhood that will only get better -- thanks to a 0% down Physician's Loan. 

He and his family, of course, are transplanting and would love to buy in Buffalo, and would like to landlord in Indy, buy #2 in Buffalo. 

The catch? He's still broke -- paying his mortgage and food bill off of DraftKings bank roll. And his wife is a stay-at-home mom to their 1 year old. 

What's your suggestion? 

1) can he obtain a second physician's loan? or is that a one-and-done opportunity? or if he moves his current primary into an LLC (adding today's interest rates) and rents that property; can he get a second? does crossing state lines help/hurt?
2) or do you think he should sell and take his equity to Buffalo? 

They anticipate being in Buffalo only three years, and likely NOT moving back to Indianapolis. 

[Eric Veronica]

HI Joshua, 

Physician loans can vary  from lender to lender so I will speak to my physician loan program at First Federal Lakewood.  

He can use a the physician loan with zero down to purchase a new home.  In order to cover closing costs there are a couple different options.  We will allow to the physician to take a slightly higher rate and recieve a lender credit from us.  If you increase the rate by .20% then we will provide you with a lender credit equaling 1% of the loan amount.  The physician could also ask the seller to contribute 3% of the purchase price to offset closing costs. 

Our physician loan program is eligible in 14 states but unfortunately NY is not one of them.  Pennsylvania is eligible but that would be at lease an hour from Buffalo.