Physician / Doctor Loan

[Gordon A.]

Hello, first post here. A buddy and I (both doctors) are looking to get our feet wet in the in the 'buy and hold' real estate market in the Dallas area. We were wondering if we could use the 'Doctor Loan' program as a type of house hack rather than a FHA (3.5% DP w/ PMI and you have to live in the SFH / MFH for a minimum of 1 yr). The Doctor's Loan usually asks for only 5% DP w/o PMI. However I have not been able to get a concrete answer on the requirements as they relate to living in the house. I have heard 2 differing opinions; A: If I were to attain this form of a loan and not live in the house it would be considered fraud. OR B: Once the loan is approved and the money is out of escrow the bank is not concerned whether you live there or not.

So my questions are

a. Is there a time frame stipulation like that of a FHA?

b. Can you use it for a multifamily unit?

c. How would a partnership effect the borrowing aspect of the deal?

Any thoughts or advice?? Thanks!

[Ruth Bayang]

You might find this thread (https://www.biggerpockets.com/forums/432/topics/36...) useful @Jay Helms 

Also, I don't see any harm in mentioning your REI in casual conversation. The question: what's new with you? or what's up? is asked frequently.